Jean-Martin Folz, chairman of PSA Peugeot-Citroën, yesterday warned that changes to car distribution in Europe threaten to undermine the link of responsibility between the manufacturer, dealer and customer.
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He also said that the link between sales and after-sales service is not a ‘European oddity’ and has ‘worked well in terms of competition and service to the customer.’
He made his comments at the opening ceremony of the Brussels International Motor Show.
Mr Folz is current chair of the European carmakers’ trade association, ACEA, and is fighting a rearguard action to avoid radical reform of car distribution rules in the EU area which are currently being reviewed by the European Commission.
He said: “Based on the available information, we are concerned by the approach envisaged today by the Commission services concerned.
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By GlobalData“It could reveal itself in contradiction with the objectives sought, and could disrupt a system that works well, with negative consequences for everybody and for the consumer in the first place.”
He concluded: “European manufacturers remain confident in the ability of the European institutions to fine-tune the best balance among all the parameters of this complex matter, and are always open to constructive dialogue with all parties concerned.”
Time is running out though.
Commission proposals on distribution are due to be published at the end of January and are expected to result in the end of the ‘Block Exemption’ to competition rules that allows carmakers to control European distribution through a network of captive dealers. But some elements of the existing system could be retained.
