§ Mr. LetwinTo ask the President of the Board of Trade what action she will take to put pressure on the358W European Commission to reduce discrepancies between prices for cars in the United Kingdom and other EU countries. [38064]
§ Mr. Nigel Griffiths[holding answer 6 April 1998]: I am determined to ensure that UK consumers are able to buy cars at the lowest possible prices. The European Commission, in January, announced its decision to fine Volkswagen ECU 102 million (about £67 million) for prohibiting its Italian dealers from selling cars to buyers from Germany and Austria, who wished to take advantage of the lower prices in Italy. DTI officials are currently discussing with the Commission what the implications of this case are for UK consumers wishing to buy right-hand drive cars at the lowest possible cost.
At the Government's initiative, the Commission are also undertaking studies of price differentials in EU markets, and the Government are keen for this work to be pushed forward.