WRITTEN QUESTION No. 2577/98 by Anita POLLACK to the Commission. Car prices
Date: 1998-09-01
Institutions: European Parliament, POLLACK
Subjects: EU Member State, United Kingdom, assessment of prices, consumer protection, fiscal policy, market supervision, motor car, price disparity, report, selling price

C 31/150

Official Journal of the European Communities

EN

5.2.1999

Answer given by Mr Bangemann on behalf of the Commission

(14 October 1998)

The Commission would refer the Honourable Members to its answer to written question no 3942/97 by
Mr. Ilaskivi. (1)

(1) OJ C 223, 17.7.1998

(1999/C 31/216)

WRITTEN QUESTION E-2577/98

by Anita Pollack (PSE) to the Commission

(1 September 1998)

Subject: Car prices

What is the Commission doing to reduce the discrepancy in car prices in the Member States given that a recent
survey has shown that cars in the UK can be anything from 7 to 40 per cent more expensive than in other Member
States?

Answer given by Mr Van Miert on behalf of the Commission

(14 September 1998)

Since 1993, the Commission has monitored car price differences in the Community in its bi-annual report on car
prices (1). This publication is based on the recommended retail prices, which the manufacturers submit as of
1 May and 1 November respectively, to the Commission for their best selling models across the Community.

As regards the United Kingdom, the Commission has found that the high price discrepancies registered in the
recent reports have been partly due to the strength of the Pound Sterling, rather than to changes in recommended
list prices. Furthermore, pricing policies pursued by the manufacturers in the individual Member states take into
account taxes to be paid with the car purchase. As a result, list prices before taxes tend to be lower in Member
States with high taxes than in those with no particular tax on car purchase, eg the United Kingdom. Manufacturers
also determine their list prices under economic considerations, such as demand patterns and pursued market
strategies. Finally, a certain price supplement may arise from the equipment with right-hand drive of vehicles
destined for the British market.

The Commission does not intervene in manufacturers(cid:146) pricing policies, except in cases of infringement of
Community competition rules, nor is it its aim to have equal car prices across the common market. However, a
growing price transparency, as promoted inter alia by the Commission(cid:146)s regular car price reports, is increasingly
inducing customers to acquire their vehicles in those Member States where prices and other sales conditions are
most favourable. This freedom, as assured by the according provisions of the group exemption Regulation on
motor vehicle distribution (Commission Regulation (EC) 1475/95 of 28 June 1995 (2)), is, in fact, an important
market-related factor contributing to a better harmonization of prices throughout the Community. For the
members of the euro zone, the introduction of the single currency, as provided for in the Treaty on European
Union, would avoid currency movements, which have been in the past one of the grounds for price discrepancies.

IP/98/652 of 10.7.1998,and IP/98/154 of 13.2.1998 and IP/97/640 of 11.7.1997.

(1)
(2) OJ L 145, 29.6.1995.