Many prices lowered due to taxation changes on the CO2 emissions of cars
Cork, 27 May, 2008 – Ford Ireland has announced prices for its range of cars in anticipation of the upcoming change in vehicle registration tax in July.
Basing taxation on the CO2 emissions of cars has meant that two-thirds of Ford models will fall in price, some of them by as much as €3,600.
While diesel-powered cars are the main beneficiaries of the change, petrol models in the small car segments will also drop in price. The best-selling Ford Fiesta Steel II, for example, is reduced by over €1,200 while the Ka falls by over €400. The Fusion petrol model drops by €555. “Diesel versions of Fiesta and Fusion come down even more sharply,” explained Eddie Murphy, Chairman and Managing Director, Ford Ireland. “These are big savings in such price-conscious segments, and they should encourage new car buyers into the market.”
Ford foresees a shift towards diesel to the extent that TDCi models will account for 60% of sales in 2009, compared to 30% currently. Eddie Murphy sees the Focus as an interesting test case of buyers’ willingness to move from petrol: “The Focus TDCi, with the acclaimed 1.8 Duratorq engine, falls by a whopping €2,600 in July, bringing it below the best-selling Focus 1.4 petrol. This is the first time we’ve had a diesel model undercutting petrol in a segment which has been a petrol preserve. The TDCi will also benefit from lower road tax.”
Savings in the Mondeo TDCi range from €1,800 upwards. The 5-door 5-speed TDCi ECOnetic, which comes inside the 16% tax band, falls a full €3,600 on the current price. The entry level 1.6 petrol rises by €1,100 and Ford are offering a special Blue Sky bonus on purchases of this model before the July deadline.
The most popular models in the S-MAX and Galaxy ranges, the LX TDCi, fall by €480 and €500 respectively.
The 50% VRT rebate for Flexi-Fuel Vehicles (FFV) is replaced by a flat €2,500 rebate from July. This has the effect of reducing the price of the Focus FFV by €170, while the Mondeo FFV rises by €650 but still undercuts all other Mondeo models in price. It will benefit the new Fiesta FFV significantly when it is introduced in 2009.
All models within the new Kuga crossover SUV range, which goes on sale this week, fall in price in July by at least €2,880, due to the car having the lowest CO2 emissions in its class, at 169 g/km.
“The blue oval stands to reap the rewards of an environmentally efficient product range,” comments Eddie Murphy. “Ford sales have performed exceptionally well so far this year and the tax change augers well for the brand for the rest of this year and next.
“Once the confusion surrounding the changes evaporates, motorists will quickly recognize how diesel offers a compelling alternative, and not just in terms of value-for-money and the environment. One test drive of a modern diesel will rid Irish motorists of their traditional perceptions of these cars as noisy, unclean and lacking in performance.”