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-Coventry
& Warwickshire's leading
totally independent VAG servicing specialists with over 4500 customers.
Whether you own an Audi, VW, Seat or Škoda our main dealer fully trained
technicians have over 20 years experience in servicing and maintaining the
quality of your vehicle.
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Quality Parts
In order to guarantee we can always 'beat your main dealer' not only do we have a far cheaper labour rate and better customer service but we can also offer you a choice of dealer quality patent parts to help keep your costs down without compromising quality.
As one of the biggest independent garages in the Midlands, to maintain the quality of your car and warranty, we have access to the same parts your dealer does aswell as thousands of parts from alternative brands many of which are already household names. PLEASE NOTE: we are not a parts only supplier.
Volkswagen Group Genuine Parts
Volkswagen Group Genuine Parts offer the following benefits when chosen to service or repair your vehicle:
• High quality parts designed and precision-manufactured to maintain the renowned reliability of your vehicle
• 'Fit first time' speed and convenience
• Two-year warranty (excludes wear & tear)
• Peace of mind
Official Legislation by the DTI
Block Exemption for Cars Fact Sheet
URN No: 05/1703
Relevant or Related Legislation:
EC Competition Law (Articles 84 and 85) Enforcement Regulations 2001;
EC Regulation 1400/2002;
Regulation 17 of the 1998 Competition Act
Key Facts:
• The new exemption will increase competition in the domestic and continental
car market, including car servicing and repairs, which will give consumers more
choice and better value for money.
• The new EC Cars Block Exemption should help reduce UK prices by increasing
competition and providing greater freedom to import cars from other member states.
Giving consumers more choice and better value for money.
• Old Regime expired on 30 September 2002 (but see Q2 below)
• The Competition Commission found the operation of the selective and
exclusive distribution system permitted by the European Union's Car Block Exemption
rules to be the root cause of the increased cost of new cars in the UK, and
made a number of recommendations for fundamental changes to this system.
The EC cars block exemption is the European Commission
Regulation No. 1400/2002 (formerly Regulation No 1475/95), which exempts from
EC competition rules arrangements in the EU for the distribution of new cars
and their subsequent servicing. The block exemption allows car manufacturers to create networks of selective
and exclusive dealerships. The system of selective and exclusive distribution was strongly criticised by
the UK Competition Commission in its April 2000 report on the market for new
cars in the UK.
In November 2000, the European Commission published a review of the workings
of the block exemption, which concluded that the system had failed to meet important
objectives set for it when it was established in 1995. In particular, the review
concluded that:
• buyers were still facing difficulties when they tried to purchase new
vehicles from another Member State;
• the "natural link" between sales and after-sales service seemed
no longer to exist;
• the objective of increasing the commercial independence of dealers had
been achieved only to a limited extent; and
• independent repairers were being denied access to technical information.
European Commission rules (cars block exemption) became law on 1 October 2002.
However, the majority of the provisions did not come fully into effect until
October 2003 following the one year transition period. The ban on "location clauses",
which limit the geographical scope of dealer operations, has raised major industry
concerns. To reflect this, this element will come into effect two years later
than the rest of the reforms - on 1 October 2005.
From October 2005, dealers will be free to set up secondary sales outlets in
other areas of the EU, as well as their own countries. This should significantly
strengthen competition between dealers across the Single Market and help to
ensure that consumers get a
fair deal.
Q3. What effect will
the new block exemption have on the car selling market?
An EC review of the old Block Exemption rules on the sale of new cars in the
EU found that they were not working as intended. Buyers were still finding it
difficult to buy cars in another Member State. The new rules will mean that:
• dealers are able to market their services and reach customers
in different areas or countries;
• dealers are able to sell more than one brand of car at the same site
(multi- franchising) with fewer restrictions;
• internet retailers will find it easier to co-operate with dealers and
with individual customers who wish to import cars themselves
The provisions will increase competition in the domestic and continental car
market, which will give consumers more choice and better value for money including
a reduction in car prices.
Q4. What effect will
the new block exemption have on the car repair and servicing market?
These changes will mean more competition in the servicing and repair market
leading to lower costs and higher standards for consumers. The after-sales market will be opened up, with a change to the rules linking
new car sales and servicing. Dealers will still have to ensure that customers'
cars are serviced and repaired to manufacturer-approved standards, but they
will no longer have to do it themselves; and, independent garages and roadside
assistance organisations will have much greater access to technical information,
including diagnostic equipment and software.
Dealers will be freer to determine how they run their businesses. The better
the service they offer, the more they will be rewarded. Poor performers will
find it harder to survive.
Q5. What will be the
effect on car pricing in the UK?
The Supply of New Cars Order 2000 was introduced following the Competition Commission
(CC) monopoly inquiry into the supply of new cars. The CC found that private
car buyers in the UK were paying about 10% to much for the average car, taking
account of discounts, trade-ins and finance deals. The CC found the operation of the selective and exclusive distribution system
permitted by the European Union's Car Block Exemption rules to be the root cause
of the increased cost of new cars in the UK, and made a number of recommendations
for fundamental changes to this system. The CC also made a number of recommendations for immediate action, which resulted
in the introduction of the Order in September 2000. One of the main provisions
of the Order requires suppliers to offer dealers who purchase volumes of cars
outright equivalent discounts to those offered to fleet customers who purchase
similar volumes. The intention of this provision is to close the price gap between
cars offered to fleet customers and those offered through dealers to private
buyers. The new EC Cars Block Exemption should help reduce UK prices, or at least lead
to a levelling out across Europe of pre-tax prices, by increasing competition
and providing greater freedom to import cars from other member states. There
is evidence that the process of levelling prices across the EU has been proceeding.
Q6. Who do I complain
to if I think the Block Exemption is being exceeded?
The responsibility for enforcing UK competition law falls to the Office of Fair
Trading (OFT). The Regulation is therefore directly enforced in the UK by the
OFT under the new modernisation of enforcement of European Union Competition
rules.
Responsibility for enforcing across borders remains with the European Commission. The Regulation places responsibility on the Commission to monitor its operation
on a regular basis and to report in May 2008. The Commission will take the lead
on UK cases which have a Community wide dimension. OFT assists the Commission
as necessary.
In general, the DTI takes the lead in the UK on competition policy issues and
on the development of new legislation including EC regulations such as the cars
block exemption.
Neither the DTI or the OFT can advise individuals on the merits of a specific
EC case or make representations on their behalf but the OFT can provide advice
on procedures for approaching the Commission.
Q7. Where can I get further
information on cars block exemption?
The text of the new block exemption, explanatory brochure and other information
can be found on the EC Cars block exemption web pages. The DTI published a press notice in 2002 which the Consumer and Competitions
Minister, said "I very much welcome the European Commission's new regulations,
which will mean more choice and fairer prices for consumers, and greater competition
and innovation in the retail sector. By making the European single market work
much better, they should bring UK prices closer to those in other EU countries."
Since the advent of the Car Block Exemption Laws we are now able to offer a wide range of quality VW Group approved parts by some of the best known manufacturers in the world. These quality parts are commonly known as OEM or Aftermarket parts and provide fantastic opportunities to substantially reduce service and repair costs whilst maintaining the quality of your vehicle even, if it is still in its initial warranty period.