NFDA says Motor Vehicle Agreements Block Exemption Order leaves ‘too much unsaid’

Chief executive says she has made specific recommendations to be incorporated in the MVBEO

Sue Robinson NFDA
Sue Robinson © NFDA

The National Franchised Dealers Association (NFDA) has responded to the Department for Business and Trade’s (DBT’s) consultation on the draft Motor Vehicle Agreements Block Exemption Order 2023 (MVBEO).

The NFDA says it is concerned that the decision to replace the retained MVBER with an aftermarket instrument broadly in line with the status quo may not go far enough to preserve current healthy levels of competition in relevant UK automotive markets.

It says it although it doesn’t necessarily disagree with the content of much of the MVBEO insofar as it applies to matters dealt with by the MVBEO, it may ‘leave too much unsaid.’

It’s important that these issues are considered given their potential indirect effects, it says.

NFDA has reminded the DBT and the Competition & Markets Authority (CMA) of the pre-2017 market landscape – against which much evidence was collected to inform the EU’s present MVBER policy position. In the NFDA’s view, there is a disconnect between current and imminent market realities and the historic evidence base upon which new regulation has been proposed.

Sue Robinson, NFDA chief executive, said: “In our latest submission, the NFDA has commented on a range of issues regarding competition in the automotive sector. We have highlighted and made reference to market trends, outlined the possible implications of future sales models and made specific recommendations to be incorporated in the MVBEO and/or guidelines.

“Going forward, the NFDA will continue to actively engage with the CMA, DBT and other stakeholders over the MVBEO and the best ways of preserving healthy levels of competition in relevant UK automotive retail markets.”

Earlier this week, the Independent Garage Association (IGA) raised concerns about the MVBEO, with chief executive Stuart James saying customers should be given clear information and must not be financially disadvantaged by the new regulation.

He said: “Of particular concern is the lack of requirement for in-vehicle messaging to inform customers that they have an alternative solution for servicing via an independent operator.

“We would also like to see a requirement for authorised repairers to make it clear to consumers that they can choose who services, maintains and repairs their vehicle without invalidating its warranty.”

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