I don’t believe the European cars will get more expensive as the dollar gets weaker. They still have a big competition from the Japanese who will produce better cars everyday. The Infiniti, Lexus, Acura is already at a $5-10k discount compare to similar European. Since the Yen is tracing the dollar pretty closely, their cars will still be just as cheap. If the European cars gets 10-20k more expensive, would you buy a base 3-series/C-class or a loaded GS460/M45 etc?
Since the Yuan is still pegged to the $, their goods will still be cheap to us and their labor will stay cheap compare to our labor, so I don’t foresee too much manufacturing jobs moving back to the US from China. I agree we probably will see double digit rates to increase the strength of the $ as well. The European Union and Canada probably won’t let the US devalue the $ much longer before they start to do something about it.
