Block Exemption Regulation 1400/2002 on the distribution and servicing of motor vehicles in the European Union entered into force on 15 October 2002. The regulation provided for a one-year transitional period during which pre-existing agreements were to be brought into line with new rules.
The new regulation introduced several important changes to the previous regulation and, in particular, broke the sales/service link. Accordingly, dealers are now allowed to choose between carrying out repairs themselves or subcontracting there to an authorised repairer within the dealer's network.
With regard to the issue of spare parts, the regulation introduced measures that will increase competition in repairs and maintenance. In particular, authorised and independent repairers must be allowed to source original spare parts, that is, spares that are of the same quality as those used in the manufacture of the car, directly from the manufacturer of the spare parts and also non-original — matching quality — spare parts supplied by others. In addition, authorised repairers cannot be prevented from re-selling original spare parts to independent repairers, repairing and maintaining cars of competing brands, or selling the business to any other authorised repairer of the same brand.
It is anticipated that the ability of both independent and authorised repairers to source spare parts from a variety of sources is likely to result in greater competition in the market for spare parts and enable the independent sector to compete more effectively with repairers that are linked to the manufacturer. While it is not possible to predict the impact which these developments will have on consumer prices, it is likely that, over time, they will benefit consumers both in terms of price and choice.
