WRITTEN QUESTION E-3298/97 by Mark Watts (PSE) to the Commission (20 October 1997)

Subject: Car prices throughout the EU

Is the Commission aware of the huge variation in new car prices throughout the EU?

If so, what, if any, action is being taken to regularize this position in line with the single market proposals?

Additionally, is the Commission aware that it is almost impossible for UK drivers to purchase a right-hand drive vehicle in mainland Europe for import to the UK? What course of action is open to consumers to assist them in such a purchase?

Answer given by Mr Van Miert on behalf of the Commission (18 November 1997)

The Commission is aware of the fact that the recommended prices for new cars vary throughout the Community. The price differences, if converted into ecu, reflect, on the one hand, the different conditions of the national car markets in the Member States, and on the other, are influenced by the national tax systems and exchange rate fluctuations. The last point is, at present, particularly relevant with regard to the price of cars sold in the United Kingdom. Due to the recent value gain of the British Pound in relation to the other European currencies, it is advantageous for British consumers to buy a car outside the United Kingdom.

In order to make prices more transparent and to allow consumers to find out in which Member State cars are cheapest, the Commission publishes, in May and November of each year, a 'car price report'. This gives price details of 72 models marketed in the Community, and 4 500 copies of the last report have been made available, free of charge, to consumer organisations, trade associations and individual consumers. The Commission's policy for achieving the single market for cars is focused on improving the possibility for European consumers to buy a car wherever they wish. It is expected that market forces will lead to a narrowing of price differences.

The Commission is aware that it may be difficult for a consumer to purchase a right-hand-drive car in mainland Europe. Apart from practical difficulties involved (language, distance, provisional registration), it has to be borne in mind that European car dealers are under no legal obligation to sell right- or left-hand-drive cars to consumers. However, it is clear that they have a natural economic interest in selling as many cars as possible. The Commission knows, from its contacts with customers, that many dealers based in mainland Europe do sell right-hand-drive cars. In contrast to dealers, car makers are, pursuant to Article 5(1)2. d) of 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. )), obliged to make right-hand-drive cars available to all their dealers in Europe in order to give them the opportunity to sell such cars to British or Irish consumers. The Commission has informed the car manufacturers that it will not tolerate practices which circumvent their obligation under the above Regulation. Following the Commission's intervention, many car manufacturers have reminded the dealers in their network that they will supply them with right-hand-drive cars and that they are free to sell such cars. Apart from a surcharge for the right-hand-drive equipment, the recommended prices for such cars are the prices of the market in which the dealer is located and not the prices recommended for such cars in the home Member State of the customer.