French carmaker Renault is considering raising car prices in the UK as a result of a fall in the pound following the country's historic Brexit vote to leave the EU. The firm's chief financial officer, Clotilde Delbos, is understood to have warned that the firm is likely to increase prices during an internal presentation this week, company sources told Reuters.
Renault sold just above 127,000 cars in the UK last year, or around 8% of its total European sales. A Renault spokeswoman declined to comment when contacted by IBTimes UK.
French carmakers have been hit hard by the Brexit vote, partly because they have significant UK sales but little by way of local production.
Shares in Peugeot owner PSA are down by by around 20%, while Renault shares are down by around 15% since Friday (24 June 2016), when the UK's EU referendum results were revealed. Analysts at Barclays said that every 1% fall in the sterling versus the euro would lead to a 1.6% fall in 2016 automotive operating profits at Peugeot.
Although the pound has gained some ground in recent days, many analysts say the currency may settle at a lower rate prior to its level before the Brexit result. Mike Hawes, chief executive for UK's carmakers' lobby group Society of Motor Manufacturers & Traders (SMMT), called on the government to guard the imposition of tariffs across the European car industry.
He said: "The British public has chosen a new future out of Europe. Government must now maintain economic stability and secure a deal with the EU that safeguards UK automotive interests. This includes securing tariff-free access to European and other global markets."