The Connection Between Currency Exchange Rates And Cars
When most Americans evaluate the global aspects of the auto industry, the issue of currency exchange is rarely discussed. However, currency exchange rates are of pivotal importance to all automakers. What follows is a simplified illustration of currency exchange and how it can impact profits.
Hopefully, it will be more interesting than it sounds!
Let’s start with the basics – the approximate costs and profits in an average $20,000 vehicle.
The percentages above are based on Toyota’s 2005 financial statements, one of the most profitable years in the history of modern vehicle manufacturing (Toyota made in excess of $12 billion in 2005). This is the best-case scenario – most
Filed Under: Auto News