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The Voice of European vehicle dealers and repairers
Representing 336,720 enterprises of automotive trade and repair businesses
What does CECRA do?
CECRA is the European umbrella organisation regrouping national automotive trade associations and European brand dealer councils
Acting as a watchdog, ensuring the interests of authorized dealers and repairers are taken into due account by European regulatory bodies
CECRA's 'Best Practice'
platform offers its members a real added value enabling them to learn more about new tendencies and best practices in place
Latest News
Joint letter to stimulate the European automotive industry's transformation and enhance competitiveness
Brussels, 06/09/2023
The signatories of this open letter support the European Commission’s renewed focus on a competitive automotive industry in Europe and wish to thank you for the constructive dialogue.
All signatories represent the broad spectrum of the automotive value chain and are committed to shaping the green and digital transition. We proactively contributed to DG GROW’s transition pathways exercise. Since DG GROW initiated this exercise, geopolitical challenges have put additional pressure on the decarbonisation of transport.
Failure to act now within the current mandate risks further delays that will inevitably undermine the European automotive industry’s transformation and competitiveness. It will also put at risk employment in an industry that generates more than 13 million jobs in the EU. The European Commission must urgently establish a robust framework to manage these challenges and prioritise six key actions:
I. Develop a robust industrial strategy
II. Scale up a European zero emission market and battery value chain
III. Ensure a stable and coherent regulatory environment for the sector
VI. Enhance the skills agenda and Just Transition framework
V. Improve transport affordability
VI. Ensure a global level playing field
At #CONNECTEurope 2023 more than 230 automotive dealers, repairers and experts gather in Berlin to exchange their expertise on tomorrow’s automotive distribution
Brussels, 15/09/2023
CECRA and Infopro Digital, a French press group, just held its 3rd edition of #CONNECTEurope, a European and International forum on automotive distribution. The successful event, organised in Berlin, was attended by 230 participants being automotive distributors and repairers of passenger cars & trucks around Europe, representatives of national & international trade associations advocating their interests.
During its 1st plenary session, automotive dealers debate on what to expect from an agency distribution model. Will it be a viable business model? And what about customer data ownership, data which is crucial to improve business performance. All these questions remain at this stage unanswered since the rolling out of agency in Europe has started only recently. The uptake of Chinese electric vehicles is a challenge for Europe’s vehicle manufacturers. How will Europe react bearing in mind that electric vehicles are much more expensive than ICE cars and European citizens purchase power is decreasing. CECRA calls upon European decision makers to set up financial incentives programmes to make European electric vehicles more affordable all this to ensure a massive uptake of electric vehicles will take place and reach the EU set climate targets.
New business opportunities for dealers was discussed during the 2nd session. How the agency models are implemented and what will be the impact on distributors business profitability. Distributors urge manufacturers to closely monitor this new distribution model and to adjust where necessary. It goes without saying that it needs to be a profitable business otherwise distributors might be attracted to take on board other brands which engender better profits.
At its 3rd plenary session the focus was on how to professionalise the used car business and how to eradicate odometer fraud. Car-Pass registering odometer during the vehicle live span is an effective means to tackle the problem. The battery state of health and repairability is key for second-hand electric vehicles’ residual value calculation and used EV market.
In between the plenary sessions, 12 workshops took place debating, amongst others, on profitability of electric vehicle maintenance and repairing, in-vehicle data and ownership, new leasing models, optimizing business with customer data, investing in new services and how to adapt the business to consumer changing behaviours.
Mercedes-Benz agency contract in Australia: judgement of the Australian Federal Court
Brussels, 05/09/2023
Australian dealers have sued Mercedes-Benz because of its move to agency sales. Dealers argue they were ‘forced’ to sign new agency model deals and that the move will drastically reduce profits and ‘wipe out years of goodwill with customers’
Last week, the Australian Federal Court has delivered its judgment and dismissed the claims made by dealers.
However, the judge commented at the hearing that:
- The applicants (Dealers) put forward a powerful and thorough case
- The applicants were successful on many issues of fact but lost on the law
- The applicant's strongest case, although unsuccessful, concerns statutory unconscionable conduct
- The franchising code needed to be modified
CECRA received from its Australian counterpart AADA the public summary judgment (a more detailed judgement of more than 600 pages will be released soon).
