VAUXHALL is expected to announce cuts in Vectra prices tomorrow to ensure it remains competitive against Ford's new Mondeo, whose prices were announced at the British International Motor Show last.

With the new model costing up to £1,405 less than the outgoing car, the new Mondeo undercuts the equivalent Vectra by between £205 and £1,685. Vauxhall excluded Vectra from a recent price cut to wait for the announcement of Mondeo prices and was expected to make a rapid response and slash prices.

Vauxhall also announced a range of model improvements and launches at the show in a bid to claw back the initiative from its key fleet rival. The all-new Corsa, which went on sale at the show starting from £8,144 on- the-road, has achieved the lowest insurance rating possible. At 1E for all the 1.0-litre models, the firm is targeting them fairly and squarely at fleet motorists with economy in mind and claims no other car in its class has achieved such low insurance rates. The previous Corsa achieved the accolade of cheapest car to run in Britain and the manufacturer is clearly gunning for the number one spot again.

The car also has 20,000-mile/ one-year service intervals and CO2 emissions starting from 149 grammes per kilometre. Cutting costs was a key theme on the Vauxhall stand, with the Astra ECO 4 joining the diesel range. The car, which goes on sale in November, uses the same 1.7-litre DTi engine already available, but through higher gearing, low rolling resistance tyres and aerodynamic changes, it achieves an estimated 80mpg on the open road and 119g/km of CO2.

Vauxhall is aiming to break the 2,000 vehicle sales barrier for its Dualfuel range of cars and vans by the end of this year, double last year's target. By the end of September, the firm had reached 1,812 sales, compared to 799 for the same period last year and hopes the introduction of a 1.8-litre LPG/petrol engine in Vectra in 2001 will push up sales. The 150mph Astra Coupe Turbo and the exciting VX220 sportscar also made their UK debuts at the show.