Porsche is a German automobile manufacturer, specialising in performance cars, sports utility vehicles (SUV’s) and saloons (sedans). It was founded in Stuttgart, Germany in 1931 and is part of Volkswagen AG. This is the Porsche logo on a 2019 Porsche Macan automobile on display at the 2019 Pittsburgh... [+] International Auto Show in Pittsburgh Thursday, Feb. 14, 2019. (AP Photo/Gene J. Puskar) Porsche has consistently been one of the most profitable motor manufacturers in the world, indeed it has often been regarded as a seller of luxury goods, not just motor vehicles. According to Bloomberg Data, the company made an average of €15,000 ($17,000) in profit on each of the cars it sold last year. In contrast the two other top German marques, BMW and Mercedes Benz make on average, across their range €4400 ($5,000) per vehicle. The UK is one of Porsche's biggest market as it sold 256,000 cars worldwide last year, with more than 12,500 or 4.9% in the UK. However, even a manufacturing titan such as Porsche cannot overlook the impact of Brexit and the company has warned its UK customers, they may face a premium of 10% for vehicles delivered into the UK following Brexit. Porsche has asked its potential buyers to sign a document with a clause that agrees to a potential tariff after the UK leaves the European Union (EU). One should add that Porsche described the step as merely "precautionary". Porsche AG said: "...In light of this [Brexit], we have chosen to inform customers whose cars are likely to arrive after Brexit occurs to warn them that they may be affected by this tariff allowing them to be fully informed at the point of sale and, if they wish, to adjust their order accordingly. ... This is a precautionary step in the interests of allowing our customers to plan ahead. ..." To put this in context, a 10% surcharge would see the cost of the most famous Porsche car, the 911 at the entry-level increase from £93,110 ($119,180) to £102,421 ($131,100). Now one could argue that if one can afford to pay £93,000 for a car then £102,000 is not so arduous. However, for Porsche there may be a decline in the composition as the Macan SUV and Boxster models start at about £46,000 ($59,000). If 10% is added, so lifting the price to £50,600 ($64,768), it maybe that models from other prestige manufactures can steal some of Porsche’s sales. Are there wider implications? Given that Porsche is just one, albeit, an important part of the Volkswagen Group one could fairly enquire if such a potential price increase is to be applied to other marques in the family? These are Audi, Bugatti, Lamborghini, Seat, Skoda, and the motorcycle manufacturer Ducati. So far, Volkswagen has only said "...We are keeping a very close eye on developments and reviewing the entire spectrum of possible effects ... We are noting with regret that there is currently a stand-still regarding the decision on the negotiated [Brexit] deal. For us, this means a further period of insecurity and planning uncertainty. We continue to prepare for all eventualities ... Irrespective of this, the United Kingdom will remain an important market for the Volkswagen Group, the second largest in Europe. ..." However, Porsche said: "...we need comprehensive clarity on future UK relations with the EU very quickly. ..." The bespoke nature and attention to detail can mean that customers who have placed deposits on a new Porsche car have on average a five month wait before delivery is scheduled. Any customer that made an order and paid a deposit January 17, 2019 will not be affected by the change. Can we expect similar moves from other European manufacturers where all cars are imported into the UK? The President of the Automobile Association (The AA), Edmund King said: "...Import tariffs alone could push up the list price of cars imported to the UK from the continent by an average of £1,500 ($1,920) if brands and their retail networks were unable to absorb these additional costs. ..." Brexit is certainly proving to be a bumpy road. Stephen Pope ~ MarketMind
German luxury car manufacturer Porsche has warned UK customers could face a 10 % premium for cars immediately after Brexit . The UK is one of the company 's biggest markets , accounting for 4.9 % of its global sales of 256,000 cars in 2008 . Porsche , however , has now asked potential British buyers to sign a contract clause agreeing to a possible tariff after the UK 's withdrawal from the market . It has , however , criticised the step as purely " precautionary " . A 10 % premium would bring the lowest price for Porsche 's 911 model to £ 102,421 ( $ 132,360 ) , up from £ 93,110 .