Porsche has informed customers who have orders in the pipeline that they may be liable for an extra 10 per cent in the event of no Brexit deal.
With the clock ticking down to the Brexit deadline on 29 March, Porsche has decided it’s time to keep their customers informed about costs a no deal Brexit might mean.
If the UK does leave the EU without a deal, then WTO rules will apply, and that will probably mean import tariffs of 10 per cent on cars, adding anything up to £20,000 to the price of a new Porsche.
Under WTO rules, the UK won’t be able to reduce standard tariffs for imports from any country unless it has a trade deal in place. And, if there’s a no deal Brexit, the default tariff will apply.
Porsche say the potential tariffs will only apply to cars ordered since 18 January, and the announcement was intended to help customers plan properly. The statement from Porsche 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.
Clearly the statement is designed to raise the rhetoric as well as inform customers, and it’s a statement which applies to every car coming from Europe (and any car currently imported to the UK from a country with which the EU has a free trade deal) in the event of us leaving the EU with no deal.
Although it’s a pretty unlikely scenario.