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Forum Brief: European car market

The European Commission has today voted to support Competition Commissioner Mario Monti's proposals to improve competition in the car market.

From October 2003, car dealers will be able to sell more than one brand of car.

Forum Response: Retail Motor Industry Federation

David Evans, chief executive of the Retail Motor Industry Federation, told ePolitix.com: "We are pleased that the block exemption regulation is to be renewed, acknowledging that the existing distribution system is the best means of distributing motor vehicles.

"We welcome the postponement of the location clause because of its potential for disruptive effect with no good purpose."Dealers, repairers and customers should feel confident about the future. The safeguards in place under the existing arrangements will, with some notable improvements, be incorporated in the new regulation.

"For example qualitative standards will remain as now. There will also be greater scope for dealers and repairers to give or add value."The buoyancy of the UK vehicle market points to the fact that consumers have confidence in our industry."

Forum Response: Consumers' Association

Sheila McKechnie, director of Consumers' Association, told ePolitix.com: "Today marks a great victory for consumers as they have won the car price battle. We have always said that allowing dealers to offer competitive deals is the only way to lower prices.

For years car manufacturers have cynically exploited British consumers by forcing them to pay high prices. Thousands of people joined Consumers' Association's 'Great British Car Rip-Off' campaign in a tidal wave of anger against greedy manufacturers.

"I'm sure that car manufacturers have other tricks up their sleeves and even today, despite everything, British consumers are still paying an average of £2000 more than cars sold in the rest of Europe. However, today is certainly a historic day when consumers finally beat the car manufacturers in the battle to lower overpriced cars."

Published: Wed, 17 Jul 2002 01:00:00 GMT+01