This event most certainly did happen.....absoutely incredible.
Issues I have with this ridiculous idea:
1. The idea of senior officers ordering their personnel to commit suicide is disgusting.
2. Is the life of one rag worth the life of one UK serviceman?
3. Imagine, as you are floating skyward towards the pearly gates having parked your jet in the desert at 500kts, that INT had it wrong, and that the bloke driving the car was actually a plumber driving his children to school?
4. Imagine trying to fly your fast pointy thing at an evading car. I am almost certain that you would tent peg, having missed. The bloke driving only has to swerve at the last minute and generate a miss distance of 20 feet or so and it's good night Vienna and mission failed.
IMHO, utter, utter madness, stated from the relative security of a position in the hierarchy that would never have to carry out such an act.