Topic: Prepare For Germans To Raise Prices First In USA

[gord_boyd]

Today Euro worth $1.517 versus par about Q42003.
I put this in here with hope prices won't rise as much
in Canada.  It offers a further opportunity to level the playing field with
US Market.  Hope BMW is reading forum.

[aquadorhj]

we canadians are already paying ~30% premium on german cars domestically compared to US since becoming par to US$(slightly hovering over par yesterday or day before), so if germans feel the need to increase price in Canada...  well, they are just being a holes.

[davidm]

I expect CDN prices to remain the same and US prices to take an uptick.  They'll fix the discrepancy not by making ours cheaper, but by making US cars more.

[marineboy]

With the US economy tanking I do not forsee that the Europeon auto manufactures will raise prices at all, not if they wish to maintain volume. I'm sure they have hedged their market strategy to absorb these cyclic currency fluctuations already.

[davidm]

With the US economy tanking I do not forsee that the Europeon auto manufactures will raise prices at all, not if they wish to maintain volume. I'm sure they have hedged their market strategy to absorb these cyclic currency fluctuations already.

I'll admit I haven't looked at the data, but I don't believe there is anything cyclic about the Euro/US$ change.  Also, they are clearly hurting because of the currency when you look at their press releases.  Most talking about adding manufacturing capacity in the US to take advantage of the currency spread.

[Cord]

I expect CDN prices to remain the same and US prices to take an uptick.  They'll fix the discrepancy not by making ours cheaper, but by making US cars more.

The funny thing is that higher U.S prices would be cheered by many Canadians. As the OP said, it would help "level the playing field." The old axiom still applies: people rarely get upset that they can't afford something, until they find out someone else might get it cheaper.

[saskwheatfarm]

VW might be producing cars in the USA to counter this

http://www.thestate.com/business/story/304245.html

[mmret]

VW might be producing cars in the USA to counter this

http://www.thestate.com/business/story/304245.html

Hehe. The USA is now a low cost manufacturing center!

[johngenx]

With the US economy faltering and most German products priced on the premium side of the market, good luck with raising prices to counter the ailing US dollar.  All those salary earners that stretched to make the lease payment on an MB or BMW will now be leasing Accord and Camrys again...

[sailor723]

Given the soft economy I can't see how any manufacturer will be able to raise prices to any great extent in the coming year. If anything it's going to be a dog fight to keep the same piece of a shrinking pie.