PRESS RELEASE European Council for Motor Trades and Repairs Conseil européen du Commerce et de la Réparation Automobiles Europäischer Verband des Kraftfahrzeuggewerbes Brussels – 15 May 2014 Commission’s draft CARS 2020 report envisages legal framework for dealer-manufacturer relations Today, members of the CARS 2020 Sherpa Group discussed their final report outlining the key strategic orientations for the European automotive industry in the future. Throughout the CARS 2020 process, CECRA has tried to reach an agreement with vehicle manufacturers on a voluntary Code of Conduct covering vertical relations in the automotive sector. This approach was supported by the European Parliament, which adopted a report at the end of last year stressing “the need for the Member States to ensure greater transparency and compliance with the principles of good faith in commercial relations between manufacturers and dealers”. The Parliament’s report, drafted by MEP Franck Proust, made it clear that better relations between dealers and manufacturers could be achieved through “the introduction of a code of conduct” which “should at least include clauses relating to dealer relocation, multi-branding and compensation entitlement for unjustified termination of the contract by the manufacturer in line with the supplementary guidelines contained in Commission Notice 2010/C 138/05”. However, despite numerous discussions and the strong support of various stakeholders, this ‘soft-law’ approach has not been successful. Therefore, the final report discussed today by the CARS 2020 Sherpa Group highlights the necessity of finding a legally-binding solution in case no consensus is reached on a voluntary Code of Conduct. The current wording of the report stipulates that, if no voluntary solution is found, “the Commission intends to initiate a legislative procedure aimed at the development of a legal framework, which will regulate relations between different actors of the automotive sector”. CECRA, together with its European Car Dealers (ECD) division, welcomes this clear statement from the Commission. For more information, please contact Bernard Lycke, General Director T:+32 2 771 96 56 @: [email protected] CECRA, established in 1983, is the European federation bringing together 25 national professional associations, which represent the interests of motor trade and repair businesses, and 12 European Dealer Councils. CECRA represents more than 380,000 automotive enterprises in the EU, including approximately 120,000 authorised dealers and repairers and 260,000 independent repairers. Together they employ around 2.8 million people. 1 CECRA - AISBL Boulevard de la Woluwe 42, bte 6, 1200 Brussels - Belgium Tel: (+32) 2 771.96.56 - Fax: (+32) 2 772.65.67 - E-mail : [email protected] - http://www.CECRA.eu
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