In the lead up to the new VRT rate from July 1 Ford Ireland has announced prices for its range of cars. 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, according to the company.

Ford reports that its post July 1 price list shows that some diesel powered Mondeo models will fall in price by up to €3,600 before delivery charges.

The diesel-powered cars are the main beneficiaries of the change. Ford's new price list shows that petrol models in the small car segments will drop in price also.

The best-selling Ford Fiesta Steel II, for example, is reduced by over €1,200 while the Ka falls by over €400. The Fusion multi-activity vehicle petrol model drops by €555. Diesel versions of Fiesta and Fusion come down even more sharply," according to Eddie Murphy, Chairman and Managing Director, Ford Ireland.

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 incentivising buyers to purchase this model before the July deadline with a special Blue Sky bonus.

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 fall in price in July by at least €2,880.

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