FORD has defied calls for car manufacturers to reduce the price of new vehicles in the UK and bring them into line with European markets by launching the latest Fiesta at a higher price than the outgoing variant. Across the 13-model new Fiesta range, the price has been increased by £50 compared to its predecessor.

This confirms reports that far from bowing to pressure from the Consumers' Association, which claims UK car buyers are being 'ripped off' by manufacturers and believes prices should reduce, Ford believes customers should pay for a 'better and more highly equipped car'. It is also rumoured that a Fiesta price increase would lead to similar increases for Mondeo and Focus in the new year.

Ford has refused to comment on how the UK cost of the Fiesta will compare to foreign markets. A spokeswoman said: 'The new Fiesta comes with a lot more standard equipment which will be evident when we show the car at next week's London Motor Show. It is excellent value for money. We don't even know how much it will cost abroad or what the spec level will be. But in the UK it's competitively priced.'