Don’t underestimate Block Exemption, IAAF says in stark warning to UK aftermarket

Loss of legislation would increase VM monopoly and threaten independent aftermarket's very existence, IAAF claims

Don’t underestimate Block Exemption, IAAF says in stark warning to UK aftermarket
Image: Bigstock.

The UK’s automotive aftermarket has been warned not to underestimate the importance of the Block Exemption Regulation after the European Commission this month launched a public consultation into its future.

The current regulation, which ensures independent garages can service any vehicle without affecting its warranty, is set to expire on May 31, 2023.

Lawrence Bleasdale, board and council member at the Independent Automotive Aftermarket Federation (IAAF) has said Motor Vehicle Block Exemption Regulation (Commission Regulation (EU) No 461/2010) “needs to be maintained and modernised”.

In a statement, he added: “It is the central piece of legislation ensuring a certain level playing field for competition in the automotive aftermarket between independent operators and vehicle manufacturers and their authorised networks.

“Put us back decades”

“Abandoning the Motor Vehicle Block Exemption Regulation and its principles in 2023 would put us back decades and increase the vehicle manufacturers monopoly of the aftermarket, threatening the very existence of the independent aftermarket.

“These regulations, fought for over many years, have provided independent garages protection and the ability to successfully access newer vehicles, bringing about new skills and standards.

“If they were to disappear, there is no quick workaround.

“European Motor Vehicle Block Exemptions are the envy of many automotive industries around the world, who see first-hand the detriment to consumer choice through a lack of regulation and safeguards for the IAM.”

Related: Consultation launched into future of Block Exemption

Announcing the launch of the consultation earlier this month, the European Commission said: “The objective of this consultation is to collect in-depth and high quality facts and evidence on the key competition issues arising in vertical relationships on the motor vehicle distribution and after-sales markets from the perspective of stakeholders.”

The regulation mandates the Commission to draw up an evaluation report on its operation by 31 May 2021.

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  • This topic has 2 replies, 2 voices, and was last updated 1 month ago by pasquale bruno.
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  • #202567 Reply

    The UK’s automotive aftermarket has been warned not to underestimate the importance of the Block Exemption Regulation after the European Commission th
    [See the full post at: Don’t underestimate Block Exemption, IAAF says in stark warning to UK aftermarket]

    #202572 Reply
    Meat-Head
    Participant

    Its wrong when its “your car/van” money has changed hands for it.

    You dont have to buy macdonalds bog roll before buying burger.

    If you buy a bicycle to find you need special tool to remove the wheels & nearest
    Agent 10 hour flight away, you would soon be kicking off

    #202675 Reply
    pasquale bruno
    Guest

    We all realise what the effect will be on the all independant garages after 2023 if the commission is unable to get a new deal. Not only will it put the independent sector back decades, we would also see many close, with thousands of job losses, The effect would be felt across the board, waiting time for appointments at main dealers would be extended, (could the dealerships cope with the extra work?), customers would have to book their MOTs months in advance due to a shortage of ‘Test Centres’, The industry would be in turmoil.

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