Sustaining growth in the new Europe – View of the European Motor Trades and Repairs Jürgen Creutzig, President, European Council for Motor Trades and Repairs

Prof. Dr. Jürgen Creutzig

9th Annual Automotive News Europe Congress – 5th May 2005 - Barcelona

ContentContent

1.1. IntroductionIntroduction2.2. Changes to Block Exemption Changes to Block Exemption

Regulation (EC) N° 1400/2002Regulation (EC) N° 1400/20023.3. Abolition of location clause and its Abolition of location clause and its

impact on retailers and repairersimpact on retailers and repairers4.4. EU’s CARS 21 initiativeEU’s CARS 21 initiative

1. Introduction

CECRA – CECRA – The Voice of the European The Voice of the European Motor Trades and RepairsMotor Trades and Repairs

350.000 enterprises in 25 Member States350.000 enterprises in 25 Member States 118.000 authorised dealers and repairers118.000 authorised dealers and repairers 232.000 independent repairers232.000 independent repairers



2,5 mio employees2,5 mio employees 520 billion € turnover520 billion € turnover Net profit before tax 0,6% of turnoverNet profit before tax 0,6% of turnover



1. Introduction

More freedom and independency from More freedom and independency from manufacturersmanufacturers

Opening of the marketsOpening of the markets Cross-border salesCross-border sales



2. Changes to Block Exemption Regulation 1400/2002

Multi brandingMulti branding Access to technical informationAccess to technical information Relevant marketRelevant market




Reduction of marginsReduction of margins Unfair competition through direct salesUnfair competition through direct sales Standards not “necessary”Standards not “necessary”




No protection of investmentsNo protection of investments ArbitrationArbitration




Controversial ruleControversial rule For 20% dealers more freedomFor 20% dealers more freedom For 80% entrepreneurs more risksFor 80% entrepreneurs more risks



3. Abolition of location clause and its impact on retailers and repairers

Necessary conditions for expansionNecessary conditions for expansion Changes for local enterprisesChanges for local enterprises Acceleration of consolidationAcceleration of consolidation




Reduction of dealersReduction of dealers Impact study of the CommissionImpact study of the Commission Postponement of coming into force?Postponement of coming into force?




The aim: improvement of competitivenessThe aim: improvement of competitiveness Critics: Automotive industry a part of a chainCritics: Automotive industry a part of a chain ForecastForecast



4. EU’s CARS 21 initiative

Retail Motor Industry beyond 2010 (REMI Retail Motor Industry beyond 2010 (REMI 2010)2010)

New type of entrepreneurNew type of entrepreneur Regulatory framework ?Regulatory framework ?



4. EU’s CARS 21 initiative

New partnership between manufacturer and New partnership between manufacturer and dealer required dealer required

Corner stone: satisfied dealersCorner stone: satisfied dealers Permanent wisdom: satisfied dealers = Permanent wisdom: satisfied dealers =

satisfied customers = more new vehicles = satisfied customers = more new vehicles = satisfied manufacturersatisfied manufacturer



5. Final remarks

Documents

Sustaining growth in the new Europe – View of the European Motor Trades and Repairs Jürgen Creutzig, President, European Council for Motor Trades and Repairs