MAZDA has slashed prices on its new 323 range by up to £1,000. The price cuts are part of Mazda's new competitive strategy that pledges better specifications and an average 10% price cut on UK models.

The move comes after the company reached an agreement to buy the distribution business from MCL Group - a company owned 60% by Itochu Corporation and 40% by Inchcape.

The price of the 2.0 Sport has fallen by £1,000 to £13,995, and the price of the 2.0 Diesel Turbo drops from £12,705 to £12,495. The 1.3LXi drops to £10,295 from £10,780 from while the 1.6LXi costs £10,995 - a saving of £970.