In October 2002 European Union legislation affecting the motor trade came into
force. Its full title is 'Block Exemption Regulations 1400/2002' (in short
'BER').
This legislation changes the way cars may be serviced and repaired and gives motorists
a lot more freedom in their decision as to who should look after their cars.
Before BER, it was very difficult to have carBefore BER, it was very difficult to have cars which were still
covered by the manufacturer's warranty, serviced anywhere except a franchised dealer.
Motorists can now use any garage of their choice to service and repair their cars
without invalidating the manufacturer's warranty (subject to certain conditions).
The latest revision of the
BER introduces frour 'freedoms' that
are aimed at safeguarding free competition in the entire market for vehicle spare
parts, service and repair. They affect the way in which the parts distributor
can act in the market.
1. Freedom for a franchised Dealer and/or an 'Authorised
Repairer' to purchase up to 70% of their purchases of 'original spare parts' and
'matching quality' spare parts from independent market operators of their choice.
This means... Parts Factors can supply parts of appropriate quality to Dealers and
Authorised Repairers without the Vehicle Manufacturer/ Assembler using Dealer/Repairer
contracts or other means to prevent them.
2. The freedom for Parts Manufacturers/Suppliers ro sell their original eq2. The freedom for Parts Manufacturers/Suppliers to sell their original
equipment
(OE) or independent repairers. This means... parts manufacturers
can no longer be forced by their
OE contract to limit supply of
certain parts to the Vehicle Manufacturer/Assembler. The end of the 'tied
parts' arrangements.
3. The freedom for Parts Manufacturers/Suppliers to brand
their
OE parts with their own logo. This means... motorists
and garages will be able to identify the Manufacturer of a component when it is
removed from a vehicle and source its replacement from any distributor of the part.
They will no longer feel that they 'have' to go to a Dealer for a part.
4. An extension to the obligation on vehicle assemblers to
pass on technical information to operators in the independent aftermarket.
This information includes, for instance:
- Access to electronic systems for controlling the vehicle's operation
- Right of 're-programming' information to correct maladjustment.
This means... anyone with a legitimate need for technical information:
- Parts Manufacturers
- Re-Manufacturers
- Distributors
- Factors
- Garages
- Technical Publishers
- Security Companies will have right of access to it
in a usable form and a reasonable cost (the same cost as charged to anyone within
the vehicle Assembler's network). The new
BER also introduces
certain definitions of importance to the independent aftermarket. There is
a new definition of 'original spare parts' and 'matching quality parts' that is
based on the quality of the component. This definition can be used:
Where parts used are of the same quality as the component
used for the assembly of a motor vehicle.
- Where parts used are of the same specifications and
production standards as those used by the Vehicle Assemblers.
- Where Parts Manufacturers/Suppliers are able to issue
a quality self-certification. The new definition identifies 'original spare
parts' in the following ways:
- Parts produced directly by the
Vehicle Assembler .
- Components produced by the
OE Supplier and branded with the logo(s) of the Vehicle Manufacturer
and the Parts Manufacturer/Supplier.
- Technically identical parts produced
by the parts supplier, branded with his own logo and sold to the independent aftermarket.
Spare parts of 'matching quality' identifies parts in the following way:
- 'Spare parts made
by any undertaking which can certify at any moment that the parts in question match
the quality of the components which are or were used for the assembly of the motor
vehicles in question'. An interesting point is that if the Vehicle Manufacturer
himself offers spare parts of differing quality (e.g. an 'economy line') he cannot
prohibit its contractual partners (i.e. Dealers and Authorised Repairers) from buying
spare parts of the same quality from the independent market. The
BER
also covers service and maintenance during the warranty period and prohibits vehicle
maintenance during the warranty period and prohibits Vehicle Manufacturer's warranties
from including conditions requiring that:
-
All normal maintenance be provided within the vehicle makers network.
- All parts used must be the Vehicle Assembler's 'original spare parts'. The
European Commission declared that such clauses in a warranty document would represent
'an unjustified restriction for the consumer! The Automotive Distribution
Federation
(ADF) have written confirmation from
OFT
that Independent repairers can carry out normal maintenance and repair services
during a vehicle's warranty period without invalidating the Vehicle Assembler's
warranty conditions with two provisos...
- Provided
that the service is in accordance with the Vehicle Assembler's servicing schedules
and is recorded as such and...
- Provided
that the parts used are of 'appropriate quality' and are recorded as such. Don't
forget the new
BER helps parts distributors, independent garage
and motorists. If you need more information on this topic, or if you have any evidence
of Vehicle Assemblers or their Dealers infringing these new rules, then contact
the
ADF office:
68 Coleshill Road,
Hodge Hill,
Birmingham,
B36 8AB
Tel: 0121 784 3535
www.adf.org.uk