Latest News
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:
-
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).
-
Business-to-government (B2G) data sharing, compelling companies to make non-personal data available to public sector bodies/institutions under certain circumstances and conditions.
-
Requirements for cloud service providers, allowing customers to effectively switch between different service providers.
-
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 CO₂ 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 CO₂ standards for HDVs in line with the “Fit for 55” objectives and believe that a recognition of all CO₂ 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 CO₂ 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.
The Independent Service Providers urge the EU Commission to end the delay on access to in-vehicle data legislation
Brussels, 24/01/2023
A vast majority of the automotive and mobility services ecosystem together with consumers urge the European Commission to urgently propose an effective sector-specific legislation on access to in-vehicle data.
The Independent Service Providers (ISPs) grouping have written to President von der Leyen and the relevant College of Commissioners to put an end to the repeated delays in proposing legislation on access to in-vehicle data, functions and resources. Doing so would unleash the untapped potential to create real competition in Europe’s data-driven automotive and mobility markets.
The ISP Group commented:
“The Commission committed to bringing forward access to in-vehicle data legislation in December 2020 by the end of 2021. We’re now in 2023 and the proposal has been delayed yet again. Despite six years of painstaking Commission evidence-gathering and previous strategic policy plans, the vast majority of the sector are left in limbo and investment decisions are delayed in the face of substantial market barriers that benefit just one segment of a potentially huge market.
We urge the Commission President to get this process back on track. This legislation is vital to unblock the automotive and mobility services sector market. Almost every European uses some form of mobility every day and they should be able to enjoy the benefits of data-driven innovation, choice and affordability in the automotive and mobility ecosystem. Today they can’t. The Commission must rectify this.”
The Commission has a rich history of market-enabling legislation from telecoms to aviation, rail and energy. The recent series of legislative measures part of the European Data Strategy addresses significant market distortions that will enable a more vibrant and competitive European Internet economy that is not captive to a few dominant players. Yet, it seems completely anomalous that, despite all the evidence gathered over the last six years, the European automotive and mobility ecosystem continues to face all the same market barriers and distortions that the EU itself has addressed in the wider EU Data Strategy series of regulations for the Internet economy, including the increasing dependency on the technology platforms of the hyperscalers.
All the 10 associations urge the Commission to get the regulatory process for a sector-specific regulation on ‘access to in-vehicle data & resources’ back on track immediately so that there is time for the co-legislators to scrutinise and adopt the text before the end of the Parliamentary term in May 2024.
***
Background
The Independent Service Providers (ISPs) grouping represents a wide range of operators in the European automotive aftermarket and mobility service providers who are investing in the development of digitalised services and data-driven innovation. However, the ISPs are currently hampered by the restricted access to data that stems from the privileged access by-design system built into the car that confers a dominant position and competitive advantage to the vehicle manufacturers. This deprives the European mobility consumer and business user of greater choice through innovation and affordable mobility and aftermarket services. This, in turn, jeopardises European competitiveness and other political objectives, such as greater access to safer, smarter and more sustainable mobility services.
Digital services in vehicles and everyday mobility are rich in potential and can actively support and accelerate the whole EU Sustainable and Smart Mobility agenda. However, they are developing more slowly than they should in Europe because up until now, vehicle manufacturers have privileged control of the data generated by the vehicles they sell – but do not own – to the detriment of the vehicle owner. This advantage is compounded by the increasing dependency on the technology platforms of the hyperscalers. Such platforms are regulated by the EU Data Strategy series of regulations for the mainstream Internet economy, but not in the vehicle, despite their rapidly growing role in this sector in partnership with vehicle manufacturers.
More transparency in the current contract discussions between brands and their networks
Brussels, 16/12/2022
The automotive world is currently undergoing a radical transformation, both in terms of technology and sales and after-sales. Driven by the European Union to invest in the electrification of vehicles, manufacturers are tending to reduce distribution costs. This is manifested in particular by the replacement of initial distribution contracts by agent contracts. The organization of these networks is governed, at national and European levels, by legal principles which aim to protect the interests of commercial partners and to preserve competition for the benefit of the end customer.
In this context, contract negotiations, which are accelerating in many brands, show an attempt by some manufacturers to capture value from the distributors, but also more broadly from the entire automotive value chain (recycling, leasing, etc.), at a time when manufacturers are recording unprecedented profits. The economic dialogue on the future of the distribution network, which is not transparent, leads to the implementation of new, totally unbalanced contracts. Indeed, several car manufacturers refuse to lay their cards on the table and do not communicate the main contractual terms to all stakeholders. The information is incomplete and deliberately given very late, suggesting not a sharing of value, but a transfer of value to the detriment of distributors.
CECRA urgently requests the lifting of the confidentiality clauses as they do not allow for a transparent dialogue and balanced negotiations between manufacturers and distributors. The current discussions are generating a deterioration of the economic climate within the sector, suggesting an economic destabilization unprecedented in the history of the automotive trade. By capturing value, it will deteriorate the local entrepreneurial fabric. Finally, it will cut back on innovation in the service sector, to the detriment of the competitiveness of companies.
Indeed, according to the results of a survey conducted by CECRA’s French member Mobilians among a panel of dealers and agents of all brands, 60% of distributors declare that they are not informed about the contracts under discussion (70% among agents), while 80% of them are not ready to sign them (85% among agents).
A takeover of the value chain by car manufacturers
Since the non-renewal of the Block Exemption Regulation (BER) n°1400/2002 of 31 July 2002, specific to motor vehicle distribution, and the attachment of this sector to the general regulation, in 2010, then in 2022, the legal situation of the motor vehicle trade sector has profoundly weakened and the dependency of dealers on manufacturers has increased considerably through the increase of the importance of investments and the restriction of the commercial freedom of distributors. The implementation by many manufacturers of new, totally unbalanced distribution contracts, based on the model of agency constitutes a new step in this direction.
The change in the model of these manufacturers, aiming to control the sources of profits from vehicles, is based on the shift of its economic centre of gravity from production to services in the broadest sense of the term. From sales to recycling, these manufacturers are developing a genuine global strategy of capturing the entire automotive value chain.
Concerns about current negotiation topics relate to the following items for both dealers and agents: 1. Remuneration and commercial policy; 2. Transfer and valuation of the business; 3. Legal architecture of the contract; 4. Level of coverage of activity-specific costs for brands and market specific investments wishing to switch to an agent contract; 5. Control of used car trading.
The agents also underline their concerns regarding the capture of ownership of customer data, as well as the purchase of spare parts.
Respect of all legal obligations by all parties
If the move to agency models is confirmed, and as CECRA relayed at Connect Europe in mid-September, distributors are demanding that manufacturers' agency contracts respect all the legal obligations of this particular distribution model and do not include clauses from other distribution models to their exclusive advantage (#CONNECTEurope 2022 successful event "NO" to the non-genuine agency contracts and Non genuine agency contracts are potentially an anti-competitive practice). "Whatever distribution model manufacturers deploy, a fundamental aspect is that, whether it is a dealer or an agent, they need an economically viable business model, otherwise the future of car distribution, repair and maintenance will be disrupted," said the dealer and agent networks present at Connect Europe.
CECRA has already expressed its concerns : there are quite specific requirements for a manufacturer-dealer relationship in order for it to be treated as ‘agency’. There is no legal framework for a ‘non-genuine agency’ – such arrangements are effectively just a modified franchise. However, if a manufacturer tried to steer pricing centrally under a non-genuine agency or retail pricing was effectively fixed because there was no realistic opportunity for the dealer to negotiate prices, then the competition authorities are on standby to intervene in such arrangements
Considerable damage to local employment
This change of model is not intended to create value, but to transfer the value usually produced by their partners in automotive services into the hands of certain manufacturers, whose profits have literally soared, resulting in a significant drop in turnover and sales margins for distribution and repair companies. Many companies will not be able to resist the drying up of their business and will be forced to disappear, an outcome anticipated by certain manufacturers, some of whom have already announced a reduction in the scope of their network.
This movement will primarily affect the local employment fabric in medium-sized cities and smaller towns, in sparsely populated areas, where distribution and automotive service networks have a very important economic weight.
The direction taken therefore leads to a destabilization of the distribution network and the degradation of local employment, materialized by the disappearance of direct and indirect jobs. Today, automotive distribution and repair represent 2,9 million jobs throughout Europe, which cannot be relocated, in contrast to industry, which has largely relocated.
A deterioration in service to the European citizens and their access to mobility is to be expected
The movements at work suggest a deterioration in car service for the European citizens in areas where, by definition, manufacturers will not invest because they are less profitable. The control by certain manufacturers of the entire value chain and retail prices cancelling any intrabrand competition will mechanically lead to vehicle price inflation. Consumer choice will be severely limited and free price formation will come under pressure.
It should be remembered that vehicle prices have increased very much with the trend only set to increase due to the current general environment.
The acceptability of vehicle prices to consumers is becoming a growing problem, particularly the most vulnerable and those living in rural or sparsely populated areas, being the first to be affected in their access to mobility. Behind access to mobility, it is also access to employment and, more broadly, economic and social life that are penalised.
In this context, as the Low Emission Zones are implemented in most cities in Europe, the citizens will be faced with a double impossibility - that of using their old vehicle, but also of buying a new one in the face of inflationary drift.
