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Motor Show price war

Toyota Australia's sales chief Dave Buttner said his brand is making an aggressive stand to be competitive.

Toyota is cashing-in the strength of the Australian dollar against the Japanese Yen to deliver price cuts and a value boost for its two best selling imports, the Corolla and Yaris.

The basic Corolla is down by $250 and the Yaris by more than $500 in a price push that cuts some models by as much as $910 and - thanks to extra equipment including airbags - boosts buyer value by up to $2400.

The move is expected to trigger a series of price cuts and value improvements as major brands jockey for sales.Nissan has already promised to deliver a new baby price fighter, the $12,990 Micra, next month and Holden has a new $12,490 Barina Spark.  The price fight was triggered yesterday at the opening of the Australian International Motor Show in Sydney.

But Mazda said it is waiting to see if the exchange rate change is a long-term shift before it moves and Hyundai said it has no plan yet to cut prices on its Korean cars.

Toyota Australia's sales chief Dave Buttner said his brand is making an aggressive stand to be competitive as car sales head for only the third one-million showroom result in Australian history. He downplayed the currency exchange rate shift, saying Toyota had been in the business for 30 years in Australia and had learned to ride the highs and lows.

Ford and Mazda shared top billing on opening day with the global reveal of new working class twins,the Ford Ranger and Mazda BT-50 utes,but the show draws include everything from the $750,000 Lexus LFA supercar to the new Micra.

Price policies dominated talk at the show with most brands resisting pressure to adjust their showroom stickers despite the recent surge in the Australian dollar.  "We have no intention to over-charge," said the global boss of Mazda, Takashi Yamanouchi.

Hyundai's Australian managing director, Edward Lee, said his brand is waiting to see what its rivals do.  "Basically, we already have very good value. The reason why competitors have reduced their price is because they don't have our value position," Lee said.

"If the current situation continues, probably we can take a look. But only if it continues. Pricing has to be very steady, we cannot go up and down all the time as the exchange rate changes."

A number of companies have moved negotiated with their overseas parents to pay their bills in Australian dollars to avoid exchange rate difficulties, although the US Dollar is still the dominant currency in the car world.  But for the European majors, the booming Aussie dollar is a windfall, with more baby price fighters and even top-end heroes.

"We are now looking at bringing in the sub-Polo cars," says Volkswagen Group Australia managing director, Anke Koeckler.  "We would not be able to even consider bringing in the Up! small car with a weak Australian dollar - so it's good news for us."