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Декабрь 2011

EU Automotive Block Exemption regulations and Aftersales

In 2013, the EU Automotive Block Exemption regulations will change. Most of the information published about this has focused on the changes to vehicle sales regulations, which are mostly in favour of the manufacturer as opposed to the dealer.

As always, poor old Aftersales has been neglected; I've struggled to find any information about changes in the 2013 Block Exemption regulations that directly affect it.

The main concerns of the regulations will remain focused around supply chain efficiencies and facilitating competition. Here are some of the key changes to the regulations that I think may affect Aftersales indirectly, by affecting the dealership / importer businesses.

  1. Open ended franchise agreements are to move to fixed term agreements.
  2. Sales targets can be imposed by manufacturers, as opposed to 'agreed upon' with the dealership / importer, as they are currently are.
  3. Dealer KPIs are currently focused mainly on sales and servicing targets - these may be linked to other areas of the business in the future (e.g. used car sales, warranty, finance).
  4. A manufacturer will be able to stipulate dedicated showrooms and staff.

There is potential for the quality and focus on different aspects of the Aftersales offering to increase, now that the manufacturer can become stricter with targets and KPIs, and link these to more elements of the business. And we could become more confident of a consistent offering from new car sales to Aftersales, if a manufacturer decides to remove multi-franchise dealerships / importers. As this would meant that a Jaguar technician would then only work on Jaguar vehicles, for example. And service advisors and other members of staff could be fully trained and 'bought-in' to the one brand.

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