Ford Raises Car Prices By 2.7%

• News
• Published: 26 Nov 2009 in Motoring and Car Insurance

Ford is to increase the price of its cars by another 2.7 per cent, blaming a 30 per cent devaluation of the pound since 2007 which has had a significant impact on costs incurred in euros.

It follows a 4 per cent rise in the summer, and comes amid what the company has described as "strenuous" cost-cutting aimed at limiting the impact on customers.

Ford of Britain managing director Nigel Sharp said: "To combat the continuing weakness of the pound against the euro, Ford has reduced costs across its entire UK business, including personnel reductions in its central operation and across its dealer network."

Industry insiders are divided on the affect the decision will have on car insurance costs, with some saying that insurers will wait to see the effect on the replacement-vehicle market.

The price rise will add 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.

Fiesta vans will increase 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.