Ford Blames Weak Sterling For Latest Price Rise | Motoring News | Honest John

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Ford has announced price

increases across most of its UK range from the start of December 2009.  The price rise, an average of 2.7 per

cent, will apply to orders received after November 30 and are driven entirely

by the continued weakness of the £.

 

Since 2007 the devaluation in the £ has been in excess of 30

per cent.  In the same period Ford

has taken strenuous cost reduction actions to limit the impact on

customers.  Through these measures,

Ford and its dealers have reduced the cost impact that has to be passed on to

customers.

 

“To combat the continuing

weakness of the £ against the Euro, Ford has reduced costs across its entire UK

business, including personnel reductions in its central operation and across

its dealer network,” said Nigel Sharp, Ford of Britain managing director.  “However, price increases are still required

to maintain a viable business and to recover relative cost increases caused by

the weakness of the £ over an extended period.”

 

The drop in the value of the £ by about a third versus

pre-2008 levels is a fundamental business concern for all UK-based businesses

whose costs are incurred in Euros.  While

smaller capacity Ford engines and the Ford Transit commercial vehicle are

assembled in Britain, other vehicles and component parts are imported from the

continent, which brings a significant cost penalty as a result of the depressed

£/€ exchange rate.

 

Decisions to raise

prices are taken only as a last resort and Ford will continue to provide the

market with affordable, high-value, latest-technology vehicles.  Customers trading in used Ford vehicles

are benefitting from strong residual values, which reduce the overall cost to upgrade

to a new vehicle.  

 

Prices for Ford vehicles will rise

by an average 2.7 per cent, meaning an extra £250-£500 on the most popular

models Ka, Fiesta, Focus, C-MAX,

Kuga and Mondeo rising to £600 on

a Ford S-MAX and Galaxy. 

Similarly, for commercial vehicles the Fiesta Van increases by £400,

Transit Connect and Ranger by £500 and the Transit 1T model by £600.  Prices for the Ford Focus RS and the

Transit 2T remain unchanged.

 

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