Snarl-up

Article Abstract:

British car prices may not fall as expected despite plans to increase competition. Exclusive car dealerships are likely to remain, which gives manufacturers control. The industry may also not show great willingness to alter its practices.

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Micra economics

Article Abstract:

Developments affecting the British automobile industry are examined in detail, including the impact of Britain being outside European monetary union.

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Going down

Article Abstract:

The British Competition Commission is considering a recommendation that exclusive car dealerships be banned, a move that worries car manufacturers. Manufacturers will not be able to curb price competition as easily if exclusive dealerships are banned. Consumer groups support the commission, while the industry argues that jobs will be lost if the recommendations are adopted. The commission argues that British car prices are too high due to insufficient competition. Car prices are likely to drop, and high-cost manufacturers and small dealers are most likely to be affected.

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