Business World

Wednesday 17 July 2019

Porsche warns customers they might have to pay extra for their new cars after Brexit

Porsche Taycan
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German sports car firm Porsche is warning new customers they might have to pay extra for their new cars after Brexit.

Buyers placing orders are being asked to sign a clause in their contracts saying they would be prepared to cover the cost of a potential 10pc tariff.

In a statement, the Stuttgart-based car maker said: "As one potential outcome of the Brexit negotiations, there is a possibility that a duty of up to 10pc 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.

"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 17 this year will not be affected by this change."

A 10pc price increase would see an entry-level example of the Porsche 911 rise to £102,421 from £93,110.

Porsche is part of the Volkswagen group, which also includes Seat and Audi. The company did not respond when asked if it is making similar preparations for the other car brands.

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."

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

But a string of bosses at British car makers have expressed fears about the risk of tariffs, which they say could disrupt production and exports.

PA Media

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