A European legislative vacuum
The non-renewal of the Block Exemption Regulation (BER) n°1400/2002 of 31 July 2002, specific to motor vehicle distribution, and the attachment of this sector to the general regulation, in 2010, then in 2022, have profoundly weakened the legal situation of the motor vehicle trade sector.
In a European regulatory context that does not provide a sufficient framework for contractual practices between manufacturers and distributors, many European countries have chosen to regulate distribution by means of specific legislative provisions in their national law, with the aim of preserving the ability of distributors to contribute to the local economy: this is the case in Austria, Belgium, Luxembourg and, more recently, this summer in Italy.
These national legislative provisions provide for the obligation for car manufacturers or importers to compensate for unamortised investments made by their distributors and/or a right to compensation for the latter at the end of the contract. Indeed, in the context where certain manufacturers are undertaking to replace selective distribution contracts by agency contracts, aimed at controlling the price of sales of new vehicles to consumers, such provisions at national level require, on the one hand, that these manufacturers assume the burden of all the investments necessary for the marketing of new vehicles and their brand and, on the other hand, in accordance with the Council Directive 86/653/EEC of 18 December 1986 on the coordination of the laws of the Member States relating to self-employed commercial agents, that they pay compensation for the loss suffered by the agent solely as a result of the termination of the agency contract (1).
(1) This directive makes a distinction according to whether the agent is responsible for negotiating and/or concluding business: “For the purposes of this Directive, ‘commercial agent’ shall mean a self-employed intermediary who has continuing authority to negotiate the sale or the purchase of goods on behalf of another person, hereinafter called the ‘principal’, or to negotiate and conclude such transactions on behalf of and in the name of that principal.”
But the Directive therefore makes no difference between an intermediary acting in the name and on behalf of the principal, or in his name or on behalf of the principal.
The Commission's 2010 Guidelines on Vertical Restraints as well as the 2022 Guidelines clarify that an agent is a person who can act either on his own behalf or on behalf of the principal.
Indeed, the 2022 Guidelines specifically define the agency agreement as follows: "3.2.1. Agency contracts not covered by Article 101(1) of the Treaty: (29) An agent is a legal or natural person entrusted with the power to negotiate and/or conclude contracts on behalf of another person (‘the principal’), either in the agent’s own name or in the name of the principal, for the purchase of goods or services by the principal, or the sale of goods or services supplied by the principal”.
The transposition of the Directive in several countries notably Austria, Denmark, Germany, Portugal and Spain does not represent any problem. Unfortunately, in other national laws, the agent is in these countries systematically someone who acts in the name and on behalf of the principal. CECRA reminds that national law must always be interpreted in accordance with European law. There is indeed a principle in European law that the national court must interpret any provision of national law in conformity with the applicable provisions of Union law in order to avoid potential conflicts between European law and national law. This principle has been clearly recalled with regard to directives, notably in the Von Colson and Kamann case of the Court of Justice of the European Union. The Member States are therefore obliged to achieve the result provided for by a directive. This means that we could argue that the national laws on agency contracts must be interpreted in the light of the European directive which provides that both persons acting on behalf of the principal and those acting in their own name are considered as commercial agents.
In order to avoid any debate on the substance and any disillusionment, it seems to us necessary that the parties to the agency contract clearly specify their status in the contract.
In the last few days we have heard of delays to a number of the planned implementations of agency agreements in Europe, sometimes for some countries at least.
Manufacturers who are still in the planning phase will hopefully also take note of the delays, and reconsider their own timeline and whether they have fully considered all economical and legal implications of their choice. This transition is by no means simply a contract change, but in fact is a fundamental change in the manufacturer-dealer relationship that has huge implications for roles and responsibilities, and for the people who staff the operations on both sides. A real dialogue is necessary between the brands and their networks in a transparent- via the waive of the confidentiality clauses- and constructive manner from both sides.
CECRA welcomes the Euro 7 proposal setting more ambitious vehicle emission standards
Brussels, 15/11/2022
On November 10th, the European Commission published its proposal for the new Euro 7 emissions standard for cars, vans, lorries and buses. The proposal sets out provisions and requirements on vehicle emissions and battery durability and aims at ensuring the internal coherence of the system of emission type-approvals.
CECRA welcomes the Commission’s efforts in continuing proposing solutions to reduce pollutant emissions. Actions must be taken to limit the impact of the environment. Euro 7 will undoubtedly contribute to a more sustainable automotive industry and reduce pollutant emissions.
Besides Euro 7, CECRA urges policymakers to focus on measures that would accelerate fleet renewal by offering European buyers incentives to ensure a smooth transition to zero-emission vehicles. This with a clear impact on both air quality and reduced CO2 emissions.
The proposal will now be examined by the European Parliament and Council. CECRA will thoroughly examine the impact it might have on its sector and will closely follow up the discussions held within the Parliament and Council.
Once the Regulation adopted, the date for entry into force is July 1 2025 for cars and vans and July 1 2027 for new heavy-duty vehicles.
EU strengthens CO2 emissions targets for new cars and vans
Brussels, 28/10/2022
Yesterday, representatives of the European Parliament, Council and Commission agreed on stricter CO2 emission performance standards for new cars and vans: 55% CO2 emission reduction target for new cars and 50% for new vans by 2030 compared to 2021 levels and 100% CO2 emission reduction for both new cars and vans by 2035 putting an end to internal combustion engines by 2035.
Whereas at the end of June, the 27 Environment Ministers had already come to that agreement, its has now been ratified by all European institutions.
The agreement includes a review clause that will ensure that in 2026, the Commission assess the progress made towards achieving the 100% emission reduction targets and the need to review these targets taking into account technological developments, including with regard to plug-in hybrid technologies and the importance of a viable and socially equitable transition towards zero emissions.
CECRA looks forward to the outcome of the Commission’s assessment report as well as the initiative of launching off the process towards a legislative proposal to create a fund to ensure a fair and smooth transition.
Automotive dealers and repairers will together with their manufacturers level up and reach the set targets.
However, CECRA is still in favour of technology diversity ensuring the most efficient and effective approach to cutting emissions prevails and to ensure a manageable transition.
Technology diversity includes full electrification, hybrid drivetrains and vehicles running on hydrogen, either in gas engines or fuel cells. All of these technologies are climate neutral if running on renewable energy, in the form of green electricity or renewable hydrogen and fuels.
CECRA also reiterate its request to all EU Member States to speed up the deployment of a widespread infrastructure of recharging stations as it goes without saying that the transition to zero-emission vehicles is only possible if those recharging stations are available!
At the end, the consumers will be the ones who will decide in buying zero-emission vehicles taking into account they have already to bear high inflation rates and energy prices which are putting enormous pressure on their spending power.
Energy crisis: Impact on competitiveness of EU auto sector
Brussels, 21/10/2022
Rising energy prices and increased production costs are putting the entire automotive ecosystem under strain. High inflation rates, unprecedented concerns about energy prices and supply, and lower incomes for Europeans are alarming the whole value chain, from the largest manufacturers to the smallest SMEs, as well as the aftermarket. The sector appreciates recent policy initiatives at the national and European levels. However, uncertainties about the implementation and effectiveness of these measures persist. A structured dialogue with the sector is therefore urgently needed.
From left to right - Jaime Barea (GANVAM - Spain); Matti Pörhö (EDC VW/AUDI); Gustav Oberwallner - Honorary Officer (WKÖ - Austria); Bernard Lycke - Director General (CECRA); Jean-Charles Herrenschmidt - Immediate Past President (Mobilians - France); Geert Brummelhuis (BOVAG - The Netherlands); Peter Daeninck - New President (Traxio - Belgium); Mathias Albert (VMH - Germany); Gerard ten Buuren (BOVAG - The Netherlands); Nicolas Lenormant (Mobilians - France); Timo Niemi (AKL - Finland); Sandy Burgess (SMTA - Scotland/UK); Rodrigo Ferreira da Silva (ARAN - Portugal) - Missing on the picture: A. Koopmans (BOVAG - The Netherlands) and R. Moraud - Honorary Officer (Mobilians - France)
#CONNECTEurope 2022 successful event
"NO" to the non-genuine agency contracts
Brussels, 16/09/2022
CECRA and Infopro Digital, a French press group, just held its 2nd edition of #CONNECTEurope, a European and International forum on automotive distribution. The successful event, organised in Barcelona, was attended by 250 participants being automotive distributors and repairers of passenger cars & trucks around Europe, representatives of national & international trade associations advocating their interests, stakeholders within the automotive world as well as decision makers from the European institutions.
During the 1st plenary session, dedicated to the new distribution models and the new EU regulatory framework, experts presented and debated on how the automotive distributors’ business model will look alike in the near future. A general bitter feeling amongst dealers was felt as they consider being cast aside and mistrusted by their manufacturer(s). Dealers are not integrated nor informed about OEMs’ strategic plans. Therefore speculations have started and the most plausible evolution would be OEMs rolling out agency distribution models. If this would be the direction we are heading to, CECRA requests manufacturers’ agency contracts to comply to all the legal obligations of that particular distribution model and not including clauses from other distribution models to their advantage. From an economical point of view, manufacturers should not 'offer' such kind of contracts to their partners if they know that the proposed business model is not viable. CECRA is not per se opposed to the use of genuine agent contracts which can have positive elements for both manufacturers and current dealers but: "Whatever distribution model manufacturers will unroll, one fundamental aspect is that whether it is a distributor or an agent, they need an economic viable business model, otherwise the future of distributing, repairing and maintaining cars will be disrupted" was the conclusion of this session.
