Ford has seen sales of its sub 120gkm vehicles rise by 38% year-on-year and it expects to end the year on around 40,000 cars, 15% of its UK total.

With 28 vehicles in its range emitting fewer than 120g/km of CO2 (which is currently £35 per annum), the carmaker believes it is in a strong position to take advantage of the growing consumer concern over the environment allied to rising taxation and fuel costs.

"CO2 is becoming a business case" said Ford UK managing director Roelant de Waard.

Although Ford charges a £250 premium for its most environmentally friendly cars those that fall under the Econetic brand, it says the business case in terms of VED savings and fuel savings outweighs the additional cost.

It also expects residual values to rise for these vehicles.

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