Luxury car firm to increase prices

The global downturn in car sales has led luxury car maker Bentley to announce a series of price hikes on models sold in the UK.

Due to the current weakness of the pound, the company is raising prices by 5% from April in this country, while leaving overseas prices unchanged.

A spokesman for the firm, Stuart McCullough, said: "We are reacting to the continued very low value of Sterling against the Euro.

"As a UK business with much of our component costs based in Euros, we have to address the fact that our costs have increased significantly given Sterling's dramatic decline."

He said though a 5% rise in prices at a time of reduced demand and production might seem counter-intuitive, the firm's hand had been forced due to the depreciation of Sterling by 18% against the Euro over the last 12 months.

He explained that sales to the Euro-zone provided a natural hedge against Euro denominated costs, which meant price increases were unnecessary in other European markets.

The price of the company's base model Continental Flying Spur will stand at £120,700, while the most expensive Azure T will cost £245,000 once the changes have taken effect.

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