Effect of Weak Dollar on Bike Prices

Discussion in 'Cycling Equipment' started by RP10128, Feb 20, 2005.

  1. RP10128

    RP10128 Guest

    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. In article <[email protected]>,
    RP10128 <[email protected]> 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, [email protected] http://www.wiredcola.com
    Verus de parvis; verus de magnis.
     
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