Substantial across-the-board price reductions of up to £1160 on VW new cars take effect today. And the company says that this time it will not be compensating recent vehicle purchasers.

The biggest falls are for the Passat saloon and estate, which also get enhanced spec levels. The Sharan MPV drops in price by £645 - with the same spec. New Polo buyers will enjoy £875 off their purchase, although equipment levels are reduced on S and SE models.

Although the price reductions take effect from January 3, cars ordered after December 26 have already benefited from the cuts.

And while, after the last price reductions, some Polo owners were compensated, the carmaker is adamant that there will be no help for customers with this realignment. It says that those buyers had already enjoyed free insurance deals offering similar savings.