Ford has again raised its UK new vehicle prices, citing the “sustained weakness of [the pound] sterling against the euro. The hike, averaging 4%, applies to all orders received after 30 June. The automaker last raised prices as recently as 31 March.
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“In common with most of the UK auto industry, Ford is reacting to the sustained weakness of the pound against the euro”, said Nigel Sharp, managing director Ford of Britain, in a statement.
“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 choice if we are to maintain a viable business.
“The exchange rate through to the end of 2007 had been stable for around 10 years with the pound worth around EUR1.43; recent exchange rates have been about EUR1.16,” he added.
“The cost impact of this drop, on a car priced at GBP15,000, is close to GBP3,500, which has to be absorbed by the business. The total revenue impact has been huge – well into nine figures – on Ford’s UK business.”
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By GlobalDataFord imports all car models and some light commercials sold here in the UK from Europe – the cars come mostly from Germany, Spain and Belgium. Ranger light trucks are shipped from Thailand and Transit Connect small vans from Turkey; only some of the larger Transit van line are made at a plant in Southampton. Ford does makes engines in two UK plants – almost all are exported.
Sharp warned that, despite the recent strengthening of the pound, the need to recover the accumulated revenue loss could lead to further price increases. Price-inflationary pressure would continue to be an issue for all UK-based businesses whose costs were incurred in euros, he added.
The circa-4% rise will add GBP600-650 to the price of popular Ka, Fiesta, Focus, C-Max, Kuga and Mondeo models, about GBP700 to an S-Max sticker and around GBP800 for a Galaxy MPV.
