MI Ford Dealers Face Higher Prices on Vehicles as Ford Adds $117 per Vehicle to Consumer Cost

Ford Motor Corp. is raising prices on 2011 vehicles. MI Ford dealers hear it may be due to higher costs of materials while some believe the Japan disaster is causing the increase.
By: Porta Press
 
April 8, 2011 - PRLog -- DETROIT, M.I. – MI Ford dealers are facing higher prices they will be offering customers in the future. This would not be the first Ford increase of the year, but the second. In January, Ford had increased its prices $130 per model, or 0.5 percent.
Some believe Ford can change its prices without it hurting sale numbers as Ford took the highest market share at the end of March. Ford is not the only automaker to be raising its prices. Last week Toyota Motor Corp raised its prices on all but six models on an average of $900, or 1.7 percent.
When Ford told MI Ford dealers and other dealers across the country about the price increase, Ford did not comment on what the exact price increase would be per model; two different spokespersons for Ford have given their reasons for the increase:
“This was in the works for months,” Spokesman Todd Nissen told Bloomberg News. “We're responding to higher commodity prices, and this is in keeping with what we're seeing from our competitors.”
“This adjustment has been planned for some time,” said George Pipas, Fords Chief Sales Analyst in a press release on leftlanenews.com. “If you read the headlines, prices for food, energy, airline tickets are going up across the board.”
Ford has also taken steps to assure the public the price increase is not due to possible shortages of parts and materials from Japanese manufacturers and distributors, but the scarce supply is clearly affecting Ford in other areas; Ford shut down its Louisville truck plant on Monday, which is scheduled to be down until Friday. Also dealerships like MI Ford dealers have been told to limit their orders of certain paint colors because of continued Japan-related shortages.
Ford may not be the only automaker to increase its prices, but only consumers will be the answer of whether buyers will accept the increase and continue to purchase from Ford, or if the increase may have been unwise on Ford’s part.
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[Source(s): LeftLandNews.com, USA Today, Bloomberg]
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Source:Porta Press
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Tags:Mi Ford Dealers, Ford Motor Corp, Toyota Motor Corp
Industry:Cars, Automotive
Location:Detroit - Michigan - United States
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