Topgear News
BSA Potential Currency Difficulties
Posted on May 4, 2005 @ 10:20 amAlloy wheel trim maker BSA’s earning may be in risk of dropping if the value of the ringit (Malaysian currency) were to decrease in value, due to a large amount of its business being conducted in US Dollars. This is bound to filter outwards, when they would be forced to increase their average sales price to reach higher profits.
BSA manufacture in Malaysia but import all over the world, including the UK and it’s likely a drop in their sales will impact the rest of the Alloy Wheel market. They aim to increase the size of their trims to 26inch in order to secure sales and profit at the end of this year, safe-guarding against the effect of the currency value decrease.
There doesn’t seem to be much negativity surrounding the potential change however, as BSA have just bought a factory in China which is now able to produce up to 500,000 alloy wheel trims annually. A sign that such commodities are popular enough to allow companies to take up the slack when economies flex.
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