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Audi’s US Factory

[picapp align=”center” wrap=”false” link=”term=audi&iid=9039823″ src=”http://view4.picapp.com/pictures.photo/image/9039823/2010-audi-best-buddies/2010-audi-best-buddies.jpg?size=500&imageId=9039823″ width=”380″ height=”253″ /]

Audi wanted to build a factory in the US in order to circumvent a strong Euro that threatened to hurt German exports in late 2009. Now they have changed their mind (story). They don’t want to build that factory in the US anymore because the Euro weakened considerably against the US dollar during the last 6 months.

Does anybody at Audi have a clue about economics? If you want to build a factory in the US because you are afraid of currency fluctuations, then go on and do it! Paper currencies fluctuate all the time. Sometimes the Euro is stronger, sometimes has the dollar the upperhand. It’s almost impossible to predict the EUR/USD exchange rate five years from now. If you build a factory, it is supposed to be open for a few decades. So if you want to build a factory on the basis of long-term currency disadvantages of Germany, then your decision shouldn’t change every six months.

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