US Exchange Rates - Purchase impact?

[Dabjbr]

No financial wizard and curious of your thoughts…

The strength of the US dollar continues to rise. It’s nearly 1:1 to the Euro. Who knows how it will compare when the Emira is finally ready for US buyers.

That said, how might the rising US dollar impact US pricing and profit/loss for Lotus?

 

[mjw930]

Global manufacturers use more long range FX averaging and don't tie pricing to daily/weekly/monthly trends. They do, however, report FX and it's effect on their earnings reports. I suspect prices in the US will be adjusted up due to overall inflation though the current valuation may blunt that somewhat. For example, if UK prices go up 5%, US prices may only rise 3%.

 

[~el~jefe~]

it will do nothing. China geely will enjoy ripping off US Customers is all. probably increase the price more for fun. Our dollar is worth a lot more than the pound now but pricing will be the same US dollars.

 

[Nova]

No financial wizard and curious of your thoughts…

The strength of the US dollar continues to rise. It’s nearly 1:1 to the Euro. Who knows how it will compare when the Emira is finally ready for US buyers.

That said, how might the rising US dollar impact US pricing and profit/loss for Lotus?

Obviously, a rising dollar makes it easier for Lotus to keep prices low in the US market, but FX rates will likely play a relatively minor part in the pricing of Lotus. There are many other factors at play, such as incredible unmet demand in the US, which will pull the price higher. I would expect subsequent year cars to experience 10% or more price increases if the current situation persists.