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Block Exemption renewed
Page 48
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P Changes to Block Exemption, which governs the franchised dealership system, are unlikely to have a masstve impact on truck dealers.
Block Exemption is being renewed but restrictions on dealer muiti-franchising are being relaxed, and sales and aftersales activities unbundled, says the Retail Motor Industry Federation (RM. Technical information will have to be provided by manufacturers and dealers to independent repairers and other franchised dealers on request, it adds.
"The European Commission will produce guidelines In the autumn, and manufacturers and dealers will have to analyse them and see what their implications are," says RMI National Truck Council chairman Keith Sayfritz. "So far as muittfranchising is concerned, however, I suspect most truck dealers will want to concentrate on the franchise they've got rather than take on an additional one at the same site."
With many truck dealers
being appointed as service and parts outlets only, to a degree sales and service have been unbundled already. Workshops wanting to become authorised repairers will have to invest heavily in training and tooling, says Sayfritz.
Sayfritz reckons that European legislation on the protection of small to medium-sized enterprises will have at least as much impact on truck dealers as the Block Exemption changes, That's because of the effect it will have on dealer agreements. If they're on fixed agreements—and there are very few of those around these days —then they will have to be for at least five years." he says. "If they're on rolling agreements, then they will have to be for a minimum of two years.
"However, if a manufacturer wishes to terminate such an agreement, then the reasons will have to be given In writing," he continues. And they will have to be sound reasons supported by concrete evidence, he adds.