Why Nissan Qashqai, Mini Cooper, Land Rover Discovery Sport and others can get cheaper
Cars like the Nissan Qashqai could get cheaper with a new trade deal.
Australians may soon have access to cheaper cars from England thanks to a pending new free trade agreement (FTA).
Prime Minister Scott Morrison and his British counterpart Boris Johnson reportedly agreed in principle on a new trade deal this week during a meeting in the UK. Under the expected terms, vehicles made in the UK will no longer be subject to the XNUMX% import duty.
Despite the positive news for the UK car industry and brands, the deal needs to be finalized and implemented before details can be confirmed and exact savings calculated. It also depends on whether automakers decide to pass this discount on to the consumer.
The news has important political implications as Australia became the first country to reach a new trade deal with the UK after it left the European Union.
While this is good news for traditional British marques such as Rolls Royce, Bentley, Lotus and Aston Martin, more mainstream models such as Nissan, Mini, Land Rover and Jaguar are likely to generate more interest.
The Nissan Juke, Qashqai and Leaf are built at the Japanese brand's plant in Sunderland. Theoretically, under this new free trade agreement, the cost of the entry-level Nissan Juke ST could drop from $27,990 to $26,591 (excluding travel expenses), a savings of $1399 if the fare is calculated based on the manufacturer's list price.
However, Nissan Australia reported Cars Guide It's still too early to determine the exact savings this new arrangement will bring, so don't expect sticker prices to drop in the near future.
“We need to understand the finer details and dates when this free trade agreement will be implemented in order to determine the impact on new car prices for Australian consumers,” a company spokesman said.
Land Rover builds the Discovery Sport and Range Rover Evoque in Halewood, while the Range Rover and Range Rover Sport build at the Solihull plant. In recent years, Land Rover has begun to expand its production amid the UK's exit from the EU, and the Defender is now built in Slovakia.
Even though Mini is owned by BMW, the company still manufactures most of its lineup at its Oxford plant. This includes the 3-door and 5-door Mini, as well as the Mini Clubman and Mini Countryman.
The tariff on car imports dates back to the days of local production, and a surcharge was introduced to help Holden, Ford and Toyota. However, when the industry disappeared, the government gradually reduced tariffs for some countries when it worked politically and economically.
Australia already has free trade agreements with several key car manufacturing countries, including Japan, South Korea, Thailand and the US.
