| Author | Message | ||
| Rijk Rietveld (Rijk365gtb4)
Member Username: Rijk365gtb4 Post Number: 309 Registered: 1-2002 |
The Euro is almost back at the level when it got untroduced (1.18$ for 1 Euro). In other words, if prices remained stable, only the excess profits (up to 30% when the $ was at 0.84 �) have disappeared. For areas where the markets have adjusted it means that currently it becomes attractive to import US Ferraris into Europe. Even with the 6% import tax. And importing Euro versions to the US is useless. Rijk | ||
| Ze Shark (Ze_shark)
Junior Member Username: Ze_shark Post Number: 75 Registered: 7-2003 |
This is where Ferrari is going to be a big looser. The $ has gotten so low against the � that, when a big chunk of your sales are in $ (the american market) and all your costs (labour, materials) are in �, profit margins will drop. Tough to be hedged in such conditions. Not to sure if the article you refer to was talking about new cars or second hands. I can't see how it could affect the new car market (other than hurt Ferrari's bottom line), but I guess it is credible that the high end 2nd hand market could be affected. Wealthy european & japanese buyers, armed with their euros and yens could affect the high end of the market. For more conventional models, I think that the (in)practicalities of buying a car overseas will prevail. | ||
| 911 Fan (911fan)
Junior Member Username: 911fan Post Number: 84 Registered: 5-2003 |
It'll be interesting to see what the strong Euro does to 04 F-car prices in the US. Normally, manufacturers have to worry about losing sales when they raise prices but when all of your production is already spoken for (at least for the 360), why worry! | ||
| DES (Sickspeed)
Senior Member Username: Sickspeed Post Number: 7301 Registered: 8-2002 |
Tyson, thanks... So basically because the US dollar is "less" of a dollar than the Euro, it's cheaper for Europeans to buy US cars and US sellers realize this and jack the price, with Europeans still coming out on top...? That's bugged out... Eric, what you last makes sense now that i've read Sheehan's article... Thanks, guys...  | ||
| Eric Vartanian (Evartanian)
Member Username: Evartanian Post Number: 286 Registered: 3-2002 |
Not that late over here bud. I'm up late usually though anyway. But, you kinda see what I'm getting at with this. Such differences in exchange rate, all other things equal, might upset an equilibrium in the price causing folks to pick their cars up elsewhere, unless prices at home drop. Anyway, that's it from me on this issue. | ||
| Tyson Hall (Trhall)
Member Username: Trhall Post Number: 443 Registered: 6-2003 |
DES check out this article by Michael Sheehan http://www.ferraris-online.com/Articles/SCM_0307.shtml | ||
| DES (Sickspeed)
Senior Member Username: Sickspeed Post Number: 7299 Registered: 8-2002 |
Eric, my mind is a terrible thing to face - i'm in DESperate need of sleep but throughout the week, my mind picks up and retains certain things and i don't always have a chance to immediately unload them, so they stay in there until i've some time to release... The article actually generated a few questions, but i wanted to keep them separate... Once we get through this question, i'll start another thread with my next one... Um, what are YOU doing up...? | ||
| Eric Vartanian (Evartanian)
Member Username: Evartanian Post Number: 285 Registered: 3-2002 |
Des, why are you up? J/K, I imagine if the exchange rate favors a strong US dollar, cars could be bought cheaper somewhere overseas. Obviously there would be conversion costs, etc. I figure that might be what they're goin for. Anyone else have any better guess at that? | ||
| DES (Sickspeed)
Senior Member Username: Sickspeed Post Number: 7294 Registered: 8-2002 |
In a recent issue of Sports Car International (yellow Gallardo on the cover), there's an article about the current Ferrari market and some prices of some mid-eighties-'til-now cars... i'm not really into the Ferrari market, 'cause well, it's just not something that matters right now, but i was able to grasp most of the article... ...except for one thing... Somewhere in the article, it was mentioned that the currency exchange rate from the US to another country (can't remember, sorry) has an effect on the current market... i don't understand that... What does that mean...? How does that come into play...? Among other notables, Gerald Rousch's name was mentioned, along with his Ferrari Market Letter, which was quoted as being the bible of the Ferrari market; thought it was cool to see Gerald's name in the article and learned that he's been doing the FML for 28 years... i guess my question is for Gerald and/or others who have a substantial understanding of the whole market thing... Thanks, folks... |