Aston Martin will go ahead with £200m Welsh plant but chief exec warns the company needs to make efficiency savings due to Brexit
Aston Martin will go ahead with plans for a new £200m on a new plant in Wales despite the UK voting to leave the European Union.
The company boss Andy Palmer said in a statement that Brexit will have no impact on the company’s plans, though warned the sports car maker would require additional "productivity and efficiency" gains.
Aston is planning to produce its an SUV-sized vehicle at the Welsh plant to capitalise on growing global demand for the out-sized cars.
The new factory will span across 90 acres, repurposing some of the facilities currently in use at the site by the Ministry of Defence, specifically transforming three "super-hangers". Construction work is planned to commence in 2017, with full vehicle production commencing in 2020.
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Palmer said there was some up upside to the fall in the value of the pound which has tanked against every major currency following the vote. He thinks it will "partially offset" the increased instability in broader markets.
It has been widely expected that international UK companies would benefit from a fall in sterling following a vote to quit the EU.
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He did however call on the UK government to try and get the best deal on trade tariffs with Europe.
In a statement to Reuters, Palmer said:
We acknowledge the decision and the rule of democracy. Aston Martin will now orientate its business to deliver our mid-term plan in the context of the exit and the market volatility that may exist during the period of transition.
As the UK could now be subject to new trade tariff barriers, we also anticipate the need for additional productivity and efficiency in the medium term.