Ford’s ‘blue tag’ pricing bucks industry trend

According to What Car? the ending of the scrappage scheme and struggling economy has led to many manufacturers no longer offering discounts on many models.

However, Ford has lowered prices across both its small and large car range, leading to lower list prices for all of its models from the small Ford Fiesta supermini to the larger, seven-seat Grand C-Max MPV.

This goes against the industry trend, where prices of new cars have increased in the past 12 months.

Ford’s decision to lower list prices has been justified by What Car? research which shows lower prices are more important to customers – with 58 per cent of the vote – than extended warranty, free servicing or low-rate finance.

Under Ford’s blue tag pricing strategy, the prices of the Mondeo saloon, S-Max MPV and Galaxy MPV have been cut by up to £3500, while the smaller models such as the Ka, Fiesta and Focus have seen discounts as high as £5000.

The strategy was introduced to remove confusing discount and finance offers on Ford cars and boost sales in the wake of the scrappage scheme ending in April 2010.

Ford currently produces the UK’s two favourite cars, with the Ford Fiesta and Ford Focus topping the sales charts for 2010 and finishing top every month so far this year except one.

A new Ford Focus will be unveiled at the Paris Motor Show on 30th September.