European Motor Vehicle Block Exemption Regulation consultation gets underway

The National Franchised Dealers Association (NFDA) is poised to being consultation with UK car retailers on the future of the European Union’s (EU) Motor Vehicle Block Exemption Regulation.

The European Commission has now launched its public consultation on the Motor Vehicle Block Exemption Regulation (Commission Regulation (EU) No 461/2010) to assess whether and to what extent the objectives of the Motor Vehicle Block Exemption Regulation (MVBER) are fulfilled.

And the NFDA has said that it will consult with its members as it formulates a response to the consultation outlining UK dealers’ position.

It indicated that it would respond both individually and as part of the Alliance of European Car Dealers and Repairers (AECDR).

The NFDA shrugged any suggestions of divisions caused by Brexit by joining the newly-formed AECDR in July last year, opening an office in Brussels in the process.

Spoeaking at the time, NFDA chief executive Sue Robinson said that the creation of the AECDR, and stronger ties with similar organisations representing businesses in the automotive sector from across the region, would “allow us to continue to collectively represent the interests of our members alongside a number of European associations”.

Commenting on its consultation of members over the future of Europe's Block Exemption Regulation, Robinson said: “NFDA has regularly engaged and held a number of meetings with European counterparts and European Commission Officials.

“Following the Vertical Block Exemption Regulation consultation earlier this year, over the coming months we will formulate the sector’s response to the Motor Vehicle Block Exemption Regulation consultation to outline franchised dealers’ position. We will keep our members updated”.

Previously, AECDR and NFDA contributed to the European Commission’s consultation aimed at evaluating the Vertical Block Exemption Regulation.

Motor vehicle distribution and aftersales agreements are currently subject to Commission Regulation (EU) No 461/2010 (MVBER).

The objective of the new consultation on the regulation will aim to “collect in-depth and high-quality facts and evidence on the key competition issues arising in vertical relationships on the motor vehicle distribution and after-sales markets from the perspective of stakeholders”.

MVBER mandates the Commission to draw up an evaluation report on its operation by 31 May 2021, in view of its expiry on May 31.