BRITAIN'S two biggest car companies, Ford and Vauxhall, have strongly denied they are to cut recommended retail prices. Both have said they will continue to offer retail incentives and special discounts, despite a spate of 'permanent' list price reductions by Mercedes-Benz, BMW, Audi, Jaguar, Volvo, Saab, Lexus, Honda and Chrysler.

The cuts follow the introduction of the Department of Trade and Industry's Supply of New Cars Order 2000 on September 1.

Ford, the number one in fleet, says September retail market share is strong and is showing a healthy increase over the same period last year.

A spokesman for Ford said the performance reflected the success of cashback offers, which apply to 95% of its new cars and represent

savings of between £800 and £3,000, and that these would continue.

'An across the board reduction in RRPs would not reduce the gap between retail and fleet customers, whereas our cashback offer does,' he said. 'We believe the programme is providing sufficient enhanced value to retail customers. Ford has no plans to change a winning formula.'

Ford came out and defended its pricing strategy following newspaper headlines in the Financial Times on Thursday and the Daily Mail on Friday claiming prices were due to be slashed by about £3,000.

A Vauxhall spokesman told Fleet News: 'We have absolutely no plans to reduce list prices.'