Quote:
Originally Posted by Ibiza
At the end of the day profits from BMW NA goes back over the Atlantic to BMW AG. Less euro's to AG's pockets when nearing parity, thus needs more USD.
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Again, no that's not correct. As the Euro falls and the dollar gets stronger, the dollar buys more Euro's, they get MORE euro's as we near parity.
Example: Euro is $1.30
BMW sells a car for 10,000 Euro. To get that same 10,000 Euro it must sell for $13,000.
As the Euro drops to say $1.07 which is where it is today, you must sell it for $10,700. Why is that? Because now your $13,000 buys 12,149 Euros.
So again, you are not correct. As the Euro falls and the dollar gains strength it results in more Euros. It's not the reason prices are going up.