Porsche warns of Brexit price hike on UK cars

Porsche said it had taken the 'precautionary step' of informing customers of possible price hikes. — Reuters pic
Porsche said it had taken the 'precautionary step' of informing customers of possible price hikes. — Reuters pic

FRANKFURT, Feb 18 — Porsche customers in the UK should brace for a price hike of up to 10 per cent in case of a hard Brexit, the luxury German carmaker warned today.

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 per cent 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 car manufacturers 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 (RM244,375) to £50,978 if the 10-percent surcharge were imposed. — AFP

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