Just as MTI are reporting that the gap between new and nearly new prices is still too wide to encourage people to look more closely at brand new cars Ford have announced that it will be raising the prices of its model range from April by an average of 3.75% due to the “continued weakness of the pound against the euro”.
Nigel Sharp, managing director Ford of Britain, said: “Raising prices in such difficult times may seem counter-intuitive, but as a UK business with so many of our costs priced in Euros, we have no choice if we are to protect jobs and remain viable.
“The Euro has strengthened 30% in the past 18 months and 18% in the last 12 months alone. The weakness of the pound had a huge negative impact, well into nine figures on Ford’s UK business in 2008.”
Sharp also warned that price-inflationary pressure would continue to be an issue for all UK-based businesses whose costs were incurred in euros until sterling strengthened.
Prices for Ford cars will rise by an average of 3.75%, starting at an extra £50 on a Ford Ka and extending up to £1,000 on a Focus Coupe Cabriolet.