This goes on a bit, but is the SMMT view. So, no doubt Mr Macgowan of the SMMT will be interested in the email from Daimler-Chrysler as well as the OFT. Perhaps the odd Motoring Hack as well?
House of COMMONS
MINUTES OF EVIDENCE TAKEN BEFORE TRADE AND INDUSTRY COMMITTEE
The uk automotive industry Tuesday 9 March 2004
Q65 Chairman: Just one last point on this issue. The further modification of the block exemption is going to cover servicing and no longer will people be obliged to be locking into badged servicing centres, as it were, and how do you see that? The general feeling is that it did not guarantee service in the way it had been intended. How do you see the industry addressing this challenge now, when one would no longer be obliged to go to the local dealer-cum-garage for servicing?
Mr Macgowan: We are in the middle of delivering that which the block exemption regulation demands, and, of course, the Office of Fair Trading have a very big role to play in this to make certain that we comply with the rules. I think you are right, Mr Chairman, I think that consumers will understand that they are free to take their car for service work wherever they wish to, provided the work is done to an appropriate standard, and those that wish to do so will do just that. It is an interesting dichotomy, that, in actual fact, it is the case, as you say, that many consumers actually wish to remain within the franchise network, and do so, and some wish not to and they will be free to do that also. Provided the standards are met for service work, which they will be, I think that it will give consumers real choice, which is what it was intended to do.
Q66 Chairman: Is it the case that some of the servicing is dependent upon specialised equipment, which is still going to be within the control of the car manufacturers themselves, so that by drip-feeding this equipment on to the service market they would still be able to dictate who would do the servicing?
Mr Macgowan: I think that the Office of Fair Trading will take a very dim view of that position. The reality is that manufacturers are obliged to make authorised repairers a possibility, some will have many, some will have few, and it is something which is happening and will happen. Some of the manufacturers have got very advanced programmes whereby they are setting up authorised repairers as we speak.
Q67 Chairman: Do you see your role as the trade association having any policing function in this, or do you see that being left to the OFT?
Mr Macgowan: No. Obviously, the OFT is Brussels' police force, so the answer to the question is, yes, it is down to the OFT, but our role is to underline to our members, if they need it underlining to them, and to date that has not been the case, what their obligations are, and they are rising to the challenge. You will see authorised repairers emerge and consumers will have that option.
Q68 Chairman: You understand why I am asking that question, because the block exemption has been in place for a while, you have been one of the organisations, you might say, responsible for maintaining standards and these standards have not been very high. Hence the recognition of that by the removal of the block exemption obligation. So you have got to get your act together as well, I would imagine, on this?
Mr Macgowan: I am pleased to tell you that we are doing precisely that. There is a new Code of Practice in place with the Office of Fair Trading which addresses just that point. I am very confident that the spirit which was laid down in the new regulation will be fully translated into reality. There is no future in anybody trying to hold back from that. It is enshrined, it is there and you would be making a mistake not to embrace it
nor did I for the 4 new Michelin Pilot Primacy tyres.
The front still had over 2 but the lease company caughed up for all 4.
