§ Mr. Austin MitchellTo ask the President of the Board of Trade what is the percentage reduction in the value of sterling against the deutschmark since July; and what effect that has had on the retail price of cars imported from Germany.
§ Mr. Needham[holding answer 30 October 1992]The percentage reduction since July was 14.3 per cent. as at 23 October 1992.
The reduction in value of sterling has exerted pressure on German manufacturers to increase the prices of cars they export to the United Kingdom in order to retain profit margins. The wide variety of other factors which affect pricing policies of car manufacturers and the current reduced demand in the United Kingdom car market have made them reluctant to do so. Much will depend on the value that sterling settles at after the current upheavals in the currency markets have passed.