A report by the European Commission
(EC) recommending that the Block Exemption rules, covering car
distribution and aftersales, should be extended until 2013 has been
welcomed with relief by the industry.

Competition Commissioner Neelie Kroes said: “It is
important to give the automotive sector, one of the most important
sectors in the European Union, legal certainty and predictability
as to the future competition law regime. This holds even more true
in times of crisis.

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“That is why I favour a new framework which will
make it easier for market players to respond to rapidly changing
market circumstances while better safeguarding consumer
interests.”

The Society of Motor Manufacturers and Traders
chief executive Paul Everitt said: “The Commission’s statement
recognises the importance of a smooth transition of the current
regulation and a welcome desire to find the optimum solution for
the aftermarket.

“The Commission has recognised the high level of
competition in the motor industry and this decision gives much
needed reassurance and stability to the market during the current
economic difficulties.”

The British Vehicle Rental and Leasing Association
(BVRLA) is also in favour of an extension of the current regime,
chief executive John Lewis said.

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“The BVRLA will continue to fight to protect our
members’ rights as the economic owner of their vehicles [so-called
‘end user’ status], which ensure they are not forced to provide
commercially sensitive details to motor manufacturers,” Lewis
said.

Additionally, he added, the BVRLA was “pleased” by
the EC’s promise to look into ways to provide more competition in
the aftersales market.