Even if more time is needed to analyse the judgement, according to the CEO James Voortman, this decision is disappointing for the Australian dealers who are considering whether to appeal.
Nevertheless, this case is obviously of great interest not only for all Australian car Dealers but also for all dealers in Europe, and both AADA and CECRA will review the judgement in detail to check the wider implications of this judgement for dealers.
This dossier will be discussed at CECRA’s event #CONNECTEurope which takes place on 14 and 15 September next in Berlin. The event will be attended by more than 230 dealers and repairers. During its Plenary session, agency models will be dealt with in detail as well as during its international roundtable.
Last places available if you are a dealer or repairer member of one of CECRA’s associations – Link to register.
Automotive supply value chain calls for a swift adoption of the Euro 7 Regulation
Brussels, 04/09/2023
Open letter addressed to
Members of the European Parliament,
Ministers of the 27 EU Member States,
Last year, the European Commission proposed a new Euro 7 pollutant emissions standard for new vehicle types, after years of collecting evidence and data.
The European Union needs a timely and well-targeted Euro 7 legislation for cars, vans, trucks and buses to improve the health and wellbeing of its citizens and urban population in particular. Cities cannot be left alone to improve air quality with the limited resources available to them. Euro 7 will make it easier for national and local administrations to deliver on ambient air quality commitments currently being upgraded by EU legislation. While the shift to electromobility is underway, 100 million new vehicles with an internal combustion engine are expected to be sold in the EU in the next decade and will remain on European roads for years to come. Electrification and continued improvement of conventional engines are complementary approaches and should work hand in hand to achieve significant pollution reductions.
Europe needs more ambitious standards and must maintain its global leadership alongside the US and China, which are also adopting more ambitious pollutant regulations. European vehicle manufacturers will need to invest in these other regions in adopting advanced technologies anyway to remain competitive in the global market.
New Euro 7 rules need to be adopted within the current legislative period, to ensure that citizens living in cities can continue to benefit as soon as possible from improving air quality facilitated by reduced vehicle pollution. Emission control systems meeting the Commission proposal requirements are already mature and available, as shown by data collected during robust road testing by various technology providers. The timely availability of mature affordable emission control systems meeting the requirements of the Commission proposal has been demonstrated by data collected during robust road testing by various technology providers. To facilitate, implementing and delegated acts should be swiftly adopted after the legislation, with the most important parameters already developed in parallel in the coming months. This early development of the regulatory detail is critical to a successful implementation, providing industry with confidence to invest, and enabling the path to cleaner road transport and improved public health.
Further, Euro 7 emission testing procedures need enhancement compared to Euro 6/VI, in combination with the ambitious limit values and lifetime requirements proposed by the Commission, to reflect driving conditions and the actual environmental impact of different vehicle types in the real world. The Commission’s proposed new testing rules will, with certain improvements to ensure representativeness of on-road testing, strike a good balance between what is necessary and what is feasible. They will ensure that emissions from trucks especially will be controlled under true real-world conditions.
As the necessary technologies are already known, the most accurate cost analysis of Euro 7 demonstrates that the price to pay for industry and consumers is moderate. Euro 7 vehicles will remain affordable, while according to the Commission’s own calculations, every euro invested in Euro 7 technology will return five times more benefits in terms of health and environment protection costs.
Now that discussions on the legislative proposal are at a decisive point, the industrial sectors represented by the signatories below call on EU institutions to take an ambitious and future-oriented position on Euro 7 including for exhaust and non-exhaust, i.e. evaporative and refuelling systems, brakes and tyres; as well as for reagent quality requirements and the durability of batteries, without undue delay.
European Parliament and Council reached a political agreement on Data Act
Brussels, 28/06/2023
After all meetings at Commission/Parliament’s levels, CECRA is pleased to see that Parliament and Council have reached a political agreement yesterday on the Data Act.
For CECRA several important points are present in the text. As mentioned in the press release of the Council, the regulation proposes new rules on who can access and use data generated in the EU across all economic sectors. It aims to:
· ensure fairness in the allocation of value from data among actors in the digital environment stimulate a competitive data market
· open opportunities for data-driven innovation, and
· make data more accessible to all.
The new legislation also aims to ease the switching of providers of data processing services, puts in place safeguards against unlawful data transfer by cloud service providers and provides for the development of interoperability standards for data to be reused between sectors.
