As the British pound continues to lose value in the aftermath of the country’s referendum to leave the European Union, Ford has announced an average 1.5-percent increase in MSRPs across its range of products sold there, reports Autocar.
Ford’s 1.5-percent price bump is more than the average 0.9-percent increase announced by rival Japanese automaker Honda, but less than the 2-percent increase announced by PSA Peugeot Citroën and Suzuki, or the 2.5-percent rise affecting Vauxhall’s lineup. Increasing MSRPs in the UK “will be the trend across the industry,” said Opel Chief Marketing Manager Tina Müller at the Paris motor show. “I think we are leading here but we know that everybody else will follow.”
The Brexit effect has effectively cost Opel £346 million already.
For Ford Motor Company, which is in the midst of a turnaround in Europe, the British EU referendum could hardly have come at a worse time. Ford Europe last year posted its first profit in four years, and the UK is far and away the automaker’s highest-volume market in the region. Ford wrote a letter to its UK employees earlier in the year cautioning against the “hundreds of millions of dollars every year” the automaker might lose as a result of a departure from the European Union.
The British Pound’s value decline since the results of the EU referendum has been driven largely by speculation; the UK is expected to invoke Article 50 sometime in March, 2017, at which point both parties will have up to 2 years to negotiate the terms of the UK’s departure.