Ford Raises UK Prices by nearly 4% Due to Weakening Pound

As if the ongoing economic turmoil hasn't stirred enough troubles, automakers in the UK now have to deal with the continued weakness of the British Pound against the Euro, which this week edged even closer to parity. To deal with this problem Ford UK announced an average price increase of 3.75 percent that will apply to all new orders received after 31st March. This translates to raises that range from an extra £50 on a Ford Ka, to £1,000 on a Focus Coupe Cabriolet.

"We are reacting to the continued decline of the £ against the Euro," said Nigel Sharp, managing director Ford of Britain. "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," he added "and 18 per cent in the last 12 months alone. The weakness of the £ had a huge negative impact – well into nine figures – on Ford's UK business in 2008."

Sharp also warned that price-inflationary pressure would continue to be an issue for all businesses based in the United Kingdom whose costs were incurred in Euros until the pound strengthened.