SMMT today welcomes publication of a report commissioned by
the European Commission focussing on the future of new vehicle distribution
in Europe. The consultant’s report, published by Andersen
11 months before expiry of the current block exemption regulation, looks at
possible scenarios for the sale and aftersales care for new cars and commercial
vehicles in 2002 and beyond.
The findings confirm the industry position that an extension
to the current rules best supports consumers by promoting competition and protecting
their interests.
Competition is strong
Under the current system, competition between brands in Europe
is effective, according to the report. It points out that there are a large
number of different brands that operate in each segment of the European market.
In terms of competition between dealers, it confirms that a significant proportion
of sales take place outside dealers’ official territories, particularly in densely
populated areas. This clearly demonstrates the fierce competition between brands
and dealers.
After-sales servicing
Official networks co-exist with independent multi-brand repairers,
fast fit repair chains and other service players, according to Andersen’s findings.
They conclude that there is real competition in after-sales servicing. Consumer
satisfaction The report says that ‘satisfaction of consumers’ needs has reached
an equilibrium where reliability is achieved, choice and product innovation
are high, and where consumer prices are stable.’ In simple terms the current
system is delivering real benefits to consumers.
Lean distribution, lower costs
Cost will be taken out of the distribution network by long-term
stable relationships between manufacturers and their networks. This is the sustainable
way to reduce costs and improve efficiency. Short-term discounts through one-off
deals will not deliver long-term value for consumers.
Commenting on the findings, SMMT chief executive Christopher
Macgowan said, ‘We welcome publication of this report which recognises the benefits
of the current distribution rules. Block exemption is delivering for the consumer
and Andersen agrees. If it ain’t broke, don’t fix it.’
Note to editors:
SMMT has published a guide to the benefits of the current system
called Block Exemption the Consumer Benefits. It is available on this web site
