WRITTEN QUESTION No. 3298/97 by Mark WATTS to the Commission. Car prices throughout the EU
Date: 1997-10-20
Institutions: European Parliament, WATTS
Subjects: concessionaire, consumer information, exchange rate, floating rate, market stabilisation, motor vehicle industry, price disparity, single market, tax harmonisation, vehicle parts

C 158/82

EN

Official Journal of the European Communities

25. 5. 98

(98/C 158/105)

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 (cid:145)car price report(cid:146). 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(cid:146)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 (1),  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(cid:146)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.

(1)  OJ L 145, 29.6.1995.