WRITTEN QUESTION E-1239/01 by Graham Watson (ELDR) to the Commission. Distribution of new cars.
Date: 2001-04-26
Institutions: European Parliament, Provisional data
Subjects: competition, exclusive distribution agreement, motor car, sale, single market

C 340 E/202

Official Journal of the European Communities

EN

4.12.2001

Answer given by Mrs Wallstr(cid:246)m on behalf of the Commission

(20 June 2001)

Cetaceans are strictly protected by the Habitats Directive (1), which requires Member States to take
measures to ensure a favourable conservation status for them. However, the EC Treaty does not apply to
the Faeroe Islands (2), which means that nature protection provisions based on the EC Treaty do not apply
there either.

The Community does not support any form of cetacean hunting or of trade in products obtained through
that activity. The Commission has no specific information on the presence of contaminants in the meat of
cetaceans or on the final destination of such meat.

The Commission has long supported a definitive ban on commercial whaling (3). However, a difference of
opinion among the Member States has prevented the Community from adopting a common position on its
membership of the International Whaling Commission.

With regard to the other points, and particularly questions 2 and 5, it would be for the Danish authorities
to answer the questions put by the Honourable Member, as the Commission is unable to do so.

(1) Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and

flora (OJ L 206, 22.7.1992).

(2) Documents concerning the accession to the European Communities of the Kingdom of Denmark, Ireland, the
Kingdom of Norway and the United Kingdom of Great Britain and Northern Ireland, Act concerning the conditions
of accession and the adjustments to the Treaties, Part Two Adjustments to the Treaties, Title II Other adjustments,
Article 27 (OJ L 73, 27.3.1972). EC Treaty, Article 299(6)(a) (formerly Article 227).

(3) Commission communication to the Council concerning the conservation of whales within the framework of the

International Whaling Commission, COM(92) 316 final.

(2001/C 340 E/232)

WRITTEN QUESTION E-1239/01

by Graham Watson (ELDR) to the Commission

(26 April 2001)

Subject: Distribution of new cars

The current rules for the distribution of new cars (the so-called (cid:145)block exemption(cid:146)) are under review. What
measures are in place to prevent manufacturers from taking tighter control of their market before the
revised rules are imposed? Does the Commission have evidence of any such action by manufacturers?

Answer given by Mr Monti on behalf of the Commission

(12 June 2001)

The Honourable Member(cid:146)s question refers to car manufacturers taking tighter control of their market. The
Commission presumes that the Honourable Member has in mind those car manufacturers that choose to
reduce their reliance on a franchised dealer network in favour of directly owned distribution centres.

The Commission would like to take this opportunity to emphasise that Commission Block Exemption
Regulation (EC) No 1475/95 of 28 June 1995 on the application of Article 85(3) of the EC Treaty to
certain categories of motor vehicle distribution and servicing agreements (1) does not dictate which of the
many available legitimate sales methods a company may adopt; it merely stipulates that a carmaker who
elects to sell via a selective and exclusive distribution network must adhere to a set of specific rules. The
provisions in the Regulation that give a dealer protection against premature termination of his contract are
principally intended to counterbalance the high degree of manufacturer power inherent in a selective and
exclusive distribution system operating through dealerships and do not aim to favour sales via a network
dealership over direct sales, or vice versa.

4.12.2001

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Official Journal of the European Communities

C 340 E/203

the restructuring of dealership networks is a normal
The Commission would also underline that
commercial decision, and one whose essential legitimacy is recognised in the Regulation. The main rules
governing the right to terminate a dealership will be set out in an individual dealer(cid:146)s contract, and will be
subject to any over-riding rules of national
law. Article 5 of Regulation (EC) No 1475/95 provides
additional protection by stipulating that a manufacturer wishing to terminate a dealership must give two
years(cid:146) notice, or one year(cid:146)s notice should a re-structuring of the dealership network become necessary. In
case of dispute, the Regulation provides for reference to an expert third party or an arbitrator, without
prejudice to the parties(cid:146) right to apply to a national court.

The Commission notes that several manufacturers have carried out network re-structuring in recent years,
and it is aware that DaimlerChrysler is currently re-structuring its network in the United Kingdom.
Although most of this re-organisation would seem to simply involve the merging of existing exclusive sales
territories and the consequent termination of dealerships, the Commission understands that DaimlerCh-
rysler is taking direct control of Mercedes sales and marketing in several metropolitan areas.

The Commission is also aware that certain british Mercedes dealers have taken DaimlerChrysler to court in
the United Kingdom, alleging a breach of contract. While the british courts have the necessary legal
competence to apply the Regulation should this be necessary, the Commission would be pleased to answer
any questions that the british judges might put as to its interpretation, pursuant to the Notice on Co-
operation with National Courts (2).

(1) OJ L 145, 29.6.1995. The Commission adopted an Evaluation Report on Regulation (EC) No 1475/95 on
15 November 2000. The report is available on the Internet at http://europa.eu.int/comm/competition/car_sector/
distribution/eval_reg_1475_95/report/#report.

(2) OJ C 39, 13.2.1993.

(2001/C 340 E/233)

WRITTEN QUESTION E-1243/01

by Juan Naranjo Escobar (PPE-DE) to the Commission

(26 April 2001)

Subject: Relations between the ECB and central banks in the eurozone

In the context of the debate in various Member States, including Germany, Belgium and Austria, where
governments are discussing the possibility of creating either a supervisory body independent of their
respective central banks, or a single supervisory body for the banking, securities and insurance sectors, the
European Central Bank has defended the financial supervisory role played by the central banks in the
eurozone. In the opinion of the ECB, the fact that the central banks of eleven countries that share the same
currency have lost control over the creation of money does not imply a conflict between their new
banking supervisory tasks and their monetary policy functions.

What is the Commission(cid:146)s position with regard to the possibilities being discussed by these Member States?
What is the likelihood, in the future, of conflicts of interest or centres of concentration of power, should
the central banks adopt less rigorous policies than are necessary to achieve the objective of price stability
in the event of a crisis in the banking system?

What steps is the Commission taking to encourage both the creation of links between the ECB and the
central banks of the eurozone, and other means of cooperation and information exchange between these
institutions?

Answer given by Mr Solbes Mira on behalf of the Commission

(2 July 2001)

The debate on the relationship between the central banking function and the supervisory function has
a long history. The debate revolves around differing views on the likely interactions between a central
bank(cid:146)s role as a supervisor and its role in conducting monetary policy. On one side, it is argued that the