Brussels unveils plan to free-up market for car parts

Plans to strip car makers of their exclusive right to sell spare parts such as bumpers, bonnets and headlights were outlined yesterday, as part of a drive to open up a €10bn market across Europe.

Plans to strip car makers of their exclusive right to sell spare parts such as bumpers, bonnets and headlights were outlined yesterday, as part of a drive to open up a €10bn market across Europe.

The plan, put forward by the European Commission, would mean a wholesale shake-up of the market in so-called "visible" spare parts used to replace items damaged in collisions. But engine or mechanical parts would not be covered, and manufacturers would keep their monopoly over parts for new vehicles.

Britain is one of nine EU nations which already allows independent producers to supply "visible" parts, while the remaining 16 countries have retained protection for the car makers. However, the move could benefit UK-based spare parts makers by opening up new and lucrative markets.

The EU's internal market Commissioner, Frits Bolkestein, argued yesterday that prices are 6 to 10 per cent lower in the nine countries than in those where the big car firms retain a monopoly. Mr Bolkestein said depriving consumers of choice was "anti-competitive and unjustifiable. People are entitled to value for money throughout a vehicle's life". The Commission also says the situation has left consumers unsure whether it is legal to buy spare parts from cheaper providers. Meanwhile, parts producers cannot use the economies of scale to build businesses and create jobs.

But Mr Bolkestein also sought to reassure the continent's big car makers by insisting that "at most, only 25 per cent of the entire spare part market will be affected". Despite that pledge, yesterday's Commission proposal looks destined to herald the start of a fierce political battle.

French and German Commissioners unsuccessfully resisted the plans. The governments in Paris and Berlin are likely to lead opposition to the draft legislation.