Dealers fight to retain Block Exemption
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Franchised truck dealers are still battling against the passible abolition of Block Exemption says Keith Sayfritz, a Daf dealer and chairman of the Retail Motor Industry Federation National Truck Council, The exemption is due to end in September 2002, and if the European Commission does net renew it, manufacturers will no longer be able to restrict the supply of unregistered vehicles to franchised dealers.
In effect this would mean the end of the franchise system, says Sayfritzand he believes that would be bad news for operators: "As things stand, dealers are prepared to invest in the backup facilities that operators need, including technician training, expensive workshop equipment and provid
ing a 24-hour recovery service. "Operators also rely on them to provide advice on the correct vehicle for them to do the job they've got to do." Their future willingness to make this investment could be jeopardised if Block Exemption is abandoned in favour of a free-for-all, he warns.
"Trucks are assets rather than consumable durables, and often tailormade in several stages," says RMI chief executive, David Evans. "They are technically highly complex, with their own set of requirements and specifications, and sales staff must know their subject Inside-out, There is an intimate link between the product and its servicing, with highly skilled technicians required and whole-life costing to take into consideration." Sayfritz and Alistair Manson, director of the HMI's truck division, both dismiss any suggestion that trucks and vans are overpriced in the UK, and that Block Exemption is a contributory factor. This is despite the activities of independent importers who claim to offer savings of up to £10,000 on top-of-the-range tractors.
Sean Clarke, MD of imparter MI Commercials of Hunslet, claims to have been deliberately obstructed by manufacturers in his attempts to source trucks from Europe. He is bringing the matter to the attention of his MEP.
"Operators have a right to deal with Importers, of course, but there is no evidence that this is what the overwhelming majority of them want to do," says Sayfritz. "Cross-border sales and price differentials are net an issue as the UK market, through progressive restructuring, is the most sophisticated in Europe," says Manson. "We believe the relationship between the customer, dealer, and manufacturer is such that it is unlikely that alternative forms of distribution would be able to offer a similar degree of customer service."
The abolition of Block Exemption would affect some manufacturers less than others. Those that own a substantial number of their dealerships— including MAN, Volvo, and Renault VI— would be less affected because Block Exemption addresses the relationship between the truck maker and its franchisees; riot the relationship it has with its own depots.