Brussels, 10/09/2001 (Agence Europe) - The European Parliament's Economic and Monetary Committee is organising a public hearing on 11 September on the future of car dealerships in the EU in order to give a voice to the various players affected by the special scheme of exemptions granted to the automobile industry. The scheme has existed since 1985 and will come to an end on 30 September 2002. The Commission is currently in the process of drafting a new Regulation to replace the current system. Commissioner Monti's spokesperson, Michael Tscherny, explained that three options were being considered: 1) simply continuing with the current scheme; 2) completely abolishing the scheme and totally liberalising the industry which would then have to abide by the EU's competition regulations in the same way as other industries had to; or 3) introducing a half-way house, scrapping the current system but not subjecting the car industry to full liberalisation.
The Commission has not yet given a clear indication of the form it is intending to give the new system. The first option is unlikely to be considered since the Commission has made no secret about the fact that the current scheme does not even partially meet the objectives set for it. The European Automobile Manufacturers' Association (ACEA) is calling for the system to be extended, on the basis of research commissioned from Accenture. The European Bureau of Consumers' Unions (BEUC) opposes any extension of the current system.
Under the chairmanship of Christoph Werner Konrad, the following associations will air their views on Tuesday: Jean-Martin Folz for PSA Peugeot Citroen, Wolfgang Schneider for Ford Europe, Richard Branson for Virgin, Ian Lancaster for Virgin Cars, Mike Phillips for ECCTCR (European Committee for the Car Trade and Car Repairs), Roland Gardin for the CNPA, Jim Murray for BEUC, Max Mosley for the International Automobile Federation, Folke Svedberg (a self-employed car repairer in Sweden) and Hartmut Röhl for CLEDIPA.
The Commission will be presenting its new proposal by the end of the year and it will then go to the European Parliament and the Council for approval. Before publishing its initiative, the Commission is waiting for the results of research commissioned from Arthur Andersen. MEP Christoph Werner Konrad (EPP, Germany) published a working document in August in which he recommends that the current system be extended in a slightly amended form (see EUROPE of 2 August, p.9).