EC Treaty Art.81(3): application to vertical agreements and concerted practices in motor vehicle industry

The European Parliament adopted its own-initiative report drafted by Werner KONRAD (EPP-ED, Germany) and resolved to seek a delay in the introduction of new rules designed to open up the European car industry to EU competition rules. (Please refer to the document dated 23/04/02.) Parliament stated that the "location clause" relating to a selective distribution agreement should not be introduced until 2005, and then only after a review showing that such a change would be necessary to comply with competition rules. Other main amendments made by Parliament include the following: - to protect dealers, Parliament stipulates a two-year period of notice for terminating an agreement with the manufacturer. The latter should pay compensation in the event of the distributor making substantial investments in a new showroom and related facilities which cannot be covered as a result of the loss of a dealership; - the arbitration provisions when an agreement is terminated are strengthened; - manufacturers are not obliged to disclose sensitive technical information relating to, for example, engine speed or exhaust emissions; - restrictions on the opening of the market in maintenance and repairs.