Ford Great Britain is to increase its prices by an average of four per cent from 1 July.
The company blamed the weakness of the pound against the Euro for the rise, which will add around £600 to the list price of a Ford Fiesta and about £650 to a Focus and a Mondeo.
It is the second price hike by the company this year, following the 3.5 price average increase which took effect on 1 April.
"We don't like introducing price rises but we really don't have any alternative," said Ford of Britain managing director Nigel Sharp.
"Since 2007, the pound has dipped 25 per cent in value against the Euro and this is making a huge difference to our operations.
"Sadly, we had to introduce voluntary redundancies this year but there is only so much cost-cutting we can do.
"The cost impact of th pound's drop on a car priced at £15,000, is close to £3500, which has to be absorbed by the business. The total revenue impact has been huge – well into nine figures – on Ford's UK business. "Ford Europe has lost a lot of money in the first three months of this year and we cannot continue to operate the business unprofitably."