Ford Cuts Prices by 11 Percent

Ford has introduced price increases to their models four times in the last year. They have blamed this on the on the exchange rates between the pound and the euro and the fact that most of their cars are built in Euro-zone countries. In reality the list price increases have led to the dealerships to offer bigger discounts to still entice the customers. Ford has now announced a series of price cuts that will take effect from the 2nd August 2010. It´s expected that rival manufacturers will act on this by following suit, which can only mean good news for beleaguered car buyers across Britain.

A whopping price average of 11% will be slashed across the blue oval´s biggest sellers including the Focus, Fiesta, Kuga and Ka. This follows the dramatic price drop of the firm´s large car ranges in April that included the S-Max, Galaxy and Mondeo. Ford has stated that the intention is to provide customers with greater transparency to its show room prices.

The new prices of vehicles from August:

Ford has stated that they would like the price list to be much closer to the price that the customer actually pays, in the hope that customers will find it easier to compare Ford cars/prices to other manufacturers. This will also avoid the dealers having to provide large discounts to compete with the competition as they currently do.

It is also set to benefit company car drivers who will have lower tax bills from their Ford´s due to the list prices of the cars being lower. If you own a company car the tax is worked out by the list price of the vehicle. With the price increases Ford was starting to lose some of the market share and considering the current economic climate and increased competition this was a cause for concern. This should be addressed with the new pricing structure and Ford will look to increase both business and personal sales.

published: 19/07/2010