BMW Reports Unconcern for Rise in Euro

German company BMW has acknowledged that it can withstand the euro's gain on the dollar. Contributing to this position by BMW is the protection against currency swings, which BMW says will allow them to benefit from another year of export growth.

BMW also expects the euro to be close to its current value of $1.36 against the dollar at the end of 2005. This is in line with several other large European Operations' forecasts for 2005.

"Exchange-rate risks can be minimized with hedging contracts as well as producing and purchasing abroad,'' said BMW spokesman, the world's second-largest maker of luxury cars, which manufactures the BMW Z-4 Roadster and BMW X-5 luxury SUV in Spartanburg, South Carolina. BMW also said it currently "doesn't engage in additional hedging because we consider the dollar to be undervalued.''

Falling oil prices have also contributed to BMW's unconcern about the effect of the euro's current rise.