Source: EURLEX
Language: en
Format: md

6 . 8 . 96 | EN | Official Journal of the European Communities No C 227 / 11

Council Regulation No 17

Notification of a standard service outlet agreement in the automotive sector

( Case No IV / 36.101 — Ford ( Service Outlet ))

( 96 / C 227 / 09 )

( Text with EEA relevance )

1 . On 27 June 1996 the Commission received a notification of a proposed standard service

outlet agreement pursuant to Article 4 of Council Regulation No 17 ( x ) from certain
European affiliates of Ford Motor Company of the USA (' Ford '). The Agreement is a
standard non-exclusive contract to be entered into between Ford's main dealers and service
outlets . Ford is the promoter of the Agreement which forms part of the reorganization of its
European distribution network, whereby existing Ford dealers whose main business is the
provision of services and whose sales are marginal will be integrated into Ford's main
dealers and re-designated as service outlets . It is Ford's intention to have the Agreement
implemented all over the European Union except in the United Kingdom .

2 . The proposed Agreement which has an indefinite duration may be terminated by either

party upon giving six months notice . Under the Agreement, service outlets will provide
maintenance, repair and warranty service to Ford customers . Service outlets will have no
legal obligation to sell vehicles, however they may do so in the name and on behalf of their
affiliated main dealer with remuneration by way of commission on each sale . Notwith ­
standing any resale price recommendation issued by Ford, service outlets are free to
determine their prices and discounts for any Ford merchandise . They are also free to enter
similar agreements in respect of servicing competing products or to distribute vehicles of
other manufacturers . The Agreement provides that service and parts sales targets have to be '
mutually agreed . Restrictions are placed on the use of competing parts for Ford warranty
and policy work and on the use and sale of parts that do not match Ford's quality or which
infringe its intellectual property rights .

3 . Upon preliminary examination, the Commission finds that the notified standard agreement

could fall within the scope of Council Regulation 17 .

4 . The Commission invites interested third parties to submit their possible observations on the

proposed operation to the Commission .

Observations must reach the Commission not later than 10 days following the date of this
publication . Observations can be sent to the Commission by fax ( No ( 32-2 ) 296 98 00 ) or by
post under reference number IV / 3 6 . 101 to the following address :

European Commission,
Directorate General for Competition ( DG IV ),
Directorate F,
Office 1 / 57,
Avenue de Cortenberg / Kortenberglaan 150,
B       - 1 040 Brussels .

C ) OJ No 13, 21 . 2 . 1962, p . 204 .