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Image header Agence Europe
Europe Daily Bulletin No. 7829
Contents Publication in full By article 24 / 42
GENERAL NEWS / (eu) eu/automobile

Automobile manufacturers and dealers call for postponement of exclusive distribution system

Brussels, 25/10/2000 (Agence Europe) - "The present distribution system and selective and exclusive services has shown its effectiveness and presents the best option that is efficient for both the consumer as for the dealer and automobile manufacturer". It is in these terms and with a unanimous voice that the President of the ACEA (European Automobile Manufacturer's Association), Mr Paolo Cantarella, and of the CECRA (European Committee for Motor Trades and Repairs), Mr David Evans, outlined their point of view concerning the exemption by category of the ban on agreements by regulation 1475/95, that enables them to ties between themselves exclusive distribution agreements. Expiring on 30 September 2002, this regulation is presently the project of the greatest attention from the services of Commissioner Monti who will have to decide if there is cause or not to prolong the exemption to the ban. On the basis of the answers to the questionnaire sent to the actors concerned, the Commission will publish before the end of the year a report covering the functioning of the present system before handing, in 2001, a proposal to the Council.

The automobile manufacturer and dealers have outlined their reasons for which the present system is, in their opinion, despite certain imperfections, the best possible. Below are the main points: i) automotive cars cannot be compared to other goods. They must answer very strict criteria for security, reliability, respect for the environment and technological research. It is thus a priority to instituting strict rules concerning this specific market; ii) a "free for all" system cannot work in terms of automobile distribution: the market forces would create a concentration of actors in the most populated regions while the consumers from other regions would not have such a network; ii) consumers have everything to win from the present system: access to a highly qualified network, expert opinion, very complete guarantees for after sales services, etc. Only the certified dealers can offer these advantages, necessary to the respect for the criteria concerning security and respect for the environment required by these 'special" goods.

Answering the criteria according to which the benefit for European consumers is illusionary with such a system, notably with regards to prices that remain artificially high, Mr Cantarella and Mr Evans announced that European consumers benefit from a very wide range of models in Europe, that they have the free choice of making their purchase in any Member State and that the market is sufficiently competitive to enable the best buy possible. The prices are just a result of the problem. We must also take into account the quality of service given after sale. The offers by supermarkets are sometimes tempting, but what are the guarantees that make after the sale?, notably stated Mr Evans. The two Presidents nevertheless agreed that the existence of certain imperfections in the system notably at the level of communication between the actors concerned: manufacturer-dealers-consumers. The possibilities offered by the Internet will work in the right direction, they felt, notably enabling for the consumers to be constantly informed of the market developments. "We will present our position to the Community services and we are certain of convincing them of the viability of the system. We know that Mr Monti, is open, and we are convinced that he will grant special attention to our arguments" they concluded.

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