CECRA sees that in the contract proposals of OEMs based on the agency-model too many (commercial and legal) risks laid down at dealerships. This does not do justice to the existing relationship and is not good for future-proof retail and service to consumers. If agency contracts are considered, CECRA advocates opting for the real-agency model and calls on OEMs and dealer councils to make agreements in confidence and not in distrust.
The 2nd plenary session focussed on to new earning models of distributors and repairers. Hervé Mirallès, CEO Emil Frey France and Denis Gorteman, CEO D’ieteren Group emphasised the importance of ‘customer centricity’, accompanying customers and offering them the best solution which fully respond to their needs & expectations.
The Spanish market was examined in detail during the 2nd day followed by extended presentations on the potentials of connected vehicles, their data and aftersales services.
Cross views on perspectives and practices were then discussed with the international delegations invited by CECRA: the National Automotive Dealers Association (NADA, US), the Canadian Automotive Dealers Association (CADA), China Automotive Dealer Association (CADA China - remotely) and the Australian Automotive Dealer Association (AADA).
In between the plenary sessions, 12 workshops took place dealing, amongst others, with in-vehicle data, its access, the used car market, electric & hydrogen mobility; new required skills and their training programmes, new consumption and financing habits and many more relevant topics.
CECRA also held its annual General Assembly during which its new Board of Directors had been elected. Peter Daeninck was elected new President of CECRA for the coming 3 years succeeding Jean-Charles Herrenschmidt who terminated its 2 consecutive 3-year mandate and who was a key-player in the organisation of this forum. Under his presidency, the renewal of both Block Exemption Regulations, future distribution models, access to in-vehicle data, SERMI were the most important topics discussed.
Peter Daeninck is active in the car distribution since 1990, since 1996 he is the CEO of Peter Daeninck Ltd, Daeninck Ltd and D.I.S.Ltd and seating in several non-profit professional organisation linked to automotive. The main lines of the new presidency will be steering automotive distributors and repairers through this unprecedented challenging and innovating times. He said: “The automotive industry is currently facing historic challenges. New vehicle architectures, technologies, mobility models and changing customer behaviours are transforming the entire automotive ecosystem at high speed. OEMs are optimizing the cost-to-serve and are providing customers with a seamless and compelling omnichannel experience. This evolution path will entail major implications, both for OEMs and their dealership network. OEMs know that their distribution network has a distinct advantage as their retailers have a face-to-face customer interaction, sales and service teams are in the perfect position to tailor their approach to every customer which enables them to engage appropriately and deliver a personal and relevant dialogue. An excellent experience for the customer builds loyalty and long-term retention. As the new President, it is my task to guide our members through this troubled and insecure times and try to let all European dealers and repairers speak with one voice.”
Italy adopted amendment containing provisions protecting automotive dealers
Brussels, 08/09/2022
On September 5th, the Italian Senate adopted an amendment containing, amongst others, provisions regulating the contractual relationship between dealers and manufacturers for the distribution of motor vehicles. By introducing this new law, automotive dealers will have a better protection vis-à-vis their manufacturer.
What does these new provisions entail?
-
Agreements between manufacturers and dealers have a minimum duration of 5 years;
-
Before the conclusion of the contract, or in case of modification of the contract, the manufacturer must provide the dealer with all the information necessary to assess the extent of the commitments to be made and their sustainability in economic, financial and equity terms, including an estimate of the expected marginal revenue. In other words, the contract must include the standards to be met, the responsibilities of the dealer, and full details of how costs and liabilities are to be divided between them and their manufacturer / importer;
-
In the event of termination, the manufacturer is obliged to pay fair compensation, proportionate to the value of the investments made and the goodwill for the activities carried out in the context of the execution of the agreement
Whilst the Vertical Block Exemption ‘VBER’ (EC) 2022/720 sets the overall European-level competition rules framework for vertical agreements and thereby acting on dealer agreements, automotive manufacturers shall of course also take into account national laws.
Also Austria, Belgium and Luxembourg have national provisions applicable in the contracts between manufacturers and dealers.
EU Member States approve end of internal combustion engines by 2035
Brussels, 29/06/2022
During yesterday’s European Council, the 27 Environment Ministers came to a deal on the proposed laws aiming to achieve the European Commission’s climate objectives.
The 27 Member States approved only new cars and vans with zero CO2 emissions be permitted from 2035 onward and thereby banning sales of petrol and diesel cars and light commercial vehicles, including hybrids in the EU by 2035.
At the request of some EU countries, including Germany and Italy, the EU-27 also agreed to consider a future green light for the use of alternative technologies such as synthetic fuels or plug-in hybrids if they can achieve the complete elimination of greenhouse gas emissions.
Environment Ministers also approved a five-year extension of the exemption from CO2 obligations granted to so-called "niche" manufacturers, or those producing fewer than 10,000 vehicles per year.
These measures will now have to be negotiated with MEPs.
The European Council for Motor Trades and Repairs (CECRA) takes note of the Council’s decision. We are still convinced about the necessity of a technology-mix that embraces all relevant solutions to reduce CO2 emissions and therefore welcomes the openness and willingness to consider other technologies, such as hydrogen and synthetic fuel technology (e-fuels).
Automotive dealers and repairers will together with their manufacturers level up and reach the set targets. However, it goes without saying that the transition to zero-emission vehicles is only reachable if a widespread infrastructure of recharging stations is available! CECRA therefore urges all EU Member States now to speed up its deployment ensuring a smooth transition and giving the EU consumers a clear sign taking away their reluctance to swift towards zero-emission vehicles.
European Parliament voted to ban combustion engine cars from 2035
Brussels, 09/06/2022
The European Council for Motor Trades and Repairs (CECRA) takes note of the European Parliament’s plenary vote of yesterday reducing 100% CO2 in 2035, prohibiting internal combustion engines.
CECRA supports, in principle, the overall political ambitions of the #Fitfor55 package. However, to achieve the climate objectives and not lose support in the long run, together with several other automotive stakeholders, it is still convinced about the necessity of a technology-mix that embraces ALL relevant solutions to reduce CO2 emissions without ignoring the varied realities of people's lives and industry’s needs. We need to achieve the right balance!
Decarbonising road transport should not be socially and economically disruptive. Recent developments such as the pandemic and the war in Ukraine increase uncertainties. Raw material and energy prices have been on the rise for an extended period. The reliance on few supply sources poses critical risks to our European industrial base.
Electrification of mobility may help reducing fossil fuel imports in the long term but at the same time it bears the risk of creating new dependencies on raw material and battery cell imports, keeping value creation outside Europe.
As said, the automotive sales and repair businesses support all new technologies to reduce CO2 emissions, however, it is essential to move forward offering a certain transitional period which is crucial to prepare our businesses for the upcoming challenges and thereby ensuring high qualified maintenance and repair of the cars of tomorrow.
The entire automotive value chain, including dealers and repairers, is facing enormous challenges to level up and to reach the set targets. We all share the same opinion that the deployment of massive sales of zero-emission vehicles is only reachable if an extended infrastructure of recharging stations is available! The industry as well as the overall public opinion are questioning the speed of its deployment. Many potential customers remain reluctant and will only swift towards zero-emission vehicles once a widespread recharging infrastructure is deployed.
The European Council of Ministers will meet on 28 June. CECRA hopes Government ministers from each EU country will evaluate and take into account the above-mentioned uncertainties and take into account the arguments of all European stakeholders as well as the expectations of their respective citizens when deciding.
.jpg)
The Council approved the Data Governance Act (DGA)
Brussels, 17/05/2022
After the acceptance by the European Parliament, the Council has today approved a new law to promote the availability of data and build thereby a trustworthy environment to facilitate their use of research and the creation of innovative new services and products. The new rules will apply 15 months after the entry into force of the Regulation.
CECRA very much welcomes the principles and underlying objectives of the Data Act, particularly with regard to the regulation of B2C and B2B data sharing. We fully endorse the principle of the data sovereignty of Users of connected products, including their right to assign access to the data generated through the use of their products to 3rd party service providers of their choice.
While the general principles and provisions of the Data Act are very welcome, we see a real need for specific legislation for the Automotive sector, to translate the principles and provisions of the Data Act into concrete, legal and technical measures for the automotive sector.
After five years of extensive evidence-gathering, data collection[i] and discussions with all stakeholders, the European Commission newly publicly committed in February 2022 to updating type approval regulation, making it fit for the digital age and for the green transition. This would include regulation of access to in-vehicle data, as a sector specific complementary legislation to the Data Act. The objective of promoting innovation in the automotive and mobility sector.
CECRA has always been open to discuss with all relevant stakeholders solutions with the aim to reinforce consumers rights, the separation of duties and to enhance competition in the market for automotive and mobility services.
