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Weak British Pound Portends New Price Hikes in U.K.
Carmakers will soon roll out a second wave of price hikes in the U.K. to offset the weakening pound sterling, predicts Andy Barratt, managing director of Ford of Britain.
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Carmakers will soon roll out a second wave of price hikes in the U.K. to offset the weakening pound sterling, predicts Andy Barratt, managing director of Ford of Britain.
Barratt tells Automotive News Europe the increases are being forced by the impact of the U.K.’s vote last June to exit the European Union. Since then, the value of the pound has dropped 12% against the euro and 18% against the U.S. dollar.
Carmakers raised priced in England last autumn after the Brexit vote triggered a sharp drop in the pound. Barratt predicts the British currency will weaken further next month when the U.K. formally begins the two-year process of quitting the EU.
Carmakers are hoping the British government will be able to preserve the zero-tariff status the country enjoys with Europe as an EU member. If negotiations fail, the resulting “hard Brexit” will prompt a third wave of higher prices, Barratt tells ANE.
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