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European possibilities and restrictions under Block
Exemption Regulation 1400/2002
Jürgen Creutzig, President, European Council for Motor Trades and Repairs (CECRA), Brussels
Prof. Dr. Jürgen Creutzig
The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March 2006
Prof. Dr. Jürgen Creutzig
The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March 2006
ContentContent
1.1. IntroductionIntroduction2.2. General remarksGeneral remarks3.3. Vehicle salesVehicle sales4.4. ServiceService5.5. Spare partsSpare parts6.6. Technical informationTechnical information7.7. Final remarksFinal remarks
1. Introduction
European UnionEuropean Union 25 Member States25 Member States 435 Mio inhabitants435 Mio inhabitants Approx. 190 Mio car parkApprox. 190 Mio car park Approx. 14,5 Mio car registrations p.a.Approx. 14,5 Mio car registrations p.a. Per 1.000 inhabitants 550 new carsPer 1.000 inhabitants 550 new cars
Prof. Dr. Jürgen Creutzig
The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March 2006
Who is CECRA?Who is CECRA? 350.000 enterprises for motor trades and 350.000 enterprises for motor trades and
repairsrepairs 520 billion € turnover in 2004520 billion € turnover in 2004 2.450.000 employees2.450.000 employees 0,6% - 1% of turnover net profit before tax0,6% - 1% of turnover net profit before tax
Prof. Dr. Jürgen Creutzig
The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March 2006
1. Introduction
Contents of BER well known, transformation Contents of BER well known, transformation insufficientinsufficient
Over 3.000 complaints / demands to Over 3.000 complaints / demands to CommissionCommission
Manufacturers‘ choice: selective system Manufacturers‘ choice: selective system (except Suzuki)(except Suzuki)
Prof. Dr. Jürgen Creutzig
The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March 2006
2. General remarks
Increasing activities of intermediariesIncreasing activities of intermediaries Independence of dealers / repairers from Independence of dealers / repairers from
their manufacturertheir manufacturer Three departments – three independent parts Three departments – three independent parts
of the contractof the contract
Prof. Dr. Jürgen Creutzig
The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March 2006
2. General Remarks
Separation of distribution / serviceSeparation of distribution / service Transfer of sales department / no Transfer of sales department / no
continuation of service departmentcontinuation of service department Last step: location clause 01.10.2005Last step: location clause 01.10.2005
Prof. Dr. Jürgen Creutzig
The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March 2006
2. General remarks
To stop manufacturer selling new cars To stop manufacturer selling new cars directly to end-usersdirectly to end-users
Leasing companies to misuse their Leasing companies to misuse their opportunity to sell new carsopportunity to sell new cars
Prof. Dr. Jürgen Creutzig
The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March 2006
2. General remarks
StandardsStandards In principle positive, but often excessive and In principle positive, but often excessive and
not necessarynot necessary Can be changed unilaterally by manufacturerCan be changed unilaterally by manufacturer To be reviewed by manufacturers and their To be reviewed by manufacturers and their
dealers‘ associationsdealers‘ associations
Prof. Dr. Jürgen Creutzig
The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March 2006
3. Vehicle sales
Multi brandingMulti branding No contractual rule concerning adaptation of No contractual rule concerning adaptation of
standardsstandards No contractual rule concerning adaptation of No contractual rule concerning adaptation of
sales targetssales targets Standards for Corporate Identity (Blue box, Standards for Corporate Identity (Blue box,
uniforms, colour of carpets, etc.)uniforms, colour of carpets, etc.)
Prof. Dr. Jürgen Creutzig
The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March 2006
3. Vehicle sales
Cross border sales : boni and premiumsCross border sales : boni and premiums For sales: all vehicles wherever boughtFor sales: all vehicles wherever bought For purchase: same, no difference possibleFor purchase: same, no difference possible
Prof. Dr. Jürgen Creutzig
The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March 2006
3. Vehicle sales
MarginsMargins Reduction – nothing to do with BERReduction – nothing to do with BER Can be changed unilaterally by Can be changed unilaterally by
manufacturer: to dodge cancellation clausemanufacturer: to dodge cancellation clause
Prof. Dr. Jürgen Creutzig
The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March 2006
3. Vehicle sales
Transfer of rights and obligationsTransfer of rights and obligations Higher bonus to dealer if he runs a repair Higher bonus to dealer if he runs a repair
shopshop
Prof. Dr. Jürgen Creutzig
The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March 2006
3. Vehicle sales
General remarksGeneral remarks Cancelled dealers to remain in the networkCancelled dealers to remain in the network Less application of independent repairers Less application of independent repairers
than expectedthan expected Qualitative selective systemsQualitative selective systems Too high standards to reject outsiderToo high standards to reject outsider
Prof. Dr. Jürgen Creutzig
The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March 2006
4. Service
StandardsStandards Not necessary: to buy tools / equipment / rental Not necessary: to buy tools / equipment / rental
cars / car washcars / car wash To refer to the result, not to the manner how to To refer to the result, not to the manner how to
reach itreach it Too expensive – prices go upToo expensive – prices go up Not to be disproportionate: too high stock of Not to be disproportionate: too high stock of
spare parts, minimum square meterspare parts, minimum square meter
Prof. Dr. Jürgen Creutzig
The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March 2006
4. Service
Multi brandingMulti branding Corporate Identity hinders multi branding: Corporate Identity hinders multi branding:
colour of tiles, carpets / lightening / colour of tiles, carpets / lightening / notepaper / advertising etc.notepaper / advertising etc.
IT systems: insight into data of other brands / IT systems: insight into data of other brands / price formationprice formation
Prof. Dr. Jürgen Creutzig
The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March 2006
4. Service
General remarksGeneral remarks Enormous price differencesEnormous price differences Qualitative selectionQualitative selection Separated contracts without serviceSeparated contracts without service
Prof. Dr. Jürgen Creutzig
The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March 2006
5. Spare parts
Specific problemsSpecific problems Stock: minimum number of spare partsStock: minimum number of spare parts No discrimination: to include all repairshops No discrimination: to include all repairshops
in logistic system (two-stage)in logistic system (two-stage) Suppliers of spare parts: to declare quality, Suppliers of spare parts: to declare quality,
traceability and compatibilitytraceability and compatibility
Prof. Dr. Jürgen Creutzig
The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March 2006
5. Spare parts
General remarksGeneral remarks Survey of IKA Access to technical Survey of IKA Access to technical
informationinformation Transformation only by few manufacturers Transformation only by few manufacturers
(black clause, Art. 4 (2))(black clause, Art. 4 (2))
Prof. Dr. Jürgen Creutzig
The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March 2006
6. Technical information
Different channelsDifferent channels Supermarket / Internet dealersSupermarket / Internet dealers Location clause 01.10.2005Location clause 01.10.2005
Prof. Dr. Jürgen Creutzig
The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March 2006
7. Final remarks
Fierce competition – from Asia to EuropeFierce competition – from Asia to Europe To work for the time beyond 31.05.2010To work for the time beyond 31.05.2010 Strong dealer and repairer associationsStrong dealer and repairer associations
Prof. Dr. Jürgen Creutzig
The Annual Conference of Norges Bilbransjeforbund, Oslo, 29th March 2006
7. Final remarks