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Warranty restrictions: SMMT to work with OFT on New Car Code of Practice

The SMMT says it is continuing work with the OFT to clarify the details in a New Car Code of Practice to be launched next year.

Commenting on the Office of Fair Trading's report of 17 December calling on manufacturers and dealers to lift servicing restrictions from warranties, the Society of Motor Manufacturers and Traders (SMMT) commented, “The investigation found that although about 50% of car manufacturers' warranties allow servicing to be carried out by independent repairers, over two thirds of new car buyers assumed otherwise. Warranty policies that recommend the use of franchised repairers are not automatically invalidated if the service is correctly undertaken elsewhere.”

”SMMT fully welcomes the findings of the investigation and is keen to work with the OFT, to ensure its recommendations are met. Changes to Block Exemption will see an increasing number of authorised repairers appearing across the country, giving consumers a greater choice of service and repair sites. Combined with the New Car Code of Practice, the motor industry remains committed to offering consumers high value warranties for what is fundamentally a complex mechanical product needing regular specialist servicing and maintenance”, commented SMMT chief executive Christopher Macgowan.

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