Block exemption regulation

Block exemption: Bar room brawl spills onto the streets


Bar room brawl spills onto the streets: Parts 1–3
The block exemption regulation (BER) controlling the sale and servicing of cars, light commercial vehicles, trucks, buses and coaches came into effect on 1 October 2003. The rules were intended to “put consumers in the driving seat” – by giving dealers greater independence from carmakers, promoting inter-brand competition, liberalising the aftermarket and encouraging the harmonisation of prices across the region.

The European Commission has met with mixed success in its efforts to reform the sale and servicing of cars. In our earlier reports we questioned whether the new block exemption regulation would result in a gentlemen's dispute or bar room brawl.


ORIGINAL BER SERIES: Gentlemen’s dispute or bar room brawl?

Gentlemen’s dispute or bar room brawl?: Parts 1–7
The European Commission's aim in revising the BER is to ensure that consumers get a better deal, not just when they buy a new car but for the duration of the ownership of that vehicle; after-sales services currently account for about 40 percent of the total cost of owning a car over its lifetime. The new regulation has accordingly been designed to accomplish several objectives;

  • To promote intra-brand competition and the harmonisation of prices across the European Union (EU).
  • To give dealers more independence from vehicle manufacturers.
  • To liberalise the provision of after-sales services and the procurement of spare parts.

It covers passenger cars, light commercial vehicles, trucks, buses and coaches; and it applies in Norway, Iceland and Lichtenstein, as well as all the member states of the EU.


Contacts
Alexander Muller
Tel: +49 (511) 5357 5854

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