A gran killed by a carjacker was mown down in her sister's stolen vehicle it emerged today.

Incredibly the thief forced Diane Dalton from her Honda Civic and smashed into her sister Pamela Phinn, 48, just under a mile down the road while pursued by the police.

A source close to the investigation described the link as "a totally bizarre coincidence."

Mrs Phinn was walking with Kelly Laws, 28, and between them they were pushing a double buggy containing Kelly's son Dean, 18 months, and her older daughter, aged three.

Mrs Phinn, the grandmother of Dean, looked up to see her sister's silver car speeding towards them.

There was no chance to react before the car slammed into them, catapulting the pushchair 20ft into the air.

Kelly was thrown into the verge while Pamela was carried to the other side of the road on the car's bonnet and flung into bushes.

Pamela was confirmed dead at the scene while Kelly and her children were rushed to hospital.

Their conditions were given yesterday as "poorly" by a spokeswoman for South Tyneside District Hospital.

Diane Dalton reported her car stolen to police just minutes before it ploughed into her sister in Horsley Hill Road, South Shields, South Tyneside,at 2.10 pm on Thursday.

A man armed with a screwdriver had jumped into the passenger seat of her silver Honda Civic outside DJ Tool Hire in the town's Western Approach.

He forced her out of the car, and sped off before he was quickly spotted by police, who began to follow him.

The stolen car lost control on a sharp left hand band, hit a bollard and then careered into the family, who were walking on a sunlit pavement.

Mrs dalton, also in her late 40s, was too distressed to comment yesterday.

Neighbour Jackie McIntyre said: "Pamela was a lovely lady and a loving grandmother.

"She worked in the George clothing section of the local Asda and was very popular.

"She was an attractive lady, she loved her family.

"Her son and his partner have two little boys and they are often seen around the town with them in the double buggy."

Debbie Carnell, store manager at Asda in Ocean Road, South Shields, said: "We are absolutely devastated.

"Pamela was loved by everyone in the store and our hearts go out to her family."

A neighbour of Kelly Laws and her partner Dean Phinn, Pamela's son,: "Kelly has only lived here for two years but she is such a friendly young woman.

"I know she has two children, a little boy and a little girl.

"She comes across as a wonderful mother, the kids always seem happy.

"She is just a friendly woman who will always say 'hello' to you if she passes you in the street.

"I heard the rumours that it might have been Kelly in the accident and then I saw the police around yesterday knocking on her door.

"I couldn't believe it when I heard it, I was just in shock, she is just such a friendly person."

Local councillor Jane Branley, who lives in Westoe and represents the ward as an Independent, expressed her sympathy for the family.

She said: "What can anyone say. I feel really sad for the family of the victims, who were probably just out enjoying a summer's day. To be just mowed down is absolutely terrible."

She added: "The speed of traffic along the road has always been a problem and we had installed traffic calming measures, but if someone was driving a stolen car, then I doubt they would have kept to them."

THE Independent Police Complaints Commission (IPCC) will manage the investigation into the crash.

Northumbria Police referred the incident to the IPCC and Commissioner Nicholas Long decided to launch a managed investigation into the actions taken by its officers.

Mr Long said: "My thoughts are with the families and friends of the deceased and the injured.

"This incident was a tragedy of the worst kind. An innocent woman lost her life while out walking on a sunny afternoon.

"Our investigation will seek to establish whether the pursuit that lead to her death was in line with driving procedures laid down by Northumbria Police and whether any actions could have been taken to prevent this tragic death."

A man through to be in his late thirties was still being held for questioning.