Ford to raise prices of car by 4%
- 00:01:09
- ITN
Ford to raise prices of car by 4%
Ford is increasing the price of its vehicles for the second time this year even though new car sales are on the floor. New vehicles in the UK will cost an average of 4 per cent more from July 1 as it struggles with the rising euro against the pound. It will add around £600 to the list price of a Ford Fiesta and about £650 to a Focus and a Mondeo. It is the second price hike by the company this year, following the 3.5 per cent average increase which took effect on April 1. A third hike took place in February although this was postponed from last December. "We don't like introducing price rises but we really don't have any alternative," said Ford of Britain managing director Nigel Sharp. He went on: "Since 2007, the pound has dipped 25 per cent in value against the euro and this is making a huge difference to our operations. Sadly, we had to introduce voluntary redundancies this year but there is only so much cost-cutting we can do. "Ford Europe has lost a lot of money in the first three months of this year and we cannot continue to operate the business unprofitably." Ford said customers who had booked new cars before the announcement would pay the old price for their vehicles. Car production slumped again last month, but the fall was the smallest so far this year. A total of 67,754 cars were made in the UK in May 2009 - a drop of 43 per cent on the May 2008 figure, the Society of Motor Manufacturers and Traders (SMMT) said.
ITN | June 24, 2009
