Source: EURLEX
Language: en
Format: md

[**Avis juridique important**](../../../editorial/legal_notice.htm)

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# 92001E0397

**WRITTEN QUESTION E-0397/01 by Juan Naranjo Escobar (PPE-DE) to the Commission. Criticism of exclusive dealership arrangements in the automobile sector.** 
  
*Official Journal 235 E , 21/08/2001 P. 0197 - 0198*

  

WRITTEN QUESTION E-0397/01

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

(15 February 2001)

Subject: Criticism of exclusive dealership arrangements in the automobile sector

At the recent international conference on the automobile industry held in Madrid, extensive criticism was levelled at the current vehicle distribution system, which gives too great a role to suppliers in the production line. Arguments were also put forward for a distribution system which would abolish the requirement for exclusive dealerships for individual car makes, unlike the system in force at present, and which would encourage free competition in the market.

Does the Commission believe that the existing distribution system in the automobile sector in the European Union is a barrier to free competition in the Community market? What arguments can the Commission bring to bear in favour of the new system proposed for this sector?

Answer given by Mr Monti on behalf of the Commission

(23 March 2001)

The current Regulation (EC) No 1475/95 of 28 June 1995(1) applicable to motor vehicle distribution and servicing agreements expiring on 30 September 2002, grants to the industry a block exemption from Community competition rules. In contrast to what may have been said to the Honourable Member, car manufacturers are obliged to allow their dealers to sell more than one brand, provided that dealers respect certain strict conditions specified in that Regulation(2).

The Commission adopted on 15 November 2000 a report evaluating the application of this Regulation, and organised a hearing on this issue for all interested parties on 13-14 February 2001(3). This report is a factual analysis of the current regulatory regime. It will form an essential basis for the forthcoming discussion about the future regulatory framework for motor vehicle distribution and servicing during which the adequacy of the current conditions imposed on the dealers who want to sell more than one brand will have to be closely examined.

As to the question of effective competition in the motor vehicle industry, the Commission refers the Honourable Member to its reply to his Written Question E-4003/00(4).

(1) OJ L 145, 29.6.1995.

(2) See Article 3(3) of Regulation (EC) No 1475/95 which provides that a dealer can be obliged not to sell new motor vehicles offered by persons other than the manufacturer except on separate sales premises, under separate management in the form of a distinct legal entity and in a manner which avoids confusion between makes.

(3) See IP/00/1306 of 15 November 2000 concerning the adoption of the Report and IP/01/204 of 14 February 2001 concerning the hearing. The Report itself is available on the Competition Directorate-general's website: http://europa.eu.int/comm/competition/car sector, where also other valuable information can be found.

(4) OJ C 174 E, 19.6.2001.

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