Ford Motor Co. is all set to launch its re-designed Explorer by the end of this year. It has now decided to increase the costs of vehicles with higher horsepower.

This is indicative of the fact that the re-designed model of Explorer will be priced at much higher rates when the vehicle will hit the markets in December.

The vehicle will be powered with a standard 3.5-liter V-6 engine bearing 290 horsepower, optional 4-cylinder as well as 53 additional ponies.

The car will be launched first in New York and Chicago and the Company has been trying to make people realize the worth of increased prices.

The Company officials said that the engine in the new seven-seater SUV has the fuel economy capacity matching that of Toyota Motor Corp.’s Camry.

Jim Holland, the Explorer’s Chief Engineer, said, “We really want to make a statement that the old baggage on fuel economy with the Explorer is gone”.

He added that for better efficiency, there is a need of improving the technology.

However, the Company has not specified any amount to be added to the original prices for the re-designed engine. On an average, the Company charges $5,000 in premium for the Flex model for V6 engines.