___
[1]The European Commission (EC) has over five years undertaken extensive evidence-gathering and data collection on the barriers to a level playing field for ‘Access to in-vehicle data and resources’ in the automotive aftermarket and mobility sector. It has engaged with all stakeholders, launched numerous public consultations and studies (e.g. JRC Study), and established a dedicated Working Group, which, over a six-month period, looked into what the market needs for innovation, effective competition, and consumer choice to be ensured in the context of an increasingly digitalised automotive sector. In 2018 AFCAR was also requested by the European Commission to participate in a Proof of Concept (PoC) to assess vehicle manufacturers’ Extended Vehicle (ExVe) model against the needs of the wider automotive servicing sector as regards the access to in-vehicle data and resources.
This fact-finding effort culminated in 2021 in a study on Policy Options, commissioned by DG GROW from TRL. This Study confirmed previous findings about the barriers to in-vehicle data and resources resulting in access for the whole eco-system being limited. TRL confirmed that this access problem is rooted in vehicle manufacturers’ closed telematics systems, which significantly impede third-party operators from competing in digital products and services.
New Vertical Block Exemption Regulation (‘VBER') and its Vertical Guidelines
Brussels, 12/05/2022
As CECRA indicated in its first press release published on 10 May, the day of the publication by the European Commission of its new Vertical Block Exemption Regulation as well as its Vertical Guidelines and explanatory note, a first analysis of all the texts could be made.
It should be recalled that the drafting of these texts was finalised after a long consultation process in which CECRA and its members took part, and after a draft published on 9 July 2021. "The new rules will provide companies with up-to-date guidance that is fit for an even more digitalized decade ahead. The rules are important tools that will help all types of businesses, including small and medium enterprises, to assess their vertical agreements in their daily business," said Margrethe Vestager, Executive Vice-President of the European Commission responsible for Competition Policy.
In the framework of the consultation, the draft has been amended and integrates the remarks of the different stakeholders. CECRA is pleased to have been heard on several of its key demands.
Firstly, this new regulation now regulates the exchange of information in cases of "dual distribution" by the supplier, i.e. when the supplier sells directly to the final customer and is in competition with its network. The Commission noted that the development of direct sales posed problems regarding exchange of information between competing companies. Admittedly, the framework was much tighter in the draft published in July 2021 since the Commission had provided for a total exemption of the agreement only in the event of a combined market share on the local downstream market of less than 10%, which is exceeded in the case of most networks and is undoubtedly complicated to calculate. Nevertheless, Article 2 (5) of the Regulation limits the exchange of information between the supplier and the distributor to that which is directly related to the implementation of the vertical agreement and necessary to improve the production or distribution of the contract goods or services. In this respect, the Guidelines state that "In a selective distribution system, it may be necessary for the distributor to share information with the supplier relating to its compliance with the selection criteria and with any restrictions on sales to unauthorised distributors. Point 99 of the Guidelines specifies examples of information that may improve the production or distribution of the contract goods or services (technical information, logistical information, customer preferences, etc) and point 100 examples of information that is unlikely to fulfil these conditions: information relating to future prices and information relating to identified end users. This last point, even with exceptions, is important for distributors since some manufacturers have recently been tempted to oblige their network to provide customer data, which is now regulated by the Guidelines.
Secondly, if in 2010 the European Commission was keen to encourage the development of the Internet, in 2022 it now considers that this is no longer necessary. This concerns dual pricing and translates into the possibility for the supplier to have a different wholesale price depending on whether the product is sold in a shop or on the Internet. In other words, suppliers will be able to adjust the network margin according to the sales channel. However, the dual pricing exemption remains subject to the twofold condition that the wholesale price differentiation is justified in view of the level of investment required to sell online or offline respectively, and that the price difference does not jeopardise the profitability or viability of online sales (point 209 of the Guidelines). Wholesale prices that would either not allow for an adequate return on the investments made in physical sites or would jeopardise the profitability of online sales would therefore not be exempted.
Thirdly, the 'hybrid' sales platforms: Article 2 (6) of the new VBER excludes from the block exemption vertical agreements relating to the provision of online intermediation services ('OIS') where the OIS provider (the platform) also sells goods or services in competition with the firms to which it provides intermediation services (namely where it has a hybrid function). In the automotive sector, this provision is aimed at the supplier who hosts the sales of its network on its website. This supplier will therefore not benefit from the exemption of the new regulation. In concrete terms, a manufacturer will no longer be able to manage a website when it sells goods or services directly in competition with the companies to which it provides intermediation services if it wants to continue to benefit from the exemption.
This provision was already present in the draft. It is mainly aimed at the large Gafa platforms, notably Amazon, which are suspected of using the analysis of retailers' sales data to favour their own sales.
Although the New Vertical Guidelines state in Section 4.4. 4 that the Commission is unlikely to give priority to enforcement against vertical agreements concluded by hybrid platforms where the agreement does not contain restrictions by object and the platform does not have significant market power, CECRA welcomes the system retained because some manufacturers intended to organize their website in such a way as to offer not only new vehicles, but also used vehicles, financing and mobility services, and to organize the common website, they intended to rely in particular on the personal data of customers and strategic commercial information collected by their network.
CECRA has indicated since the beginning of the consultation process that while a central website common to a network can improve the visibility of a brand, it does not have to be controlled by the supplier and that the management of platforms common to a network by a trusted third party is perfectly possible.
Furthermore, the guidelines accompanying the Regulation provide a framework for agency status. Under competition law, this status does not need to be exempted since the agent is merely an auxiliary of the supplier for the sale of its products and is therefore no longer an independent undertaking.
However, in this case, all investments and risks relating to the marketing of the products must be borne by the supplier. The Commission details the costs that must be reimbursed to the agent: the Guidelines (points 23 to 45) make the recognition of the status of agent within the meaning of competition law conditional on the agent not having to bear all the costs specific to the contracts concluded and/or negotiated by the agent, the costs relating to the investments specific to the market as well as the risks relating to other activities carried out on the same product market when this independent activity is required by the supplier (or in the case of assumption of costs that it remains absolutely insignificant).
CECRA is particularly pleased to have been heard on the need to separate the assumption of costs from the remuneration of the agent : the draft allowed for the assumption of costs on a flat-rate basis or as a percentage of the turnover achieved, which opened the door to confusion between the reimbursement of costs which is the responsibility of the supplier and the commission which remunerates the intermediation service. It was essential that this be clearly separated, which is now the case as the Guidelines in point 35 state that while manufacturers may use different methods to reimburse an agent or commissionaire for their costs, "the method used by the principal should allow the agent to easily distinguish between the amount(s) intended to cover the relevant risks and costs and any other amount(s) paid to the agent, for example intended to remunerate the agent for providing the agency services".
A supplier/manufacturer may opt for a purchase/resale distribution system for part of the new vehicles in its ranges and for an agency or commission system for another part. In this case, however, all investments in new vehicles distributed on an agency or commission basis must be compensated by the supplier/manufacturer, even if they have been incurred by the distributor in the course of its purchase/resale activity, as long as they have not been amortised by the date of implementation of the agency or commission system.
These last two clarifications have been incorporated into the final version of the Guidelines following comments made by CECRA and its members.
In conclusion, manufacturers who opt for this type of contract will have to compare the advantages they can gain from controlling the retail price of their vehicles with the costs they have to bear. This of course applies to genuine agency contracts and not to non-genuine agency contracts which would be used by manufacturers and for which CECRA had warned of the dangers - in terms of competition law - in its previous press release. The Commission itself clearly recalls in point 45 of its guidelines that resale price maintenance ('RPM') is a hardcore restriction and a restriction by object, "the agency relationship should not be misused by suppliers to circumvent the application of Article 101 (1) of the Treaty.
Finally, regarding the automotive sector, the Commission has planned to publish its draft future specific regulation (to replace the current Regulation 461/2010) in June 2022 for an entry into force on 1 June 2023. CECRA hopes that this future specific regulation will continue to allow for a balance between authorised and independent repairer networks and will also address the following two issues:
-
the maintenance or not of the exemption of quantitative selective distribution systems (allowing manufacturers to control - numerus clausus - and the location of their distributor) at 40% market share, tolerated for the distribution of new vehicles, instead of the general exemption threshold of 30%,
-
the introduction of provisions guaranteeing the possibility of being an authorised repairer "on their own"; in particular for dealers whose contracts have been terminated for the sale of new vehicles. The rule according to which an operator, who continues to meet the purely qualitative criteria required to be a repairer, should be able to be re-authorised if his previous contract has been terminated without fault, has indeed been challenged by various national courts in the name of contractual freedom.
Vertical Block Exemption Regulation (‘VBER') and its Vertical Guidelines
The European Commission has published today the new Vertical Block Exemption Regulation (‘VBER') and its Vertical Guidelines
Brussels, 10/05/2022
The new rules are on the one hand narrowing the scope of the safe harbour regarding dual distribution, that is, where a supplier sells its goods or services through independent distributors but also directly to end customers, and parity obligations, that is, obligations which require a seller to offer the same or better conditions to its counter-party as those offered on third-party sales channels, such as other platforms, and/or on the seller's direct sales channels, like its website. In other words, certain aspects of dual distribution and certain types of parity obligations will no longer be exempted under the new VBER but must instead be assessed individually under Article 101 TFEU.
