Monday, 4 July 2022 – 02:07

Aston Martin gives a little Brexit confidence

Aston Martin is set to test the appetite of investors to back British companies as it announces is plan to float on the London Stock Exchange. This deal could values James Bond’s favourite sports car brand at about £5bn. 

In announcing these plans, Aston Martin appears to have brushed off concerns over Brexit. The firm did say that it had given detailed consideration to what impact Britain’s departure from the EU might have in business, but believed that it would not pose a major threat to the 105 year old firm.   

However, whilst this does show a level of confidence in the UK financial sector, Aston Martin may not be the greatest indicator of economic security post-Brexit. 

The firm does not sell a large amount of cars to continental Europe. Similarly, in export markets such as China and Indian, the company already has to deal with tariffs. However, the company does import about two-thirds of its parts from Europe. 

Furthermore, the fastest growing markets for the business, based in Garden in Warwickshire, are outside the EU. The carmaker is hoping to double production to 14,000 vehicles a year as demand from the super-rich client base increases. The fastest growing markets were the US, China and the UK. 

In China in particular, there has been an explosion of growth with sales up 89% year on year. 

As such, whilst this may be a good sign for the UK economy at large, in relation to Brexit, it is less so. 

What UK businesses, politicians, and the public need, is a greater breadth of expert opinion, not simply an exception to the rule. 

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