pennetta

BMW plays the currency market through currency hedging. They do this for ten years into the future so the current dollar value does not affect them like you would think.
We are purposely devaluing the dollars because it helps us become more competitive with our exports to other countries.

westcoast550

You have been drinking right, Your economy could implode with that rationale !

pennetta

It's economics 101, and you can't argue with our continued success.

MidnightRider

MacSid - your math on a well spec'd 550 in the US is not correct. I just paid ~$66K on the 08 550 listed in my signature including all taxes and registrations. It would be a ~$4000 more without the ED.

poleposition

We are??? It does???

You sure????

RichReg

BMW themselves stated that they were only hedged up to the beginning of 2006...so their contracts have expired.
I really find it hard to believe that they would go out as far as 10 years because hedging itself is not exactly cheap.
Since it costs a helluva lot of money to control a helluva lot of money, there comes a point in time where its cost-effectiveness
is just not there anymore.

Also, our government doesn't have a clue. Devaluing our currency doesn't necessarily mean that more countries will buy our products.
The product itself has to be up to par. In fact much of Europe is quite nationalistic and I wouldn't expect anyone to buy something just because its cheaper. Fords & Chevrolets here in the U.S. happen to cost less, but you aren't driving one of those, are you?

westcoast550

I guess you need to define success , the US economy needs to BUY things , and with the greenback hovering like the peso in world economic terms the mid to longterm does not look rosie..... You have an election coming soon ...... there are some huge macro issues the US needs to consider .... the short term view of the current "regime" is not playing the long game economically..... anyway what happenned to your race with the 550 guy ... this has been the longest foreplay to date

FRANK970

Wow, I find your perspective on the value of the dollar and the macroeconomic issues that are creating its value very interesting. I guess that is why it is continuing to happen. We were fortunate enough to have a political system that forced our citizens to go through some tough times in the 90's, which now has resulted in a significant shift from growing deficits to growing surpluses. Of course the spike in oil and other commodity prices doesn't hurt either.

MacSid

My math is all for a car ordered and delivered in the Netherlands. The US$ numbers there are merely euro-to-dollar conversions of the Dutch prices for illustrative purposes. You guys pay a heck of a lot less than that for your cars.

jelski

Paying a lot of tax has benefits? What benefits? Less money in your pocket so your car is lighter and goes a little faster?



I love the USA!
[/quote]
the us is a cool country as long as your healthy and rich else i wouldnt change it over europe.