Commission says that if agreement is not reached by the end of 2014, it reserves the right to initiate a process with the aim of adopting a legislative proposal regulating relations between different players of the automotive sector
Today, the Commission circulated the final report to the members of CARS 2020.
In its final report, the Commission specifies that “since no consensus so far has been reached on a voluntary Code of Conduct in relation to vertical agreements”. Although the Commission continues to encourage the dialogue between the car manufacturers and dealers, in order to reach an agreed voluntary Code of Conduct. The final report stipulates that “if agreement is not reached at the latest by the end of 2014, the Commission reserves the right to initiate a process, with the aim of adopting a legislative proposal regulating relations between different players of the automotive sector”.
The report, however, clearly stipulates that it does not represent a common position of all the Members of the CARS 2020 process. Divergent opinions have been expressed by the representatives of ACEA, CECRA and IndustriALL.
Bernard Lycke, CECRA’s Director General, says “we are very satisfied with the fact that the report includes CECRA’s opinion on this matter”. CECRA will heighten awareness among other stakeholders on this important issue.
The report contains the following footnote: “In the Commission’s initial proposal, it was written that, if dealers and manufacturers fail to agree on a voluntary Code of Conduct, “the Commission intends to initiate a legislative procedure” aimed at developing a legal framework regulating relations between different actors of the automotive sector. The change of the wording from “intends to initiate” to “reserves the right” is not acceptable for CECRA and IndustriALL as it unduly weakens the original wording (the Commission can initiate legislative procedures at any time) which fairly reflected the original Commission proposal. Therefore, the phrase “intends to initiate” should have been kept as it was”.
