Price Reductions Across Ford's Large Car Range

With the UK introduction of its new range of large cars - Ford S-MAX, Galaxy and Mondeo - Ford is reducing official recommended list prices by making current seasonal promotions permanent.

Combined with the lower CO2 ratings of Ford's new large car range, the lower recommended list prices will also lower P11D tax ratings, increasing the appeal of Ford Mondeo, S-MAX and Galaxy for company car drivers.

Seasonal promotions featuring discounts of up to 15 per cent had been introduced across the Ford UK dealer network in order to maximize trade in the critical sales month of March 2010 when customers mass to acquire the latest "10" number plates. Launched in early February 2010 and advertised in the media and on the Ford website, the promotions immediately resulted in strong sales. They were due to expire later in the spring.

Nigel Sharp, managing director Ford of Britain, said: "Ford's traditional high recommended list price, high discount approach was causing some confusion and incurred a disadvantage for company car drivers.

"That formula served us well in the past," he added, "but today's web-savvy consumer is better equipped to shop around and we have to make it absolutely clear that our own dealers are the best place to start for the keenest deals."

At the same time as reducing the recommended list price Ford will be reducing dealer discounts. This initiative is called "Blue Tag pricing".

Due for imminent launch in the UK, and with a range of design, craftsmanship, technical and comfort innovations, the new Ford S-MAX and Ford Galaxy will therefore debut with Blue Tag pricing. The Ford Mondeo, with new low-CO2 direct-injection petrol and diesel engines and Powershift transmission, follows immediately. Ford's declared ambition is to continue to extend Blue Tag pricing principles to all future models.

P11D-related tax operates by linking CO2 performance with the recommended list price of cars, rather than the transaction price. Over 70 per cent of customers in the large car segments pay P11D tax, so this was an additional stimulus for Ford.

The recommended list price of a Ford Mondeo Zetec will be £18,445; the recommended list price for a Ford S-MAX Zetec will be £20,645, while the recommended list price of a Ford Galaxy Zetec will be £22,945. This compares with recommended list prices of £20,836, £22,677 and £26,355, respectively, for the outgoing models. The new models are available to order now from Ford dealerships.

Ford will continue to provide industry-leading value across the entire Ford car range and a new interim marketing offer, effective April through June 2100, will match the value represented by "Blue Tag" across the remainder of the Ford passenger car range - including the top-selling Ford Focus, Ford Fiesta and Ford Kuga.