Thursday, June 03, 2010

Mixed welcome for new block exemption rules




The new block exemption regulations have received a mixed welcome from UK car dealers and repairers represented by the RMI.

The new EC regulations, which come into effect today (1 June) grant more power to independent service and repair sites by providing greater access to technical information from carmakers and the ability to source alternative spare parts rather than those supplied by the manufacturer.

Positive
"This can only be a positive move for consumers and in particular the independent garages who already provide convenient, high quality and affordable service and repairs," said David Moran, head of RMI Independent Garages.

The rules have also clarified that first oil changes can be carried out by independent garages without invalidating new car warranties.

"It was important that consumers and independent garages received clarification on manufacturer warranty demands, as both were perhaps confused by simple items such as the first oil change having to be done in a franchised garage to maintain the warranty; this simply wasn't the case."

Mixed bag
However, the RMI's National Franchised Dealers Association described it as a "mixed bag" which does not "represent the best outcome for competition, for consumers or for dealers".

"The framework represents a mixed bag of both negative and positive outcomes for dealers and the aftermarket, the most positive of which is, perhaps, the Commission's commitment to monitor the industry, and manufacturer behaviour, on an ongoing basis," said NFDA director Sue Robinson.

Political agenda
"The Commission regrettably appears to have pursued a political agenda for simplified regulation at all costs, against the wishes of many small and medium sized businesses, consumers and, indeed, the European Parliament," she said.

"It is clear that the Commission intends to scrutinise the sector going forward for evidence of market abuses by manufacturers and has committed to taking action where necessary. The RMI hopes the Commission does not need to exercise this commitment too frequently in future."


DATED: 03.06.10


FEED: MT






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