EC Adopts Revised Competition Rules For Vehicle Distribution And Repair

The European Commission has adopted new competition rules for agreements between vehicle manufacturers and authorized dealers, which forbid producers from demanding that their vehicles are only serviced in authorized garages, the EC said in a press release.

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EC vice-president and antitrust commissioner Joaquin Almunia said consumers will benefit from the new framework, which lowers the cost of car repairs, maintenance and distribution "by doing away with overly restrictive rules."

The new rules for the maintenance and repair markets will come into force on June 1, 2010, and will be implemented progressively. Vehicle sales market regulations will be enforced as of June 1, 2013.

The reform will facilitate repairers' access to spare parts produced by alternative manufacturers. Also, vehicle producers will be mandated to grant warranties to consumers who choose to have their cars serviced in garages that have not been authorized by the manufacturer. However, manufacturers may ask consumers that repairs covered by the warranty be carried out in authorized garages.

According to the EC, repair bills account for an estimated 40% of the total cost of owning a car and costs have been rising in recent years.

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