[Cairns to cut cost of vehicles in the UK
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• by Peter Lawton The European Commission still believes that UK buyers are paying too much for their cars, and as a result Is considering changing the way vehicles are distributed.
Manufacturers claim the cost of cars has come down since the UK government's Competition Commission took action, but a report from the EU says differences with the Continent are still high.
Indications are that next September the EU will scrap the distribution system which, consumers groups say, has allowed manufacturers to dictate prices and terms by exempting them from various EU competition laws. Although
trucks and vans are exempted from the same laws, the EU and the UK government have until now glossed over the effect It could have on commercial vehicles In this country.
Now spokesmen from ACEA, the Europe-wide equivalent of the UK's Society of Motor Manufacturers and Traders, are using the CV market as a defence for the system, claiming It Is the only way to ensure proper standards of servicing.
Fact-finding meetings have also begun between the SMMT and the DTI, which made no mention of the CV market in its 730-page report which prompted demands for price cuts in the car market.
The laws surrounding the present system are predictably complex, but in essence they exempt vehicle manufacturers from certain competition laws governing trade in Europe. An EU "blacklist" lays down other rules they must follow to keep the system beneficial for the consumer.
Volkswagen and Vauxhall (trading as Opel on the Continent) have already been fined a total of £84m for breaking rules on the blacklist.
Few insiders think the system is working, Including EU Competition Commissioner Mario Monti. But manufacturers continue to lobby for the retention of the system, saying it offers the consumer the best value, service and safety.