Updated: Porsche ‘listens to market’ and cuts Canadian prices by 10% due to exchange rates

Update: Four residents in Toronto are planning to file a $2 billion class-action law suit against the major carmakers and their respective dealers because of claims vehicle prices in Canada are artificially higher than in the U.S. The suit covers consumers who bought cars between August, 2005, and August, 2007, a period when the Canadian dollar was rapidly appreciating, reports the Financial Post.

The rise in value of the Canadian loonie means the cost of imports being bought with the Canadian currency should have dropped, a fact many Porsche buyers are well aware of. Porsche Cars North America has now announced that it will "listen to the market" and cut the price of all its 2008 models in Canada by 10% as well as upgrade the equipment list.

Now the door is left open for buyers to demand other brands to do the same and reduce the prices on their own respective imports. Unfortunately, as one BMW dealer reported, many buyers are crossing the border and buying cars from the U.S. where prices are usually cheaper. The loonie is almost on par with the U.S. dollar and earlier this week was even priced above it. One study found that Canadians would save on average $14,000 by buying a car in the U.S., reports the Globe and Mail.

Other car companies are now considering dropping their prices as well. A Jaguar rep said they were assessing the situation, while a BMW spokesman said their cars were already competitively priced.