Aston Martin CEO Andy Palmer believes delaying Brexit would prolong uncertainty for automakers and would be a “further annoyance” after Prime Minister Theresa May promised to give lawmakers a vote on extending the date Britain leaves the European Union.
Many companies have been triggering contingency plans on the assumption that Britain will leave the EU on March 29, though a delay could ruin the timing of those preparations, Palmer said.
Aston Martin has authorized up to 30 million pounds ($40 million) worth of contingencies including flying in components if parts from mainland Europe are held up ports.
British lawmakers will vote on whether to delay Brexit on March 14, just over two weeks before the scheduled departure date.
“I would categorize it as a further annoyance,” said Palmer. “You are holding that contingency stock for longer which means that your working capital is tied up for longer.”
“More importantly, what you’re doing is you’re creating continued uncertainty,” he said.
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Aston Martin floated on the London Stock Exchange last year and is boosting its volumes and building its first SUV at a new factory in Wales. The company posted on Thursday a 26 percent rise in 2018 volumes and a 25 percent increase in revenues.
Adjusted pre-tax profits fell 7 percent to 68 million pounds ($90 million) before one-off costs related to its initial public offering.
The company said that if some one-time pension-related credits were stripped out of 2017’s figures, adjusted pre-tax profit would have risen in 2018.
Britain’s once-soaring car industry is now recording falling sales, investment and production, with Honda delivering the most serious blow earlier this month, announcing the closure of its British factory.
Overall,UK car output fell 18 percent last month, according to data published on Thursday.