Currency Shift Boosts British Auto Exports Amid European Sales Slump
What happened
The British pound has weakened against the euro, moving from 1.6 euros per pound ten years ago to 1.15 euros today. This change has made British exports significantly cheaper while making British imports and vacations in Europe more expensive. As a result, British car manufacturing achieved all-time export records in 2012, shipping over 1 million cars out of 1.5 million produced.
From spacewar.com
Why it matters
The currency shift provided a competitive advantage for British exporters, even as auto sales dropped sharply in key European markets. For instance, French registrations fell 15 percent, and Italian sales dropped 17.6 percent. The report also noted that US auto manufacturers were concerned about lower prices for Japanese imports following a sharp fall in the Japanese yen.
From spacewar.com
Who's involved
- BMWGerman automobile manufacturer mentioned in relation to investment pipeline
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- BMWSpeculative
The currency shift might boost car manufacturing and sales for British exporters.
- European Central BankSpeculative
The drop in car sales in France and Italy could negatively impact the economic stability managed by the European Central Bank.
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The entities involved
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BMW
German automobile manufacturer, and conglomerate
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Europe
terrestrial continent located in north-western Eurasia