Aston Martin sets up £30m contingency fund for no-deal Brexit
Company chief says Britain’s divorce from the EU is becoming an ‘annoyance’
Aston Martin will set aside a £30m contingency fund to ensure that its operations are not affected by a problematic or no-deal Brexit.
The British luxury carmaker has made “no secret” of the fact that it is “less exposed to the possibility of extra tariffs and supply disruption” brought on by a no-deal Brexit than other companies, such as Ford and Nissan, says Sky News.
But in an interview with Reuters, Andy Palmer, Aston Martin’s chief executive, said that the continuing uncertainty over Brexit was becoming an “annoyance”.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
“You’re holding that contingency stock for longer, which means that your working capital is tied up for longer,” Palmer said. “More importantly, what you’re doing is you’re creating continued uncertainty.”
Around £2m of the fund will be put towards revising supply chain routes, The Guardian says. This includes the hiring of a new head of supply chains, as well as plans to “fly in components or bring them in through naval ports”.
Britain will leave the European Union on 29 March, with MPs due to vote on a deal proposed by Theresa May on 12 March.
The news comes after Aston Martin posted pre-tax losses of £68m for 2018 this morning, which are “largely” the result of the £136m in costs it racked up after its stock market flotation last October, the Financial Times reports.
Shares in the luxury carmaker have also “fallen by more than a third” since its flotation, the FT notes. Values dropped 18% this morning to £11.30p, even though the company posted a 25% increase in revenue thanks to rising car sales.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
The best dystopian TV shows to watch in 2025
The Week Recommends From Severance to Silo, these 'mind-bending' shows make for disturbing viewing
By Irenie Forshaw, The Week UK Published
-
Foreigners in Spain facing a 100% tax on homes as the country battles a housing crisis
Under the Radar The goal is to provide 'more housing, better regulation and greater aid,' said Spain's prime minister
By Justin Klawans, The Week US Published
-
Sudoku hard: January 22, 2025
The Week's daily hard sudoku puzzle
By The Week Staff Published
-
New Year's Honours: why the controversy?
Today's Big Question London Mayor Sadiq Khan and England men's football manager Gareth Southgate have both received a knighthood despite debatable records
By Harriet Marsden, The Week UK Published
-
Will Starmer's Brexit reset work?
Today's Big Question PM will have to tread a fine line to keep Leavers on side as leaks suggest EU's 'tough red lines' in trade talks next year
By The Week UK Published
-
John Prescott: was he Labour's last link to the working class?
Today's Big Quesiton 'A total one-off': tributes have poured in for the former deputy PM and trade unionist
By Harriet Marsden, The Week UK Published
-
Last hopes for justice for UK's nuclear test veterans
Under the Radar Thousands of ex-service personnel say their lives have been blighted by aggressive cancers and genetic mutations
By Sorcha Bradley, The Week UK Published
-
Will Donald Trump wreck the Brexit deal?
Today's Big Question President-elect's victory could help UK's reset with the EU, but a free-trade agreement with the US to dodge his threatened tariffs could hinder it
By Harriet Marsden, The Week UK Published
-
What is the next Tory leader up against?
Today's Big Question Kemi Badenoch or Robert Jenrick will have to unify warring factions and win back disillusioned voters – without alienating the centre ground
By Harriet Marsden, The Week UK Published
-
What is Lammy hoping to achieve in China?
Today's Big Question Foreign secretary heads to Beijing as Labour seeks cooperation on global challenges and courts opportunities for trade and investment
By Harriet Marsden, The Week UK Published
-
Is Britain about to 'boil over'?
Today's Big Question A message shared across far-right groups listed more than 30 potential targets for violence in the UK today
By Sorcha Bradley, The Week UK Published