The new policy issues have emerged following complaints from the BMW and General Motors dealer networks about the strict contractual standards requested by their manufacturers.
Investigations into the contracts the brands hold with their retail networks have forced Brussels to issue a vital clarification on the block exemption regulation 1400/2002. The main issues the Commission took up with BMW and GM were based around the issue of multi-
franchising.
The Commission said the clarification was an attempt to remove “unjustified obstacles” to multi-brand distribution and servicing, and “unnecessary restrictions” on garages to become members of the authorised networks.
“The regulation requires that authorised dealers of one brand may not be unduly restricted in exercising their choice to sell cars of another brand. They should be able to do so,” the Commission stated.
Other areas that came under scrutiny were the setting of sales targets, which the Commission ruled must not hamper a dealer's ability to sell a rival brand.
It also stated that dealerships and their facilities must be non-exclusive to a manufacturer other than the part of the showroom dedicated to the brand.
Quantitative criteria, such as minimum turnover targets, were removed from authorised repairer contracts.