The rapidly falling dollar presents much more of a concern for Richard Davidge, owner of Eurocar Ltd., than for most.

For the Pembroke-based car dealer is starting to feel the pinch as the euro, and ultimately the cost of buying from the European and Asian markets, rises dramatically.

And he is left just waiting for a turnaround in the strength of the dollar compared to its European competitors, the euro and the pound.

"It is very hard to compete right now because our vehicles come from Europe and we have a European contract and it is putting a strain on the profitability of the company," he said.

"We are trying to keep the prices down because we have to compete with others, but the profit margins are being squeezed to almost zero."

Mr. Davidge lays the blame for the weakness of the dollar fairly and squarely at the door of the US economy and believes only the US can do something to alleviate the problem and the knock-on effect it is having on the rest of the world markets.

"It is very tough right now because of the way the economy in the US is struggling," he said.

"All of our vehicles are imported from Europe or Asia, so there is nothing from the US and hence no US automobiles imported to make business easier.

"The fact that the euro is stronger just magnifies the problem because of the high duty rate that we have on our vehicles as well.

"I doubt very much if the Bermuda Government could do anything about it, it is the US Government that needs to do something to make the US dollar stronger.

"Unfortunately it is a part of life that we have to deal with — I hope it turns soon because it makes cars more expensive to afford."