11:34 am, February 3, 2009
CAR Dealer warned you in January – now it’s been confirmed: Ford and Vauxhall are to raise new car prices.
Britain’s two biggest car makers are blaming the weakness of the Euro for the rises – again, just as Car Dealer reported.
The increases, says the BBC, will see 5 per cent added to Vauxhall prices, and an average of 4.7 per cent added to Ford models.
It’s because most of the cars built by the two brands are built in the ‘Eurozone’. In short, this means sales in Pounds are worth less.
The Pound has slumped against the Euro recently. The BBC says you could get 1.34 Euros to the pound at the start of 2008.
As the year went on, that plunged, to a low of 1.05 Euros to the Pound – virtual parity.
Cars built in the UK, such as the Vauxhall Astra, won’t be exempt, either. They use parts made in Europe – paid for in Euros.
Car dealers can expect revised price lists coming through soon. These will say a £13,500 Focus is up nearly £900, and a £21,200 Galaxy is up by £1200.
What’s more, where these makers lead, others will follow… we’ll keep you posted as the days go on.
Weak pound to raise new car prices
