Time To Buy That European Dream Car!
Thinking about buying that midlife crisis Boxster? Better get on with it. Citing the dollar's weakness against the euro, the Wall Street Journal predicts that the price of cars imported from the Eurozone will rise over the next year. So far, European automakers have been able to hold the line on price using currency hedging, which "lock in" exchange rates. Unfortunately for German car lovers, the contracts are due to expire. BMW and Mercedes will probably continue to rely on their US-built products to fill the profit gap, and hope the situation reverses itself. VW says they're fully hedged for 2007 and "more or less fully hedged for 2008." After that, it's anyone's guess what they'll do: build factories in the US, turn to China for production and/or raise prices. Porsche? Audi? Price hikes. Jaguar? The sooner it's someone else's problem, the better Ford's gonna feel.