Price hike ahead

Photos: Getty Images

03rd February 2009

Auto Express has learned that Ford and Vauxhall are increasing the prices of their new cars – despite the dramatic drop in sales and government bailouts throughout the motor industry!

Sales are estimated to have dropped by an average of 30 percent in December and January, with some makers recording declnes of over 50 percent. As a result, many cars began to collect, unsold at dockyards and airfields (see our picture, above).

However, production at many factories has now been scaled right back, and it's thought that the recent surplus of supply is beginning to ease.

As a result, all new Fords will now cost an extra 4.7 per cent, while Vauxhalls will command just under five per cent more, with the exception of the ageing Vectra and the VXR8.

Both manufacturers are blaming poor exchange rates and the weak value of the pound for the price hikes.

While it’s still possible to haggle with dealers, consumers will inevitably end up paying more for their new motors.

Ford also hinted that further price rises were on the cards unless the pound strengthened in the near future, with one source admitting to Auto Express that the cost could rise by as much as 8 percent by the end of 2009.