If you know about risk hedging (forex arbitrage, futures, currency-forward contracts, in-country operations, tax strategies, etc), including that fact that BMW AG has a $5B, 10,000 employee US subsidiary operating in US currency, then why would you say:
Quote:
Originally Posted by jpdchicago
If the dollar loses 50% of its value within a few months (and it has in the past - in the eighties) BMW will get only 50% of the original value (original set price at model launch) in Euros.
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I can't think of a way to be more currency hedged than to have massive US operation and payroll, not to mention all the clever forex shit I'm sure BMWAG finance is up to.
Unless currency fluctuations are massive and sustained BMW probably isn't affected.
Just like large airlines aren't (much) affected anymore by fuel price fluctuations:
NEW YORK (Reuters) - Delta Air Lines has hired a consultant to assess the impact on jet fuel prices if the carrier sells or closes the Philadelphia-area refinery it purchased five years ago to keep fuel affordable, two sources familiar with the process said.