Sustaining growth in the new Europe – View of the European Motor Trades and Repairs Jürgen Creutzig, President, European Council for Motor Trades and Repairs (CECRA), Brussels Prof. Dr. Jürgen Creutzig 9th Annual Automotive News Europe Congress – 5th May Barcelona

Prof. Dr. Jürgen Creutzig 9th Annual Automotive News Europe Congress – 5th May Barcelona Content 1.Introduction 2.Changes to Block Exemption Regulation (EC) N° 1400/ Abolition of location clause and its impact on retailers and repairers 4.EU’s CARS 21 initiative

1.Introduction  CECRA – The Voice of the European Motor Trades and Repairs  enterprises in 25 Member States  authorised dealers and repairers  independent repairers Prof. Dr. Jürgen Creutzig 9th Annual Automotive News Europe Congress – 5th May Barcelona

 2,5 mio employees  520 billion € turnover  Net profit before tax 0,6% of turnover Prof. Dr. Jürgen Creutzig 9th Annual Automotive News Europe Congress – 5th May Barcelona 1.Introduction

 More freedom and independency from manufacturers  Opening of the markets  Cross-border sales Prof. Dr. Jürgen Creutzig 9th Annual Automotive News Europe Congress – 5th May Barcelona 2.Changes to Block Exemption Regulation 1400/2002

 Multi branding  Access to technical information  Relevant market Prof. Dr. Jürgen Creutzig 9th Annual Automotive News Europe Congress – 5th May Barcelona 2.Changes to Block Exemption Regulation 1400/2002

 Reduction of margins  Unfair competition through direct sales  Standards not “necessary” Prof. Dr. Jürgen Creutzig 9th Annual Automotive News Europe Congress – 5th May Barcelona 2.Changes to Block Exemption Regulation 1400/2002

 No protection of investments  Arbitration Prof. Dr. Jürgen Creutzig 9th Annual Automotive News Europe Congress – 5th May Barcelona 2.Changes to Block Exemption Regulation 1400/2002

 Controversial rule  For 20% dealers more freedom  For 80% entrepreneurs more risks Prof. Dr. Jürgen Creutzig 9th Annual Automotive News Europe Congress – 5th May Barcelona 3.Abolition of location clause and its impact on retailers and repairers

 Necessary conditions for expansion  Changes for local enterprises  Acceleration of consolidation Prof. Dr. Jürgen Creutzig 9th Annual Automotive News Europe Congress – 5th May Barcelona 3.Abolition of location clause and its impact on retailers and repairers

 Reduction of dealers  Impact study of the Commission  Postponement of coming into force? Prof. Dr. Jürgen Creutzig 9th Annual Automotive News Europe Congress – 5th May Barcelona 3.Abolition of location clause and its impact on retailers and repairers

 The aim: improvement of competitiveness  Critics: Automotive industry a part of a chain  Forecast Prof. Dr. Jürgen Creutzig 9th Annual Automotive News Europe Congress – 5th May Barcelona 4.EU’s CARS 21 initiative

 Retail Motor Industry beyond 2010 (REMI 2010)  New type of entrepreneur  Regulatory framework ? Prof. Dr. Jürgen Creutzig 9th Annual Automotive News Europe Congress – 5th May Barcelona 4.EU’s CARS 21 initiative

 New partnership between manufacturer and dealer required  Corner stone: satisfied dealers  Permanent wisdom: satisfied dealers = satisfied customers = more new vehicles = satisfied manufacturer Prof. Dr. Jürgen Creutzig 9th Annual Automotive News Europe Congress – 5th May Barcelona 5.Final remarks