Brussels, 10/02/2003 (Agence Europe) - In a speech last week at the Ninth Annual European Automotive Conference, Competition Commissioner Mario Monti listed the benefits of the new car dealership regulation in terms of competition and consumer freedom of choice. Monti gave a stern warning that any failings by car manufacturers with regard to their obligations would be closely monitored.
The new car dealership regulation came into force on 1 October 2002 offering "an unprecedented opportunity" for business to "respond to consumer demand" and reducing "the opportunities for car manufacturers to abuse their powers, as we know has occurred in the past". The Commissioner explained, however, that the new regulation did not aim at price harmonisation in the single market: "The Commission has no mandate to act as price regulator… Our aim as competition authority is simply to help the Single Market to work properly so consumers are able to take advantage of any price differentials that exist." Monti also wanted to reassure people who fear that the Commission's aim is to favour large dealerships over smaller ones and force the smaller ones out of business: "when it comes to quality of service and consumer satisfaction small dealers can be just as efficient as larger ones". Mario Monti said that changes would not happen overnight: "the sector needs a while to loosen up its muscles before it sets about changing things". At the same time, he said that other changes were occurring now, for example the recent cooperation agreement between Rover and Virgin Cars in the UK, which have teamed up with internet operators. The Commissioner confirmed his determination to punish any direct or hidden exemptions to the new rules: "where we detect problems, we can and will act vigorously to enforce the rules". The Commission will ensure "that the opportunities and choices offered to dealers and repairers are real and exercisable" and that "independent operators have a real access to technical information." Monti was surprised that despite repeated assurances from ACEA (the association of European motor vehicle manufacturers), "some manufacturers are dragging their feet over this." In conclusion, Mario Monti said that although critics of the new system argue that too much consumer freedom would be damaging (since, they argue, they would not automatically get quality service), "the consumer has proven himself to be a very competent master of his own destiny, and … it should not be for the Commission or for the manufacturer to act as back seat driver and seek to dictate to all consumers how they must buy and service their vehicles."