Quote:
Originally Posted by dth656
but wouldnt BMW hedge against such currency fluctuations? i had a friend who worked at GM treasury, and his time was spent devising elaborate hedges against currency movements. because GM sells/makes cars in so many markets, they were most concerned with reducing GM's exposure to the downside of the currency fluctuations.
that being said, i realize that no one can eliminate risk completely, but my impession is that you can hedge against a certain amount of it.
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BMW hedges:
http://www.bloomberg.com/apps/news?p...&refer=germany
When Lotus was raising prices on the Elise what seemed to be about every six months, we discussed that on various forums. Now the car is $6K more than when they introduced it three years ago. They don't have the size or cash to do what BMW does and they have to pass everything along to the customer much more quickly.