EU tightens rules for carmakers

Carmakers will find it more difficult to insist on where cars are repaired and which spare parts are used under new rules unveiled recently by European Union regulators. Under the new rules, carmakers will no longer be able to make warranties conditional on having an oil change or other car services take place only in authorised garages. It will be easier for independent car repairers to get access to technical information on sophisticated models. There will also be safeguards for car dealers selling competing brands. The rules will reduce consumers' repair bills which make up about 40 per cent of the cost of owning a car, according to the European Commission. The car sales market will continue to be governed by existing rules until June 2013, when the new rules will make it easier for manufacturers to set up networks of dealerships. "The price of a spare part can vary widely and a repairer could save a lot of money for his customers by shopping around," explains competition commissioner Joaquin Almunia. "I hope prices will go down as soon as possible." FIGIEFA, the International Federation of Automotive Aftermarket Distributors, which represents 27 car distributor bodies worldwide, believes the measures send a clear message to carmakers and would ensure a level playing field. Motoring consumers’ body FIA (Fédération Internationale de l’Automobile) also gave its thumbs up. "This should not only be good news for spare parts manufacturers but also for repairers who are likely to enjoy greater choice and competitive prices," says Michael Rosenthal, a partner at US law firm Hunton & Williams.

CECRA, the European Council for Motor Trades and Repairs which represents 27 national motor repair bodies, also welcomes "better regulation" of the sector. Some carmakers may decide not to wait out the three-year transitional period, said antitrust lawyer Andrzej Kmiecik who acts for various clients in the car sector. "The critical comments made by the Commission concerning the dealer protection clauses could be used by carmakers starting now to justify no longer giving dealers these rights in new agreements instead of waiting for the new block exemption rules to come into effect in 2013," he says. The EU executive in September 2007 forced DaimlerChrysler, Toyota Motor Corp, General Motors and Fiat to provide independent garages access to repair information.

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