Forex Strain Drives Passat To Mexico

May 2006 | Company Finance Alert

Germany's Volkswagen is reportedly considering shifting production of its Passat model for the North American market to Mexico, as the dollar's fall against the euro puts a strain on the manufacturer's domestic operations. Speaking at press conference in Athens, VW head of production and former VW Mexico president Reinhard Jung, stated that there are exchange rate costs, which cannot be ignored. He added that any time he euro rises above US$1.25, it puts a financial strain on the German

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