With the U.S. dollar's decline against the euro, the Wall Street Journal's crystal ball gazers have determined that the price of vehicles shipped over from the old world are set to rise in the next year. European manufacturers have been able to lock exchange rates by buying contracts that keep currency fluctuations at bay, but for some automakers abroad, that's about to change. Those contracts are set to expire soon, and that means either prices will rise or European automakers will have to begin producing their wares in the Land of the Free.
Profitability may be sustained in the short term by BMW and Mercedes, as U.S.-built products are used as a tourniquet to slow the financial bleed. Volkswagen is supposedly in good shape through next year, but the idea of building more vehicles here in the States has been mentioned numerous times. Plus, there's always the option of building in China, something that's inevitable given the "flat" world in which we're living.
[Source: Wall Street Journal]