EC issues guidance on motor industry

UK car dealers were disappointed after further guidance issued by the European Commission (EC) on new block exemption regulations (BER) failed to advance moves toward a standardised Code of Conduct.

Dealers were hoping for increased protection after the introduction of BER appeared to give more power to the manufacturers. The guidance issued may help them to attract additional aftersales income though.

TLT Solicitors' Miles Trower, the retained competition lawyer for the National Franchised Dealer Association said: "Notwithstanding the time taken to prepare the FAQs, it is immediately clear that this guidance is limited to a number of aftersales issues."

Trower added that it appeared that the EC had neglected calls from a number of organisations for it to widen the scope of guidance to include a number of other matters regarding the sales of new vehicles.

The European Commission has so far refrained from providing any input on a proposed Code of Conduct for the automotive industry. Instead the FAQs centre on the regulation of warranty deals and access to vital technical information and spare parts.

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