11:41 pm, March 20, 2010
CAR DEALER understands Ford is to cut the prices of new cars next week in response to falling sales.
As the scrappage scheme runs out and fears for 2010 become more apparent, the car giant is one of the first to slash prices.
Car Dealer believes dealer principals have already been told, but sales staff will follow this week. Many aren’t happy as the cuts will also reduce margins.
The ‘cuts’ are likely to come in the shape of new entry level models with basic equipment levels, previously unavailable because they weren’t viable for the manufacturer under scrappage.
If so it would follow Vauxhall’s announcement this week where a special series of lower-priced Expression models were introduced with cuts of up to £3,675.
RETAIL OFFERS
Car Dealer has it on good authority that the price of Mondeo, Galaxy and S-Max will be cut to boost fleet sales with other models benefiting from permanent offers.
Hyundai boss Tony Whitehorn said that he believed the big volume players’ expected the industry to follow its price increases last year.
‘But we didn’t,’ said Whitehorn. ‘In fact we saw rival’s price rises as an opportunity to take even more customers, both private buyers and especially company car drivers who have to pay tax based on list price.
‘They will have to find a way of cutting prices in the near future if they want to stem the tide of buyers defecting to brands such as Hyundai.’
Ford was unavailable for comment when we contacted the manufacturer this morning.
