The “Brexit” causes a rise of prices in the Uk


Models manufactured in Uk exhibited in Paris

The fall of the pound sterling was going to have consequences at some point in time, and the british are already starting to suffer from it to walk from a dealership. Various manufacturers have raised their prices by up to 2% in new cars to try to cushion the fall of the local currency, following in the footsteps of PSA in August.

Among these manufacturers are Ford, Vauxhall (General Motors), Nissan, Honda or Suzuki. The quotation also affects the vehicles produced within the United Kingdom, as they have to purchase components in continental Europe, where the euro is used. The single currency is trading better, and it takes more pounds to give the same amount.

The fall of the pound is advantageous in the case of exports pure, as in the countries of destination the rate of exchange is more favorable. United kingdom is the second european market by volume, behind only Germany, and has been increasing steadily for many months in a row. The “Brexit” will break that streak, but he is not noticing to a great extent.


sales continue to grow in the Uk full year, but are cooling

Was PSA the first manufacturer that rose prices in the first place, but on the occasion of the Paris Salon several colleagues have admitted raising prices in September to reduce the bleeding of revenue. Obviously the rise does not compensate for the loss of money that has caused the collapse of the pound by all the fear that is in front of the “Brexit”.

Of time the manufacturers are watching to see what happens, if the situation continues to be uncertain, there may be a second price rise. Ford gives lost more than 60 million euros, General Motors raises that figure to 400 million euros in the second half. Is more, were it not for the “Brexit”, General Motors Europe would have given benefits to a full year, something that hasn’t happened in this century.

The fear of the industry is not only to a drop in sales of cars-that also – but qhat will happen to the domestic production of vehicles. Uk is a manufacturer of potent and exports the vast majority of what it produces. Honda, Toyota, Vauxhall, Nissan, Jaguar Land Rover… have a great industrial fabric.


the United Kingdom is benefiting right now, like any member country, of an absence of tariffs community by the freedom of circulation of goods. In the best cases, the Uk would be in the area EFTA (free trade), like Norway or Switzerland, any other combination will be unfavourable to the british.

Some manufacturers require compensation to the Government of the United Kingdom if there is to spend money on fees for bringing cars to the European Union. In the end, the institution is partially responsible for the that has been involved, especially the conservative party (Conservatives) and the eurosceptics of the UKIP.

Of time is being left to fall if the economic situation worsens, some models may not be manufactured in the United Kingdom. Anyway, is not a threat too easy to meet, in the case of Nissan can’t take much more production to Spain, although you can take better advantage of the industrial fabric of Renault in France.


For the moment, the “Brexit” has not made the british leave en masse to buy cars, to the end of the day almost all of the operations are funded, and given the low rate of interest for the purchase, the price rise is dampened with softness in the monthly payments.

however, the economic consequences of “Brexit” are far from being quantified in a very broad sense of the word. The conservatives claim that everything is finished before 2020, ideally in 2018-2019. The manufacturers are pending. Several countries in the East will be happy to host the production that ceases to be interesting in the Uk.

there Will be manufacturers that barely notice all of this, as they have in charm and the plus of the appellation of origin, such as Bentley, McLaren or Rolls-Royce. The problem is for the generalist, but also for BMW, since almost all the production of the MINI is made in Oxford. What is more, to BMW Uk market is very important.