On the other hand, the rules are enlarging the scope regarding certain restrictions of a buyer's ability to actively approach individual customers, i.e. active sales, and certain practices relating to online sales, namely the ability to charge the same distributor different wholesale prices for products to be sold online and offline and the ability to impose different criteria for online and offline sales in selective distribution systems. These restrictions are now exempted under the new VBER, provided all other conditions for the exemption are met.
The Vertical Guidelines are providing detailed guidance on a number of topics, such as dual distribution, exchange of information, dual pricing and the very important topic of agency agreements which gave rise to two CECRA’s press releases (“Non genuine agency contracts are potentially an anti-competitive practice” & "Obligations to be respected when choosing an agent contract").
The Commission believes that these new rules, which come into force on 1 June 2022 and will be valid till 31 May 2034, are simpler and clearer.
CECRA, together with all its members, has started examining thoroughly these new rules and will comment them very soon.
Non genuine agency contracts are potentially an anti-competitive practice
Brussels, 04/04/2022
Many automakers are turning towards agency sales models, this to combine the strengths of their widespread network of independent dealers with the benefits of more tightly managed sales processes and direct customer access.
In theory, manufacturers are free to decide upon which distribution model to unroll, however, they shall respect and comply to contractual obligations of that particular distribution model put in place. In other words, they are not allowed to combine different models and taking advantage out of each particular system.
CECRA notices a trend towards manufacturers opting for an agency model. This agent model consists of appointing a ‘sales agent’, who acts in the name of and on behalf of a manufacturer called the ‘principal’. The role of the agent consists essentially in taking orders from customers and forwarding them to the manufacturer who then delivers directly to the customers at the price fixed by the principal. All financial risks and investments are borne by the ‘principal’ (manufacturer). ,
This model also labelled as genuine agency contract. Called genuine because of them being outside of the scope of the competition legislation which is designed for regulating business conducts of independent parties. A ‘genuine’ agent is not independent from the manufacturer
Should the agent’s responsibilities go beyond an ‘insignificant'’ financial and investment risk (also known as ‘non-genuine’ agency contract), the position being exempted from competition legislation will be lost. Consequentially, under such a ‘non-genuine’ agency contract, the manufacturer is not allowed to fix the end-customer price. In this aspect the non-genuine agency is very similar to a distribution model, where the financial risks and investments were to a great extent supported by the dealers and the dealers were basically free to set the final end-customer prices.
CECRA warns manufacturers, they shall be fully aware of this and take into account all the aspects and obligations an agent contract implies. Although, as said, there are strict rules to comply with, we see some manufacturers becoming imaginative and a number of scenarios are emerging.
We are informed that some manufacturers try to play a ‘cherry-picking game’. Some manufacturers have ‘proposed’ to their actual dealers to switch to non-genuine agent contracts by which the ex-dealers would have to continue bearing significant investments and risks, and the final price would not be entirely fixed (e.g. letting the final price to the customer fluctuate by a few dozen euros, this being the possible waiver of commission from the agent to the final customer). This amount would obviously be derisory and would certainly not make it possible to consider that the manufacturer does not control the sales price to the final customer and can therefore dispense with assuming the commercial and financial costs and risks.
In the absence of an effective possibility for "agents" to give up a significant part of their commission, there is a risk that the competition authorities will consider that there is a de facto situation of imposed resale price, which is a black clause in the current Block Exemption Regulation and will remain so in the future draft regulation as well. The European Commission is well informed about these practices and is following it up closely.
CECRA therefore considers that from a legal point of view, this system of "false" agent contracts does not hold water and presents serious risks both for manufacturers who would like to follow this path and - even if to a lesser extent - for distributors who sign "false" agent contracts who could thus become (against their will since the distributors would have been forced to sign these contracts under penalty of termination of their relationship with the brand concerned!) stakeholders in an anti-competitive practice and thus potentially exposed to fines!
Economically, manufacturers should not 'offer' contracts to their partners if they know that the proposed business model is not viable. CECRA is not per se opposed to the use of genuine agent contracts which can have positive elements for both manufacturers and current dealers but: "Whatever distribution model manufacturers will unroll, one fundamental aspect is that whether it is a distributor or an agent, they need an economic viable business model, otherwise the future of distributing, repairing and maintaining cars will be disrupted".
CECRA welcomes the Data Act and confirms the need for specific regulation
Brussels, 24/02/2022
The automotive sales and repair sector welcomes the publication of the Data Act, which is recognised as a well-proven landmark in the Digital Single Market journey.
More precisely, the high-level principles for end-users and service providers presented in the Data Act should be urgently and concretely deployed in the automotive sector. To this end, CECRA recalls the need to accelerate the required steps for putting in place sector specific provisions for accessing in-vehicle data, and being able to ensure fair competition among industry players and EU competitiveness and leadership.
Read more on the press release of the broad coalition representing a wide range of major automotive aftermarket stakeholders, as well as operators in the mobility services value chain, consumers, the insurance and the tyre industries.
The Frankfurt court has just ruled that the Opel dealer remuneration system in Germany is illegal. The Belgian Competition Authority received a complaint for similar facts
Brussels, 24/12/2021
In November 2020, VDOH, the Association of German Opel Dealers which is member of the European Opel Dealer Council, member of CECRA, had filed a lawsuit on behalf of its members against Opel’s so-called "Commercial Policy", which regulates the remuneration system for its authorised dealers.
According to the association, the complaint is directed against the general structure of the remuneration system, its incalculability and, above all, against the numerous unilateral possibilities for change, including intervention in the margin.
Last week, the Frankfurt Regional Court upheld the action against Opel for its “Commercial Policy”. Opel may no longer impose a regulation on its sales partners in which the manufacturer can arbitrarily change the remuneration of its dealers consisting of a fixed margin and bonuses.
Opel Germany has already announced that it will appeal the ruling to the Higher Regional Court of Frankfurt am Main.
CECRA’s General Director Bernard Lycke said: “I very much welcome the decision of the Frankfurt Regional court as another[1] breakthrough in dealers’ decade-long struggle for more fairness. Especially in light of all current radical changes and challenges, this Court’s decision could change the margin regulations of many makes and therefore paving the way for a balanced and fair partnership in the automotive industry”.
"Obligations to be respected when choosing an agent contract"
Brussels, 07/12/2021
During more than 100 years, the automotive wholesale model has remained mostly unchanged. The automotive manufacturers build cars and sell them to their selected network partners ‘dealers’. Dealers, investing in sales and repair infrastructures complying to their manufacturer(s) corporate identity, take care of all the sales and service activities.
New vehicle architectures, technologies, changing customer behaviors and new mobility concepts are transforming the entire automotive ecosystem and this wholesale model is about to change. Many automakers are turning towards agency sales models, this to combine the strengths of their widespread network of independent dealers with the benefits of more tightly managed sales processes and direct customer access.
Peter Daeninck, Chairman of CECRA’s European Car Dealers' Division says that: “in theory, manufacturers are free to decide upon which distribution model to unroll, however, they shall respect and comply to contractual obligations of that particular distribution model put in place. In other words, they are not allowed to combine different models and taking advantage out of each particular system. We will not accept this kind of cherry-picking!”
Bernard Lycke, Director General, adds that: “we notice a trend towards manufacturers opting for an agency model. We are speaking about genuine agency contracts. Called genuine because of them being outside of the scope of the competition legislation. In a ‘non-genuine’ agency contract, vertical price fixing is not allowed.” This genuine agent model consists of appointing a ‘sales agent’, who acts in the name of and on behalf of a manufacturer called the ‘principal’. The role of the agent consists essentially in taking orders from customers and forwarding them to the manufacturer who then delivers directly to the customers at the price fixed by the principal. All financial risks and investments are borne by the ‘principal’, whereas prior, within the distribution model, the financial risks and investments were to a great extent supported by the dealers”. CECRA warns manufacturers, they shall be fully aware of this and take into account all the aspects and obligations an agent contract implies”. Although, as said, there are strict rules to comply with, we see some manufacturers becoming imaginative and a number of scenarios are emerging. We are informed that some manufacturers, having resigned their actual distribution contracts with their network and appointing agents, are requesting the latter to transform their business and to make the necessary investments. The European Commission is well informed about these practices and is following it up closely”.
Another aspect of changing distribution models is the issue of customer database, an important asset built up over the years by independent dealers. Within the agency model, manufacturers will be in direct contact with the end customer. The customer database is therefore a crucial aspect in order to be able to unroll this model successfully.
“Indeed” says Lycke, “In the course of changing dealer contracts into agent contracts, the issue of customer transfer must be addressed prior to signing the agent contract! However, we do not hear anything about it. As it is clearly specified within the European Commission’s guidelines, this shall be respected and compensated!”, he reacts.
CECRA’s President Jean-Charles Herrenschmidt concludes: “Whatever distribution model manufacturers will unroll, one fundamental aspect is that whether it is a distributor or an agent, they need an economic viable business model, otherwise the future of distributing, repairing and maintaining cars will be disrupted”.
