Fleet News

No change ahead in block exemption, claims CECRA

THE European Council for Motor Traders and Repairers (CECRA) claims the European Commission has no immediate plans for radical changes to Block Exemption. CECRA said that the EU's Competition Commissioner Mario Monti had acknowledged it would be 'unfair and harmful' to dealers for the legislation simply to cease on September 30, 2002.

The comment comes despite Trade and Industry Secretary Stephen Byers claiming changes in the UK could come before 2002 as part of the Competition Commission's New Cars Inquiry. A spokesman for the association said: 'If there was to be a radical change to the existing framework in 2002, Monti indicated that it would seem necessary to provide a reasonable transitional period for adjustment and protection of interests.'

The Government says it is to push for fundamental changes to loosen car manufacturers' grip on their dealers following the Competition Commission's report into the supply of new cars in the UK. The European Union's car Block Exemption rules allow selective and exclusive distribution of cars in Europe, tying dealers into strict supply channels, and the formal arrangement is due to run in the UK until at least September, 2002.

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment


No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee