WRITTEN QUESTION P-1957/97 by Peter Skinner (PSE) to the Commission (28 May 1997)

Subject: Availability of right-hand drive vehicles

Given that open market conditions should prevail in the EU with regard to competition amongst car manufacturing companies, and that this competition should lead to greater availability and fewer restrictions on the purchaser, will the Commission comment on the unnecessary restrictions imposed on people who wish to directly purchase right-hand drive vehicles on the continent?

What action is the Commission taking to ensure that right-hand drive vehicles are as readily available for car manufacturers on the continent as are left-hand drive vehicles, without the restriction of dealership purchase only?

Answer given by Mr Van Miert on behalf of the Commission (17 June 1997)

The Commission fully agrees with the Honourable Member that open market conditions should lead to more competition and, in fact, make it easier for consumers to buy their right-hand-drive (RHD) vehicles wherever they find it most advantageous in the Community.

Indeed, the Commission in its Regulation ((Commission Regulation (EC) No 1475/95, OJ L 145 of 28.6.1995, p. 25 on the application of Article 85(3) of the Treaty to certain categories of motor vehicle distribution and servicing agreements which replaced the former Commission Regulation (EEC) for this area No 123/85 of 12.12.1984, OJ L 15 of 18.1.1985, p. 16. )) for motor vehicle distribution reinforces this freedom. A dealer within the single market may not reject a consumer's offer to buy, or ask for a higher price simply because the consumer is a resident of another Member State. However, since it is normally in a dealer's interest to maximise sales, the consumer's right is not accompanied by an obligation imposed on dealers to sell. The Regulation establishes the following rights for a consumer resident in one Member State who wants to buy a motor vehicle, including RHD cars, in another Member State:

- the consumer can be requested to complete only the same documentation, and in the usual manner, as is normally and lawfully required of a consumer resident in the Member State where the vehicle is bought. Usually such documentation relates to the name and address of the consumer;

- the producer and all dealers should honour the guarantee and provide free servicing, vehicle recall work, and repair and maintenance services necessary for the safe and reliable functioning of the vehicle, irrespective of where and from whom in the single market the vehicle was purchased;

- the manufacturer, the supplier or another undertaking within the network which directly or indirectly restricts the freedom of final consumers, authorized intermediaries or authorized dealers to obtain a new motor vehicle from whichever authorized dealer they choose within the single market automatically loses the benefit of the exemption and as a consequence this manufacturer's whole distribution network is automatically void pursuant to Article 85(2) of the EC Treaty.

Apart from this general approach aiming at opening the car sales markets e.g. for customers who want to buy a RHD car outside their place of residence, the Commission has adopted two decisions condemning obstacles to the purchase of new RHD cars ((Commission decision of 25.9.1986, OJ L 295 of 18.10.1986, p. 19; Commission decision of 2.7.1984, OJ L 207 of 2.8.1987, p. 11. )) outside the United Kingdom. In addition, the Honourable Member is invited to refer to the Commission's earlier answers to written questions on this subject ((Written Question No 2874/91 by Mr Thomas Megahy, OJ C 162 of 29.6.1992, p. 33; Written Question No 1829/82 by Sir James Scott-Hopkins, OJ C 111 of 25.4.1983, p. 11, with further reference to previous answers of the Commission. )).