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BER 1400/2002 economical crisis CECRAs
statement NBF Conference Oslo, the 24th of March
2009 Charles de Marcilly EU affairs Director
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CECRAs representativeness (1)
27 national trade associations in 23 EU and EFTA
countries, representing the 350,000 automotive
dealers, authorized and independent repairers
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CECRAs representativeness (2)
14 European Dealer Councils representing the
interests of authorized dealers and repairers of
a particular brand
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CECRAs representativeness (3)

• In figures
• 350,000 enterprises
• of which around 120,000 are authorized dealers
  and repairers
• and 260,000 independent repairers
• employ around 2.8 million people

In addition about 110,000 fuel businesses
employing 440,000 people and some 12,000
motorcycle businesses employing 81,000 people
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The talk of the town...
2009 uncertainty...
Economic Legal
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CECRA, Oslo, 24/03/09
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Market outlook 2009
Passenger cars - Registrations 7.8 in
2008 (14.7m) - Sharpest decline since 1993
- 4th quarter 19 - 2009 forecast at least
15 - January 09 registrations -30 to
40 in ES, IT, UK Commercial vehicles -
Registrations 9 in 2008 (2.5 m) - 4th
quarter 24 - 2009 forecast at least 30
Similar developments around the world -
Global car sales to fall to 50-55 m from 63 m in
2008 and 69 m in 2007

• Number of repairers should remain stable but
  what about dealers?

Figures sources ACEA
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Figures/statistics illustration
Source CECRA 2009
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Need of a tailor made approach
CECRAs leitmotiv If vehicles can no longer be
adequately sold and repaired, why should they be
manufactured?
Commissions observation on the crisis Due to
its (automotive branch) close links to other
sectors and the wide spread of supply industry
and vehicle trade, the negative economic effects
reaches out to millions of employees in all
Member States
Interlinked but with specific needs
Vehicles sales
Repair maintenance
Parts
Commission IP/09/318
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Trends

• Economic crisis, general comments...
• From dealers side particular attention should be
  given to...
• All the measures modify deeply the market
  structure
• Development of the sales of small cars
• Increase of used car stocks
• Reducing of margins on new cars
• Credit to finance vehicle stock
• Delay of the impact on Trucks and commercial
  vehicles (long term investment)

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Governement to rescue scrapping schemes
Source global insight
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Challenges (1)

• Short term proposals
• Urgent decision to prolong BER 1400/2002
• Extension of incentives schemes to recent old
  cars trucks
• Specific credit line to promote stock management
  could be assumed by a state guarantee
• Extension of the lay off employment supported
  by states to aftermarket
• Fiscal exoneration for professional taxation on
  investment
• Road taxes
• Interest deduction on consumer credits

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Challenges (2)

• Long term cycle, new priorities
• Fuel efficiency
• Increasing safety and environmental standards
• Balanced international trade
• Remodelling of the financial and credit system
• Which car in 2020? Hybrid, electric, bio
  fuels...?
• Challenge of maintenance parts
• Anticipate the aims of anticompetitive behaviour
  due to new market organisation
• Innovation in distribution formats and return to
  customer proximity
• All those elements should be under control, so as
  to guarantee the essence of European economic
  competitiveness

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BER 1400/2002
Expiry of MVBER 1400/2002
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Block exemption in practise (1)
Block Exemption Regulations Safe harbours
Exemptions from the direct application of the
General Competition law rules of the EC Treaty
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Block exemption in practise (2)
2 types of Block Exemption Regulations
Generic
Sector-specific
One-size-fits-all for all sectors
Tailored solution for a specific sector
Motor Vehicle BER (MV-BER 1400/2002)
Vertical Restraints BER (VR-BER 2790/1999)
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BER explanation

• BER 1400/2002 Charter of the sector

• From dealers side (among others)
• Possibility of opening a secondary outlet
• Multi-branding is permitted
• Define contractual clauses
• Arbitration rules
• Transfer of businesses
• Contractual duration
• Justifying the termination of dealer and
  repairer agreements

• For all operators competition increase for the
  benefits of the consumer

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The Commissions approach
MVBER has helped to protect competition
Solution Simplify!
but certain sector-specific measures have not
been effective,
Other measures may be duplicated elsewhere
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BER 1400/2002

• Over the past years the Block Exemption
  Regulation 1400/2002
• Has led to better competition in the internal
  market,
• Provided legal certainty and safety for the
  350,000 involved SMEs, in particular with regard
  to the high investments that they have to
  undertake (year by year it represents an average
  of 500.000 to 1.000.000 ). Legal certainty is
  absolutely essential during the current period of
  economic and financial crisis.
• Is THE most comprehensive guide covering in
  detail all the requests concerning the sector
  (Guidelines, QA, Single answers to stakeholders
  etc.). Each structural modification of the
  existing rules would present new interpretations
  and would therefore bring extreme uncertainty and
  danger which sounds irresponsible especially
  knowing that the sector is facing a very
  difficult period.
• Prolonged the Commission's twenty five years
  tradition of successful policy in regulating the
  sector. There is no convincing reason to abolish
  it.

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The scenarios for the future
Sector-specific instrument
OR
Generic instrument
Vertical Restraints BER (VR-BER)
Motor Vehicle BER (MV-BER)

• Prolongation for few years of current MVBER
  1400/2002

• VR-BER alone

2. Modernised MVBER with/without Guidelines

• VRBER with Guidelines code of conduct

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Lobbying process
NationalEU level
EU Commission
EU Parliament
Council
27 Commissioners
785 Members
27 Members (ministers of EU Member States)
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The BER making process
Proposal
Opinion
Opinion
Council
Council
Adoption by the college of Commissioners
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The need for a stakeholders Alliance
Body Repairers Authorised and Independent
Repairers Garage Equipment Tools
Producers Motorist Consumers Independent Parts
Distributors Engine Rebuilders and Remanufacturers
AIRC CECRA EGEA FIA FIGIEFA FIRM
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Thank you for your attention... For further
enquiries please contact Mr Charles de
MARCILLY European Public Affairs Director T. 32
2 771 96 56 M. 32 4 86 36 06 37
charles.de.marcilly_at_cecra.eu www.cecra.eu
CECRA, Oslo, 24/03/09