Ford put prices up 3.75%

Graham_Devon

http://www.google.com/hostednews/ukpress/article/ALeqM5iZErnIgT7nsV4!!!cidzaha63Wdw

Interesting stuff really. The cynical side of me thinks they know something we don't and that the car bailout is on it's way.

They say:

"It is regrettable that we are putting prices up but this is a battle for survival. We would rather sell one car for a profit than sell 1,000 at a loss."

It just doesnt add up to me. It seems such a stupid thing to say, as if they don't know what to say.

But on the more popular models, prices will go up further. You can currently get the Ford Fiesta Zetec on the road for £11,495.

So at a time when they are crying out they cannot sell cars, this model will go up to £13,095. (For a fiesta!!!!)

So, anyone else think this basically tells us a big car bailout is on the horizon?

If not, how on earth does doing this make sense when you are screaming to all that will listen that you have no ne buying cars, so whack the price up, and whack it up further on the ones that are the most popular, make business sense in a recession?! This will just mean even less buyers!

Edit: This is the second increase, as Ford put them up at the begining of this month too.

ad9898_3

I don't know, more deflation:rolleyes:, whatever next.

elaina79

We have looking at car prices recently, and foolishly thought they the prices would have been relatively low. I was shocked at how much the prices were.

Really2

Graham_Devon wrote: »

If not, how on earth does doing this make sense when you are screaming to all that will listen that you have no ne buying cars, so whack the price up, and whack it up further on the ones that are the most popular, make business sense in a recession?! This will just mean even less buyers!

Edit: This is the second increase, as Ford put them up at the begining of this month too.

If you reduce production the cost of production goes up. It sounds compleatly sensible to me. They are selling less so the COGS goes up it is the same for most manufacturing businesses.

If you sell at a loss you are giving your product away.

Why do people think in a recession it is a good idea to sell at all costs?

I think some people need to wake up that a recession does not mean people sell at any cost, They sell at a cost to make a profit or to break even untill things improve.

Really2

ad9898 wrote: »

I don't know, more deflation:rolleyes:, whatever next.

Good job they are not a monthly purchase then.;)

1984ReturnsForReal_2

Dont forget the carmakers have lost most of the sales due to lack of fleet activity NOT the guy of the highstreet.

Joe public have been subsidising fleet sales for years, now your just going to subsidise them a little more....

lostinrates

Really2 wrote: »

Good job they are not a monthly purchase then.;)

well, not by one person anyway.

dopester

Fewer and fewer people will buy. GM/Ford can't maintain their high-cost positions by raising prices, which fewer in the market can afford, when so many others in different sectors are taking pay-cuts and losing jobs.

I'd leave them to their own devices - no bailouts - and let the market adjust to find new solutions.

Guys around the corner are reconditioning older and classic cars to quality roadworthy condition for a few hundred pounds profit a time. Bodywork, reconditioned engines/gearbox, brake-discs and pads, to service the market which needs reliable cars at prices which are affordable.

Graham_Devon

ukcarper wrote: »

A 3.75% increase on £11,495. takes it to £11,926

Yer I know. The average is 3.75% though, according to the story. I would think they are trying to make more profit from the more popular, higher sellers. All I'm going on is whats reported

I also read somewhere, but can't find where, that prices are falling in Germany.

I reckon we will be seeing much more of what I remember growing up as a kid. Cars going round with different coloured panels etc. You hardly ever see that anymore, but remember seeing it loads when I was growing up.

ukcarper

Graham_Devon wrote: »

Yer I know. The average is 3.75% though, according to the story. I would think they are trying to make more profit from the more popular, higher sellers. All I'm going on is whats reported

Read your post properly so I deleted mine thats a big increase you were very quick

Really2

2nd hand are shooting up. I purchased my 2nd hand car in Jan. I could now sell it on one of those car buying sites for the same I paid for it.

To buy the same car now £13K (that up 3K in 3 months)

So it looks like car prices are adjusting in general, perhaps they just have been to cheap based on massive production outputs.

Perhaps cars will cost more untill we see mass production again.?