New Brussels rules are likely to break car manufacturers' stranglehold on dealerships, allow continental dealers to market their cars in Britain and enable consumers to get cheaper after-sales and repair service from independent workshops, it emerged yesterday.
Existing rules on car distribution, which expire in September, have been in place for 15 years and are cited as one of the reasons why British consumers pay up to 60% more for their cars than their continental counterparts.
Although Brussels is not due to make its new rules public until January 30 details have been steadily leaking out. At the moment manufacturers can insist that dealers sell only one brand but that is likely to change, paving the way for supermarket-style car dealerships and giving a boost to car sales over the internet.
It is also thought that manufacturers will be forced to share sensitive technical information with traditionally cheaper independent car service centres, which they have repeatedly refused to do. Under the draft EU Car Plan, manufacturers would also have to pass on technical information to independent repairers allowing them to carry out all work on cars.
The move was welcomed by consumer groups. Richard Freeman, policy spokesman for the AA, said: "Dealers will now be able to sell any number of different brands of car rather than just one. This should be good news for the consumer."
The block exemption rule means car manufacturers in Europe do not have to adhere to competition laws meaning they can restrict where their cars are sold. Manufacturers cannot stop their continental dealers selling cheap cars to individuals via the internet or in person but they can stop bulk imports into Britain. The Car Plan would put an end to this.
Mr Freeman said: "Our only concern is the situation with warranties. We need to insure that consumers will still get good quality control because that was one good thing about block exemption."
A European commission report last July showed prices were highest in Britain for 52 of the 81 models surveyed, which included some cars assembled in the UK.
