Senior
representatives of the UK’s Retail Motor Industry Federation (RMI) are meeting
with high-ranking government and transport officials this week to explain how
proposed changes to the European Union’s block exemption rule [which permits exclusive
dealer-manufacturer/distributor franchise agreements] will affect the retail motor
industry.
RMI president John Bond-Smith, chief executive David Evans, and franchised
dealer chairman Sue Brownson met secretary of state for trade and industry Stephen
Byers on Tuesday and are today talking with Geoffrey Norris, the Prime Minister’s
special adviser on industry and transport.
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“When the current block exemption expires at the end of September 2002,
the motor industry will experience fundamental change,” Evans said.
“By meeting with government we can influence any decisions made with a
view to securing the most viable and appropriate system of motor vehicle sales
and service for franchised dealers and independent garages.
“The current block exemption regulation is unlikely to be renewed in its
present format. What we are seeking to achieve is a new regulation which retains
those elements of the current system that work for the retail motor industry,
its customers and vehicle manufacturers in an equitable and profitable way.”
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