Ford is cutting the list prices of its big car range by several thousand pounds, in a bid to have "more realistic" pricing for the new S-Max, Galaxy and Mondeo.
Prices for all three were pushed up last year because of currency fluctuations.
Company sources claim that this was affecting price sensitive company car buyers and retail customers keen to get a good deal.
Prices for the Mondeo will now start at £17,295, down from £19,760 and this, according to insiders, is far closer to the typical transaction price buyers can pay after haggling in a dealership.
The new S-Max Zetec will cost from £20,645, down from £22,677, and the new Galaxy Zetec will cost from £22,945, down from £26,355.
However, it also means that Ford is now in the rather uncomfortable position of the cheapest Mondeo's list price being less than the cheapest Focus's list price.
This situation is currently addressed by a series of special offers Ford is running on its smaller models, but only when they are bought with Ford Credit.
The offer ensures the key Zetec trim pricing keeps the natural heirarchy of Ka, Fiesta, Focus, Mondeo, S-Max, Galaxy. Similar offers are expected to be extended until at least mid-year.
At the same time as reducing prices Ford’s top brass will also be reducing discounts in an attempt to protect residual values for existing owners.
"Ford’s traditional high recommended list price, high discount approach was causing confusion," Ford of Britain boss Nigel Sharp said.
"That formula served us well in the past, but today consumers shop around and we have to make it clear that dealers are the best place to start for the keenest deals."
A spokesman said dealers were happy with the changes: "All this is doing is closing the gap between the higher list price and the actual transaction price, which hels fleet customers. The dealers are backing the move on teh strength of the products we have, and the desireability of the products and the way this helps residual values."