Brussels, 09/01/2002 (Agence Europe) - After publishing (at the end of 2001) the final report into an investigation carried out on its behalf by Andersen Consulting, the Commission is continuing with its design of a new car dealer scheme in Europe. The Directorate-General for Competition has finished designing the scheme which will now be sent for internal consultation to different DGs at the Commission for their comments on the proposals put forward by Commissioner Monti's department. The Commission will then give its views on the issue at the end of January before launching the final stage of the process, an external consultation process with the relevant stakeholders. It is expected to pass new legislation before the summer break.
The current exclusive car dealer exemption system will expire at the end of September 2002 so the Commission has to decide whether or not to extend the scheme in its current format. The scheme currently operates in favour of car dealers and distributors but is coming under increasing fire from consumer associations, that slam its obsolescence and the way it makes the market difficult to enter and keeps prices artificially high. The Commission has to decide between three options - keeping the current system as it is; substantially overhauling the rules to open up car dealerships to market forces; or review the current system by introducing amendments to make it less favourable for car dealers. The Commission is expected to opt for the latter. According to Reuters Press Agency (quoting close Commission sources) it is considering "bold changes" which would substantially reshape the European car dealership system. Reuters reports that the new scheme would prevent dealers from only selling their own make of cars and would give retailer the option to specialise in both car sales and after-sales service. Dealers would no longer be limited to a specific geographical area or city which would open the door to car sales over the internet.