Block exemption is the selective and exclusive distribution system that allows manufacturers to appoint their own dealerships, set standards and create territories. Evans said: 'The current system works for the benefit of consumers, dealers, independent repairers and manufacturers. It is better to improve what we have rather than risk the unknown. Shortcomings in the present regulation could be corrected, although effective monitoring and enforcement is needed.'
He argued that the current system allowed for qualitative selection of dealers, keeping sales and service together, territorial exclusivity and less economic dependence of dealers on manufacturers. He added: 'The system offers comprehensive product and service promoting brand image and ensuring warranty and vehicle recall arrangements. You cannot be sure an independent supplier will have the correct equipment to service your car, but you can be sure a franchised dealer has.'