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Ford to hike vehicle prices by 4%

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The weakness of the pound against the euro has been blamed for the decision to increase the price of all new Ford vehicles by an average 4% from next month.

The £600 increase to the list price of a Ford Fiesta, and £650 to a Focus and a Mondeo, will not be welcome news for motorists looking to keep costs down by searching for cheaper car insurance and cutting down on unnecessary expenditure.

Ford has introduced a price hike already this year, with vehicle costs increasing by an average 3.5% in April.

Nigel Sharp, managing director of Ford of Britain, commented: "We don't like introducing price rises but we really don't have any alternative.

"Since 2007, the pound has dipped 25% in value against the euro and this is making a huge difference to our operations. Sadly, we had to introduce voluntary redundancies this year but there is only so much cost-cutting we can do."

He added: "Ford Europe has lost a lot of money in the first three months of this year and we cannot continue to operate the business unprofitably."

However, in spite of the move, Mr Sharp indicated that things could be picking up, with Ford selling around 1,200 to 1,500 vehicles a week under the Government's "cash-for-bangers" car scrappage initiative.

© Press Association 2009