For the third time this year, Ford is raising prices. The latest increase is .03% or $124. Year to date, Ford has raised new car prices 1.3% or $375.
The latest increase, like the previous two, is due to Ford having to keep up with higher commodity prices.
As Ford has faced higher prices for steel, aluminum, rubber, oil (used for resins), and a host of other raw materials used for building cars and trucks.
While some of these costs have eased in recent weeks, Ford is still facing higher prices. The automaker told dealers about the price increase in the last two weeks.
Overall, the auto industry has increased prices 1% with Ford competitors announcing price hikes in the last couple of months.
Input costs at the major auto maker for just about everything are finally getting pushed onto the consumer. There's no way they can afford to push it dollar for dollar onto the consumer, but the cost pressures have mounted so bad that Ford has had to raise costs 3 times already in 2011.
This inflationary pressure comes from a rise in all commodity prices, which stems from easy money policies. The biggest culprit being the US government.
Have we reached at point where rising gas, food, and other costs have taxed the American consumer to a breaking point? Will consumer spending stall or decline in the near future if prices continue to rise?
I doubt the consumer can handle the price of gas or food going much higher without directly impacting consumer spending trends and/or real estate values!
It's just math and when the essentials cost more, something else has to give as long as the jobs market remains weak!
Hope all is well.
J.D. Rosendahl, Rosey