Brussels, 01/10/2003 (Agence Europe) - Since 1 October 2003, the new Community regime concerning motor vehicle distribution entered its last transitional phase before complete application of the rules on 1 October 2005 which will overcome the last obstacle, the location clause. In concrete terms, several elements apply from now on:
a) Multi-brand dealerships. Dealers will be able to sell more than one brand of motor vehicle in one and the same showroom and will no longer be forced to present them in separate showrooms. This "multi-brand" practice thus strengthens the commercial independence of dealers towards their suppliers as they now choose to sell several brands of cars without technical and costly barriers hampering freedom of choice.
b) More stand-alone repair shops. Under the old rules, anyone who sold new cars was obliged to carry out repair services as well. Under the new rules, the dealers may choose whether they wish to carry out repairs themselves or sub-contract them to another authorised member of the manufacturer's network without being under the obligation to sell new vehicles. The manufacturer, for his part, will not be able to restrict the number of authorised repairers or limit an authorised repairer's right to repair vehicles of other makes. This possibility should make it possible to maintain the density of the network while strengthening the technical know-how within the network.
c) More independent repair shops. Carmakers may now provide unrestricted access to technical information, tools, equipment including diagnostic equipment and training for all repairers without making it an obligation for the repairers to become affiliated with a particular brand. Also, the new rules forbid clauses that seek to prevent authorised repairers from supplying original spare parts or parts of matching quality to independent repairers.
d) Relaxation of rules on use of spare parts. Manufacturers can no longer, under the new rules, prevent authorised repairers from obtaining spare parts from other sources or restrict them from using spare parts that match the quality standard of original spare parts. More spare parts may be sold directly to repairers by the spare part producers, giving the consumer more choice and increasing competition for the supply of parts.
e) More possibilities to sell cars to customers in other Member States. Current European rules already allow cross-border purchases from one Member State to the next. There have, however, been many barriers to such motor vehicle purchases as manufacturers imposed restrictions on intermediary dealers acting on behalf of a consumer established abroad. Such restrictions have now been lifted. Henceforth, intermediaries should produce a single document, namely a mandate showing that they are acting on behalf of a consumer. This will be entirely to the advantage of consumers who may choose to purchase a vehicle in another Member States where prices are lower. Dealers may also carry out advertising campaigns or personalised mailing throughout the single market without restriction.
As of 1 October 2005, a last barrier will be lifted to the complete application of the new rules, namely the disappearance of the so-called "location clause". Dealers will, in two years' time, have the possibility of establishing sales and delivery outlets in Member States other than their own. Thus, consumers will no longer have to go to the other member States in order to compare prices but will be able to make their choice on their own national territory where dealers of other Member States will be able to propose their products. The full rules may be consulted on the Commission's website at the following address: http: //europa.eu.int/comm/competition/car_sector.