Ford and GM to raise prices

Ford and GM are increasing prices in the UK in response to the drop in the pound's value.

The pound has fallen by over 10 per cent against the euro and over 25 per cent against the dollar in the past six months.

A spokesperson for GM's Vauxhall told Motor Trader there will be an increase this month, due to the euro versus pound exchange rate, but that details would be released later in the month.

Ford also confirmed to Motor Trader that new prices had taken affect today - increased by up to 5 per cent, and attributed this to a review of the change in VAT last year as well as the declining strength of the pound.

Analysts have suggested this is a bold move in a struggling car market, although rival carmakers such as Volkswagen could follow suit.

A VW spokesperson told Motor Trader there were no immediate plans to raise prices, but there could be increases in the near future. He put this down to regular pricing reviews and said incremental changes took place as a matter of course, and were not directly in response to any pricing adjustments by other carmakers.

Comments (3)

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Brian McLean said:

	... Simon - That's excellent news long may it continue !
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February 23, 2009
Votes: -1

Simon Hargrave said:

	... I have to say i dont think its a bad idea. I actually work for a Ford dealer and we are selling more new cars than normal. And just because the prices have gone up we have not slowed down.
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February 22, 2009
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Brian McLean said:

	... What planet are the people that run Ford & Vauxhall on ?! and to describe price increases in the present dire economic conditions as, quote 'a bold move ', unquote, is a clasic under statement. Utter madness would be a far more accurate description.
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February 13, 2009
Votes: +1

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