Ford claims hike is result of increased tariffs on non-EU and UK components under ‘rules of origin’
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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Source: Autocar
