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Europe Daily Bulletin No. 7903
Contents Publication in full By article 13 / 41
GENERAL NEWS / (eu) eu/automobile

Commission closes debate on future regime applicable to automobile distribution

Brussels, 14/02/2001 (Agence Europe) - Yesterday, after two days of debates, the European Commission closed the hearing on the regime applicable to the automobile distribution sector that will take effect from early-October 2002.. Participants examined, on the one hand, the Commission's report on the evaluation of the regulation in force concerning distribution and after-sales service agreements for automobile vehicles in the European Union, and, on the other, two studies undertaken on the subject by independent consultants. The first analyses the gaps in car prices in the Union, whereas the second looks at the natural link that is meant to exist between sales and services activities. The Commission has, moreover, launched an appeal for tenders for a third study that should be completed this summer and which will assess the impact, on all parties interested, of different legislative scenarios. The debates were held on 13 and 14 February and brought together several groups on players on the automobile market and representatives of consumer associations.

On 15 November, the Commission adopted the report on the evaluation of Regulation 1475/95 concerning distribution and after sales services agreements for automobile vehicles. This factual report assesses the validity of the regime in question in the framework of developments on the automobile market and the achievement of goals, but presents no proposal for the future. The debates organised over these past two days had as goal to comment on that report and the two studies. They brought together some 120 national and European organisations and companies, among which Acea (Association of European Automobile Manufacturers), JAMA (Japanese Automobile Manufacturers Association), Cecra (European Council of Automobile Trade and Repair) and Beuc (European consumer organisation). The automobile sector unsurprisingly recommended an extension of the current exemption, whereas the consumer organisations regard the current regime contrary to the rules of free competition.

The debates over, it is now a question for the Commission of drawing up the bases for a future regime from the results of the three studies, of the evaluation report, the debates and later observations (additional consultations, with Member States, notably, are scheduled). It will then decide whether to renew or, on the contrary, abolish the exemption applicable to the sector and that expires end-October 2002.

EUROPEAN PARLIAMENT PLENARY SESSION

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