You didn’t need to have a crystal ball to predict the reaction to the news that Ford is intending to raise its prices, just days after the Government unveiled its £2.3bn ‘aid package.’

ford badge The mainstream media’s view would be best summed up with the expression ‘spluttering indignation.’

And yes, Ford’s decision to increase the list price of the Focus by just over five per cent (and the rest of the range by a little less) seems badly timed to say the least.

But Ford’s move, which Vauxhall is already set to follow and which other hard-pressed manufacturers will undoubtedly emulate, also has a strong sense of inevitability behind it.

For over a decade the European car industry has effectively been trapped in a spiral, with excess production capacity and strong competition meaning that cars have been stuffed full of more and more equipment while their prices have stagnated in real terms.