Ford Raises UK Prices
Ford are planning to increase the car prices by on average 4% by the end of June. This is the third time now that Ford has had to raise their prices. The first rise was in February by 4.7%, and then again during April by 3.75%.
Ford admitted that is was strange to raise prices during a recession, however, they said “there is no choice if we are to maintain a viable business”.
Ford stated that the pound had been stable for the last 10 years until the end of 2007 at 1.43 euros, however, during the past 2-3 years, the pound has fallen to 1.16 euros.
Because the majority of Fords cars for the UK are made in Germany and Spain, they had no other option to raise prices. Before these prices rises occurred, Ford had to absorb the losses from the weak pound, however, they cannot continue doing this during a recession if they wish to be a stable business.
These price hikes will also have an affect on the governments car scrappage scheme because the rises will take a huge chunk out of the £2000 grant. With the prices of Fords cars rising by around £600 to £750. The car scrappage scheme will not be felt as much buy customers when buying a new Ford.
Although this is all bad news for new car buyers, people choosing car leasing over buying won’t see the price rises straight away. Even if you are not currently on a Ford lease, but you are looking, the leasing companies won’t pass on the price rises until they buy new vehicles, which, during the recession, won’t happen straight away. So this isn’t so much good news for new car buyers, but it’s not as bad for leasing customers.
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