Fleet News

Influential EC thinker calls for block exemption to be scrapped

A KEY opinion former behind an influential EC report into the block exemption has made a final call for the system to be scrapped in favour of a clean slate for car distribution.

Autopolis, which produced one of two EC reports into the block exemption published last year, has launched a new study giving its final views on what should happen when the system comes up for renewal in 2002.

Dr John Wormald, director of Autopolis, said in Future Developments in Automotive Distribution and the Aftermarket: 'In all cases a new piece of consumer-driven legislation is superior. The transition is not going to be easy, but that does not mean it is not the right thing to do.'

Specifically, the firm believes that car retailers should be allowed to sell a range of different cars from different manufacturers, and that the link between sales and servicing should be broken.

This transition could take up to a decade, but is vital to end the 'vicious' cycle of pumping too many cars into a saturated market and pushing dealers to sell them. Mario Monti, the EC Competition Commissioner, last year said he would start with a 'clean piece of paper' when looking at block exemption.

For a copy of Future Developments in Automotive Distribution and the Aftermarket, call 01243 536266.

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