The weak dollar is drawing a new group of Europeans to shop in the U.S. -- for European cars.
More Europeans are turning to the U.S. to buy luxury cars, from Porsche 911s to Volvo 4x4s, and then shipping them back home. The cheap dollar and competitive pricing in the slow U.S. market can yield savings of as much as 30% of the cost of similar models in Europe, even after costs of transporting the cars and complying with different emissions standards.
Because cash-strapped Americans are shunning car showrooms, new clients should be good news for U.S. dealers. But the car makers, anxious to protect European margins that are often much fatter than those in the U.S., are fighting the trend, enforcing nonexport agreements in place for decades.
Reimports of used cars have surged the most. It is still hard to bring a new European car back to Europe. Approved U.S. dealers for most European brands that are caught selling new cars to be shipped back can face penalties or fines by the auto makers. And many European customers are reluctant to buy new cars from the U.S. because modifications needed to meet European road-safety and emissions requirements invalidate the U.S. warranties. The fact that cars were first registered overseas can also affect resale values in Europe, the companies
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