Ford chooses price drop over new trim level

Earlier this week, Ford has denied reports it was set to unveil a lower trim level, months after discontinuing the entry-level Studio trim.

Instead the manufacturer has responded to the end of the scrappage scheme by making spring promotions permanent on three of its best-selling models.

The move, aimed at encouraging commercial vehicle sales, will see the S-Max start at £20,645, the Galaxy at £22,945 and the Mondeo at £17,295.

Ford has come under criticism over the past twelve months for increasing prices above inflation levels, and Nigel Sharp, managing director of Ford Britain, admitted it was confusing customers.

“Ford’s traditional high recommended list price, high discount approach was causing some confusion and incurred a disadvantage for company car drivers," he explained.

Now Ford has removed discounts and instead opted to lower the prices of the models permanently. At the end of March, as the scrappage scheme came to an end, Ford were offering discounts of up to 15 per cent on some models.

The new Ford S-Max and Galaxy both offer lower CO2 emissions than outgoing models, and the lower list price will ensure lower P11D tax for potential commercial customers, says Ford.

Ford is offering discounts on the Focus, Fiesta and Kuga models for a limited period only, and has yet to make an announcement on the possibility of the discounts becoming permanent.

The process of reducing discounts and lowering list prices has been called ‘Blue Tag’ pricing by Ford.