The Connection Between Currency Exchange Rates And Cars
Jason Lancaster | Dec 02, 2009 | Comments 4
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.
See how currency exchange rates impact the auto industry
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.
Vehicle production costs as a percentage of MSRP
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
This article demonstrates the difference between the average Tundra driver and everyone else. If you posted something like this on a Chevy Forum they would lose people to exploding head syndrome. Of course there are no posts here yet so…….
Jeremy – This article hasn’t had too much response, but maybe it’s confusing. I spent some time trying to make it easy, but I feel like it could be better…thanks for the vote of confidence, btw.
My first time seeing it. It’s a dooozzzyyyy. Jason it’s so right and no one I bet took this into count when they state it all goes back to Japan. Very good info. I can hear Mt. St. Helen’s rumbling.
Thanks!