VOLSWAGEN UK announced today that it will not drive prices any lower, and that the company has already exceeded the reductions that the government had indicated customers should expect. The company feel further price reductions are not realistic.

The company also said that it would be able to meet the requirements of the DTI Order on providing similar discounts for retailers who bought outright, as it does for fleet customers. However, the company has never offered large discounts in the fleet market, largely because VW's attract high resale value, and have low overall costs of ownership. This all means they will be able to meet the requirements of the DTI Order with minimal changes to its trading activities.

On July 1, many VW models were reduced by up to £2000. These reductions are straightforward subtractions, and will be valid until September 30th.

These reductions have lead to a 12% increase in retail sales compared to this last time last year.

VW has pointed out that over the last 2-years, VW UK car prices have fallen by more than 20%. In this period, it claims, equipment levels have gradually been improved, new models and new technology introduced, often at no extra cost and also at reduced prices.