The data act will give both individuals and businesses more control over their data through a reinforced portability right, copying or transferring data easily from across different services, where the data are generated through smart objects, machines, and devices. The new legislation will empower consumers and companies by giving them a say on what can be done with the data generated by their connected products.
With our colleagues of several other European associations members or having worked closely with AFCAR (Alliance for the Freedom of Car Repair in Europe), we have proposed several amendments and will now examine the end result more in detail. But already positive additional points – more will follow- are to be underlined such as :
· measures to prevent abuse of contractual imbalances in data sharing contracts due to unfair contractual terms imposed by a party with significantly stronger bargaining position
· additional guidance regarding the reasonable compensation of businesses for making the data available, as well as adequate dispute settlement mechanisms.
In addition to the Data Act, Sector specific rules are now urgently required to practically enable vehicle owners to effectively exert their right to access data generated through the use of their vehicle. This can only be secured by complementary automotive sector-specific legislation.
DG GROW is currently working on a principles-based legislative proposal intended for adoption in 2023. Given the extensive preparatory work done by the Commission over the past seven years, we hope that this work can move swiftly and maximise the time available to the co-legislators to scrutinise the Commission’s proposal.
New Motor Vehicle Block Exemption Regulation and Supplementary Guidelines announced
Brussels, 17/04/2023
In today's press release, the European Commission announced that it would soon publish the newly updated Motor Vehicle Block Exemption Regulation and its Supplementary Guidelines which will come into force on 1 June next.
The Commission has adopted a five-year prolongation period meaning that it will be applicable until 31 May 2028. During this period, the Commission will evaluate more closely the market developments and fundamental legislative changes might be needed after this period.
CECRA, which participated in the open consultations in 2021 and 2022, welcomes the prolongation of this sector specific Regulation and will now start to analyse it in-depth as soon as all the documents are available. But according to the press release it seems that the changes have focused on the issue of in-vehicle data and at first sight, it looks promising.
The updated Supplementary Guidelines stipulates that:
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Clarify that data generated by vehicle sensors may be an essential input for the provision of repair and maintenance services. Therefore, to comply with Art. 101 of the Treaty on the Functioning of the European Union (‘TFEU'), authorised and independent repairers should have access to such data on an equal footing. The existing principles for the provision of technical information, tools and training necessary for the repair and maintenance services have been extended to explicitly cover vehicle-generated data.
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Specify that vehicle suppliers must apply the proportionality principle when considering whether to withhold inputs, such as vehicle-generated data, on the basis of potential cybersecurity concerns.
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Warn that Art. 102 TFEU may be applicable where a supplier unilaterally withholds from independent operators an essential input, such as vehicle-generated data.
CECRA however remarks that authorised repairers continue to be the benchmark of what independent operators might receive as data. The inclusion of the proportionality principle and the reference to Art. 102 might be some good news. This needs to be analysed.
European Commission's Press release announcing the prolongation of the Motor Vehicle Block Exemption (‘MVBER’) with 5 years and the update of its Supplementary Guidelines.
LKQ Europe partners with CECRA
Brussels, 23/03/2023
The leading distributor of automotive aftermarket parts strengthens the voice of vehicle repairers in Europe
Zug, Switzerland. LKQ Europe is thrilled to announce its partnership with CECRA, the European Council for Motor Trades and Repairs. This partnership is built on shared objectives and common interests, including access to vehicle data, electric vehicles, green deal, and the ongoing skill development of automotive technicians.
As the leading automotive aftermarket parts distributor partner for workshops across Europe, LKQ provides spare parts, tools, technical support, and cutting-edge training through its workshop concepts and the LKQ Academy, LKQ’s unique pan-European training program. By joining forces with CECRA, LKQ Europe looks forward to participating in the independent repairers division and various working groups to contribute expertise and strengthen the voice of workshops towards the EU institutions.
"We are proud to partner with CECRA, an organization that shares our vision for the future of the automotive industry and the crucial role played by workshops in ensuring an affordable, safe and sustainable mobility for all Europeans," says Varun Laroyia, CEO LKQ Europe. "This partnership will give us the possibility to present our workshop solutions to CECRA members, participate in critical debates on the future of our industry and help shape the policies that will drive our partnership and LKQ’s businesses forward."
