Home Business NewsBusinessAutomotive News Aston 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 “less exposed” however, equally frustrated over the prospect of a hard Brexit.

Palmer said, “We have more elasticity around pricing because it’s a luxury good.

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

“We also note that because we trade and manufacture in pounds, if there’s a hard Brexit the pound will collapse, our cars get cheaper and we can compensate for the tariffs.”

Palmer warned, the impact on the supply of materials from Brexit is “unwelcome.”

“The bigger deal is around importation of parts. A substantial part of our car comes from the European Union.

“If 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.

“We think we’ve done everything we can to preserve those supply chains.

“We’ve increased stock, we’ve changed our supply channels. We’re already bringing parts in through different ports.”

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, “All of this is unwelcome. We are absolutely behind the principles of free trade all over the world but in terms of ‘are we ready for a no-deal Brexit’? I think we’re as ready as one can be.”

In February the James Bond car maker revealed they are to set aside £30m for Brexit no-deal contingency planning, the car maker posted £68.2m annual losses.

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