Monday, June 13, 2011

Benefits of a Weak Dollar

With the dollar’s current weakness against the Euro, Pound and other foreign currency, many European automakers have decided that the US is too big of a market to give up due to poor currency exchange rates. So, why not reverse the problem and start building cars stateside for super cheap and sell them in Europe where the currency is as strong as ever. Audi, VW and a few other brands have decided to open production facilities here in the US to offset the current currency disparity. Where this will leave them in a few years when the Dollar recovers is anyone’s guess, but with a greater value to the US Dollar, this will lead people to buy more cars and in turn, the car makers will export less cars to Europe and just sell them in the USA to prevent what’s happening now when cars are built in Europe and sold in the states.