erik.wahlstrom

With the Euro trading ~30% lower than a year ago, does anyone have any insight into if/how this will impact 2016 prices?

ccA4SEA

Can't imagine it will, pricing is set based on local market conditions so unless demand falls off and competitors drop their prices, don't see it changing. In addition pricing plays a roll in perceived image of the brand and being a Premium/Luxury brand that's not something Audi is not likely touch after having worked past 20+ years to revitalize the brand and bring to where it is today here in the states. They keep setting sales records too so not like they are having a problem moving product at current prices.

erik.wahlstrom

This will be true for all European cars. I don't know how the financial side works between dealerships and Audi proper. But assuming:
1) Dealers buy cars from Audi
2) U.S. dealers pay in Euros
Dealers will be paying a 30% less than a year ago. If #2 is wrong, and they pay in $
to Audi, then audi will be making 30% more this year than last for U.S. cars. Either way that is a lot of money on the table. If the exchange rate stays as is for a while its hard to believe there won't be a discount coming.

roger_1

Nice thought, but there won't be a discount.

ccA4SEA

Only time exchange rates will really impact pricing on a consumer good is if the dollar gets very weak against the country where the product was made, then prices will go up. This happened with digital SLRs and lenses from Japan some years back and prices have never come back down even though the dollar has strengthened significantly. Businesses are in the business of making money and if they can make more money without raising prices even better. Only on globally traded commodities will the value of the dollar have any real impact on the domestic price.

jagtoes

Yes , they will not be lower then last years prices. It will make no difference in the US

Moviela

Dealers buy cars from Volkswagen of America, and always pay in dollars. They use the funds to pay US expenses, then send control of the dollars to Europe. The financial bosses then exchange currency depending on favorable tax treatment, bank rates, Euro capital needs, and dividends to EU stakeholders.

It is interesting to note that luxury goods makers have reduced prices 20% in Asia. When watches and pens are cheaper in Europe people buy them there, cutting the local shops out. That should keep the shoppers in Singapore.

Hard to do that with a car because importation of foreign market cars is prohibited except for a very few people like diplomats.