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Impact of weak euro lifts Europe's carmakers

But analysts, citing forex hedges by the firms, warn investors that gains will be limited and may take time

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BMW used derivatives to hedge up to 60 months of foreign currency sales in 2013, according to its annual report. It has also managed currency risks by increasing production outside the euro area, including at new plants in the US, China and Brazil.

London

THIS year's 12 per cent plunge in the euro has ignited the biggest rally on record in carmakers and helped push the DAX Index above 12,000. Demand for ways to protect those gains is also soaring.

Options on BMW and Volkswagen are the most expensive in more than two years

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