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UPDATE 2-Car prices vary widely in EU despite euro-survey

(adds background, price differentials, further comment)

By David Lawsky

BRUSSELS, July 22 (Reuters) - Car price differences between European Union member states are the same or bigger than six months ago, despite the introduction of euro notes and coins, the European Commission reported on Monday.

The biggest price difference between the highest and lowest pre-tax prices jumped to 63 percent -- for a Fiat Seicento in high-cost Britain and price-busting Spain -- compared with a spread of 50 percent in the last survey.

The twice-a-year survey helped prompt the Commission to pass new rules last week aimed at reducing the grip of automakers, to be phased in over a two-year period starting October 1.

"The situation as of May 1, 2002, showed that no significant price convergence has yet taken place," the Commission said in its first survey since euro notes and coins were issued on January 1.

The Commission said car prices before tax were generally the lowest in Spain, Greece, Finland and Denmark, which is not a euro zone member.

The highest euro zone prices were in Germany and Austria.

Non-euro-zone Britain had the highest EU prices for more than half the models examined, a fact which led many British consumers to buy cars from the continent, the Commission said.

CHEAP FIATS IN SPAIN

The single biggest price differential was for the Fiat Seicento, which on May 1 cost 4,893 euros in Spain. But in Britain its cost was 63 percent higher at 7,975 euros. That was based a price of 4,928 British pounds, although the pound has since fallen against the euro.

The Commission said that the companies with the widest price differences are General Motors , which makes Opel-Vauxhall and Saab, the Fiat group, making Fiat, Lancia, and Alfa Romeo models, and Japanese manufacturers Honda and Suzuki .

On the other hand, the Commisison said that BMW and DaimlerChrysler and to a lesser extent Ford , which makes Ford, Volvo and Land Rover, limit price differentials within the euro zone to 15 percent or less.

The full 163-page report, based on price information provided by the car manufacturers themselves, is available at http://europa.eu.int/comm/competition.