Aston Martin readies itself for a no-deal Brexit, hoping it can weather the storm
The luxury car maker is reportedly enacting its plan to cope if Britain exits the EU without a trade deal.
While we're up to our ears here in the US with partial government shutdowns and wall talk, the folks over in the UK are staring down the barrel of a possible no-deal Brexit, in which Britain leaves the EU without a trade deal. The prospect has companies such as Aston Martin taking emergency measures to stay afloat, Reuters reports.
The UK is set to leave the EU on March 29. The country's Prime Minister Theresa May has negotiated a trade deal with the EU but has yet to win support for it in Parliament. Her government on Tuesday suffered defeat over a related finance measure, The Guardian reports. Without a deal, shipments to and from Europe are likely to be severely delayed.
The Aston Martin top brass decided at a board meeting in December to enact its no-deal Brexit contingency plan -- one which we can only imagine is called something super cool like Condition Aubergine or the Condor Contingency. It will mean major changes to the way the company operates on a day-to-day basis, according to Reuters.
Specifically, Aston Martin will use ports other than Dover in an effort to avoid customs delays, and it has authorized its procurement people to use air freight when shipping components from certain vendors.
Aston Martin -- like many automakers -- runs on a just-in-time manufacturing system when it comes to getting the materials it needs to build its cars. Naturally, having the kinds of delays that are expected if a no-deal Brexit happens would pee in Aston Martin's Wheaties, figuratively speaking. This would likely cause massive production upset, something which a relatively small independent company like Aston Martin can't afford.
The company is also holding on to an inventory of cars in Germany that it will likely augment in the coming weeks, in an effort to avoid post-Brexit costs and paperwork.
Aston Martin didn't immediately respond to a request for comment.
