Ford Increase Its Vehicle Prices For The Third Time

By Author: Marty Vergel Baes
Total Articles: 413
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Ford continues to grab some of its competitors’ market shares for the past few months. One of the reasons for this was probably due to the decline of the number of units produced by some of the Japanese-based car makers such as Honda and Toyota.

This might also be caused by the company’s more aggressive strategy to provide the needs of most new car finders by providing better auto financing options and reliable vehicles. However, new car finders who want to purchase a sedan, SUV or a pickup truck made by Ford should save extra amounts for their next vehicle purchase since the company has raised the prices of almost all its vehicles this month.

The raise in Ford vehicles’ prices were justified by the company’s spokesman Todd Nissen. According to Nissen, the average increase on the prices of Ford vehicles for this month which is around 0.4 percent or about $124 for each vehicle was brought about by the increase in the costs of commodities used ...
... in building the company’s cars, SUVs, and pickup trucks. As the prices of these commodities increase, the company is left with no options but to pass this to the pricing of every vehicle they produce.

This month’s increase of Ford vehicles’ prices was actually the third for this year. The first round of increase happened last January with similar rate. It was subsequently followed by an additional increase last April which brought the prices of Ford vehicles to about 0.8 percent higher. However, the company was not yet satisfied with the increase so they decided to implement another round of price hike to compensate their growing expenses brought about by the increase in commodities’ prices.

To sum the increase in Ford vehicle prices up, the company has already raised these to about 1.3 percent. This made Ford vehicles about $375 higher compared to their prices last December 2010. In addition to this, the subsequent hikes have exceeded the 1 percent increase of the overall market for this year. Although Ford has been grabbing greater market shares as of the present, it only obtained a 12% sales increase for this year’s first four months compared to the overall market’s sales improvement of about 20%.