.png)
Brussels, 23/09/2021
During the first plenary session, dedicated to Green Deal, the Executive Vice President of the European Commission, Frans Timmermans set out the Commission’s goal and plans for making Europe the 1st climate continent by 2050. In his speech, he addressed the audience by saying that the automotive industry and its services have an important role to play in the transition to a climate neutral future. Transport is the only sector where greenhouse gas emissions have been on the rise. The bulk of that is caused by passenger cars. To bring these emissions down, he invites the whole industry to accelerate its efforts and to increase the market share of electric vehicles. He added, as it will have a serious impact on car dealerships and repair shops, a transition plan is therefore needed. As regard the social impact, he invites the industry to share thoughts and ideas on how best workers could switch jobs.
In the role out of the charging infrastructures, an acceleration is also needed. The Commission is therefore proposing ambitious and binding targets per member state to deploy the publicly available infrastructure.
There is a real need to prepare and adapt the entire mobility system. It includes the shift towards clean transport modes like cycling and zero emission transport, as well as to review the tax systems.
Timmermans concluded by saying that he counts on the automotive ecosystem representatives to help the Commission to get a transition that will be bold and that will leave no one behind.
The ensuing debate clearly showed the will of all to move towards CO2 reduction at full speed, but that in the short transition period, defined by the Commission, hybrid cars for long journeys with light batteries that consume less CO2 and electric vehicles for short urban journeys were still necessary to carry out the transition and to have time to train new skills. The rapid replacement of the most polluting cars with subsidies for low-income households, the development of hydrogen research, the use of alternative fuels and the acceleration of the development of fast-charging systems should be the priorities. The participants therefore decided to establish a more precise schedule and a fair distribution of tasks in the coming months.
The connectivity and digitalisation, dealt with in detail within the second plenary session, evoked some intensive discussions. It goes without saying that connected in-vehicle data is key. Several associations including CECRA, the automotive aftermarket operators, mobility services and consumers developed a system called S-OTP, a secure on-board telematics platform, which allows accessing data and functions emitted by the vehicle under the same conditions as manufacturers. However, the opinions between manufacturers’ association ACEA and aftermarket players were diverging, the session ended with a rather positive note. ACEA’s Director General Eric-Mark Huitema reached out to CECRA to continue the negotiations taking into account that in the end it is up to the customer to decide upon his data.
The focus of the 2nd day was put on the future automotive distribution models. Natalia Lazarova, the Head of Unit Antitrust at the Commission, set out the regulations applicable to the automotive distribution and repair sector. Both regulations are currently under review. She very much welcomed the event as through these exchanges, the Commission better understands the needs of the automotive players. The Commission is at present drafting the new rules. She invites CECRA’s members to send their comments to the last consultation round.
Klaus Zellmer, member of the Board of Management Sales, Marketing and After Sales of Volkswagen passenger cars, said VW has implemented an agency distribution model for specific products (e.g. electric vehicles) since one year. In order to assess tomorrow’s challenges, OEMs need to be more connected with their customers. The agency model would permit them to do so. The established network of dealers would be integrated into this new model as they have an essential role to play in the overall process of the customer’s buying process and experience. Being at the front desk, guiding and assisting customers in the technicalities and specificities of that good is fundamental.
Christian Bourgeon, lawyer specialized in distribution law, spoke about the legal details between a franchise and agent contract. These will further intensively be examined and discussed at CECRA dedicated working group. Nicolas Lenormant, a French truck dealer, and Jean-Charles Herrenschmidt, President of CECRA said as dealers start to make huge investments to ease energetic transition, it is highly important that new contracts would not create more precarity on their business. An exclusive distribution system or, at least a moratorium would be appreciated in this very challenging and sensitive period.
Bernard Lycke, General Director of CECRA, explained that it is up to OEMs to decide upon which distribution model to unroll. However, they shall indeed respect the contract conditions linked to that particular model put in place. As partners, manufacturers and dealers need to start off their bilateral discussions on the details of the future envisaged distribution models in order to make sure to come to a win-win situation and not to a one side approach which could lead to a demotivation of the networks and therefore result into an undesirable outcome.
This message was relayed by Rhett Ricard, Chairman 2020 of the American dealer association NADA and representatives of Chinese, Brazilian and Russian dealer associations which supported the European sales and repair firm standpoints and underlined the importance of dealers in their respective countries.
The assembly, through several witnesses including Thomas Martin, HR Director of the Frey Group in France, insisted on the fact that the transformation within the automotive industry will furthermore have a huge impact on jobs. Skilling, reskilling and upskilling is essential to make sure workers are not left behind. They shall be trained in conformity to the upcoming changes enabling them to perform high qualified repairs and maintenance of the future car park and by this means to ensure compliance to environmental standards and above all to guarantee road safety.
Francis Bartholomé, President of the French national association CNPA, underlined the same urgencies during the gala dinner speech. ‘Challenges are ahead, it is time to act and to put all actors around the table for the sustainability of all our companies and our workers”.
Jean-Charles Herrenschmidt, President of CECRA, said the conference has clearly sounded the alarm and the risk of not accelerating in the face of competitors who have taken the lead. It has allowed all stakeholders to start looking in the same direction in order to find efficient and cost-effective solutions in the coming months. They will be used to move forward quickly because it is time to move on and to work together to prepare the shift. Both Jean-Charles Herrenschmidt and Christophe Carignano said: "a 2nd edition of #CONNECTEurope will be organized next year to take stock of all the progress made".
CECRA and Infopro Digital have just closed their 2-day conference on Europe’s automotive mobility #CONNECTEurope with great success. The event hosted approx. 150 participants representing European and International leaders from the up & downstream automotive world as well as decision makers from the European institutions
Brussels, 13/09/2021
Ahead of the European Commission’s Workshop on “Access to In-Vehicle Data” scheduled on the 17th of September next, a broad coalition, of which CECRA is part, representing automotive aftermarket operators, vehicle dealers, mobility services and consumers urges the European Commission to publish an ambitious legislative proposal on access to in-vehicle data by the first quarter of 2022 at the latest.
The ongoing lack of access to in-vehicle data and functions increasingly jeopardizes our ability to compete in digital products and services and to provide customers, both consumers and fleet owners/operators, with the digital services they expect. The recent TRL Study Report commissioned by the European Commission depicts these problems, which are rooted in vehicle manufacturers’ closed telematics systems. Another study, commissioned by the consumers organisation FIA Region I, showed that if this model would continue to establish itself, it could lead to consumers and independent service providers having to absorb additional costs of around €65 billion per year by 2030.
It is therefore time to act! After already lengthy investigations and several postponements since 2018, the draft legislation should be put in the legislative loop no later than the first quarter of 2022 to have a chance to go through the complete ordinary legislative procedure. Any delay could result in this major legislation protecting consumers and SMEs being delayed to the next terms of the European Commission and of the European Parliament, putting at risk the competitiveness and the survival of the 500.000 companies and 4,5 million jobs we represent.
A robust and ambitious sector-specific legislation is needed. What is at stake is too important to be handled with soft measures . A principles-based legislation underpinned by specific technical and legal requirements is needed to guarantee equal access to the vehicle, its data, functions and communication with the users. This legislation must address the systemic problems which have unequivocally been identified over the last years. It must be efficient and robust enough to remain relevant over several years. The specificities, the complexity and the importance of the automotive market require a sector-specific legislation and cannot be addressed in the broader horizontal initiatives in the framework of the European Data Strategy.
There is a simple solution: mandating a Secure On-Board Telematics Platform (S-OTP). The S-OTP is a set of requirements based on equipment which is already in the vehicle and on existing standards, involving no additional device. It puts the consumers/drivers in control, enabling them to freely choose which service providers have access to which technical data and for which purpose. Only services which are independently assessed, tested and approved could be chosen by the consumers. It is fully in line with the European Union’s objectives in terms of data privacy, cybersecurity, digitalisation, and enhancement of road mobility. We have published earlier this year a detailed technical description of what the S-OTP would be and how it would work, and today we release a set of videos to explain it in a shorter way. This video explains clearly how digitalisation is transforming road mobility, how the S-OTP is the perfect solution for the challenges arising from this trend, and what its benefits are for the consumers, the economy and society at large.
CECRA, together with the other members of the coalition, urge the European Commission to publish an ambitious and comprehensive legislative proposal on “Access to In-Vehicle Data” by the first quarter of 2022, to safeguard true consumer choice, innovation, and effective competition for digital automotive services.
A broad coalition, of which CECRA is part, urges the Commission to publish an ambitious legislative proposal on access to in-vehicle data by Q1/2022
European Commission’s zero-and low-emission vehicles ambitions into high gear
8 July 2021
In the European Commission’s communication on the ‘European Green Deal’ published end 2019, it was announced, the Commission would by June 2021, propose its revised legislation on CO2 emission performance standards for cars and vans.
Within the so-called ‘Fit for 55’ legislative package, the Commission is currently finalizing its proposal for a directive amending Directive 2003/87/EC and decision (EU) 2015/1814 to strengthen the EU Emissions Trading System and extend it in line with the Union’s increased climate ambition for 2030. Once this Directive is approved, Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive by 31 December 2023 at the latest.
CECRA, the European Council for Motor Trades and Repairs, representing automotive sales and repairs businesses at European level are looking forward to take stock of the Commission’s proposal and to examine whether it is achievable within the set timeframe.
