# CE2004084EN.01028701.xml

| 3.4.2004 | EN | Official Journal of the European Union | CE 84/287 |
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3.4.2004

EN

Official Journal of the European Union

CE 84/287

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(2004/C 84 E/0333)

WRITTEN QUESTION P-4035/03

by Helena Torres Marques (PSE) to the Commission

(5 January 2004)

Subject:   Implementation in Portugal of the regulation on automobile distribution

Subject:

| 1. | At a meeting held on 9 December 2003 in Brussels by the Association of European Automobile Constructors, the chairman of that association (Mr Louis Schweitz, chairman and CEO of Renault) said that, in the wake of the new regulation on automobile distribution, manufacturers would harmonise the basic prices of motorcars sold in the various EU countries. |
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1.

At a meeting held on 9 December 2003 in Brussels by the Association of European Automobile Constructors, the chairman of that association (Mr Louis Schweitz, chairman and CEO of Renault) said that, in the wake of the new regulation on automobile distribution, manufacturers would harmonise the basic prices of motorcars sold in the various EU countries.

| 2. | It was pointed out to Mr Schweitz (who agreed) that this would lead to an increase in the price of motorcars sold in Portugal. |
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2.

It was pointed out to Mr Schweitz (who agreed) that this would lead to an increase in the price of motorcars sold in Portugal.

| 3. | Since the purpose of the new regulation on automobile distribution is the precise opposite (i.e. to bring about a reduction in the consumer price of motorcars, to increase the volume of sales and to cause old cars to be replaced by newer models, with all the implications which that would entail in terms of vehicle safety and a healthier environment), would the Commission give its views on this matter, which is naturally causing the greatest concern amongst consumers and Portuguese automobile distributors? |
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3.

Since the purpose of the new regulation on automobile distribution is the precise opposite (i.e. to bring about a reduction in the consumer price of motorcars, to increase the volume of sales and to cause old cars to be replaced by newer models, with all the implications which that would entail in terms of vehicle safety and a healthier environment), would the Commission give its views on this matter, which is naturally causing the greatest concern amongst consumers and Portuguese automobile distributors?

Answer given by Mr Monti on behalf of the Commission

(5 February 2004)

(5 February 2004)

The Commission's policy on competition in the motor vehicle sector has always been that motor vehicle distributors, whether or not they are based in the same EU Member State, should be subject to free competition. This approach, which is enshrined in the new block exemption regulation (1) which entered into force on 1 October 2002, helps to create a single market in the motor vehicle sector and enables today's European consumers to take advantage of the best prices in the EU. For some manufacturers, this process of integration of national markets is reflected in a policy of convergence of basic tax exclusive prices for vehicles of the same make and model throughout the European Union.

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As regards the point made by the Honourable Member concerning the increase in the basic price of cars in Portugal, the Commission would point out that a pricing policy determined on an independent basis by a motor vehicle manufacturer is strictly the business of that manufacturer. The Commission has no mandate to intervene in respect of manufacturers' business decisions.

However, price increases decided by joint agreement between a manufacturer and its independent dealers, or between competing manufacturers, are generally prohibited under European competition law. If evidence were found of concerted price increases the Commission would not hesitate to take action in accordance with its role as guardian of fair competition in the internal market.

To date, however, no information of concerted price increases on the Portuguese market has come to light.

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(1)  Commission Regulation (EC) No 1400/2002 of 31 July 2002 on the application of Article 81(3) of the Treaty to categories of vertical agreements and concerted practices in the motor vehicle sector, OJ L 203, 1.8.2002.

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