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Effect of Weak Dollar on Bike Prices



 
 
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  #1  
Old February 20th 05, 04:35 PM
RP10128
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Default Effect of Weak Dollar on Bike Prices



I am thinking of getting a Giant or a Specialized. But I am concerned
that the price of these bicycles has been driven up by the weak dollar.
Does anyone know if that is the case?

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  #2  
Old February 20th 05, 04:59 PM
Ryan Cousineau
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In article ,
RP10128 wrote:

I am thinking of getting a Giant or a Specialized. But I am concerned
that the price of these bicycles has been driven up by the weak dollar.
Does anyone know if that is the case?


Not so much. The Taiwanese dollar has gone from about 34.9 to the USD to
about 31.5 to the USD in the last two years. That might affect Giant's
prices slightly, but changes in Shimano component pricing are probably
more important.

Specialized is a nominally American brand, though I'm not sure how many
of their bikes are built in the US, or by whom. I may be falsely
accusing them, but I suspect high-end stuff gets done locally, while
mainstream bikes get built in Taiwan.

World bike production is now starting to move to mainland China as well,
and since China continues to peg its currency to the USD, there should
be no currency issues there.

The reality is that price competition and the ongoing commodification of
previously-exotic parts (carbon fibre especially) has made a much bigger
difference in bike pricing than currency changes. The exception might be
for European-made parts and bikes, but I haven't paid much attention to
those lately.

--
Ryan Cousineau, http://www.wiredcola.com
Verus de parvis; verus de magnis.
 




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