Associations fight EC proposals
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• Associations involved in the supply and use of vehicle spares have joined forces to oppose the EC green paper on industrial design 011;F5131-91). The Federation of Engine Remanufacturers has joined the Factoring Services Group, the Retail Motor Industry Federation and the Automotive Distribution Federation to urge their members to lobby MPs in an effort to block the legislation.
Under the proposals independent engineering finis would not be able to manufacture parts designed by the vehicle or engine manufacturers. According to the PER, the Insurers Association has made known its view that the lack of competition that would result would lead to an increase in vehicle parts prices.
But this is only half the problem facing the likes of the PER whose members may find their supply of parts drying up. -If the paper is allowed to become law it will give vehicle makers and their dealers a monopoly over the supply of
parts," says the FER's executive secretary, David Gardener.
However, it should be remembered that under an EC Block Exemption, vehicle manufacturers can restrict their parts supply to their dealers. This situation is not due for review until 1995.
British Law has inserted what is referred to as the -Must Fit" or "Must Match" clauses which are designed to avoid any monopoly
but ensures a quality threshold.
The FER is especially worried about being hit by both sets of legislation. "A parts supply monopoly will, in turn, restrict who can carry out the work." says Gardener.
n The 1993 PER exhibition, themed 'As Good As New'. takes place on 11 and 12 June at the Bournemouth International Centre.