Ford hikes prices
The weakness of the pound against the euro, which this week edged even closer to parity, has forced automaker Ford to increase the price of all its models in the UK from the start of April.
Prices for Ford cars will rise by an average of 3.75 per cent, starting at an extra £50 on a Ford Ka and extending to £1,000 on a Focus Coupe Cabriolet. The increase will apply to all new orders received after 31 March.
'We are reacting to the continued decline of the pound against the euro', said Nigel Sharp, managing director of Ford.
'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 per cent in the past 18 months and 18 per cent in last 12 months alone,' he added. 'The weakness of the pound had a huge negative impact on Ford's UK business in 2008.'
He 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.