PARIS (Reuters) - Carmaker PSA Group (PEUP.PA) said on Wednesday it had raised prices in Britain to counter the weaker pound in the wake of the country’s June 23 referendum vote to leave the European Union.
Sterling prices were increased this month by all three company brands - Peugeot, Citroen and upscale DS - to defend profit margins on cars priced in pounds, a spokeswoman for the French carmaker said, confirming a report in Automotive News.
PSA declined to give a detailed breakdown of the pricing changes, which include a 2.8 percent increase on the list price of a Peugeot 308 compact hatchback, according to the trade publication.
The carmaker and domestic rival Renault are among manufacturers that have warned of repercussions for sales and prices in the wake of the Brexit vote, which sent the pound to a 30-year low in June.
Arndt Ellinghorst, an analyst with brokerage Evercore ISI, said PSA appeared to be “testing the water”, with bigger UK price rises likely to follow across the industry.
“The seemingly small move by PSA is clearly insufficient to offset the currency move,” he said in a note on Wednesday.
Reporting by Laurence Frost; Editing by Adrian Croft