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Weak pound forces Ford price rises

The continuing weakness of Sterling has forced Ford to announce price increases across most of its UK range from the start of December.

The price rise, an average of 2.7 per cent, will apply to orders received after November 30th 2009.

Since 2007 the devaluation in the £ has been in excess of 30 per cent. In the same period Ford has taken strenuous cost reduction actions to limit the impact on customers.

Nigel Sharp, Ford of Britain managing director said: "Price increases are required to maintain a viable business and to recover relative cost increases caused by the weakness of the £ over an extended period."

The drop in the value of the £ by about a third versus pre-2008 levels is a fundamental business concern for all UK-based businesses whose costs are incurred in Euros.

Smaller capacity Ford engines and the Ford Transit commercial vehicle are assembled in Britain.

But other vehicles and component parts are imported from the continent, which brings a significant cost penalty as a result of the depressed £/euro exchange rate.

The changes will typically mean an extra £250-£500 on a Ka, Fiesta, Focus, C-MAX, Kuga and Mondeo - rising to £600 on a Ford S-MAX and Galaxy.

Posted on 26.11.2009
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