Not only is the weak dollar making it tough for U.S. tourists to vacation in Europe. It's also making it hard for European cars to come to the United States.
In Tokyo last week, there were rumblings that the battered dollar is having a significant impact on the U.S. auto market.
At the Tokyo auto show, Volvo CEO Fredrik Arp said U.S. dealers could be in for some tough years because of the anemic U.S. currency. Exchange rates are making it hard to sell Volvos profitably in the United States, he said, and things aren't likely to get better for at least three years.
"Pricing in the American market is relatively low in a global perspective," Arp said. "We have to be selective and reroute business elsewhere. We have to find a balance so that North American dealers can get a good product lineup while the company profits."
DaimlerChrysler CEO Dieter Zetsche said the weak dollar also is likely to keep the next generation of Mercedes-Benz small cars from the United States. Mercedes-Benz can't price B-class or A-class cars high enough to make money here, he said.
"We have no specific plans yet to introduce any of the next-generation cars," referring to the A and B classes.
Even if the dollar strengthens, Volvo "needs to get used to" a long stretch of the euro trading at about $1.30, said Magnus Jonsson, senior vice president of r&d. Last week things looked even worse: A euro was worth about $1.40.