Porsche warns UK customers of Brexit price rise

Mechanic polishing Porsche carImage copyright
Reuters

Porsche is warning new customers they might have to pay 10% extra for their car in the event of a no-deal Brexit.

The German manufacturer is asking buyers to sign a clause in contracts agreeing to pay the potential tariff on cars delivered after 29 March.

Porsche said: “This is a precautionary step in the interests of allowing our customers to plan ahead.”

A 10% surcharge would see the cost of an entry-level Porsche 911 rising from £93,110 to £102,421.

Porsche is owned by the Volkswagen group, whose other brands include Audi, Skoda, Bentley, Bugatti, Lamborghini, Seat, and Ducati motorcycles.

Volkswagen had yet to respond to questions about whether other divisions could follow Porsche’s move.

Stuttgart-based Porsche said in an emailed statement to the BBC: “As one potential outcome of the Brexit negotiations, there is a possibility that a duty of up to 10% may be applied to cars imported into the UK by us after March 29.

“In light of this, we have chosen to inform customers whose cars are likely to arrive after Brexit occurs to warn them that they may be affected by this tariff – allowing them to be fully informed at the point of sale and, if they wish, to adjust their order accordingly.”

Bloomberg, which first reported the news, quoted Porsche as saying that it needed “comprehensive clarity” on future UK relations with “the EU very quickly”.

Customers who have placed deposits on or before 17 January will not be affected by the change, Porsche said. The company has no UK manufacturing, so all its cars are imported.

Fears dismissed

The Society of Motor Manufacturers and Traders would not be drawn on the issue, saying it did not comment on the actions of individual manufacturers.

AA president Edmund King said: “Import tariffs alone could push up the list price of cars imported to the UK from the continent by an average of £1,500 if brands and their retail networks were unable to absorb these additional costs.”

Executives at several carmakers have expressed fears about the risk of tariffs, which they say could disrupt production and exports when the UK leaves the EU next month.

Last week, Ford warned that a no-deal Brexit would be “catastrophic”.

However, Leave supporters have dismissed fears over tariffs on imported cars, arguing that German manufacturers would oppose such an obstacle to one of their biggest markets.

The UK is one of Porsche’s biggest markets. The company sold 256,000 cars worldwide last year, with more than 12,500 in Britain.

The company, famous for its red sports cars, makes a range of other models. Current prices of its Macan sports utility and Boxster models start at about £46,000.

https://www.bbc.co.uk/news/business-47270616

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