WRITTEN QUESTION E-2739/02

by Emmanouil Bakopoulos (GUE/NGL) to the Commission

(30 September 2002)

Subject: Variations in the price of cars in the EU

In its report on the price of cars in the European Union, the Commission noted the consistent variation in the price of new cars. The Commission's study shows that Greece is one of the most competitive

Member States before tax for smaller cars. Unfortunately, however, for powerful luxury models, Greece is the most expensive Member State both before and after tax. According to the Commission's tables, for example, in order to buy an Alfa Romeo 156 2.0 TS 16V, a Greek citizen has to pay some 40 % more than a Belgian citizen. Can the Commission explain what measures it will take to reduce this significant disparity within the Union?

Answer given by Mr Monti on behalf of the Commission

(4 November 2002)

The six-monthly report on price differentials between cars in the European Union, the latest issue of which was published on 22 July 2002(1), regularly draws attention to price differentials between Member States resulting from the strategies pursued by different manufacturers. This situation shows that there is too little competition between dealers supplying the same type of car within the Union. Accordingly, the Commission has made significant amendments to the applicable competition rules. On 31 July 2002, it adopted Regulation (EC) No 1400/2002 on the motor vehicle sector(2), which entered into force on 1 October 2002, following the expiry of the previous regulation(3). The regulation provides for several measures exercising competitive pressure on price differentials relating to the same make of car within the single market, such as the differential referred to above.

In particular, the regulation stipulates that block exemptions do not apply to distribution agreements which restrict sales of new private cars by retail dealers to final users who request them, irrespective of their place of residence. In the case in point, this means that any obstacle, whether direct or indirect, to the sale of a private car to a Greek consumer wishing to purchase it in Belgium, either personally or through an intermediary empowered to make such a purchase, would be incompatible with the regulation. Nor do block exemptions cover restrictions on deliveries between dealers. This means that car manufacturers cannot object if Greek dealers decide to buy their stock from Belgian dealers. Finally, as of 1 October 2005, the regulation will not cover any restrictions on the establishment of sales points or vehicle supply points where selective distribution is in force. In the case in point, if such a system were to be applied in Belgium and Greece, Belgian dealers would be free to set up a sales point, or a supply point in Greece to supply vehicles ordered by Greek consumers.

As in the past, the Commission will ensure compliance with these vehicle distribution rules and will, where necessary, take legal action against any violations of competition law which are liable to deprive European consumers of the benefits of the single market.

(1) See press release IP/02/1109 of 22.7.2002.

(2) 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.

(3) Commission Regulation (EC) No 1475/95 of 28 June 1995 on the application of Article 85 (3) of the Treaty to certain categories of motor vehicle distribution and servicing agreements OJ L 145, 29.6.1995.