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MAN-Saviem's new link

11th February 1972
Page 39
Page 39, 11th February 1972 — MAN-Saviem's new link
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Which of the following most accurately describes the problem?

• The research and development agreement between MAN and SAVIEM, the Renault truck-producing subsidiary, has been approved by the European Commission under Article 85 of the Rome Treaty.

The agreement provides for the two companies co-operating on the research and development, manufacture, assembly, sale and after-sale servicing of road vehicles of 7.5 tons gross and over. The two companies intend to standardize their models and eventually specialize in different fields, with SAVIEM concentrating on medium-weight lorries up to 12 tons gross weight and MAN on lorries of more than that weight. Reciprocal deliveries of components would allow each partner to assemble the complete range of vehicles produced by both companies and to sell them in the two countries through their established distribution networks. To countries other than France and Germany. SAVIEM will, as a general rule, be responsible for exporting lorries up to 12 tons and MAN for the larger lorries.

The EEC Commission has approved the agreement because, it says, specialization will lead to a reduction of unit production costs and customers will benefit. The Commission believes that the agreement does not restrict competition within the Common Market for any significant part of the products concerned.

In reaching this decision, the Commission says it has limited its judgment to the agreement registered by MAN and SAVIEM and has not taken a view on any other agreement in the commercial motor industry. Approval of the agreement is "subject to the Commission being able to study, in a continuing fashion, the competitive situation in this field in the Common Market and the way in which rationalization operates in practice". The Commission will in particular "watch out for the maintenance of a satisfactory choice for consumers and effective competition between the firms or groups selling commercial vehicles in the Common Market".


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