Ford will be cutting list prices of its whole by an average of 11% from August 2.
The idea is to make pricing much easier for potential customers to understand and also make Fords much more competitive in the company car market.
Under the PIID tax rules company car tax rates are based on vehicle list prices. By reducing the official list prices Ford is helping to reduce to the company car tax burden for its customers and is making its cars more attractive in that market.
In April this year Ford reduced list prices for its new S-Max, Galaxy as well as its Mondeo models. Since then it has increased sales on all three models. In the company car market alone Mondeo sales increased by 18%, S-Max increased by 10% and Galaxy by 5%.
Kevin Quigg, Ford Dealer Council chairman, said: 'There was an immediate effect in the showroom as a result of the lower list prices on large cars. Ford dealers are delighted to see the company continuing to lead the market by applying the initiative across the Ford range.'
Traditionally Ford has offered huge discounts on its models allowing much more room for negotiation in the dealerships. Ford insists that the 'transaction' price will remain the same but there'll be smaller discounts available.
Nigel Sharp, managing director of Ford 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 the cars more obvious.'
Price cuts will range from 5% to 16%: from August 2 the list price of a Ford Ka Studio will be £7,995 - a price reduction of £1,365. A Fiesta Studio will be £9,995 - down by £1,650 - a Ford Focus Zetec will be £15,545 - down £2,800 and a Ford Kuga Titanium will be £22,495 - down £1,300.