Sources have confirmed to Torque-Expo that a number of industry suppliers have now increased prices following the devaluation of the pound, post Brexit.
Following the UK vote to leave the European Union on 23rd June 2016, the pound has devalued significantly against the US Dollar, Euro and other currencies. Since ‘Brexit’, the pound has fallen against the US$ to 1.32 – a crucial exchange rate for the industry, which imports much product from the Far East (in US Dollars).
Torque has had sight of a number of emails and letters sent out to trade customers from suppliers, in some cases detailing a price increase of between 5 and 10%. One letter, mirroring the content of other price increase communications, read: “Whilst every effort has been made to reduce the impact of the increases in our costs, unfortunately we cannot absorb these in their entirety.”
Despite the prospect of further price rises in the industry, numerous trade suppliers have told Torque that – thanks to their large stock holdings – they don’t foresee price increases in the short term and expect to be able to absorb higher costs for the following months.
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