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Volvo to cut prices and 'raise value' of new cars

Tim Moynihan
Saturday 09 September 2000 00:00 BST
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The car maker Volvo announced reductions last night in the price of most of itsnew cars.

The car maker Volvo announced reductions last night in the price of most of itsnew cars.

The company said that in addition to the price cuts, there will be improved specifications across the range and a simplified model line-up. Total "value increase" for customers will range from £1,100 (8 per cent) on an S40 1.6 through to £6,935 (21 per cent) on an S80 T6 Saloon. The company said the S40 1.6 was being provided with additional equipment worth £1,100, though the price remained at £14,495. The S80 T6 was being reduced in price by 12 per cent from £33,585 to £29,400, with an extra 9 per cent saving through provision of more equipment.

The announcement came as its owner, Ford, denied suggestions that it was considering reducing recommended retail prices (RRPs) on its cars. It said in a statement: "A similar story appeared in the media in September 1999 stating that Ford was intending to reduce its RRPs by some 10-15 per cent at that time. However, no such reductions ever took place.

"An across-the-board reduction in RRPs would not reduce the gap between retail and fleet customers, whereas our retail Cashback offer does."

Volvo said its move "reflects Volvo's commitment to ensuring its customers can buy in the UK with confidence and its cars continue to offer excellent value for money".

Gerry Keaney, managing director of Volvo Cars UK Limited, said: "While we are confident that during this recent period of price uncertainty our new car prices have been more than competitive at a transaction level, the time has come to remove any concerns about our future pricing policy.

"By taking this initiativeour customers can be sure that a 2001 model year Volvo still offers exceptional value for money ...

"A customer can be confident that a UK Volvo dealer is the best place to buy a new Volvo."

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