Brussels, 04/06/2002 (Agence Europe) - In the wake of the European Parliament's adoption of the Konrad report on the Commission's Draft Proposal on car distribution (the report favours opening up the sector to competition but with a long transitional period - see EUROPE 31 May page 12 -), those involved in the industry have given their immediate response.
The President of the European Automobile Manufacturers Association (ACEA), Jean-Martin Folz explained that the adoption of the Konrad report, "demonstrates that Members of the European Parliament have understood the potential negative consequences of some of the provisions of this proposal for 200 million European motorists, and have listened to the numerous reasoned opinions coming from many stakeholders, including the automobile sector". Car manufacturers hope that the Commission will ignore the EP's recommendation so that the new regulation does not have an impact that goes beyond "legitimate objectives", that the separation of sales from services does not prejudice the quality of maintenance and repair services nor restrict their availability, and that consumer interests are protected by ensuring the different brands sold.
The European Council for Motor Trades and Repairs (CECRA) welcomes the cautious position of the European Parliament, in relation to certain elements of reform envisaged by the Commission. The CECRA particularly welcomes the main amendment regarding the ending of the "location clause" (freedom of dealers to set up in other Member States), as well as the obligation of the manufactures to give reasons when they want to terminate the dealers' contract.
The BEUC, the European Consumers' Organisation was concerned at the EP's "regrettable step backwards" with regard to the entry into force of the freedom of dealers to set up in different Member States. The BEUC believes that MEPs have shelved this proposal by delaying the entry into force of the right of dealers to set up and by including a preliminary examination before these said dealers are able to set up. The consumers' association claims that this will once again prevent dealers from setting up new sales outlets in the single market and stated that the decision watered down the substance of Mr Monti's proposal, which had just managed to solve an issue of great unfairness. Consumers would not gain from the current regulation when they have to pay higher prices, it added.
British Liberal Democrat, Chris Huhne, said that the vote had been over-influenced by the powerful carmakers lobby, as well as by certain Member States, particularly Germany. Liberal Democrat, Riis-Joergensen, said, "I am particularly disappointed that many Christian Democrats and Socialist MEPs are resisting the proposal that dealers should be able to open showrooms in other EU countries…If the Parliament fails to back the Commission on this, we will be forfeiting our credibility as a reliable partner on competition policy and letting own consumers. The Liberal Democrats voted against the report, believing that it would slow down liberalisation in the sector.