The Impact of Exchange Rate Fluctuations on the Stock Prices of Automotive Exporters: A Comparative Analysis of the United States and Germany

Xiaoling Yuan; Yunqi Li; Hanyu Wang; Lehan Zhang

doi:10.54254/2754-1169/2025.BJ25884

Advances in Economics, Management and Political SciencesOpen access

The Impact of Exchange Rate Fluctuations on the Stock Prices of Automotive Exporters: A Comparative Analysis of the United States and Germany

Research Article

Open Access

The Impact of Exchange Rate Fluctuations on the Stock Prices of Automotive Exporters: A Comparative Analysis of the United States and Germany

Xiaoling Yuan ¹, Yunqi Li ^2* Hanyu Wang ³, Lehan Zhang ⁴

¹ University of Edinburgh

² The Ohio State University

³ Minhang Crosspoint High School

⁴ University of Bristol

^*Corresponding author: Li.13222@osu.edu

Published on 13 August 2025

AEMPS Vol.209

ISSN (Print): 2754-1177

ISSN (Online): 2754-1169

ISBN (Print): 978-1-80590-309-3

ISBN (Online): 978-1-80590-310-9

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Abstract

This paper examines the mechanism through which exchange rate fluctuations impact stock prices by comparing two major automotive export companies—Ford and BMW—from the United States and Germany. The study is based on stock price and exchange rate data from 2005 to 2024, employing time series regression methods to analyse their sensitivity to different exchange rates (e.g., USD/EUR, USD/JPY, etc.). The results reveal that Ford exhibits a significant positive response to exchange rate changes, particularly USD appreciation, indicating that its cost structure is highly sensitive to exchange rates. In contrast, BMW has significantly reduced the impact of exchange rate fluctuations on its stock prices through effective financial and operational hedging strategies. The study highlights the role of corporate hedging strategies and macroeconomic conditions in the exchange rate transmission process, contributing to empirical research on foreign exchange risk management for multinational corporations.

Keywords:

exchange rate fluctuations, stock price reactions, multinational corporations, automotive industry, risk hedging.

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