UK Markets closed

Porsche warns UK buyers of 10% Brexit surcharge

Lianna Brinded
Head of Yahoo Finance UK
German carmaker Porsche hosts a photo tour showing the production and the manufacturing of the new Macan in Leipzig, Germany, December 13, 2018. Photo: REUTERS/Matthias Rietschel/File Photo

One of the world’s most iconic luxury carmakers warned that it may slap on a 10% surcharge onto a Porsche (PAH3.F) vehicle after Britain leaves the European Union on 29 March, this year.

In a statement to Yahoo Finance UK, it said that “this is a precautionary step in the interests of allowing our customers to plan ahead.” It added that “the current state means a further period of insecurity and planning uncertainty.”

The price rise would mean an entry-level Porsche 911 priced at £93,110 ($120,153) would rise to £102,421.

Here is the full statement given to Yahoo Finance UK from a Porsche spokesperson:

“We are keeping a very close eye on developments and reviewing the entire spectrum of possible effects. For us, the current state means a further period of insecurity and planning uncertainty. In light of the current difficult situation we continue to prepare for all eventualities.

“When our customers are looking to order a car, we try to keep them informed with as much information as possible – this includes any changes outside of our control that may affect the price of the car they’re interested in purchasing.

“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 29th. In light of this Porsche Cars Great Britain has 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.

“This is a precautionary step in the interests of allowing our customers to plan ahead, should this situation arise. Customers who have placed deposits on or before January 17th this year will not be affected by this change.

“Like the rest of the industrial sector, we need comprehensive clarity on the shape of future relations between the United Kingdom and the European Union very quickly.

“For the automotive industry, open market access and clear customs processes have priority in order to avoid any negative impact on just-in-time production and our European supply chains.”

The German car firm’s owner Volkswagen (VOW.DE) has not declared whether its other luxury brands, such as  Lamborghini, Bugatti, and Ducati will follow Porsche’s suit. VW also has not confirmed whether its more affordable lines, such as Audi, Skoda, and Seat, will incur a Brexit price rise.

It is currently unclear what the trading conditions will be like in a post-Brexit Britain. There is still a possibility that the UK will leave the bloc without a deal, meaning all rules and regulations between the parties will cease to operate in the same way.