Uncertainty over Britain’s EU deal has automakers concerned.
The continuing uncertainty over what will happen once Britain leaves the EU next year means that automakers are left guessing as to what impact it will all have on their businesses. Aston Martin, for one, is not taking the wait-and-see approach. As they source 60 percent of their components from Europe, the carmaker has put plans into place to ensure that any potential border issues with parts imports are minimized.
"The European-sourced parts, which include the engine and the gearbox as a complete assembly, come back in from Europe so an alternative port is one way, predominately for lorries, and then reserving space on aircraft for one-off shipping," Chief Executive Andy Palmer told Reuters.
"You can get a few days of engines and gearboxes relatively easily into the cargo decks of a plane so whilst it's relatively expensive that is probably our primary backup," he said, adding the firm only did so in an emergency at present.
While Aston Martin may be able to keep its business going during this transition phase, it does come with additional costs and share prices for the British automaker have also dipped since it listed on the stock exchange.
Shareholders are wary of the potential for disruptionin the manufacturing process and Aston’s ambitious plans to launch a new model every year has also raised concerns. Andy Palmer countered by saying that its plans were focusing on the long-term benefits for the company and its investors.
One such strategy involves bolstering sales in the US, which up until now has been the second biggest buyer of Aston Martin’s vehicles after Britain. The US is already on track to top the sales charts this year, with the likely devaluing of the pound early next year, the strong sales performance may well continue.