WRITTEN QUESTION P-0408/02 by Brice Hortefeux (PPE-DE) to the Commission. Automobile distribution directive.
Date: 2002-02-11
Institutions: European Parliament, Provisional data
Subjects: after-sales service, concessionaire, consumer protection, distributive trades, economic and social cohesion, motor vehicle industry

C 309 E/22

Official Journal of the European Communities

EN

12.12.2002

(2002/C 309 E/026)

WRITTEN QUESTION P-0408/02

by Brice Hortefeux (PPE-DE) to the Commission

(11 February 2002)

Subject: Automobile distribution directive

The current system of distributing cars through manufacturer networks is applied in most countries in
Europe and throughout the world, with the exception of a few states including the United Kingdom, which
admittedly no longer has a national automobile industry.

How can one fail to see that this system still exists because of the benefits consumers derive from it in the
form of keen price competition, the spread of innovation and, above all, the certainty that they can have
their vehicles serviced and repaired by competent professionals at a nationwide network of agencies?

Is the Commission not afraid of
jeopardising the system of nationwide distribution networks, thus
endangering an aspect of economic life in the less populated regions and damaging the link between
vehicle purchase and after-sales service which is a guarantee of safety for all consumers?

Does it not fear that consumers in rural areas will once again be put at a disadvantage vis-à-vis those who
live in towns?

Is it not afraid, in more general terms, that a radical reform will hasten the already serious economic
decline of rural areas, as happened when the number of service stations was halved?

Answer given by Mr Monti on behalf of the Commission

(7 March 2002)

The proposal for a Regulation on automobile distribution, adopted by the Commission on 5 February
2001, is the culmination of an in-depth process of analysis and consultation which began over two years
ago. The report evaluating the present system, adopted by the Commission in November 2000, revealed
that the block exemption allowed by Commission Regulation (EEC) 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) had failed to achieve some of its objectives, particularly as regards the creation of an internal
market (as evidenced by the persistence of large price differentials between Member States) and the benefits
of the present system to consumers.

The Commission is conscious of the need to maintain a network of automobile distribution and after-sales
service that provides good geographical coverage. The reorganisation of the link between sales and after-
sales service, the measures provided for independent repairers and the promotion of multidealership will
be more effective in preserving such a network than the system under the present Regulation.

On the sales side, multidealerships have the advantage of enabling consumers to compare different
manufacturers’ models. The proposed Regulation is also based on an approach which avoids unnecessary
costs and gives dealers greater freedom to organise their businesses. The positive effects of this system can
be seen in the Scandinavian countries, the main area of the European Union where multidealerships have
so far been introduced. Because of the low population density, dealers have to sell several makes in order
to be viable. In these countries, where huge areas are very sparsely populated, such economies of scale
have made it possible to maintain and expand dealerships that adequately serve rural districts.

As regards the need to maintain a sufficient level of after-sales service, it should be noted that under the
new regime dealers who wish to specialise in vehicle sales will be able to choose between providing after-
sales service themselves and contracting it out to one or more official repairers that meet the technical
standards set by the manufacturer. Dealers who contract out after-sales service must supply the consumer
with details of the official repairer(s) before concluding the sales contract. This will ensure that, wherever
they live, the clients of each distributor will be able to find at least one official repairer.

12.12.2002

EN

Official Journal of the European Communities

C 309 E/23

The proposed new regime also means that existing dealers, whose contracts would be terminated as part of
the significant cuts in the number of dealers being made by certain manufacturers, can continue to operate
as ‘official repairers’ for their make of vehicle. The general level of technical expertise on the market will
therefore be maintained, as will the existence of a dense network of official repairers, supplemented by
independent repairers with greater technical expertise, helping to ensure a quality service and promote
road safety through a system that continues to provide comprehensive geographical cover.

(1) OJ L 145, 29.6.1995.

(2002/C 309 E/027)

WRITTEN QUESTION E-0455/02

by Luis Berenguer Fuster (PSE)
and Fernando Pérez Royo (PSE) to the Commission

(22 February 2002)

Subject: Taxation and the hydrocarbons market

The Spanish law 24/2001 of 27 December 2001 concerning fiscal, administrative and public-order
measures (published in the 31 December 2001 edition of Spain’s Official Journal) provides for, inter alia,
the creation of a new tax on retail sales of certain hydrocarbons in Spain with effect from 1 January 2002.

The most significant of the provisions governing this new tax is the one pursuant to which all revenue
derived from the tax is to be allocated to financing healthcare expenditure ‘(…) guided by means of
objective criteria set at national level. However, the share of the resources derived from the taxes raised by
[Spain’s] autonomous communities may be used to finance environmental measures which must also be
guided by the same criteria’. The tax rate applicable will be determined by adding together the rate set by
the central government and that set by the autonomous community.

In Spain, a special tax on hydrocarbons is currently levied at a perfectly adequate rate and in accordance
with fiscal policies designed to harmonise the level of such taxes in the European Union, with a view to
preventing any trade distortions which might occur as a result of differing tax rates.

The purpose of special taxes is to even out private and public costs which differ on account of the
consequences of using or consuming the commodities to which a given tax relates, to the extent that the
existence of such a tax could be said to be justified on socio-economic grounds which favour the pursuit
of socially desirable ends.

To the combination of the above-mentioned aspects, to the fact that the tax on hydrocarbons has much in
common with VAT-based indirect taxation and to the ambiguity in the way in which the resources derived
from the new tax are to be allocated may be added the unconventional legislative procedure used for the
adoption of that tax.

In the light of the requirements and the objectives of Community fiscal harmonisation, does the
1.
Commission consider the Spanish Government to be entitled to create a new tax on a commodity which is
already taxed and which is subject to harmonisation rules?

If the Spanish Government is so entitled, can it assign the resources derived from the new tax to a

2.
specific purpose or objective?

If a specific purpose or objective may be assigned, is it admissible for that purpose or objective to

3.
have nothing to do with the nature of the special taxes as defined above?

Should the answer to the first three questions be in the affirmative,

4.
is the Spanish Government
entitled to introduce this new tax without (i) seeking authorisation from the Community authorities and/or
(ii) notifying those authorities in connection with the progressive integration of policies designed to bring
about tax-rate harmonisation?