Car Repairs & Servicing
'Block Exemption' and the 'Right to Repair' campaign
In recognition of the unique technical complexity of motor vehicles the motor industry enjoys a so-called 'block exemption' from some aspects of European competition law.
Essentially this block exemption regulation permits the industry to operate selective and exclusive distribution through franchised dealer networks while safeguarding key consumer rights concerning the purchase, maintenance and repair of vehicles.
The motor industry block exemption regulations were last renewed in 2002 when a number of changes were introduced to increase competition in sales and servicing/repair.
Current situation
Since March 2002:
- car owners have been able to have their vehicles serviced and repaired by independent garages without affecting the warranty (providing parts matching original specification are used and the manufacturer's service schedule is followed), and
- The independent garage trade and motoring organisations such as the AA have benefited from formal requirements for car manufacturers to provide technical information as they do for their own franchised dealers.
Other changes introduced at that time permitted multi-brand showrooms and helped to achieve better price parity across Europe by facilitating cross-border trade. Franchised dealers were no longer obliged to combine sales and service/repair – though most have continued to do so.
Information
Cars are very complex machines both mechanically and electronically, and repairers cannot guess or assume the settings which apply to the particular model on which they are working. This means that independent garages must be able to easily obtain model specific technical/specification information in order to complete all but the simplest of jobs.
Under the current block exemption rules, car manufacturers are not permitted to withhold or restrict access to information necessary to allow independent garages and motoring organisations to repair vehicles.
Information has to be provided in a form that allows an individual garage to buy what they need when they need it, e.g. the section on brakes, rather than the whole workshop manual.
Access to such information is also invaluable to the producers of the multi-brand technical data manuals and universal diagnostic equipment on which the independent motor trade largely relies.
Choice and Competition
Franchised dealers have to operate to standards defined by the manufacturer – very smart premises consistent with the company image, comfortable waiting areas, a comprehensive parts department – and generally deliver the entire buying and aftercare package.
The additional expense of maintaining such standards has to be recovered and this is one reason why the hourly rates charged by franchised dealers are generally considerably higher than those from independent garages not obliged to meet the same standards – though some do of course.
There are also far more independent garages than franchised dealers ensuring that you don't have to travel too far to have the car serviced or wait too long before it can be repaired.
Only 23 per cent of UK garages hold franchises and this relatively small network couldn't cope with demand if the independents were somehow driven from the market.
The Future
The current Block Exemption Regulations expire in 2010 and the freedom to have your car serviced/repaired where you choose, is under threat.
Some argue that there is no point renewing the current regulation as changes to Type Approval and European vehicle emissions regulations (so called Euro V and Euro VI standards) will be sufficient to ensure that technical data has to be supplied for new vehicles.
We and other motoring organisations across Europe are campaigning, along with the rest of the independent trade, for the retention of Block Exemption in its current form as neither Type Approval nor Emissions legislation will secure the required level of access to technical information for cars that are already in service.
If the current Block Exemption Regulations are not renewed in 2010:
- Repair costs could increase dramatically
- The number of independent garages may decline. We risk losing experts with specific abilities such as auto-electricians, air conditioning specialists and body repairers
- We may have to wait longer to have our cars repaired as franchised dealers will be too busy
- We may have to travel much further to a garage
- Motoring organisations, such as the AA may have difficulty obtaining some of the information required to effectively diagnose and repair faults
- Car servicing could become more expensive – risking neglect of service schedules
The Right to Repair Campaign (R2RC)
The Right to Repair Campaign has been created by the independent automotive aftermarket in response to these potential changes in legislation in Europe.
The AA is supporting the Right to Repair Campaign. Visit the website (www.r2rc.co.uk) to find out more, sign the petition and write to your MP/MEP.
If the campaign fails then come 2010 we can all expect a reduction of choice on where we can get our vehicles repaired and an increase in the cost of garage services.
Watch the campaign video on YouTube
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Related information
15 August 2008