Motor News: competition rulesA decision by the European Commission will increase competition in the car repairs market, writes Paddy Comyn
Competition in the car repairs market looks set to improve, thanks to a European Commission ruling last week.
The ruling found against DaimlerChrysler, Fiat, Toyota and General Motors - owners of the Opel, Saab and Chevrolet brands - and these car firms are now obliged to provide more information about their models to independent car repair businesses to boost competition in the sector.
The decision was taken by the EU's anti-trust regulator and in return for their co-operation, the carmakers will now escape an anti-trust fine. "Consumers benefit from competition between car repair services, through lower labour charges and cheaper spare parts," said competition commissioner Neelie Kroes.
"Today's decision provides a solution to the problems faced by independent mechanics who, up to now, have not been given access to the technical information they need to carry out repairs on these makes of cars," she said.
The decision followed an investigation by the European Commission that found independent mechanics and garages were being pushed out of the market because they were not allowed to repair certain types of cars and, even if they did, there was a risk that repairs carried out without the right technical information could lead to vehicles being driven in a dangerous condition and could add to air pollution and wasted fuel.
The Commission said that independent mechanics are often cheaper than authorised outlets, sometimes by more than 50 per cent. It also pointed to examples in Germany, where authorised outlets are, on average, 16 per cent more expensive than independent repairers.
Its examples from Britain found the price difference for a typical service between independents and some brands of franchised dealer can be more than 120 per cent.
Under the new ruling, all technical information provided to authorised repairers must also be made available to independent repairers on a non-discriminatory basis. While car manufacturers may withhold information relating to anti-theft or performance-limiting functions of on-board electronics, they have to ensure that this does not consequently prevent independent repairers from performing repairs.
Where independent repairers are charged for information, they will only have to pay for what they need, rather than having to pay for whole bundled packs of information. Any breach of this commitment may lead the Commission to impose fines on the car manufacturers of up to 10 per cent of that company's turnover.
According to Alan Nolan, deputy chief executive of the Society of the Irish Motor Industry (SIMI), it should result in greater choice for Irish consumers as to where cars can be serviced.
However, he warns that consumers need to have the usual amount of caution to ensure that whoever they choose to service their vehicle can meet the required standards.
"A full service history from a credible source will add significant value to your vehicle at trade-in time, so it is very important to ensure that you select a garage that is capable of delivering to the standards laid down in the manufacturers' servicing requirements," Nolan said.