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European possibilities and restrictions under Block Exemption Regulation 1400/2002 Jürgen Creutzig, President, European Council for Motor Trades and Repairs.

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Presentation on theme: "European possibilities and restrictions under Block Exemption Regulation 1400/2002 Jürgen Creutzig, President, European Council for Motor Trades and Repairs."— Presentation transcript:

1 European possibilities and restrictions under Block Exemption Regulation 1400/2002 Jürgen Creutzig, President, European Council for Motor Trades and Repairs (CECRA), Brussels Prof. Dr. Jürgen Creutzig The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March 2006

2 Prof. Dr. Jürgen Creutzig The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March 2006 Content 1. Introduction 2. General remarks 3. Vehicle sales 4. Service 5. Spare parts 6. Technical information 7. Final remarks

3 1. Introduction European Union 25 Member States 25 Member States 435 Mio inhabitants 435 Mio inhabitants Approx. 190 Mio car park Approx. 190 Mio car park Approx. 14,5 Mio car registrations p.a. Approx. 14,5 Mio car registrations p.a. Per inhabitants 550 new cars Per inhabitants 550 new cars Prof. Dr. Jürgen Creutzig The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March 2006

4 Who is CECRA? enterprises for motor trades and repairs enterprises for motor trades and repairs 520 billion turnover in billion turnover in employees employees 0,6% - 1% of turnover net profit before tax 0,6% - 1% of turnover net profit before tax Prof. Dr. Jürgen Creutzig The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March Introduction

5 Contents of BER well known, transformation insufficient Contents of BER well known, transformation insufficient Over complaints / demands to Commission Over complaints / demands to Commission Manufacturers choice: selective system (except Suzuki) Manufacturers choice: selective system (except Suzuki) Prof. Dr. Jürgen Creutzig The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March General remarks

6 Increasing activities of intermediaries Increasing activities of intermediaries Independence of dealers / repairers from their manufacturer Independence of dealers / repairers from their manufacturer Three departments – three independent parts of the contract Three departments – three independent parts of the contract Prof. Dr. Jürgen Creutzig The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March General Remarks

7 Separation of distribution / service Separation of distribution / service Transfer of sales department / no continuation of service department Transfer of sales department / no continuation of service department Last step: location clause Last step: location clause Prof. Dr. Jürgen Creutzig The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March General remarks

8 To stop manufacturer selling new cars directly to end-users To stop manufacturer selling new cars directly to end-users Leasing companies to misuse their opportunity to sell new cars Leasing companies to misuse their opportunity to sell new cars Prof. Dr. Jürgen Creutzig The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March General remarks

9 Standards In principle positive, but often excessive and not necessary In principle positive, but often excessive and not necessary Can be changed unilaterally by manufacturer Can be changed unilaterally by manufacturer To be reviewed by manufacturers and their dealers associations To be reviewed by manufacturers and their dealers associations Prof. Dr. Jürgen Creutzig The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March Vehicle sales

10 Multi branding No contractual rule concerning adaptation of standards No contractual rule concerning adaptation of standards No contractual rule concerning adaptation of sales targets No contractual rule concerning adaptation of sales targets Standards for Corporate Identity (Blue box, uniforms, colour of carpets, etc.) Standards for Corporate Identity (Blue box, uniforms, colour of carpets, etc.) Prof. Dr. Jürgen Creutzig The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March Vehicle sales

11 Cross border sales : boni and premiums For sales: all vehicles wherever bought For sales: all vehicles wherever bought For purchase: same, no difference possible For purchase: same, no difference possible Prof. Dr. Jürgen Creutzig The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March Vehicle sales

12 Margins Reduction – nothing to do with BER Reduction – nothing to do with BER Can be changed unilaterally by manufacturer: to dodge cancellation clause Can be changed unilaterally by manufacturer: to dodge cancellation clause Prof. Dr. Jürgen Creutzig The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March Vehicle sales

13 Transfer of rights and obligations Higher bonus to dealer if he runs a repair shop Higher bonus to dealer if he runs a repair shop Prof. Dr. Jürgen Creutzig The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March Vehicle sales

14 General remarks Cancelled dealers to remain in the network Cancelled dealers to remain in the network Less application of independent repairers than expected Less application of independent repairers than expected Qualitative selective systems Qualitative selective systems Too high standards to reject outsider Too high standards to reject outsider Prof. Dr. Jürgen Creutzig The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March Service

15 Standards Not necessary: to buy tools / equipment / rental cars / car wash Not necessary: to buy tools / equipment / rental cars / car wash To refer to the result, not to the manner how to reach it To refer to the result, not to the manner how to reach it Too expensive – prices go up Too expensive – prices go up Not to be disproportionate: too high stock of spare parts, minimum square meter Not to be disproportionate: too high stock of spare parts, minimum square meter Prof. Dr. Jürgen Creutzig The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March Service

16 Multi branding Corporate Identity hinders multi branding: colour of tiles, carpets / lightening / notepaper / advertising etc. Corporate Identity hinders multi branding: colour of tiles, carpets / lightening / notepaper / advertising etc. IT systems: insight into data of other brands / price formation IT systems: insight into data of other brands / price formation Prof. Dr. Jürgen Creutzig The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March Service

17 General remarks Enormous price differences Enormous price differences Qualitative selection Qualitative selection Separated contracts without service Separated contracts without service Prof. Dr. Jürgen Creutzig The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March Spare parts

18 Specific problems Stock: minimum number of spare parts Stock: minimum number of spare parts No discrimination: to include all repairshops in logistic system (two-stage) No discrimination: to include all repairshops in logistic system (two-stage) Suppliers of spare parts: to declare quality, traceability and compatibility Suppliers of spare parts: to declare quality, traceability and compatibility Prof. Dr. Jürgen Creutzig The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March Spare parts

19 General remarks Survey of IKA Access to technical information Survey of IKA Access to technical information Transformation only by few manufacturers (black clause, Art. 4 (2)) Transformation only by few manufacturers (black clause, Art. 4 (2)) Prof. Dr. Jürgen Creutzig The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March Technical information

20 Different channels Different channels Supermarket / Internet dealers Supermarket / Internet dealers Location clause Location clause Prof. Dr. Jürgen Creutzig The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March Final remarks

21 Fierce competition – from Asia to Europe Fierce competition – from Asia to Europe To work for the time beyond To work for the time beyond Strong dealer and repairer associations Strong dealer and repairer associations Prof. Dr. Jürgen Creutzig The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March Final remarks


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