When will AM put new car prices up to reflect Brexit?

When will AM put new car prices up to reflect Brexit?

Author
Discussion

Veg

497 posts

282 months

Monday 27th June 2016
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TTIP! Most of our exports don't go to the USA.........but most of the EU investors do come from there and they choose the UK as it speaks the lingo and has freetrade into the EU - it all depends if we can hang onto that freetrade agreement and if investors think that we are the best place to set up shop (which without migrants we arent as we dont have the skills). All set against the backdrop of France and Spain seeing a very clear opportunity to bolster their economies by nicking ours (and why shouldnt they)!

I agree that overall it is the "hassle" of working outside of the EU market that wil determine the moves. Oh and I work with international investors and to a man this country is no longer where they are looking, well not in the short term......

Jon39

12,782 posts

142 months

Monday 27th June 2016
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Veg said:

.. people who buy premium prodcuts won't really notice as they are on the never-never anyhow!

In our class system you can't beat the "I've got a Beemer ...

... - accepted this doesn't apply to you city types!

As for me head down, ignore the flack, invest in the EU and retire!
You have certainly made some valid points, but oh dear, some inaccuracies and envy can be detected.

Many of the owners on here are not 'City' workers, but entrepreneurs who have been able to build businesses and create jobs. I am sure they like Astons for what they are. If someone wants to show off, it is the wrong car.

Oh, and investing in the EU during recent years, has not helped with a comfortable retirement. Try big UK defensive companies that trade around the world. Just look at which FTSE 100 companies went up in value more than 2% on Friday, immediately after the result was announced.


Jon39

12,782 posts

142 months

Monday 27th June 2016
quotequote all

Veg said:
TTIP! Most of our exports don't go to the USA.....

Remember that this topic question is about Aston Martin Lagonda Ltd.
Therefore, which countries do most of their exports go to ?


LasseV

1,754 posts

132 months

Monday 27th June 2016
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Jon39 said:
The German car manufacturers are now talking. They are very anxious that they continue to sell (tariff free) to the UK, their 800,000 cars each year. German automaker jobs depend on us. The UK is their single biggest export market.

Dieter Zetsche (Daimler-Benz CEO) probably has a hot line to Mrs Merkel. Do you think he is better placed to negotiate a good trade deal for us, than any UK politician?
Well, people forget that big japanese car manufacturers factories are located in UK. German car manufacturers doesn't want to have tariff free and cheap (weak pound) Toyotas/Nissans etc in their market. These are real threads to germans.

Jon39

12,782 posts

142 months

Monday 27th June 2016
quotequote all
dxg said:
This thread has actually got me thinking.

Pro-exit funder on Radio 4 this morning making the perfectly valid point that a weak pound massively helps our manufacturing base.

However, this was based on the assumption that we manufacture everything. If the likes of AM, as many other manufacturers in the UK are, really just assemble components manufactured overseas, then the weak pound will just as equally increase the price of those imports.

So, overall, everything just balances out and we neither gain nor lose. It would be a whole other story if we actually manufactured from raw materials (or, better yet, produced those raw materials too).

Or is my school-level economics failing me yet again?

Your school served you well.
It was inevitable that a Leave result would cause an immediate reduction in the Pound value. It would have been a complete gamble to bet on that though, because the Referendum result seemed to be so unpredictable. Although a big drop for one day, 1.35 Dollar to Pound was the same rate applicable not very long ago.

I too heard the Peter Hargreaves interview. Was surprised that he was not expecting such a big FX movement, after the Leave outcome. His Company has now had a 15% drop in value since last Thursday. That will be a significant paper loss for him.







Edited by Jon39 on Monday 27th June 17:16

Jon39

12,782 posts

142 months

Monday 27th June 2016
quotequote all
LasseV said:
Jon39 said:
The German car manufacturers are now talking. They are very anxious that they continue to sell (tariff free) to the UK, their 800,000 cars each year. German automaker jobs depend on us. The UK is their single biggest export market.

Dieter Zetsche (Daimler-Benz CEO) probably has a hot line to Mrs Merkel. Do you think he is better placed to negotiate a good trade deal for us, than any UK politician?
Well, people forget that big japanese car manufacturers factories are located in UK. German car manufacturers doesn't want to have tariff free and cheap (weak pound) Toyotas/Nissans etc in their market. These are real threads to germans.

Yes, but this topic question only concerns Aston Martin.




AOK

2,297 posts

165 months

Monday 27th June 2016
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Dblue said:
The pound has only returned to where it was 3 weeks ago and large companies hedge their currency to smooth over any fluctuations. It would need to be a much more extended and bigger movement than we're seeing to make the slightest difference
This.

It seems the scare mongering has got to many, even on here. All market traders were expecting volatility on Friday, and most had hedged their bets on the pound + FTSE collapsing, regardless of referendum result. In reality, Stirling has dropped and is now stabilising, the drop being far less dramatic than was expected. And the FTSE actually out performed on Friday.

