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Article: Motor manufacturers condemn shake-up in selling of new cars
- Article from:
- The Independent (London, England)
- Article date:
- October 6, 1999
- Author:
CopyrightCopyright 1999 The Independent - London. Provided by ProQuest LLC. (Hide copyright information)
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MOTOR manufacturers and dealers were yesterday facing their
biggest shake-up in two decades after the Competition Commission
called for the dismantling of the system under which cars are sold in
Britain.
The Commission said the UK's selective and exclusive distribution
system, allowed under a European Union Block Exemption, was keeping
prices too high and needed to be replaced by a less restrictive
regime.
In a damning interim report, the Commission ruled that the
existing system resulted in "significant price differences" between
the UK and other EU markets. It also restricted entry into car
retailing, made it difficult for dealers to switch manufacturers,
weakened competition between ...