Competition rule needs to be changed-EU car repairers
2022.12.16 07:34
Competition rule needs to be changed-EU car repairers
Budrigannews.com – The auto repair and spare parts industry in Europe is calling for the EU’s competition rules to be changed because, according to them, they allow franchise dealers and carmakers to disadvantage independent businesses.
When the Motor Vehicle Block Exemption Regulation (MVBER) of 2010 comes to an end in 2023, the European Commission has suggested that it be extended for an additional five years along with some additional guidelines.
Members of the European Union are scheduled to discuss the rule’s future in January. Since the EU is already working on laws governing access to in-vehicle data, the rule has become yet another front in the growing struggle for control and access to car data.
According to proponents of a rewrite, automakers restrict access to vehicle data, which can increase repair costs and dictate how and which parts should be used.
According to Alex Gelbcke, chief executive officer of Fource, “things have changed dramatically, the rules of the game are no longer the same.”
Gelbcke, whose company serves France and the Benelux countries, added, “We will all suffer if the regulation does not deserve an in-depth refresh.” The parent company of Fource, LKQ (NASDAQ:) In Europe, the company generates approximately 6.4 billion dollars in annual revenue.
Also calling for changes was CEO Sylvia Gotzen of the International Federation of Automotive Aftermarket Distributors, which is part of a larger alliance of repair shops and parts manufacturers in Europe and employs 3.5 million people.
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She went on to say that “car manufacturers sit on that data like a chicken on eggs” and that this makes them “masters and gate-keepers for the entire repair process.”
The Commission’s evaluation showed that “there had been no material developments in the last decade that would justify a major revision of the regime,” according to a spokesperson.
“However, the evaluation revealed that an update was required to reflect the significance that access to vehicle-generated data is likely to have as a factor of competition,” the statement reads.
A decision needs to be made by the Commission before May 31, 2023, when the current MVBER comes to an end.
The European Automobile Manufacturers Association (ACEA) stated that it endorses the approach taken by the commission.
A spokesperson stated, “If the Commission has decided not to change the rules, we assume that the independent aftermarket’s complaints were not sufficiently substantiated.”
Automakers have also come under fire for using “captive parts,” or software coding that can only be accessed by franchise dealers, according to critics.
Neil Pattemore, specialized overseer of England’s Free Car Post-retail League (IAAF) said to supplant headlights on some fresher models requires a code, or brake cushions have QR codes, however just marked sellers approach them.
Changes to Britain’s MVBER have been proposed by the Competition & Markets Authority (CMA) to address some complaints from the aftermarket. These changes include making it clearer in vehicle warranties that consumers can use independent repairers without losing benefits.
Major automobile manufacturers in Europe, such as Stellantis and Renault (EPA:) did not respond to inquiries for clarification.
ETR: Volkswagen said that the current regulation “is still fit for purpose,” but it also backed the Commission’s plan to create supplementary guidelines that would give independent operators access to “vehicle-generated data to the extent that such data is essential for repair and maintenance.”
