It gives them control of most dealerships, supposedly to assure top quality maintenance. But it also lets them vary prices country by country. If regulators get their way, they will dramatically reshape the way cars are sold in Europe and pave the way for a lot more competition. Currently, an auto maker selling to consumers in its home market may charge high. But if it's selling in markets where it's trying to establish itself or compensate for higher taxes, it may discount.
British consumers are the biggest losers.
Other car buyers get whacked, too. No wonder consumers are crossing borders to buy cars, especially now that the euro makes it easy to compare prices. Pressure is growing to end the price variations altogether. The activists now have EU Competition Commissioner Mario Monti on their side. On May 11, he announced plans to close, or at least tighten, the loophole when it's due to expire on Sept. 30, 2002.