B - Block exemption

05 June 2006

Block exemption - This describes certain exemptions from European competition regulations enjoyed by the motor industry. These regulations were revised in October 2002, giving manufacturers a year in which to change a number of restrictive practices.

For example: dealers will find it easier to sell more than one brand of car; importers and internet dealers will be allowed to buy up to 10% of a dealer's sales volume; and foreign dealers can advertise the price of right-hand-drive cars in the UK without fear of penalties from the manufacturer.

Franchised dealers will no longer have to offer sales and servicing if they prefer to specialise in one or the other, and independent servicing outlets will have greater access to technical information and diagnostic equipment, increasing competition and reducing costs.

From October 2005, dealers can no longer have their own protective patch. Rivals can now open new outlets and increase competition.


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