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There is no such thing as 'free market'. And if there was one, it wouldn't be the market for cars. Each car does not have to turn a profit. There are never two identical cars on the market, and if there were, brand reputation will make them different. Also, marketing works for a while, so you can sell quite a few sub-par overpriced cars with the help of decent marketing, before people figure it out. Once they do - the brand reputation suffers. So it's all very multi-faceted. Exchange rates are only marginally important, otherwise we'd be all driving Chinese cars already.
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