Ford to increase UK car prices

Ford, the UK’s biggest-selling car company, is to raise its vehicle prices in the UK by an average of 3.75% on April 1, it was announced today.

The firm said it was “in a battle for survival” and warned that 95% of car companies were likely to have to increase prices.

Ford of Britain managing director Nigel Sharp said most of the firm’s costs were in euros and margins had been squeezed to such an extent that price rises were the only way forward.

The increase will send Ford’s biggest-selling model, the Fiesta Zetec, up to £13,095 (€14,161).

Mr Sharp said today that he refuted any suggestion that the company was ripping people off.

He went on: “It is regrettable that we are putting prices up but this is a battle for survival. We would rather sell one car for a profit than sell 1,000 at a loss.”

Mr Sharp predicted that Vauxhall would have to raise prices, possibly on April 3.

He went on: “This is not something we wanted to do. We had to do it to survive in business. We think it’s the same problem facing the vast majority of the industry.”

Mr Sharp said the new on-the-road price for a Ford Ka would now be £7,995 (€8,645) but the on-the-road price for the same vehicle in 1999 was £8,020 (€8,673) which in real terms would now be £9,424 (€10,191).

Mr Sharp supported the UK motor industry’s call on the British government to introduce a vehicle scrappage scheme under which motorists would be paid to trade in their old cars for more eco-friendly models. This is a policy which has been introduced in a number of European countries.

Mr Sharp said today that he thought that if the British government did introduce this scheme it could well be announced in the Budget next month.