Jean-Charles Herrenschmidt, President of CECRA says: “it is necessary to move forward towards zero-and low-emission vehicles and thereby achieve the Commission’s goal of a carbon-neutral Europe. The automotive sales and repair businesses welcome all new technologies to reduce CO2 emissions, however, it is essential to move forward offering a certain transitional period which is crucial to prepare our businesses for the upcoming challenges and thereby ensuring high qualified maintenance and repair of the cars of tomorrow.”
It goes without saying that the entire automotive value chain, including dealers and repairers, is facing enormous challenges. An extended infrastructure of recharging and refuelling stations is crucial for the deployment of massive sales of zero- and low-emission vehicles. European customers will only be willing to shift towards these vehicles if the infrastructure is available. Automotive manufacturers are questioning the speed of its deployment. If tomorrow, customers remain reluctant who will buy these vehicles?
CECRA is therefore requesting the Commission to take into account a transition period which is needed to transform all stakeholders’ businesses as well as to set the deployment of recharging and refuelling stations into high gear.
Important communication from the Stellantis group about future dealer and authorised repairers contracts
20 May 2021
Yesterday, the Stellantis Group announced it will terminate all sales and service distribution contracts by 31 May next. The Group is reorganising its distribution and has given two years’ notice to all its sales and service partners. It plans to build a multi-brand distribution model which it will launch in June 2023.
Only in some cases dealers have been approached. There is no letter of intent. Representatives of dealer organisations will be approached and will be actively involved in the development of future sales plans and strategies. In recent years, the manufacturer has already started to merge the Peugeot and Citroën networks with that of Opel. The new distribution network will be selected on the basis of key objective drivers and criteria.
Stellantis, which operates brands including Vauxhall, Peugeot, Citroen, Fiat and Jeep, is making the move ahead of the new Block Exemption regulations which are due to come in on 1st June 2022 for the general rules and 1st June 2023 for the motor rules.
CECRA, together with its Citroën, Opel and Peugeot European Dealer Councils members will follow carefully the evolution.
This radical decision only comes less than two months after the Austrian Supreme Cartel Court banned its Peugeot brand from tying dealers payments to customer satisfaction surveys and from subsidising vehicle prices sold at its manufacturer-owned sales outlets. The case arose following a long legal dispute between Austrian Peugeot dealer Büchl and PSA's Peugeot Austria, in which Büchl claimed Peugeot's national sales company was abusing its market power and in breach of competition law.
CECRA and all dealers across Europe took note of the decision of the Supreme Court which should be taken into account together with the new EU rules to pave the way to a balanced distribution model between manufacturers and their networks after June 2023.
Creating a level playing field for vehicle data access in the interest of consumers: Secure On-board Telematics Platform Approach
30 March 2021
A large coalition representing automotive dealers, aftermarket and consumers is calling on the European Union to take on board its proposal for a Secure On-board Telematics Platform (S-OTP) when legislating on access to in-vehicle data. In the detailed document, “Creating a level playing field for vehicle data access: Secure On-board Telematics Platform Approach”, publishers of technical information, body repairers, dealers and workshops, garage equipment suppliers, tyre manufacturers, road patrols, parts distributors and leasing and rental companies, as well as consumers, provide technical and commercial arguments sustaining their recommendation.
It is the only solution guaranteeing true consumer choice, effective competition and free entrepreneurship in a secure and technology-neutral manner.
With the advent of the connected car, competition now starts in the vehicle where the ability to safely and securely access in-vehicle data, functions and resources determines the quality of the service. The intention of the S-OTP is therefore to ensure that consumers can still choose and rely on service providers, many of them SMEs, to benefit from innovative, competitive and affordable services and products, improving road mobility, safety and sustainability. To do so, service providers have to be able to compete with all mobility stakeholders, some of whom might be tempted to act as “gatekeepers” through proprietary access methods to in-vehicle data.
As a solution addressing the challenges of true consumer choice, security and free entrepreneurship in the automotive services sector, the S-OTP is based on some key characteristics, such as:
-
Consumer is in full control regarding the access to in-vehicle data;
-
A clear separation of duties, with free management of access control for all service providers, including vehicle manufacturers;
-
Unmonitored and undistorted communication between in-vehicle services and their respective back ends;
-
Independent customer contract/direct consent management and service offering without the interposition of the vehicle manufacturer;
-
Standardised access to in-vehicle networks via safe and secure software interfaces enabling bi-directional communication with the vehicle;
-
The ability to safely interact with the driver through the vehicles human-machine interfaces.
Enabling effective competition in the automotive aftermarket, the S-OTP would benefit consumers and society at large, by:
-
Empowering consumers by ensuring their rights on privacy and widening their choice of service providers;
-
Boosting innovation and facilitating the digital transformation of mobility and the deployment of a digital ecosystem of services;
-
Contributing to the European Union’s path to become a frontrunner in connected and autonomous mobility and related services.
The S-OTP concept is in line with the European institutions’ ambitious goals to foster innovation and legislate in a way that works for the modern economy. The initial concept has been enriched to take into account the increased (cyber-)security requirements, by including certification of service providers and a robust approach to the development of secure applications, which consumers and operators can choose to install in their vehicles.
The coalition of associations has fed this concept into the study conducted by TRL on behalf of the European Commission, and invite the European legislators to take into account this detailed and complete solution (which enables consumers, vehicles and independent businesses to go smarter, safer, greener) when assessing legislative options.
Austrian Supreme Court rules that Peugeot Austria has abused market power against independent dealers
26 March 2021
Source: Competition Counseling & Research Peter Thyri
On March 22, 2021 the Austrian Supreme Cartel Court upheld the Cartel Court‘s earlier decision of May 12, 2020 in a legal dispute between Austrian Peugeot dealer Büchl and Peugeot Austria (PSA), that the general importer for Peugeot vehicles in Austria abused its market power vis-à-vis Büchl in violation of Austrian and European competition law. Büchl had turned to the cartel court because, like many other Peugeot dealers in Austria and Europe, it claimed to suffer from PSA‘s suffocating system of requirements and non-transparent reimbursement conditions.
The Supreme Court has banned Peugeot from tying the dealer‘s premium payments to customer satisfaction surveys; reducing the dealer‘s margin if they do not reach sales targets inflated by PSA and competing with dealers through subsidized vehicle prices on the end customer market at PSA’s own, vertically integrated sales outlets. Also, an elaborate control system for guarantee and warranty work and hourly rates that did not cover the dealers costs is prohibited, as those measures make guarantee and warranty work unprofitable for dealers. Finally, PSA may no longer pass on the costs of its mystery shopping and audit system for the new car and workshop business to dealers.
The Supreme Court recognizes that PSA economically forces dealers to take part in promotions and thereby restricting dealers’ freedom of setting their own prices. While the Cartel Court of first instance is requested to further complete its findings and decide anew as to this point, all the other points are now legally binding and must be implemented by PSA within three months time.
The Supreme Court stresses that its decision applies to all contractual relationships in which similar economic dependencies exist and awaits considerable changes in the remuneration system of PSA. The Supreme Court also clearly points to the parallel applicability of European competition law and elaborates on the finding of a dominant position on the part of the importer as well as on the treatment of abusive clauses in contractual relationships under Art 102 TFEU.
PSA's remuneration system must be adjusted within the deadline set by the Supreme Court. For other brands ‘networks – especially those of the newly formed Stellantis-Group directly affected by the decision – the judgement can serve as a valuable guideline to legal safety. It will also have to be discussed how numerous Peugeot dealers subject to the abusive conditions can be reimbursed for the loss in remuneration they suffered over the years as a consequence of PSA’s violation of the prohibition to abuse a dominant position.
CECRA and its Austrian member WKÖ welcome the decision of the Supreme Court as a breakthrough in their decade-long struggle for more fairness in the manufacturer-dealer relationship in Austrian and European car markets. Especially in light of all current radical changes and challenges, the judgment paves the way for a new partnership in the automotive industry.
Electric vehicles – the race for transformation
26 February 2021
In 2020, hybrid electric vehicles made up 11.9% of total passenger car sales across the EU (5.7% in 2019). Electrically-chargeable vehicles accounted for 10.5% of all new car registrations, compared to a 3.0% in 2019. While the European market was cut by approx. 24% of its passenger car sales due to the COVID pandemic, sales of hybrid and electric vehicles exceeded diesel sales in Europe for the first time with more than 900.000 vehicles sold. Germany, Italy and France have seen their sales of electric vehicle explode. According to Xerfi, a consulting firm, this is just the beginning. In France, for example, sales of electric and plug-in hybrids are expected to increase by 30% per year on average to represent 25% of the total market in 2025.
Car manufacturers race to transform their business to meet CO2 emission targets set by governments across the world. The UK government already announced to ban sales of new cars and vans powered by petrol and diesel from 2030. The Norwegian government, determined to take the lead, will interdict the sales by 2025. Car manufacturer Ford is planning all its cars sold in Europe to be electric by 2030. They would invest $1bn converting a vehicle assembly plant in Cologne, Germany, to become its first electric vehicle facility in Europe. The first all-electric cars would start rolling off the production line in 2023.
