Free trade in EU cars seen within 10 years spacey
Tuesday 21 February 1995
The so-called block exemption, which allows car manufacturers to restrict sales to one dealer in a specific area, is being reviewed by the European Union. Retail groups and manufacturers are presenting their cases for the exemption, which is likely to continue in some form for another decade.
But Sir Trevor Chinn, chairman of Lex Service, told a conference: "I don't believe that block exemption will survive after the next extension. I don't think it's desirable but I think it will happen."
New block exemption arrangements would allow dealers to sell more than one type of car in separate premises under separate management and permit them to buy spare parts from sources other than the manufacturer. Both these changes are opposed by car makers.
Sir Trevor welcomed the stability a new exemption would bring but said the European car industry would face big changes anyway. "The changes to block exemption will play a part in this process of change but their effect will be less than the economic and customer pressures."
The car market in Europe was going to stay competitive due to over-capacity and non-European imports. The increased reliability of cars was cutting revenues from servicing.
Sir Trevor said the dealership structure was uneconomic and in Britain alone the number of car dealers would fall by around a third to deal with the changing market conditions. There would have to be more focus on customers, he added.
He said customers were prepared to travel longer distances to buy a car than they were to get it serviced.
"This leads to the logical conclusion that the dealer network should be structured with a smaller number of easily accessible car showrooms and a series of satellite service centres," Sir Trevor said.
- 3 Alton Towers crash: Four seriously injured and 16 guests trapped as Smiler ride carriages collide
- 4 Gay teenager 'forced to have sex with his own mother' to 'cure' his homosexuality, campaigners in India say
- 5 Ann Summers survey reveals the UK's favourite sex position
Man on naked bike ride gets ejected after becoming aroused
Caitlyn Jenner's mother Ester thought her daughter, formerly known as Bruce Jenner, had transitioned for money
Charles Kennedy 1959-2015: A gifted, compassionate politician whose career was cut short by the 'demon drink' - latest news
Alton Towers crash: Four seriously injured and 16 guests trapped as Smiler ride carriages collide
Gay teenager 'forced to have sex with his own mother' to 'cure' his homosexuality, campaigners in India say
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination
Migrants in Kos: Photos show real tragedy after Brits abroad complain of 'awkward' holidays
British tourists complain that impoverished boat migrants are making holidays 'awkward' in Kos
Michael Gove determined to scrap the Human Rights Act – even if Scotland retains it
Threat to scrap Human Rights Act could see UK follow Nazi example, warns UN official
Church of England 'one generation away from extinction' after dramatic loss of followers
iJobs Money & Business
£30000 - £35000 per annum: Recruitment Genius: The UK's fastest growing, multi...
£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...
£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...
£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...