The continued weakness of the pound is being blamed for the decision by motoring giant Ford to increase its prices by 2.7% across most of its UK range.
Ford said the drop in the value of the pound - which since 2007 had been in excess of 30% - was a "fundamental concern" for all UK-based businesses whose costs were incurred in Euros.
The firm said it had taken "strenuous" cost cutting actions aimed at limiting the impact of its December price change on customers.
Managing director of Ford of Britain, Nigel Sharp, said: "To combat the continuing weakness of the pound against the euro, Ford has reduced costs across its entire UK business, including personnel reductions in its central operation and across its dealer network."
Prices for Ford vehicles will rise by an average 2.7%, meaning an extra £250-£500 on the most popular models - Ka, Fiesta, Focus, C-Max, Kuga and Mondeo - rising to £600 on a Ford S-Max and Galaxy.
Fiesta vans will increase by £400, Transit Connect and Ranger by £500 and the Transit 1T model by £600. Prices for the Ford Focus RS and the Transit 2T remain unchanged.
The news will be a further blow for many motorists, who already face hiked car insurance rates after the industry revealed money paid out in claims is exceeding the amount taken in premiums.
© Press Association 2009