Speaking to Dow Jones Newswires, German-based suppliers Continental and Bosch both suggested they look to customer regions to provide a natural shield of protection against shifts in currency prices.
Speaking to the newswire, Ingo Rapold said: “Our basic strategy for the hedging against currency risks is at first to reach a maximal natural hedge.
“We usually look at three-year periods and try to hedge up to 40% for the next 12 months – for the second and third year, the ratios are lower.”
A spokeswoman for Continental added that by basing production in customer markets, the business is protected from fluctuations in currency prices and means “currency risks are relatively low”.
The euro has been on the rise due to a growing sense of confidence that the eurozone is slowly recovering from the economic mire that it has been in since the on-set of the world economic crisis.
