Brussels, 05/02/2001 (Agence Europe) - According to Taylor Nelson Sofres (the leading British market surveys and marketing studies group), 92% of consumers say they appreciate the current system for the distribution of new cars in the Union. This is backed up by the results of a survey carried out by two automobile manufacturers, PSA Peugeot Citroën and Renault, in five Member States - Germany, France, United Kingdom, Italy, Spain - totalling 80% of new car sales in the Union. Commissioned for fuelling the debate under way on the future of the block distribution system in force in the Union (governed by Regulation 1475/95 expiring on 30 September 2002), the survey was carried out in July and October 2000. There were 4,000 persons interviewed (80 per country).
Consultants of the Taylor Nelson Sofres automotive department presented to the press the results of the survey which stress that: - consumers perceive competition in the automotive market as strong, among both makers and dealers, and is even stronger than in other sectors such as Hi-Fi and electrical household appliances. 80% of consumers consider that competition is "strong" or "very strong" between car manufacturers, 76% think that it has increased over the last ten years. Among dealers, 70% consider it is strong, and 46% think it has increased between dealers of the same make. - Consumer behaviour indicates that they play one make and off against another, and even between car dealers of the same make. Thus, 67% of those interviewed went to several points of sale of several different makes of car before finally purchasing their car, clients who purchase the same make again excluded. - It is common to see consumers negotiating the price of a car, unlike other goods. 85% of interviewees negotiated the purchase price of their car. Negotiation counted for 70% in the purchase price, 39% in the technological accessories and options, and 32% in the terms of part-exchange for the old vehicle. - 50% of new car buyers see a big difference in price from one country to another for the same make, especially in the United Kingdom. Only 20% of interviewees consider these differences are abnormal or unjustified, and purchase from a foreign dealer or imported agent remains marginal (3%). - Consumers demand strong commitment by the manufacturers in the distribution and services associated with their products. 96% consider it essential for the makers to take great care in selecting the dealers and garages of the make. 83% admit it is an additional guarantee if they have their car serviced by the garage selling the make. - The combination sales/after-sales is firmly established in the consumers' mind. 56% of new car buyers have the maintenance and repairs carried out by the dealer where they purchased the vehicle. 73% of the interviewees deem that the manufacturer network is the main source of after-sales services . 92% of consumers would choose the present car dealers in the purchase of their next vehicle, and a majority clearly prefers improving the current distribution system rather than changing it for a completely new one.
When questioned about the alternative solutions that they would propose to the current distribution system, very few European consumers spontaneously made suggestions. A permanent automobile fair, direct purchase at the factory (81% are in favour of this) and multi-make dealers (66%) were the suggestions most often made. The specialised independent chains (of the Darty or Fnac kind), considered favourably for their commercial terms and the facility they provide for comparing makes, are unanimously rejected regarding the guarantee, the after-sales service and the feeling of confidence at purchase. Consumers of countries with the greatest experience in this (Germany and the United Kingdom) are, in this respect, the most opposed. Large-scale distribution (hyper-markets, supermarkets) is rejected. The Internet appears above all as a means for preparing the purchase of a car by comparing the offers available, but this means is still considered disappointing by surfers who feel they cannot acquire much more information this way than in the specialised press and brochures.
Had consumers received prior information about how the current system works? The current car distribution system is removed from competition rules under the block exemption ruling. Rémy Pothet, Director of Taylor Nelson Sofres, replied in the negative. "We did not use the word exclusivity as, for consumers, it does not mean anything", he added.
One survey, two analyses
The main conclusion of the survey, whereby consumers are in favour of status quo, seems, at first sight, to confirm the arguments invoked by the automobile makers and dealers to justify extending the current exclusive distribution system (see EUROPE of 26 October, p.16, and 25 January 2000, p.14). BEUC (the European Consumers Bureau) makes quite another analysis of the situation and urges for the introduction of free competition in the new car distribution system as a means to remedy the fragmentation of the single market and the artificially high prices in some countries (see EUROPE of 28 January 2000, p.15).