"We are pleased to welcome LKQ Europe to our network of partners and look forward to working together to advocate for the interests of our members, promote the exchange of knowledge and best practices, and ensure that all workshops have a voice in shaping the future of our industry," says Bernard Lycke, Director General of CECRA.
About LKQ Europe
LKQ Europe, a subsidiary of LKQ Corporation (www.lkqcorp.com), headquartered in Zug, Switzerland, is the leading distributor of automotive aftermarket parts for cars, commercial vans, and industrial vehicles in Europe. It currently employs approximately 26,000 people with a network of more than 1,000 branches and approximately $5.7 billion in revenue in 2022. The organization supplies more than 100,000 workshops in over 20 European countries. The group includes LKQ Euro Car Parts, LKQ Benelux & France, LKQ RHIAG Group, Elit, LKQ CZ, and LKQ DACH, as well as recycling specialist, Atracco. LKQ is the largest shareholder in MEKO Group.
The European Parliament adopts the Data Act: now the next step
Brussels, 16/03/2023
The European Parliament has adopted with an overwhelming majority of 500 votes in favour, 23 against, and 110 abstentions its position on the Data Act, setting harmonised rules on accessing, sharing and using data generated by connected products, such as vehicles and related services.
EU Council is expected to agree on a common position on 28 March. The first round of interinstitutional negotiations (‘trialogues’) could then start.
A pillar of the current Commission’s digital strategy, the regulation seeks to unleash the opportunities presented by the data economy and industrial iot data in particular – 80% of which is underused in the EU according to the European Commission.
The proposal covers:
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Business-to-business (B2B) data sharing, allowing users to access the data generated by connected devices and decide to share it with third parties (e.g. service providers other than the manufacturer).
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Business-to-government (B2G) data sharing, compelling companies to make non-personal data available to public sector bodies/institutions under certain circumstances and conditions.
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Requirements for cloud service providers, allowing customers to effectively switch between different service providers.
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International non-personal data transfer, establishing safeguards against unlawful non-personal data transfer to third countries.
CECRA welcomes the Parliament’s vote giving vehicle users the right to claim access to in-vehicle generated data and to share these data with a third party such as vehicle repair shops or any other kind of service provider of their choice.
However, it is a good step forward, the Data Act is not sufficient to create effective competition in data-driven automotive and mobility services. In the automotive sector, the use of vehicle generated data also requires access to the vehicle’s functions and resources. Vehicle manufacturers, in their role of service providers, have such access others not. This prevents independent service providers to develop and offer compelling and affordable services to end-users on a level playing field.
CECRA, together with several other automotive mobility and aftermarket associations and consumer organisations, therefore urges European policymakers to introduce a robust and ambitious sector-specific legislation underpinned by specific technical and legal requirements with clear governance rules. These are essential to guarantee equal access to the vehicle, its data, functions and communication with the users. Multiple studies have identified that there are systemic barriers and structural impediments to equitable data access in the automotive & mobility sector.
Debate on end date for combustion engines not closed
Brussels, 03/03/2023
While the European Parliament already approved to ban the sale of new petrol and diesel cars in the European Union as from 2035, it is now up to the European Council to give its final approval before its publication in the Official Journal.
The Council vote, initially foreseen on 7 March, has been postponed. The main reason for its postponement lies in an uncertain qualified majority following the announcement of the Italian Government which will firmly oppose unless the EU Commission revises its position and propose environmentally and economically sustainable alternatives. The Italian negative vote announcement was soon followed by the German Government stating they would reject it unless the proposal on the use of e-fuels would be included in the proposal.
The Italian statement, sent to the representatives of the EU-27, states that however Italy is in favour of the electrification of light vehicles, they do not believe it should be the only way forward. Italy therefore cannot support the regulation as such as it does not comply with the principle of technological neutrality.
The European Council for Motor Trades and Repairs (CECRA) has since the beginning requested the need for a technology-mix that would embrace all relevant solutions to reduce CO2 emissions and had advocated from the start the Commission’s proposal should include other technologies such as hydrogen and synthetic fuel technology (e-fuels).
Independent Service Providers call for a swift adoption of sector-specific legislation on access to in-vehicle data - Response to ACEA call for more delay
Brussels, 20/02/2023
Independent Service Providers (ISPs) call for swift adoption sector-specific legislation on access to in-vehicle data, functions & resources, refuting ACEA’s call upon the European Commission to further delay its legislative proposal.
