MERCEDES-Benz has denied that it is planning to follow the moves by Audi on the A4, Volvo on the V70 and Mitsubishi across its range to cut prices or improve the specification at no extra cost. A Mercedes spokesman said 1999 was the manufacturer's most successful year in its 25-year history in the UK, breaking the 62,000 sales figure for the first time, and that the firm had no intention of changing its prices either upwards or downwards.

Paul Williams, Mitsubishi's director of sales and marketing, said this month Mitsubishi will launch the Colt Resolution three-door hatchback for £8,495 on-the-road, the Space Star Resolution five-door from £11,395, and the Lancer Estate 1.6 GLX for £10,995.