Ford (NYSE: F) plans to cut the prices of its new cars next week in response to declining sales in the United Kingdom, according to several sources.

The U.S. auto giant will be the one of the first manufacturers to cut prices as there’s no longer the scrappage program to support the industry and as fears for 2010 sales becoming more prevalent.

According to Car Dealer magazine, owners at dealerships have already been told about the coming price cuts, and sale staff will be informed about the price cuts this week. Car Dealer says that many dealers are not happy about the price cuts because it will reduce their margins.

The price cuts are expected by many to come in the form of new entry level models that have basic sets of equipment, which were previously unavailable because they were not viable for manufacturers under the scrappage program.

Many believe that the price of Ford’s Mondeo, Galaxy and S-Max will be cut in hopes of boosting its fleet sales and other models will benefit from permanent offer.

Hyundai Head Tony Whitehorn said to Car Dealer that he believed the major manufacturers initially expected that they would be able to follow last year’s price increases.

“But we didn’t,” said Whitehorn. “In fact we saw rival’s price rises as an opportunity to take even more customers, both private buyers and especially company car drivers who have to pay tax based on list price. They will have to find a way of cutting prices in the near future if they want to stem the tide of buyers defecting to brands such as Hyundai”