MPs to criticise UK car prices

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THE CAR INDUSTRY will be heavily criticised in a report by MPs tomorrow claiming that British prices are up to 40 per cent higher than for equivalent models sold on the Continent. The report, by the Commons Trade and Industry Select Committee, is expected to lay much of

the blame on the block exemption car makers enjoy, allowing them to control which dealers sell their cars and on what terms.

The Office of Fair Trading is conducting a separate investigation into the car industry, which is focusing on the use of recommended resale prices and extent to which private buyers are subsidising the big fleets who purchase cars at discounts of up to 40 per cent.