Tuesday, April 5, 2011

Ford (F) Raising Vehicle Prices $117 Each

The continuing rise in commodity prices has resulted in Ford (NYSE:F) raising its vehicle cost by $117 for each individual one, according to spokesman Todd Nissen.

Nissen added that it wasn't in connection to supply disruptions coming from the consequences of the earthquake in Japan. "This was in the works for months," Nissen said. "We’re responding to higher commodity prices, and this is in keeping with what we’re seeing from our competitors."

This follows on the heels of Toyota Motor (NYSE:TM), which also recently announced it was raising prices on its vehicles.

Ford said they see the boost in commodities prices adding over $1 billion to the costs of the company in 2011.

Expectations are auto sales in the U.S. will probably fall in April and May because of the higher prices and limits placed by the manufacturers on sales to fleet customers.

Ford closed Monday at $15.55, gaining $0.39, or 2.57 percent.

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