THE Competition Commission slammed the actions of the 17 leading car companies in the UK for actions that had led to higher prices, writes David Duffy.

The companies had deterred dealers from obtaining cheaper new cars from dealers in other EU member states.

Dealers were, in some cases, also required to supply all of a specified range of new cars by the setting, by car companies, of separate sales targets for different model ranges.

The commission also said some dealers were being prevented from selling other suppliers' cars from the same premises. Also, some companies pre-registered new cars before supplying them to dealers and purchasers - thus artificially inflating sales figures.

Industry analyst Mark Norman said: "The list price of vehicles will come down, but the price people will actually end up paying will not drop very considerably."

"The whole thing has been a bit of a storm in a teacup, really, as few people pay the list price."

The British Vehicle Rental and Leasing Association warned that any dramatic reduction in prices would impact negatively on used-car prices, as buyers who would have bought second-hand cars were more likely to buy new ones.

Story date: Wednesday 12 April

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.