Strong euro prompts manufacturers' threat

Geneva, Switzerland -- The weakening dollar has forced major European manufacturers to consider moving production to dollar-based economies, an industry coalition said.

On Monday, the AeroSpace and Defense Industry Association warned of "massive relocation of aerospace production capabilities … to U.S. dollar priced locations, where labor costs are approximately 30 to 40 percent lower than in the euro zone," The New York Times reported.

As a sign of the shifting currency values, European Aeronautic, Defense and Space company Airbus is raising prices of the super jumbo A380 plane by $4 million, the Times reported.

EADS also announced Tuesday it would purchase a California security systems company, PlantCMI for $350 million, in part to strengthen its presence in a dollar-based economy.

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