The media are fuelling the scare mongering and select very carefully what news to give, and how to portray it.. they thrive on panic. The FT today, rather than leading with the pound having stabilised so well have headlined with news that the GBP is at a 8 year low with the USD.... Shocking in context isn't it! Pity there's no mention that the EUR is also at an 8 year low with the USD... as is the YEN, CHF, CAD etc...

Its just cherry picked news, portraying a very skewed angle.

Business as usual as far as I'm concerned. I was looking for 2 year old manual Vantages, and I still am. I was looking for a 4 bed detached house is Cambs with a big garden, and I still am. As are many others. And as such, if either come up... I will be snapping them up. And so, the economy moves on...

PS, 5 year chart GBP vs EUR:

12pack

1,533 posts

167 months

Monday 27th June 2016
quotequote all
https://www.theguardian.com/business/2016/jun/27/a...

"... Aston Martin could benefit from the market reaction to Brexit because most of the company’s sales were in dollars. About 80% of its sales are in the US, Asia and other markets outside Europe.

“For us, perversely, a weak pound is a good thing. There is a level of insulation in terms of that [currency] volatility. We have got over 2,000 orders in the bank which is substantially in excess of what we expected.” "

Pretty much along the lines as for the UK division of the MNE that I run - as posted earlier in the thread.

Edited by 12pack on Monday 27th June 13:45

Brakke

490 posts

122 months

Monday 27th June 2016
quotequote all
Jockman said:
The EU only has 2 net contributors, the other 26 states take out more than they put in. This fell to one net contributor with Brexit leaving Germany alone to carry all the others.
Incorrect.
"Britain is the fourth highest net contributor to the EU behind Germany, France and Italy."

source: http://money.cnn.com/2016/06/02/news/brexit-eu-bud...
source: http://www.europarl.europa.eu/news/en/news-room/20...

One day people will stop publishing incorrect information with such stellar confidence as fact.....until then its necessary to always do your own research. If more people did that, the world would be a better place.



EDIT:
For those who want facts. http://english.eu.dk/en/faq/faq/net_contribution
Net contributors in 2014 were: Belgium, Denmark, Germany, France, Italy, Netherlands, Austria, Finland, Sweden and last but not least the UK.




Edited by Brakke on Monday 27th June 15:51

Jockman

17,912 posts

159 months

Monday 27th June 2016
quotequote all
Brakke said:
Incorrect.
"Britain is the fourth highest net contributor to the EU behind Germany, France and Italy."

source: http://money.cnn.com/2016/06/02/news/brexit-eu-bud...
source: http://www.europarl.europa.eu/news/en/news-room/20...

One day people will stop publishing incorrect information with such stellar confidence as fact.....until then its necessary to always do your own research. If more people did that, the world would be a better place.

EDIT:
For those who want facts. http://english.eu.dk/en/faq/faq/net_contribution
Net contributors in 2014 were: Belgium, Denmark, Germany, France, Italy, Netherlands, Austria, Finland, Sweden and last but not least the UK.

Edited by Brakke on Monday 27th June 15:51
Quick peak at recent articles - you are correct, there are more than two net contributors. My apologies.

Most recent data I can readily find is for 2013 which shows the UK as the second largest net contributor. A lot must have changed in 12 months for two troubled economies to leapfrog it.

http://www.telegraph.co.uk/finance/financialcrisis...


RobDown

Original Poster:

3,803 posts

127 months

Monday 27th June 2016
quotequote all
Good news! Aston Martin said today that they've got hedges in place for 18 months (surprised it's that long). So hopefully no fx driven increases for a while

SS972

591 posts

182 months

Monday 27th June 2016
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Now with England eliminated from the Euro, the Brexit is near completion redcard

12pack

1,533 posts

167 months

Tuesday 28th June 2016
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SS972 said:
Now with England eliminated from the Euro, the Brexit is near completion redcard
Yes - I've seen players choke before but never 11 at the same time...

AdamV12V

4,987 posts

176 months

Tuesday 28th June 2016
quotequote all
SS972 said:
Now with England eliminated from the Euro, the Brexit is near completion redcard
I thought Wales were still in, so its more of an Enexit than Brexit, or are you suggesting that because England is out that we should take all the other UK nations out too?

That would be grossly unfair and..... ohhhh hang on! scratchchin

Jockman

17,912 posts

159 months

Tuesday 28th June 2016
quotequote all
SS972 said:
Now with England eliminated from the Euro, the Brexit is near completion redcard
Your lot would have knocked them out anyway next match, Seb.

We live in uncertain times. Beware the underdog wink

Brakke

490 posts

122 months

Tuesday 28th June 2016
quotequote all



Dealers are scared ---> big discounts
Markets are scared ---> discount on sterling
Me------> took advantage and bought a new LHD car to enjoy smile

There are some advantages to be had cool