Bond Carmaker Shaken And Stirred By No-deal Brexit

The boss of James Bond's favourite carmaker Aston Martin expressed alarm on Thursday at the prospect of a no-deal Brexit.

Aston Martin chief executive Andy Palmer was questioned by reporters about whether the luxury group was less exposed to a hard Brexit than the rest of the sector.

"We are less exposed but equally p*ssed off," he said, prompting laughter in the press room of a conference hosted by the Society of Motor Manufacturers and Traders (SMMT).

The UK industry organisation has long argued that a no-deal Brexit would ramp up costs and damage supply chains – while tariffs would undermine competitiveness and bite into profits.

Palmer admitted on Thursday that Aston Martin – whose cars play a starring role in the fictional British spy's blockbuster films – was able to pass on rising costs more easily than most competitors.

"From a pricing point of view, we have more elasticity around pricing because it is a luxury good," said Palmer.

"So, if tariffs come in place, you could argue that we have a greater ability to pass that onto the customer.

"You also have to note that because we trade and manufacture in pounds, if there is a hard Brexit then the pound will collapse – our cars get cheaper and basically we can compensate for the tariffs.

"On the other hand, Ferrari, Lamborghini, etc, are importing into the UK – which is our second biggest market after the US – and they are less competitive than (carmakers in) the UK."

But he continued: "The bigger deal is around importation of parts. A substantial part of that comes from the European Union.

"You can't make cars on a just-in-time basis if you haven't any bits – and getting your bits through Dover/Calais, particularly at the start of a no-deal Brexit, is of concern." (AFP)