Monday, June 02, 2008
Car dealers stand to lose control if BER is dropped
Question mark over EU rules as industry considers de-regulation
Car dealers in the UK could be thrown into disarray if the EU decides not to renew the Block Exemption Regulations in 2010.
The likelihood of the rules being abandoned are gaining credence with Sid Hopper, automotive partner at BDO Stoy Hayward, the accountancy firm, warning that some dealers may start to feel exposed.
“A number of dealers fear that the 2010 BER might be totally removed, altering the balance of power between manufacturer and dealer,” he said.
“This is a real threat to dealers who do not find favour with the manufacturers.”
He said prices charged to car buyers were the main criteria being used by European lawmakers and they considered the impact on dealers of abandoning the BER as largely irrelevant.
Hopper predicted that some big dealer groups will be forced to reduce regional representation of certain brands, and weaker players will be weeded out.
“Basically the EU wants to deregulate competition law -- in other industries manufacturers are able to control their distribution networks.”
DATED: 02.06.08
FEED: MT
Car dealers in the UK could be thrown into disarray if the EU decides not to renew the Block Exemption Regulations in 2010.
The likelihood of the rules being abandoned are gaining credence with Sid Hopper, automotive partner at BDO Stoy Hayward, the accountancy firm, warning that some dealers may start to feel exposed.
“A number of dealers fear that the 2010 BER might be totally removed, altering the balance of power between manufacturer and dealer,” he said.
“This is a real threat to dealers who do not find favour with the manufacturers.”
He said prices charged to car buyers were the main criteria being used by European lawmakers and they considered the impact on dealers of abandoning the BER as largely irrelevant.
Hopper predicted that some big dealer groups will be forced to reduce regional representation of certain brands, and weaker players will be weeded out.
“Basically the EU wants to deregulate competition law -- in other industries manufacturers are able to control their distribution networks.”
DATED: 02.06.08
FEED: MT
