Post Brexit deliveries into Britain.

feye

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My point isn’t that Porsche should absorb any Tariffs, (I’ll take those on the chin) it’s that they shouldn’t take the opportunity to inflate margins by applying a 10% Tarrif on the retail value rather than the ex works value...
Valid point! But then didn't the letter say up to 10%?
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robborover

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Valid point! But then didn't the letter say up to 10%?
The letter is basically a catch all to allow them to apply up to 10% across the value due to the "unknowns" and the "admin" involved. I guess Porsche GB had to accept the mandate from DE and you can imagine this 10% will simply get put onto the overall price afterwards regardless (assuming no deal). Feel more sorry for the business owners trying to get vans and stuff, certainly favours home assembly ("manufacturing") for certain brands e.g. Vauxhall and Ford.
 

Scandinavian

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This is wrong many counts:
  • Any tariff applied may not be 10%
  • The tarried applied should be on the net value of the vehicle when landed i.e. net of VAT & dealer margin.
  • there is also provision in the covering letter to apply unspecified ‘admin charges’. I’m not into signing open cheques.
I think that Porsche are stating this correctly. If there is no Brexit and the duty to be applied is 10% than that needs to be applied to the sale price as well. How would you feel as a shareholder if Porsche suddenly would lower their margin. Do a calculation and see that if you want to have the same margin in % than the only way is to increase the sale price by same % as the duty.
But I will completely agree with you that any admin costs needs to be specified and not a blank cheque.

If Porsche do insist on applying the full 10% uplift and admin charges I shall probably cancel out of principle as it smacks of profiteering and high handed ness, rather than genuine commercial need, especially given the traditionally high margins German manufacturers enjoy in the UK that is colloquially termed ‘Treasure Island’ by them.
I do not think that Porsche has any higher margin on their cars sold in the U.K. as they have in Europe. On the contrary probably since they need to produce a special version for the U.K. and other countries that use right hand drive car.
As somebody else pointed out have a look at the price of Porsche in Germany, France etc, where a standard 4S is priced at nearly 104.000 Euro vs U.K. price of 83.500 GBP which is about 93.000 Euro. So the cars are actually cheaper in the U.K.
As a shareholder of Porsche I would not think it would be desirable to subsidise the sale of a very popular car to the U.K.
 

MadCan

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I think that Porsche are stating this correctly. If there is no Brexit and the duty to be applied is 10% than that needs to be applied to the sale price as well. How would you feel as a shareholder if Porsche suddenly would lower their margin. Do a calculation and see that if you want to have the same margin in % than the only way is to increase the sale price by same % as the duty.
But I will completely agree with you that any admin costs needs to be specified and not a blank cheque.


I do not think that Porsche has any higher margin on their cars sold in the U.K. as they have in Europe. On the contrary probably since they need to produce a special version for the U.K. and other countries that use right hand drive car.
As somebody else pointed out have a look at the price of Porsche in Germany, France etc, where a standard 4S is priced at nearly 104.000 Euro vs U.K. price of 83.500 GBP which is about 93.000 Euro. So the cars are actually cheaper in the U.K.
As a shareholder of Porsche I would not think it would be desirable to subsidise the sale of a very popular car to the U.K.
Taxes on a sale (retail) price are ‘local’ taxes eg VAT, GST etc.
Tarrifs are import or export duties applied to the value of a product at the point of entry to/exit from a country.
 

Woody

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Not wishing to add further confusion to the situation, my OPC has said that the Taycan may be subject potential import tariffs in future since authorities are considering whether or not it is actually manufactured in Europe. For a vehicle to be deemed as being manufactured in a country the majority of its components must also be made in that country. The biggest cost components of the Taycan are the battery packs and they are imported into Germany and not manufactured there. As a consequence, it can be suggested that the Taycan is only ‘assembled’ in Germany and that leads to a different export/import duty?

Anyway, my car just arrived at Grimsby so the situation is no longer a problem for me personally but prior to this I did have it confirmed that Porsche were willing to waive any import duty for cars arriving before end of Feb as a gesture of goodwill to assist the transition if the UK fails to reach a free trade agreement. At least this is consistent with what others have been told and what has been said under previous posts.
 


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Smithy37

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Not wishing to add further confusion to the situation, my OPC has said that the Taycan may be subject potential import tariffs in future since authorities are considering whether or not it is actually manufactured in Europe. For a vehicle to be deemed as being manufactured in a country the majority of its components must also be made in that country. The biggest cost components of the Taycan are the battery packs and they are imported into Germany and not manufactured there. As a consequence, it can be suggested that the Taycan is only ‘assembled’ in Germany and that leads to a different export/import duty?

Anyway, my car just arrived at Grimsby so the situation is no longer a problem for me personally but prior to this I did have it confirmed that Porsche were willing to waive any import duty for cars arriving before end of Feb as a gesture of goodwill to assist the transition if the UK fails to reach a free trade agreement. At least this is consistent with what others have been told and what has been said under previous posts.
Glad you heard the same about the transition period up to the end of Feb.

Also glad your car is in the U.K.
Mine arrived into Grimsby last Sunday & I’ve been given a collection date of this Tuesday.
We can now look forward instead of over our shoulders.
 

MARTY7

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This all looks to be sorted now Boris sorted it in his usual style.
 
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This all looks to be sorted now Boris sorted it in his usual style.
There will be a lot of relieved people, not to mention dealerships.
I got mine on the 22nd. Some machine!
 


Silverback

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Has anyone had any further comms from Porsche? Looks like the tariff challenge has gone but the admin and managerial overhead? Gove’s ‘bumpy road ahead’ comment will surely kick in. I have had nothing since the comms stating the 10% will need to be paid by myself.
 

mikeyyn

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Has anyone had any further comms from Porsche? Looks like the tariff challenge has gone but the admin and managerial overhead? Gove’s ‘bumpy road ahead’ comment will surely kick in. I have had nothing since the comms stating the 10% will need to be paid by myself.
The letter posted by Smithy37 indicated that admin and managerial overhead costs might be applicable to apply any tariffs, but as there are no tariffs to apply then surely there will be no added managerial costs.
And don’t call me Shirley.
 
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Smithy37

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Has anyone had any further comms from Porsche? Looks like the tariff challenge has gone but the admin and managerial overhead? Gove’s ‘bumpy road ahead’ comment will surely kick in. I have had nothing since the comms stating the 10% will need to be paid by myself.
I’m sure this will be clarified in due course. The agreement hasn’t passed through parliament yet.
 

MARTY7

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I’m sure this will be clarified in due course. The agreement hasn’t passed through parliament yet.
Mine has landed and pick up next week. I hope anyone waiting has no extra fees.
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