Report – PSA first to strike after Brexit, raises prices in the United Kingdom image

The French automaker seems to be the first to have a negative reaction against the Brexit vote of UK citizens, and it’s highly unlikely they will remain the only ones to have a price hike as backlash.

Britain’s decision to start the procedures of exiting the European Union is still echoing throughout the automotive industry – one of the strong components of the country – and PSA has decided to increase the prices of its products there because it wants to cope with the losses incurred by the falling English pound. The range of the Peugeot, Citroen and DS Automobiles brands are now on average two percent pricier starting August 1, according to a recent report. Since the Brexit became official at the end of June, the pound has dwindled about 10 percent against the euro. This is particularly problematic for PSA, because all of the group’s vehicles are imported in the country.

If other companies are following suit, the experts are predicting there will be a major impact on the market, with a big drop in British new vehicle sales. Already for the year the analysts are predicting about 120,000 lost sales compared to 2015, and the figure could rapidly climb to 900,000 vehicles over the next couple of years.

Via Automotive News Europe