The currency value loss attributed to the Brexit has already started taken its toll on certain automakers – causing price hikes at most of them.
Carmakers such as Ford, Vauxhall, and Nissan have decided to raise prices in England as a response to the ongoing value loss of the pound against the euro, triggered by the UK’s vote to leave the European Union. According to reports, General Motors Europe President Karl-Thomas Neumann confirmed prices of Vauxhall models will rise by more than two percent. Nissan also said it will lift prices by one-and-a-half to two percent starting this month, with Guillaume Cartier, head of sales and marketing of Nissan Europe, saying this is actually only the “first wave” of price increases.
Peugeot started rising prices since August – by two percent, while Ford opted to raise them by 1.5 percent last month. Market researchers JATO Dynamics claim Honda and Suzuki are also considering a hike. Ford, Vauxhall, and Nissan all have manufacturing bases in the country, with Ford saying the post-Brexit turmoil will deliver a hit of $400 million of $500 million next year. Meanwhile General Motors has announced it will have losses of $400 million during the second half of this year. Great Britain is Europe’s second largest market for new cars.