The CA has accused car makers of operating a price-fixing cartel and which is the subject of a Competition Commission inquiry. Speaking at the launch of the facelifted Ford Fiesta, he told Fleet NewsNet: 'Until you get unified currency, taxes and unified product in terms of specification then there is not really a strong argument for price alignment. We are a public company and if you look at the returns we make on our investment purely on the transaction process of selling a car we only make 1%.
'Imagine if I told you to give me your life savings because I could make give you a 1% return on it. You wouldn't be impressed. We are in a similar situation and I therefore don't think prices are too high in the UK.' Mendel added: 'In the US the Japanese manufacturers reduced prices, but people didn't flock to buy them above our cars. Reducing the price cheapens a car's image. The inequality of taxes and currency rates is a question that needs to be answered.'