Car manufacturers and the iPhone generation

599 More

Earning the right to be successful

581 More

Knowledge is power

676 More

Selling cars – it’s all about timing

959 More

Truemag

  • Home
  • About
  • Advertise
  • Archives
  • Contact
  • Subscribe

New EU legislation means a shake-up for car servicing

From today new legistration means that car makers will have to provide independent repair garages with technical data or spare parts. In a wider context this means that the arrangements on spare parts and warranty repairs that bind franchised dealers and car makers will be no longer be lawful.

According to the EU, repair and maintenance accounts for 40% of the expense of running a vehicle. Joaquín Almunia, EU Competition Commissioner, stated the new antitrust regulations provide consumers with very real benefits. “[It will] bring down the cost of repairs and maintenance that represent an excessive share of the total cost of a car over its lifetime,” he said.

The Commission hopes to open up the repair market to far better competition and prevent car makers from stipulating in warranties that the work need to be carried out in its dealer network.

“Car manufacturers will no longer be able to make the warranty conditional on having the oil changed or other car services only in authorised garages,” the Commission said. However, service agreements struck with individual dealers will still be valid where specific work is provided free under the warranty, the Commission said.

The Commission announced it was targeting 3 methods enforced by manufacturers: constraints on the sale of parts by authorised dealers to independents; the ability of independent manufacturers to provide parts directly to repair garages; and spare-part manufacturers’ ability to place their trademark on the parts.

The motor industry has previously identified that more money is made repairing and servicing old vehicles and selling parts than in the actual selling of new cars. In uncertain times, dealers could see new car sales as a loss leader for the more money-making business of annual servicing and repairs.

The repair business is so lucrative that car makers are starting to venture into the market directly with their own chains of repair garages. In Germany for example, VW has launched a chain directed at the low-cost end of the repair market.

Jun 1, 2010MTI
  • Some dealers just can’t shake off the bad old days
  • The cost of car servicing on the rise
  • It’s time to stamp out overpriced car servicing
  • Car Servicing
  • Look out for offers as dealers chase servicing profits
  • Can non-main dealer servicing be a false economy?
  • World Cup means bargains in JuneKnowledge is power
    MTI
    12 years ago Consumer, Manufacturers, News103
    Most viewed
    Top 100 UK Dealer Groups
    39,484 views
    The car sales process and the “9 point plan”
    11,505 views
    webuyanycar review – They will buy any car but beware of the asterisk
    6,014 views
    Most commented
    Car sales and the power of silence…
    25 Comments
    Car dealers still not prepared to play the “we buy any car” game
    23 Comments
    A Traders Tale – Part Four
    22 Comments
    Win a pre-loaded Ipod Shuffle!
    19 Comments
    Bargain of the Week – StreetKa 1.6i Luxury
    14 Comments
    Bridal Hair Berkshire
    Fox Body to 2018 Mustang Parts
    and Accessories
    About MTI

    Motor Trade Insider
    is written by people working actively in the motor trade for people on the inside and people on the outside.

    Our aims
    Build a bridge between consumers and the trade, create Interesting and informative content, break down barriers and create better understanding, expose bad practices and rip-offs and promote outstanding products and service.
    Have something to say?
    We are always looking for experienced writers who can write good original quality posts on motor-trade-insider.com. Please contact us if you would like us to consider you. Make sure you give us details of your own blog or a link to some articles you have written.
    2017 © Motor Trade Insider
    Truemag theme by StrictThemes