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      09-12-2007, 08:00 PM   #18
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Drives: E30 M3; Expedition
Join Date: Apr 2007
Location: USA

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The Dollar hits all time low against the Euro

This happened today. The exchange rate must have some kind of an effect on US pricing. I have no idea what the projected profit margin for US sales is supposed to be on this car, but you'd think it must have shrunk considerably given the recent trends in the exchange rate (I am assuming the majority of the production is done in the EU). Projected supply/demand curves will be the main factor in determining the price, but profit margins, and the effect of the exchange rate on the margins, cannot be ignored. Not good news.