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Europe laws on car manufacturer and car dealer practices still a possibility if code of conduct fails

The European Commission could yet propose new laws regulating the relationships between carmakers and franchised dealers.

It comes after CECRA, the European Council for Motor Trades and Repairs, met with the commission to lobby for faster progress.

CECRA said both the outgoing head of the commission’s and automotive industry unit Philippe Jean and his replacement Joanna Szychowska repeated that the commission wants a solution for outstanding issues in vertical agreements between manufacturers and dealers, and this before the end of the year.

Following the end of the Motor Vehicle Block Exemption Regulation, CECRA has been working on a voluntary code of conduct for manufacturers to ensure fair trading practices with motor retailers.

However ACEA, the European car manufacturers body, has previously said it would not sign up to a code as it regarded the issue as something between individual manufacturer and dealers at a contract level.

CECRA said in case the discussions between the representatives of the manufacturers and dealers would not lead to an acceptable solution for both parties, the Commission said that its position has not changed and that, according to the final report of CARS 2020, the Commission “reserves the right to initiate a process, with the aim of adopting a legislative proposal regulating relations between different players of the automotive sector”.

CECRA’s board members Jaap Timmer, chairman of CECRA's European Car Dealers division and Gustav Oberwallner, and  CECRA’s director general Bernard Lycke emphasized the need to achieve more progress, as in the last three years, a lot of talking has taken place without many tangible results.

More: EC threatens to use legislation to force manufacturers to work to code of conduct

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