DaimlerChrysler's Japanese distributor says that a stabilisation of the euro's value against the yen has enabled it to cut Mercedes-Benz prices by between 5 and 15% in an effort to boost sales.

Latest estimates are that 47,000 Mercedes vehicles will be sold in Japan in 2000 against a target of 48,500. However, the introduction of the latest C-class is expected to increase next year's total to over 50,000.

Prices of all models have been reduced in a move expected to start a price war with other German rivals such as BMW and Volkswagen.