Ford Announce Third UK Price Rise Of 2009

Car Finance Calculator

Thu, 25 Jun 2009

Ford has announced that it will hike its UK prices by an average of 4 per cent from the start of July – its third price rise this year following similar increases in February and March.

The latest price increase, which will apply to all orders received after 30 June, has been blamed on the weak value of sterling against the euro .

Nigel Sharp, managing director Ford of Britain, said: "In common with most of the UK auto industry, Ford is reacting to the sustained weakness of the pound against the euro ."

"Raising prices in difficult times, and when a scrappage scheme has been introduced, may seem counter-intuitive but with so many of our costs priced in euros, there is no alternative if we are to maintain a viable business."

"The exchange rate through to the end of 2007 had been stable for around ten years with the pound worth around €1.43, recent exchange rates have been about €1.16," he added.

"The cost impact of this drop, on a car priced at £15,000, is close to £3,500, which has to be absorbed by the business. The total revenue impact has been huge - well into nine figures - on Ford's UK business."

He warned that even with the recent strengthening of the pound, the need to recover such losses in revenue could lead to further price increases.

The 4 per cent price rise on all Ford cars means buyers can expect to pay an extra £600-650 for popular models such as the Ka, Fiesta, Focus, C-MAX, Kuga and Mondeo, while those looking to purchase a Ford S-MAX or a Ford Galaxy from next month will have to fork out an extra £700 and £800 on current prices respectively.