EU moves to open up car repair market

08:43, May 28, 2010      

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The European Commission adopted new rules Thursday to open up the car repair market by empowering consumers to choose independent repairers not authorized by automakers.

Under the new rules, which come into force in June, car manufacturers will no longer be able to make their warranties conditional on having the car serviced in authorized garages.

In addition, the new rules would increase competition in the market for repair and maintenance by improving access to technical information needed for the repairs and by making it easier to use alternative spare parts.

"I strongly believe the new framework will bring tangible benefits for consumers by bringing down the cost of repairs and maintenance that represent an excessive share of the total cost of a car over its lifetime," European Union (EU) Competition Commissioner Joaquin Almunia said in a statement.

The commission said it would "tackle" manufacturers for possible abuse of warranties to the detriment of consumers.

It was estimated repair bills accounted for 40 percent of the entire cost of owning a car, and costs had been rising in recent years.

The commission also proposed today to simplify the currently complex rules governing car distribution, whose costs make up on average 30 percent of the price of a new car.

"It will also reduce the cost of distribution by doing away with overly restrictive rules," Almunia said.

Source:Xinhua

(Editor:黄蓓蓓)

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