Ford has substantially increased the prices of two of its most popular models for 2021, claiming that the rise is due to additional tariffs on components built outside the UK and EU.
According to UK price lists from December and January, the price of a Fiesta ST in ST-2 trim rose by £1455 at the start of this month. ST-3 and ST Edition models also went up by £1695, meaning the range now tops out at £28,770.
Also more expensive to buy this year is the recently launched Puma ST. That was available to order from September last year priced from £28,495, but this month that base price has increased to £30,415 with no equipment upgrades.
Speaking to Autocar, a Ford UK spokesman confirmed the rise was “all to do with Brexit pricing” because some of the engine components used in the production of both models are sourced from the US.
Those components push the two models over the allowable limit on what proportion of goods can be assembled from parts made outside of the UK and EU for tariff-free access. Known as ‘rules of origin’, it could mean a number of other UK models assembled in the EU from components made elsewhere become significantly more expensive.
Further clarification on this and many other areas of the newly ratified EU-UK trading agreement is needed, reckon industry leaders. Mike Hawes, CEO of the Society of Motor Manufacturers and Traders, says his team “await the details to ensure this deal works for all automotive good and technologies, including specifics on rules of origin and future regulatory co-operation”.
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Must be Project Fear. Brexiloons, you have the scene :)
Before everyone jumps on Brexit bandwagon, the story says increases due to components made outside the UK and EU. And then it mentions some engine components from the USA. And then it mentions a price rise of £1455 and almost £1700!
1st question I ask myself is what components would cause that sort of price rise?
2nd question is what is the difference in tariffs before and after Brexit that would cause such a rise?
3rd question. If those price rises are due to Brexit then obviously Ford hasn't increased the prices of those cars in any of the remaining 27 EU member states?
Three very obvious questions I'd have thought yet the report suggests the questions were never asked.
You can blame anything on Brexit if nobody holds you accountable.
No sooner do I finish reading the 'Brexit' price rises, in the next article I read that Ford is closing plants in South America due to a global cost-cutting exercise.
Surprised Ford hasn't claimed that to be a result of Brexit too.
Do you reckon Ford's own restructuring might have anything to with those UK price rises? I'd say the chances of that are quite high.
Instead of doing a bit og googling you post questions design to suggest there is something fishy going on. And, of course, you finish with "You can blame anything on Brexit if nobody holds you accountable" - yeah, you just discovered the conspiracy.
But the reality is much simpler: for a product to be imported free of tariffs in the EU it must have 55% of components made in the EU (or UK, for British made products, thanks to the deal). It doesn't matter how much the remaining 45% of components cost.
May encourage the Japanese to build them in Japan and shoulder the tariff for the next 6 years until the free trade deal kicks in. Should get them some brownie points from the Japanese government.