Fleet News

'We won't reduce our prices,' say top car makers

BRITAIN'S leading car manufacturers will not cut list prices as pressure mounts to reduce them just three weeks ahead of completion of the long-running Competition Commission investigation. Peugeot UK managing director Tod Evans has given an unequivocal reassurance that the media-hyped '10-15% cut in new car prices will not happen'.

Meanwhile, both Ford and Vauxhall - Britain's top two manufacturers - are standing just as firm as third-placed Peugeot - with senior directors of both companies pledging that new car prices will not tumble. And Renault and Volkswagen have also signalled that prices will not fall in line with Mitsubishi's surprise December cut. The denials come as fleets are reported to be postponing the replacement of non-essential cars in anticipation of lower new car prices ahead of the Commission submitting its New Cars Inquiry findings to Trade and Industry Secretary Stephen Byers on January 31.

Evans told Peugeot dealers that he was 'seeking price stability rather than price cuts'. However, a Peugeot spokesman said the company would continue to move new car prices 'up and down' tactically within each model range as specification enhancements and technological improvements were made. Fleet and leasing director John Taylor added: 'Most fleets understand that the deal they are getting is as good as they are going to get.'

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