The Volkswagen Group has increased its stock of unsold new cars in the UK, in preparation for a no-deal Brexit.
The move is to mitigate the effects of predicted trade tariffs after Britain leaves the EU. This ‘cushion’ won’t last forever, though.
Volkswagen is a huge player in the UK new car market. Brands under the VW Group umbrella are present in all segments, at every level of affordability.
Volkswagen: “We need to be realistic”
All this comes as Volkswagen prepares to launch two of its most important models. The all-electric ID.3 has recently been revealed, while the new generation Golf is due just seven days before the Brexit deadline.
VW’s Golf and Polo models are regulars on the UK top-10 best-sellers list. In the first nine months of 2019, Volkswagen sold 157,040 cars in Britain, down 0.5 percent.
“We have optimised inventory levels upwards to delay the impact of potential import tariffs for a while, but there are limits to what can be done,” said VW sales and marketing chief, Jürgen Stackmann.
“If there are tariffs, we will not be able to absorb them or compensate for the cost. We need to be realistic about the fact that cars would get more expensive for customers.”
Back in February, it was reported that Brexit could see prices of Volkswagen Group cars rise by up to 10 percent. We expect to see updates regarding post-Brexit pricing in the coming weeks, from both VW Group and its rivals based outside the UK.