Ford Motor Co. is raising the base prices of its vehicles in the US market for the second time in only three months, according to an exclusive report carried on the website of just-auto affiliate BlueOvalNews.
It is believed that the increase in prices is directly related to additional costs incurred through recent efforts to improve build quality. A Ford spokesman would not confirm this.
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But Ford’s Terry Bresnihan told BlueOvalNews: “The increase is very small, 0.3 percent, and should be looked at in context. Our pricing has been basically flat over the past three years on comparably equipped vehicles. Competitive actions and market conditions allowed at this time for the very slight increase and we certainly believe our products remain competitively priced.”
The increase in consumer retail prices range from $US95 for 2001 model year cars, and $US50 to $US255 on 2001 model year trucks and sport utility vehicles, excluding the Explorer four door model and medium duty trucks.
This announcement comes on the heels of higher consumer demand for the US automotive sector in February than was previously forecast by analysts. Ford’s February sales results showed a much slower than expected decline of 11 percent. At the current rate, 2001 could shape up to be the third best year in U.S. automotive sales history.
Ford Motor Company’s stock is also fairing well as the automaker is near breaking the $US30 threshold, something it has not seen since May 2000. Ford has also announced publicly that it is comfortable with current Wall Street earnings estimates.
To view related research reports, please follow the links below:- USA Car and Light Truck Outlook – Segment analysis and forecasts to 2003 |
