LONDON (ShareCast) - Motor giant Ford is raising the price of its cars sold in the UK by an average 4% as the pound struggles against the euro.
It's not the first time the company has hiked prices this year. It whacked another 4.7%
on the cost of a car in February and another 3.75% two months later.
A Fiesta, Ka, Focus and Mondeo will go up by £600-650, while an S-Max will set you back an extra £700 and the Ford Galaxy another £800.
The increases come as the major motor manufacturers take part in a scrappage scheme that gives buyers trading in a car at least 10-years-old £2,000 off the price of a new vehicle.
Car makers are matching the £1,000 discount offered by the government until the Treasury's £300m pot of cash runs out.
"With so many of our costs priced in euros, there is no choice if we are to maintain a viable business," said Nigel Sharp, managing director of Ford's UK business, of the price rises.
Sterling has tumbled to about €1.16 from above €1.40 at the end of 2007, hitting profit on the UK cars which are mostly put together in Germany and Spain.
"The cost impact of this drop, on a car priced at £15,000, is close to £3,500, which has to be absorbed by the business," said Sharp.
"The total revenue impact has been huge - well into nine figures - on Ford's UK business."
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