Aston Martin CEO finds short-term Brexit benefit

Aston Martin will see a short-term monetary gain from the crash in the pound’s value following the UK’s choice to leave the European Union, CEO Andy Palmer stated.

The automaker develops all its cars in the UK and exports about 80 percent of it manufactures aboard. “A weak pound undoubtedly helps our exports in regards to profit-per-unit,” Palmer informed Automotive News Europe.

The cost of the pound sank to 1.20 euros on Monday, below 1.36 at the start of the year, and to $1.33, down from $1.47 over the same duration.

Palmer, however, said any currency advantage could be offset by the potential imposition of tariffs on exports into mainland Europe, where Aston Martin offer about 15 percent its yearly volume, and a decrease in sales as a result of lower customer confidence in the after-effects of the vote.

“There are 2 unknowns: What effect the shock will have on the high-end car market, and exactly what tariffs, if any, will exist between us and the EU,” he stated.

Palmer gotten in touch with the government to rapidly begin trade talks with the EU. “The most crucial thing is to soothe things done. The commitment of the government is to attempt and work out tariff-free barriers into Europe,” he stated.

Aston receives all its engines from Cologne, Germany, however the percentage of UK-sourced parts in its vehicles was high enough for the company to expect a gain from the weaker pound for the cars it offers outside the nation, Palmer stated. The automaker counts on the UK for 20 percent of its sales, he stated.