MERCEDES-Benz has followed BMW in hitting at the Government's heavily-flawed graduated vehicle excise duty proposals. Richard Whitton, chief executive officer of Mercedes-Benz Finance, claimed most Mercedes models were already very fuel-efficient for their class and that poorly-made products with short lifecycles were ultimately more costly in environmental terms.

'Mercedes already has a broad range of products with exceptional fuel economy in absolute and relative terms. On financial, comparative, ethical and environmental terms Mercedes ownership will continue to offer choice and excellent value for money,' he said.

He claimed that following the introduction of the A-class, Mercedes was in a 'very strong position to continue to compete' and added: 'Other luxury car makers who have perhaps concentrated on performance and marketing image alone, perhaps those engineering shorter lives, lower fuel efficiency, and who may have not taken their environmental responsibility as seriously as we have, may face some interesting problems.'