The European Parliament delivered a blow to competition commissioner Mario Monti yesterday by limiting the scope of radical plans to overhaul the car market and cut prices, the Financial Times (FT) said.
The newspaper said the outcome was a victory for European carmakers and some national governments, including Germany, France and Italy, who have lobbied fiercely against the proposals.
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Monti does not have to obey Parliament’s decision and has previously said he will not greatly alter his proposals, the FT added.
MEPs agreed by a narrow margin to ask the European Commission to delay until 2005 a decision on whether to allow dealers to open showrooms in any European country without approval from vehicle manufacturers, the FT said.
Under Monti’s proposals, carmakers would not be able to restrict dealers to a specific geographic area – the so-called ‘location clause#; – from 2003, the newspaper added.
The FT said that Parliament did approve remaining Monti reforms including the right of dealers to sell more than one brand from the same showroom and to end dealers#; obligation to provide servicing and repairs.
“It’s a victory for the democratic process and anyone who has an interest in this matter,” Ivan Hodac, head of the European Automobile Manufacturers’ Association, told the Financial Times.
Hodac orchestrated the carmakers’ lobbying campaign, the newspaper added.
