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Ford Announces Second Price Hike In Months

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http://www.independent.co.uk/life-style/mo...hs-1717107.html

Britain's biggest-selling car company, Ford, is to increase the price of its new vehicles in the UK by an average of 4 per cent from 1 July.

The company blamed the weakness of the pound against the euro for the rise which will add around £600 to the list price of a Ford Fiesta and about £650 to a Focus and a Mondeo.

It is the second price hike by the company this year, following the 3.5 per cent average increase which took effect on 1 April.

"We don't like introducing price rises but we really don't have any alternative," said Ford of Britain managing director Nigel Sharp.

He went on: "Since 2007, the pound has dipped 25 per cent in value against the euro and this is making a huge difference to our operations. Sadly, we had to introduce voluntary redundancies this year but there is only so much cost-cutting we can do.

"Ford Europe has lost a lot of money in the first three months of this year and we cannot continue to operate the business unprofitably."

Mr Sharp said the Government's "cash-for-bangers" car scrappage scheme was proving a big success, with Ford selling around 1,200 to 1,500 vehicles a week under the initiative.

But he added that although car sales could be boosted over the next few months, 2010 could still be a difficult year.

Mr Sharp said: "There could be a reduction in demand again. The reduced VAT rate is due to end at the end of this year and the car scrappage scheme will also finish. There are one or two clouds on the horizon."

Ford said customers who had booked new cars before today's announcement would pay the old price for their vehicles.

I wonder if the price will come down when the scrappage scheme ends?

I can see Ford selling cars by the bucket load next year, putting up prices is bound to increase sells and clearly there must be a recovery on.

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http://www.independent.co.uk/life-style/mo...hs-1717107.html

I wonder if the price will come down when the scrappage scheme ends?

I can see Ford selling cars by the bucket load next year, putting up prices is bound to increase sells and clearly there must be a recovery on.

I cannot see what Ford are up to. They could be in financial trouble, or they might think that people are so stupid that they will not spot a sudden rise followed by a massive sale. Apart from BMW Mini car sales are still signifiacantly below those of this time last year. The scrappage scheme is merely lifting very bad to bad. I am not convincedthat there is that much money around and what new cars are being pushed into this period will only create a deficit of custom later in the year. Boom to bust to a bit better to bust!

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I cannot see what Ford are up to. They could be in financial trouble, or they might think that people are so stupid that they will not spot a sudden rise followed by a massive sale. Apart from BMW Mini car sales are still signifiacantly below those of this time last year. The scrappage scheme is merely lifting very bad to bad. I am not convincedthat there is that much money around and what new cars are being pushed into this period will only create a deficit of custom later in the year. Boom to bust to a bit better to bust!

scrappage scheme is a con. Father in laws van failed the mot so he was going to use scrappage scheme to buy new. He got told when doing the paperwork that the vehicle being scrapped has to be taxed, not sure if he said it had to be mot'd but you need that to buy tax anyway. They aren't really taking scrap as they won't accept anything untaxed.

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Hey F*ck them

When Vauxhall sell the new Astra with a sporty 1.4 turbo engine & 6 speed box (Shift or DSG) at Gift prices Ford will look silly.

Mike

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That decision by Ford senior management to move all production from one of its largest if not its largest market in Europe out of the home currency is looking like pure genius now.

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I cannot see what Ford are up to. They could be in financial trouble, or they might think that people are so stupid that they will not spot a sudden rise followed by a massive sale. Apart from BMW Mini car sales are still signifiacantly below those of this time last year. The scrappage scheme is merely lifting very bad to bad. I am not convincedthat there is that much money around and what new cars are being pushed into this period will only create a deficit of custom later in the year. Boom to bust to a bit better to bust!

It's really simple. When all your costs are based in Euros and the pound is worth less Euros the price of a car in pounds goes up.

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It's really simple. When all your costs are based in Euros and the pound is worth less Euros the price of a car in pounds goes up.

and sales go down even more.

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It's really simple. When all your costs are based in Euros and the pound is worth less Euros the price of a car in pounds goes up.

+1 Ford moved production to the continent to cash in on the German and French markets at the cost of the UK..

I say fk'em - the funny thing is that no self respecting German or Frenchman would be caught dead in a Ford, the UK was their biggest market and they shat all over us..

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+1 Ford moved production to the continent to cash in on the German and French markets at the cost of the UK..

because it's easier to sack & make british workers redundent french and german.

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Guest sillybear2
I cannot see what Ford are up to.

I can, the scrappage scheme is all about putting money into manufacturers pockets and not helping consumers.

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I am not convincedthat there is that much money around and what new cars are being pushed into this period will only create a deficit of custom later in the year. Boom to bust to a bit better to bust!

Good point. These high prices will only stoke inflation too. I notice that for the first time in ages, petrol is now the same price as diesel - 101.9p here.

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It's all pretty obvious. The deal was that qualifying buyers would be entitled to a 2K discount - 1K to be paid by the government, 1K to be paid by the motor industry.. All that is happening now is simply the motor industry doing their best to ensure that they don't have to take a 1k hit on each qualifying car.

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