FORD’S new pricing strategy, called Blue Tag, is being extended from its large cars to the smaller car range.
The price reductions are between 6% to 15% on the Ford Ka, Ford Fiesta, Ford Focus and Ford Kuga car ranges.
The key ingredient of Blue Tag pricing is a lowering of the list price thanks to a reduction in the amount of discount offered by Ford and its dealers.
The key beneficiaries are small businesses – who may not have commanded such great discounts as the big car fleet operators – and company car drivers, thanks to reduced P11D prices, which directly affect benefit-in-kind company car tax.
Ford first introduced Blue Tag pricing on Mondeo, S-MAX and Galaxy in April. The extension of Blue Tag pricing to the rest of the Ford range commences from August.
Nigel Sharp, managing director Ford of Britain, said: “The traditional way that the car industry has operated in the UK – with high recommended list price matched to high discounts – is causing confusion for consumers.
“Together with our dealer partners we are determined to change that formula and make the whole purchase process more transparent and the value of Ford cars more obvious.”
Kevin Griffin, Ford’s fleet director, added: “The lower recommended list prices will also reduce P11D tax liability, increasing the appeal of Ford’s small and medium cars to company car drivers.”
Mr Griffin said that the Blue Tag pricing on its larger cars had seen an uplift in demand. Mondeo orders were up 18%; S-MAX 10%; and Galaxy 5%.
“We don’t want to be disadvantaged by the perception that Ford prices are higher than they are,” Mr Griffin continued. “This is a sea-change in the way we do business and it will definitely benefit company car drivers.”
Ford said buyers of its cars before August would benefit from existing summer season discounts in its dealers.
Typical Ford Blue Tag pricing
Ford Ka Studio £7,995 (previously £9,360)
Ford Fiesta Studio £9,995 (previously £11,645)
Ford Focus Zetec £15,545 (previously £18,345)
Ford Kuga Titanium £22,495(previously £23,795)