ACEA’s Director General, Eric-Mark Huitema says in yesterday’s press release that the CO2 targets can only be reached if a dedicated network of charging points right across the EU is deployed. The upcoming revision of the Alternative Fuels Infrastructure Directive (AFID) must be used by the European Commission to force member states to deploy one million public charging points across the EU by 2024, and to triple that number to three million by 2029. Likewise, some one thousand public hydrogen stations should be made available for cars and vans before 2030.
CECRA has always spoken out like the European Commission during the high level working groups (Cars 21, Cars 2020 and Gear 2030) in favour of technological neutrality. It is necessary to move forward towards zero CO2 emissions by 2050 but with the necessary transition that this represents and by being open to all technologies, whether electric or hydrogen engines.
CECRA also represents all repairers who have a major role to play in keeping millions of cars on European roads in good condition, as it contributes to better road safety as well as to the environment. For this reason, CECRA is part of several alliances with other European associations. It has recently jointed the ‘European Clean Hydrogen Alliance’.
CECRA welcomes two new members
3 February 2021
CECRA welcomes the Portuguese national trade association, ARAN as an active member and FinMobility as a goodwill member.
ARAN’s new President, Rodrigo Ferreira da Silva, said “our board agreed to apply for a membership within CECRA and as President I welcome this decision as it is very significant, with an ever more challenging future for our sector, only together we grow stronger”.
CEO, Head of Brussels Office of FinMobility, Pasi Moisio said “we are willing and committed to join and strengthen the cooperation between CECRA and FinMobility. FinMobility has several pillars of mobility advocacy (passenger and freight transport, logistics, taxi sector, automotive, infrastructure, driving schools). I am sure that CECRA will also benefit from this teamwork”.
ARAN’s mission is to promote, defend and support the interests of the activities within the automotive sector. It fosters the spirit of solidarity and mutual support among its members, as well as their development. ARAN develops skills and promote activities that boost the interests and the professional development of its members.
FinMobility is a leading voice in the EU for the Finnish employers’ and business organisations in the mobility sector. FinMobility represents 13.500 companies employing 100.000 people. FinMobility cooperates widely and transparently with the EU-institutions, Brussels-based representatives of transport and mobility sectors, business organisations and authorities of the EU member states. We also participate in the activities of our members’ umbrella organisations in the EU.
EU passenger car market contracted by 23.7%
2020 worst year on record
19 January 2021
Today, ACEA published its registration figures for the full year 2020.
The EU passenger car market contracted by 23.7% to 9.9 million units as a direct result of the COVID-19 pandemic. 2020 saw the biggest yearly drop in car demand since records began, with new-car registrations falling by 3 million units compared to 2019. All 27 EU markets recorded double-digit declines throughout 2020.
Among the region’s biggest car markets, Spain posted the sharpest drop (-32.3%), followed closely by Italy (-27.9%) and France (-25.5%), while full-year losses were significant but less pronounced in Germany (-19.1%).
This drop in sales has a huge impact on the entire automotive value chain and in particular on automotive dealers and repairers represented by CECRA.
CECRA’s European Car Dealers Chairman Peter Daeninck said “These figures are to be taken into account during manufacturers’ sales target negotiations with their authorised network”.
ACEA’s full report on new passenger car registrations – December & full year 2020.
CECRA and ACEA jointly ask the European Commission to provide written assurances to Member States in the issue of end-of-series provisions for vehicles in stock
17 November 2020
Due to the interruptions in sales of automotive vehicles caused by the COVID-19 pandemic, CECRA, ACEA and the automotive industry associations urge the European Commission to intervene regarding the postponement of the application dates of several EU pollutant emission and safety standards, as well as flexibilities on the so-called end of series (EoS) provisions for vehicles in stock that manufacturers and dealers were not able to sell before the entry into force of the Euro 6d-TEMP.
Through the European Commission’s guidance during the first lockdown last summer, many Members States introduced flexibilities at national level taking away a significant pressure on automotive importers and sales outlets to meet the end-of-series provisions set in the type-approval framework Regulation EU 2018/858.
CECRA and ACEA see a need for Member States put in place additional end-of-series flexibilities. These flexibilities are essential as the second lockdown-measures will even worsening the situation. Automotive dealerships in several EU countries have to close their sales departments again and are unable to sell their vehicles. As a result, dealers are cumulating a stock of unsold vehicles that meet the current emission standards but not the new Euro 6d ISC‐FCM standards that will enter into force on 1 January 2021.
12 November 2020
On the 10th of November, EC Commissioners Schmit and Breton officially launched the Pact for Skills (P4S). One of the four selected European skill partnerships is the automotive ecosystem. CECRA together with ACEA (European Automotive Manufacturer’s Association), CLEPA (European Association of Automotive Suppliers), ETRMA (European Tyre & Rubber Manufacturers Association), IndustriALL and CEEMET (both social partners) are, amongst others, member of the Pact.
The P4S sets up large-scale partnerships in strategic industrial ecosystems as skills are central to recover from the coronavirus crisis as well as for mastering the digital and green transitions. Businesses, large and small, need skilled people to innovate and grow. Only by joining the forces it is possible to make substantial progress in meeting the challenges to overcome mismatches and shortages in skills. The Pact for Skills promotes joint action to maximise the impact of investing in improving existing skills (upskilling) and training in new skills (reskilling). It calls on industry, employers, social partners, chambers of commerce, public authorities, education and training providers and employment agencies to work together and make a clear commitment to invest in training. The ambition in the field of automotive is to upskill 5% of the workforce each year, which would result in around 700,000 people being upskilled throughout the entire ecosystem.
For more information:
You can hear the recording here
Summary of The Pact for Skills –Skills Partnership for the Automotive Ecosystem
In view of the European Commission’s initiative “Pact for skills”, to be launched on November 10th, CECRA in co-operation with ACEA, CLEPA, ETRMA and many other partners have elaborated a joint proposal for a recovery strategy to deliver and implement a sectorial up & reskilling framework for the automotive value chain
15 October 2020
CECRA was associated in the recent roundtable discussion with European Commissioners Nicolas Schmit (Jobs and Social Rights) and Thierry Breton (Internal Market) on 23 September.
Today, CECRA, together with a broad coalition is now jointly calling on the Commission to set up the Pact as a public-private partnership to help the automotive ecosystem cope with the major structural changes ahead.
4 September 2020
Market registrations show in important decrease
17 June 2020
Joint position paper on COVID-19 (focused on the aftermarket) signed by CECRA together with 6 other EU associations. The position paper can be found here.
17 June 2020
CECRA, ACEA and CLEPA sent a letter to the heads of state and government of the 27 EU member states, calling for urgent support for the automotive sector in the wake of the COVID-19 crisis. The letter can be found here.
8 June 2020
IIn Austria, the Vienna Cartel Court handed down a very interesting decision on May 12, 2020, at first instance, in a dispute between the Peugeot Büchl dealer and the general importer of Peugeot vehicles in Austria.
26 May 2020
IndustriAll Europe, Ceemet, ACEA, CLEPA, CECRA and ETRMA, the European business organisations and the trade unions for the sector call on the European Commission for a industrial recovery plan.
5 May 2020
Europe's four auto sector associations publish 25-point action plan for successful restart
26 March 2020
European vehicle manufacturers, suppliers, tyre manufacturers, dealers and repairers wrote a joint letter to the European Commission on the COVID-19 crisis
12 March 2020
Odometer manipulation is widespread across the EU and has tremendous consequences for the consumer. CECRA is strongly committed in fighting against such harmful practice.
_edi.jpg)
11 March 2020
It is time for all the stakeholder to build together the intelligent mobility of tomorrow in terms of data access, security and energy. This is essential for Europe and the future of the sector.
04 March 2020
CECRA has been contacted by the contractor chosen by the European Commission as the sole representative of European dealers and repairers to help in the renewal process of the Automotive Block Exemption 461/2010.
24 January 2020
After the Brussels Motor Show, CECRA underlines that the Green Deal will only work if policy makers and the entire automotive sector work hand in hand
27 November 2019
On 26/11/19, a meeting between CECRA's ECD Division and a DG COMP delegation took place in Brussels. The aim of the meeting was to explain the renewal process of the General Block Exemption Regulation 330/2010 and Automotive Block Exemption 461/2010 that respectively expire in May 2022 and May 2023. Both DG COMP and CECRA are working in close collaboration in order to ensure that the automotive sector is taken into account in the new legislative framework regarding competition and the consumer welfare.
![IMG_0427[1][1]_edited.jpg](https://static.wixstatic.com/media/35e449_985b5b7a50ef48b2ad365f45a14b2a79~mv2.jpg/v1/crop/x_0,y_20,w_601,h_293/fill/w_297,h_145,al_c,q_80,usm_0.66_1.00_0.01,enc_auto/IMG_0427%5B1%5D%5B1%5D_edited.jpg)
22 November 2019
On 19/11/19, a meeting of CECRAs IR division took place in London. Many points concerning the future of Independent Repairers where discussed.
.png)
14 December 2018
22 November 2019
Today, 22 November 2018, the TRAN Committee (Transport and Tourism) of the European Parliament has adopted a draft own-initiative report on Autonomous driving in European transport which calls on the European Commission to introduce a robust legislative framework ensuring the removal of any obstacle to the use of in-vehicle data before January 2020.
