Strong Euro Dampens Car Industry Profits

Germany's car makers will be among those businesses hardest hit by the continuing record values of the euro, according to a survey of 278 financial analysts released on Tuesday. Car manufacturers have to buy a large part of their raw products inside the euro zone and sell their cars in dollars, according to the study commissioned by the Center for European Economic Research in Mannheim. The analysts said they expected an average exchange rate of $1.235 per euro over the next six months, adding that this was still a level that would decrease profits for German exporters.