The report is based on EU figures from last November that showed, for example, that a Rover 214 was 51.9% more expensive in the UK than in France, that a Ford Focus cost 27.8% more in the UK than in Portugal, and that a Volkswagen Passat was 24% dearer in the UK than in the Netherlands. The CA blames much of the pricing discrepancy on the Block Exemption, arguing that it prolongs manufacturers' dominance in the market.
The association claims motor cars should not justify the exemption on the need to control the market to guarantee safe aftersales services, because most drivers only stay within the franchised network while their car is in warranty. In submissions to the Office of Fair Trading and Competition Commission, the CA has called for an end to the exemption, saying it gives manufacturers too much control over their dealers.
Login to comment
Comments
No comments have been made yet.