Block Exemption

Block exemption allowed car manufacturers to create networks of dealership service points at their own discretion. The UK Competition Commission strongly criticised this selective system in its April 2000 new UK cars report.2000 saw the European Commission publish a review of the block exemption system and the conclusion 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.
Independent repairers were being denied access to technical information.

(Source: the DTI)

Changes to the current set up will mean a lot more competition in the mot, servicing and general repair market driving down costs and general repair standards. The aftersales market will be opened up, with a change to the rules linking new car sales and servicing. Dealers will be free to run their businesses as they please promoting their repair services to who they please. The better the service offered by the repair centers the more business they should generate; this is levels off the playing field for the independent and shines a spot light on the once dominant franchised dealer.

In short – whatever you drive you now have the choice of where to get your vehicle serviced, Mot’d or repaired without worrying about the franchisee stamp.