THE European Commission has published a key report that will influence the future of block exemption, the selective and exclusive distribution system for new cars, which could change the way fleet cars are supplied.

The report, from consultants Andersen, examines five key changes to block exemption, ranging from a 'free-for-all' system allowing anyone to sell new cars, to only making minor changes to the current format.

Other scenarios would allow manufacturers to insist on strict quality standards for outlets, but would not allow them to have any territorial exclusivity. The link between sales and service and distribution of spare parts is also covered in the report, issued on Monday.

The study analyses the impact on four areas of competition, covering competition between different makes, competition between players representing the same make, competition in after-sales servicing and European market integration.

Although the study does not contain any element that would amount to proposals for the new regime, the commission will analyse the findings and is expected to create and adopt draft proposals based on the information in the report by the beginning of 2002.

• Details of the report are available here