Porsche warns of Brexit price hike on UK cars

The imposition of tariffs of up to 10 percent in case of a hard Brexit could take the shine off sales of cars imported into Brit
The imposition of tariffs of up to 10 percent in case of a hard Brexit could take the shine off sales of cars imported into Britain

Porsche customers in the UK should brace for a price hike of up to 10 percent in case of a hard Brexit, the luxury German carmaker warned Monday.

The company said it had taken the "precautionary step" of informing customers whose cars are due to be delivered after March 29, the day Britain leaves the European Union, that they could become more expensive if new border tariffs are imposed.

"As one potential outcome of the Brexit negotiations, there is a possibility that a duty of up to 10 percent may be applied to cars imported into the UK," Stuttgart-based Porsche said in a statement, adding that drivers could still make changes to their order.

Customers who had already paid a deposit by January 17 will not be affected by the potential tariff hikes, it added.

It remains uncertain whether Britain will strike a deal with the EU by March 29, and have joined other industries in calling for urgent clarity on what the future trade relationship might look like.

Business leaders fear a hard or no-deal Brexit could lead to import duties on EU goods arriving into the UK and different regulatory requirements that would badly disrupt supply chains.

Porsche sold 14,000 cars in Britain in 2017, making it the firm's second-biggest market in Europe after Germany.

According to Bloomberg News, the starting price of Porsche's Macan compact SUV would jump from £46,344 (52,880 euros, $59,825) to £50,978 if the 10-percent surcharge were imposed.


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Citation: Porsche warns of Brexit price hike on UK cars (2019, February 18) retrieved 18 February 2020 from https://phys.org/news/2019-02-porsche-brexit-price-hike-uk.html
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