Home Business NewsBusinessAutomotive NewsAston Martin luxury cars could be cheaper after a no-deal Brexit

Aston Martin luxury cars could be cheaper after a no-deal Brexit

by LLB Politics Reporter
4th Apr 19 12:20 pm

Andy Palmer the chief executive of Aston Martin Lagonda has suggested the car manufacturer could benefit should the pound collapse in the event of a no-deal Brexit.

James Bond’s favourite car could become cheaper to buy, should the UK leave the EU without a deal in place.

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Palmer told the automotive conference in London that the UK company is โ€œless exposedโ€ however, equally frustrated over the prospect of a hard Brexit.

Palmer said, โ€œWe have more elasticity around pricing because itโ€™s a luxury good.

โ€œIf tariffs come in place you can argue we have a greater ability to pass some of that on to the customer.

โ€œWe also note that because we trade and manufacture in pounds, if thereโ€™s a hard Brexit the pound will collapse, our cars get cheaper and we can compensate for the tariffs.โ€

Palmer warned, the impact on the supply of materials from Brexit is โ€œunwelcome.โ€

โ€œThe bigger deal is around importation of parts. A substantial part of our car comes from the European Union.

โ€œIf you cannot make cars on a just-in-time basis, you have to do it in bits. Getting your bits through Dover and Calais, particularly at the start of a no-deal Brexit, is of concern.

โ€œWe think weโ€™ve done everything we can to preserve those supply chains.

โ€œWeโ€™ve increased stock, weโ€™ve changed our supply channels. Weโ€™re already bringing parts in through different ports.โ€

Aston Martin has increased their UK based content of their vehicles byond 55%, should the UK trade under the World Trade Organisation rules once the UK leaves the EU.

Palmer added, โ€œAll of this is unwelcome. We are absolutely behind the principles of free trade all over the world but in terms of โ€˜are we ready for a no-deal Brexitโ€™? I think weโ€™re as ready as one can be.โ€

In February the James Bond car maker revealed they are to set aside ยฃ30m for Brexit no-deal contingency planning, the car maker posted ยฃ68.2m annual losses.

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