Dealers will be able to set up within one another’s territory after the final amendment to the block exemption ‘location clause’ is made on October 1.

The European Commission hopes this will boost competition between showrooms selling the same brand of cars.

Society of Motor Manufacturers and Traders chief executive, Christopher Macgowan, says: “So far no detailed analysis of the impact of the new block exemption has been made, but we understand the Commission has launched its study.

“We hope this will reveal whether changes to the location clause changes will increase intra-brand competition or whether it will leave the UK with fewer but larger showrooms.”

A detailed follow up will be included in the October 7 issue of AM.

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