Aston Martin chief executive said the brand could benefit from a weaker British pound following the Brexit vote.
UK’s decision to leave the European Union had an expected hit on the pound, a situation that might not be so gloomy for the automakers with operations there. But only from a short-term point of view. As most of them are heavily relying on exports, especially directed at the EU zone, a weaker currency could mean a small gain in profits. “A weak pound obviously helps our exports in terms of profit-per-unit,” Aston Martin CEO Andy Palmer told Automotive News Europe. However, the Brexit impact will definitely show its negative consequences over UK’s automotive industry on longer term. Such a profit gain due to the pound’s predicament will be history if the country exits the free trade zone and tariffs are enforced. Aston Martin sends around 80 percent of its production out of UK and 15 percent arrives in Europe. “There are two unknowns: What effect the shock will have on the luxury car market, and what tariffs, if any, will exist between us and the EU,” he said.
But the British premium sports maker has also other worries on its mind. It has been struggling to make some profit and the last year’s financial report showed a pre-tax loss of 127.9 million pounds (170 million dollars) in 2015, nearly double compared to a year earlier. Aston Martin said that it sold 3,615 cars last year, down from 3,661 in 2014.
Via Automotive News