ACEA stated on 15 February that access to vehicle-generated data is already freely available, that ISPs should wait to assess the impact of the Data Act and that, in any event, sector-specific legislation could not achieve more than is already in the Data Act.
CO2 emissions reduction targets for heavy-duty vehicles and for new passenger cars and light commercial vehicles: a lot more needs to be done
Brussels, 15/02/2023
The European Commission has published its proposal strengthening the CO² emission performance standards for new heavy-duty vehicles. The proposal sets out high ambitious targets: 45% emission reduction from 2030; 65% reduction from 2035; 90% reduction from 2040 and buses be zero-emission as from 2030. Although CECRA welcomes the proposal allowing technical diversity it has some serious concerns about achieving the set targets.
CECRA continues to support the Commission’s efforts in proposing solutions to reduce pollutant emissions, however it is essential they need to remain achievable and affordable. The increased targets set for 2030 and 2035 will be very challenging for manufacturers as well as for all other players in the distribution, transport and logistics value chain.
Consequently, CECRA urges policymakers not to increase the 2030 target and to consider a feasible trajectory towards 2035. In order to be successful, one cannot only rely on setting targets alone. Charging stations that are suited to the specific needs of heavy-duty vehicles are still today almost unavailable. It will therefore require equally ambitious action from policymakers to ensure charging and refuelling infrastructures are in place in time.
CECRA appreciates that the proposal includes a review clause that will ensure that in 2028 the Commission needs to assess the progress made towards achieving the emission reduction targets taking into account the technological developments and the importance of a viable and achievable transition.
As regard the new CO2 emissions for new passenger cars and light commercial vehicles, yesterday, during the European Parliament’s plenary session, the majority (340 votes in favour, 279 against and 21 abstentions) of the MEPs voted in favour of the new CO2 emissions reduction targets.
The new legislation sets the path towards zero CO2 emissions for new passenger cars and light commercial vehicles in 2035 (an EU fleet-wide target to reduce CO2 emissions produced by new cars and vans by 100% compared to 2021). Intermediate emissions reduction targets for 2030 are set at 55% for cars and 50% for vans.
CECRA appreciates the legislation contains substantial provisions to ensure appropriate financial measures are made available to deliver a fair transition for the automotive sector in Europe in order to safeguard jobs and to ensure the competitiveness of the entire European automotive value chain.
We are of the opinion that these financial measures will be necessary and essential to secure a fair and balanced swift. CECRA therefore urges the Commission to now fully focus on setting up measures that would accelerate the fleet renewal by offering European buyers incentives to ensure a smooth transition to zero-emission vehicles.
Open letter
Joint statement of the EU industry: CO2 Regulation for Heavy-Duty Vehicles should recognise decarbonisation potential of sustainable and renewable fuels
Brussels, 06/02/2023
As European industry, including fuel and automotive suppliers, vehicle manufacturers, dealers, repairers and transport operators we eagerly anticipate the European Commission proposal on the revision of the COâ‚‚ Regulation for Heavy-Duty Vehicles (HDVs). Heavy-Duty transport is a vital sector for the functioning of the internal market and a suitable regulatory framework shall support the development of clean vehicles using different technologies and fuels. Decarbonisation is an immediate challenge and all options that can have a rapid impact need to be enabled. Sustainable and renewable fuels can speed up the process and contribute to achievement of the “Fit for 55” and the full decarbonisation targets in road transport. The signatories of this letter welcome the revision of the COâ‚‚ standards for HDVs in line with the “Fit for 55” objectives and believe that a recognition of all COâ‚‚ emission reduction pathways along the entire value chain is critical. Transport operators and vehicle manufacturers must be encouraged to consider cleaner fuel alternatives to fossil fuels, immediately available today, including liquid and gaseous renewable and synthetic fuels. Depending on use cases, technology diversity is needed where all technologies, including electrification/hybridisation, hydrogen and sustainable and renewable fuels can play a role. The undersigned organisations recommend that sustainable and renewable fuels are considered for compliance in the COâ‚‚ Regulation for HDVs. Including such a provision in the Regulation would support the EU’s Green Deal objectives and accelerate the decarbonisation of the commercial transport sector.
