Ford is cutting 12% off its list prices in a bid to deliver lower tax bills for company car users.
Top brass at Ford decided to slash list prices to make its vehicles much more attractive to fleets. Under the P11D system company car tax is based on CO2 emissions and list price. With some prices cut by up to £3,500 company car users will pay a lot less in car tax.
Ford says there will be much less room for discounting and as such this new policy will protect residual values, lessen the Benefit-in-Kind tax burden and reduce national insurance costs.
Revised models, such as the S-MAX, Galaxy and the Mondeo, with its new powertain, will be first under the new price-cuts but Ford says it plans to introduce the policy on other models in future.
Prices for the Mondeo will now start at £17,295, down from £19,760 and the new S-Max Zetec will cost from £20,645, down from £22,677. The new Galaxy Zetec will cost from £22,945, down from £26,355. Interestingly, the cheapest Mondeo's list price is now less than the cheapest Focus's list price of £18,280.
Last year Ford increased prices by around 20%. It claimed the weak pound had pushed up its costs but in Febuary it introduced a spring-time promotion with large discounts.
Nigel Sharp, Ford Britain managing director, said: 'Over the past year or so we have been in the news for the wrong reasons - for putting our prices up. Some potential buyers were put off by the higher list price so they didn't even bother coming through the dealership door. It was a matter of real urgency.'
Ford is also trying to keep tax bills down by introducing its 'Econetic elements to three TDCi powertrains under 160bhp. All three will emit less than 140g/km and use less fuel.