Dollar versus Euro cost inflation for European goods in USA?

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Oct 14, 1998
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I have been doing some preemptive car shopping and have been comparing foreign and domestic makes. After getting over some sticker shock and doing some more research, I have begun to wonder how much of the cost is due to a weak US dollar relative to the Euro.

This is most tangible and obvious when comparing European airgun prices this year versus last year. Retail prices have literally risen 30% in many cases.

When I look at a car like the Audi S4 , I wonder how much of its $50K sticker is currency inflation. The new Volvo's like the S60R are also carrying a hefty pricetag. I can sort of see the Volvo's price when compared to something like a Subaru WRX when you factor in things like superior interior materials and workmanship but, it still seems to carry a heft premium.

Sure, there is some marketing and exclusivity mark up in the price because these are specialized cars but, there is a lot of value in the technology and construction that is based on the Euro. If the dollar gained value relative to the Euro, would the price of these cars come down some to be more competitive with domestic USA makes?
 
Dollar Hits 5 - Month High Against Euro

We shall see :D

Actually, many Europeans have been complaining that the seemingly artificially weak dollar has been harming their ability to export to the US market and boosting US exports instead.

Their complaint has been that the euro is unnecessarily strong.
 
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