Are Canadians being screwed by car prices?

http://autos.sympatico.ca/waste-gate/8666/canadians-screwed-by-car-prices

(watch the video for details on this story)

In a word, "Yes".

This came up in 2006 as well, when the Cdn $ was almost par with the US.  http://www.ctv.ca/CTVNews/TorontoHome/20060621/auto_prices_060621/.  At the time we were paying 17% more on average than our US counterparts.
The long and the short of it is, while Canadians are still buying new cars in Canada, the prices will stay high.  It's the same thing with housing.  Until people stop buying houses, the prices are just going to continue to edge higher and higher.
It really doesn't matter the purchase is.. the market will always adjust to the highest amount people in that market are willing to pay.