Manufacturers raise new car prices to compensate for the weak pound.
3 February 2009

Ford and Vauxhall are to raise their UK car prices because of the continued weakness of the pound.

Prices will rise across the Ford range by an average of 4.7 per cent, increasing the price of a new Ford Fiesta to £9,195 for the entry-level 1.25i Studio 3dr. Prices for the new Ford Ka have also risen, but below the average, up by 1.6 per cent, the smallest price increase in the range.

Vauxhall will increase its prices on all models, excluding the Vectra and VXR8, by an average of just under five per cent.

>> Read Mike Duff’s blog on Ford’s decision to raise prices

Manufacturers in the UK have been greatly affected by the drop in strength of the pound against the euro. Makers who import goods manufactured in Europe to assemble them in the UK have been affected the most by the decline in the value of the pound as the parts now cost more and the finished product is no longer as valuable in the European market.

George Barrow

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