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Ford is targeting fleets with a round of price cuts on the new S-Max, Galaxy and new engined Mondeo.
Combined with the lower CO2 ratings, the lower recommended prices will lower P11D tax ratings for company car drivers.
Transaction prices
Although list prices have been lowered, transaction prices will remain the same as dealer discounts have been cut. Ford said it had talked with fleets, contract hire companies, dealers and Glass’s Guide and Cap to see if the new pricing strategy would work.
It claimed the new cars offered better residuals and lower emissions, service, maintenance and repair costs and benefit in kind tax for company car drivers.
The so called ‘Blue Tag’ scheme is being launched for bigger cars first as they are most popular with fleets. Ford said it will follow suit with the rest of the range.
In February Ford introduced a 15 per cent cut on 10 models to boost sales. The deals on these smaller cars will now be replaced with an interim marketing offer matching Blue Tag value.
Ford under fire
Ford has come under fire for increasing the prices of its cars in 2009 with pundits suggesting the company had lost its way in terms of value.
Ford said it had to increase prices to deal with the falling pound but according to Jato figures sales of Mondeo fell 22 per cent in 2009 compared to 2008.
“This perception that we have someway moved away from value is wrong.
“We need to make sure we communicate this as it has always been part of the way we go to market. It is absolutely essential to get that message across,” said Ford Britain managing director Nigel Sharp.
The recommended list price of a Ford Mondeo Zetec will be £18,445, an S-Max Zetec will be £20,645 and a Galaxy Zetec £22,945. This compares with list pries of £20,836, £22,677 and £26,355 for outgoing models.
Business car bloodbath
Ford’s renewed assault on the fleet market marks the beginning of what is widely expected to be a business car bloodbath in 2010 with the end of scrappage and carmaker excess capacity chasing fewer buyers.
“Manufactures have the same capacity with just as many cars chasing fewer customers so it is going to be extremely competitive,” said Sharp.
Sharp said carmakers had already moved fast into Motability and even some large cars are now being offered on zero deals, which did not make commercial sense.
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