Porsche has just rolled out a document that includes a clause stating potential buyers agree to the potential addition of tariffs after the U.K. exits the European Union (EU) next month.
According to Forbes, the Stuttgart-based auto giant warned their customers ahead of Brexit that they may see a 10 percent increase. The company referred to the move as a "precautionary step in the interests of allowing our customers to plan ahead."
The company said in its notice to auto enthusiasts that buyers who will most likely have their cars delivered after Brexit could see higher prices in their tabs due to additional tariffs as a result of Britain's departure from the EU.
For the past years, Porsche grew to become one of the most profitable auto manufacturers in the world. Bloomberg Data revealed that the car seller gained an average of €15,000 per car that was purchased in 2018.
It is worth noting that one of Porsche's biggest markets in the United Kingdom. Over 12,500 cars were sold in the country, accounting for 4.9 percent of total sales last year. With the impact of Brexit on sales, it is expected that even supposedly resilient companies like Porsche may go through difficulties.
Porsche clarified that customers who submitted deposits on or before January 17 will not be impacted by the 10 percent increase, BBC News reported. For Rebecca Chaplin, editor of Car Dealer magazine, the notice came at a bad time since buyers are still in search of certainty on how things will work out after Brexit.
Furthermore, AA President, Edmund King stressed that retail networks will not be able to absorb additional costs since they are already dealing with import tariffs that increase car prices with or without tariff impositions in the Brexit aftermath.
On the other hand, the popular automaker is expected to keep thriving in other countries as the latest data from J.D. Power U.S. Vehicle Dependability allowed the company to make in the list of most reliable cars this year. Some analysts said dependability is a strong convincing attribute to keep orders coming.
According to USA Today, the Volkswagen Group brand bagged second place, behind the Toyota Lexus. Porsche's 911 sports car shared the second spot with Toyota's namesake brand.
Despite good results, Vice President of Global Automotive at J.D. Power pointed out that there is still a lot of work to be done for Porsche and other top brands to completely claim reliability. "Vehicles are more reliable than ever, but automakers are wrestling with problems such as voice recognition, transmission shifts, and battery failures.
