B4-0635/95/fin.

Resolution on the Commission regulation on the application of Article 85(3) to certain categories of motor vehicle distribution and servicing agreements

The European Parliament,

-having regard to Commission Regulation (EEC) No 123/85 of 12 December 1984 on the application of Article 85(3) of the Treaty to certain categories of motor vehicle distribution and servicing agreements,

-having regard to the Commission's proposals for a renewal of this Regulation,

-having regard to the answer from the Commission to oral question no.

B4-0340/95,

A.whereas Commission Regulation (EEC) No 123/85 of 12 December 1984 and its proposed replacement provide for a block exemption from the common rules on competition otherwise set down in articles 85 and 86 of the EC Treaty for certain motor vehicle distribution and servicing agreements,

B.whereas in practice this means that agreements for the supply of motor cars from the manufacturer to the dealer, and on to the end-user, and also for the supply of spare parts, are not covered by the rules on free competition which govern other aspects of commercial life within the Union,

C.whereas the European Parliament is not formally consulted on the renewal of Commission Regulation (EEC) No. 123/85 but in its resolution of 24 May 1984 on the proposal for a block exemption on motor-vehicle distribution and servicing agreements approved the proposal for a block exemption, and therefore feels obliged to make its opinion known also on the renewal of the Regulation,

D.whereas its Committee on Economic and Monetary Affairs and Industrial Policy, as part of its examination of this question, held a hearing at which various interested parties were invited to make their opinions known,

E.whereas it is essential for all participants in the car industry, for reasons of forecasting and planning, that there be clarity about the future of the car distribution system,

1.Considers the manufacture and distribution of motor cars to be of the utmost importance for the European economy, both in terms of creating employment and increasing society's mobility and raising standards of living;

2.Believes vigorous competition between providers of consumer durables such as cars to be in the best interests of the consumer; considers the strict enforcement of Articles 85 and 86 of the EC Treaty to be the best guarantee of free and fair competition;

3.Points out that some of the reasons for the existence of the current distribution system date back more than fifty years and have now largely disappeared (buyers are now a lot better informed about the car market; cars are much more reliable) without the system itself having changed;

4.Considers that the present distribution system has allowed for competition in car retailing, but that some improvements can be made to increase competition between makes and between dealers, provided consumer interests are safeguarded;

5.Believes that tax differences and exchange rate fluctuations contribute to market distortions; believes that the current distribution system encourages the cross-subsidization by certain national markets of others where car prices, because of particular tax systems or exchange rate circumstances, are held artificially low; notes in this connection that large differences prevail in the pre-tax prices of identical models even between countries where exchange-rate movements have not been extreme;

6.Considers the present system also to be unfair on the individual car buyer who subsidizes, by paying a higher price, large "fleet" buyers who negotiate special deals direct with the manufacturer;

7.Endorses the Commission's proposed changes to the block exemption Regulation and its extension for a further ten years, but subject to the inclusion of a provision that the Commission will conduct a review after the first five years;

8.Calls on the Commission to allow dealers to sell vehicles of competing makes provided this is done at separate premises, under separate management and under a separate legal entity; calls for dealers to be able to sell different makes under one roof if the makes belong to companies of the same industrial group;

9.Calls on the Commission to ensure that the market for the supply of original spare parts for motor cars, currently subject to the same exemption from the competition rules, is liberalized in tandem with the market for cars themselves;

10.Instructs its President to forward this resolution to the Commission and the Council.