BBC News Online: Business

Vauxhall joins price cutters

The move by Vauxhall, part of General Motors, is in response to a series of cuts by other car makers such as Rover and Ford.

It follows long running government and consumer pressure on the industry to cut prices.

This pressure has grown as a series of surveys and reports found UK car prices were anything between 10% and 50% higher than on the continent.

Trade secretary Stephen Byers said: "The legal measures we have introduced coupled with pressure from consumers has led to this action by Vauxhall.

"It shows that when competition is effective the consumer is the winner."

Internet expansion

Like Ford a week earlier, Vauxhall's move essentially incorporates special offers into its basic list price.

Rival Ford slashed up to 13% off the recommended retail price of new models.

Vauxhall's cuts will mean the price of an Astra falls by an average 9% in price, with an Astra 1.6 16-valve SXi coming down by about £1,500.

A Tigra 1.4i 16-valve will come down from £13,400 to £11,900, a Frontera Sport is being reduced from £18,170 to £16,495, and Astra Coupe prices are being cut by an average of 5.7%.

The all-new Corsa will start at £7,495.

The company's chairman, Nick Reilly, said Vauxhall was to make all its models available for sale online.

Vauxhall said customers would be able to arrange a test drive and have their new car delivered to their door within a week of placing their order online, subject to availability.