1. BER 1400/2002 & economical crisis CECRA’s statement NBF Conference Oslo, the 24 th of March 2009 Charles de Marcilly EU affairs Director CECRA, Oslo, 24/03/09 1

2. 2 CECRA’s representativeness (1) 27 national trade associations in 23 EU and EFTA countries, representing the 350,000 automotive dealers, authorized and independent repairers

3. CECRA, Oslo, 24/03/09 3 CECRA’s representativeness (2) 14 European Dealer Councils representing the interests of authorized dealers and repairers of a particular brand

4. CECRA, Oslo, 24/03/09 4 CECRA’s representativeness (3) In figures: 350,000 enterprises of which around 120,000 are authorized dealers and repairers and 260,000 independent repairers employ around 2.8 million people In addition: about 110,000 fuel businesses employing 440,000 people; and some 12,000 motorcycle businesses employing 81,000 people

5. CECRA, Oslo, 24/03/09 5 The talk of the town... 2009: uncertainty... Economic & Legal

6. CECRA, Oslo, 24/03/09 6 Market outlook 2009 Passenger cars - Registrations – 7.8 % in 2008 (14.7m) - Sharpest decline since 1993 - 4th quarter – 19 % - 2009 forecast at least – 15 % - January ’09 registrations -30 % to – 40 % in ES, IT, UK Commercial vehicles - Registrations – 9 % in 2008 (2.5 m) - 4th quarter – 24 % - 2009 forecast at least – 30 % Similar developments around the world - Global car sales to fall to 50-55 m from 63 m in 2008 and 69 m in 2007 Figures’ sources: ACEA Number of repairers should remain stable but what about dealers?

7. CECRA, Oslo, 24/03/09 7 Figures/statistics: illustration Source: CECRA 2009 Number of authorized dealers Country2005200620072008Tendencies Finland273250 /Number will decrease with 5-10% Slovakia440456/498420/538400/557Estimation 2009: 402 dealers & 600 sales points Italy386639093893/Number will decrease due to non-profitability and high standing costs Belgium2055200120752139 Sweden(+trucks) 1348134313691327 France463853215472/

8. CECRA, Oslo, 24/03/09 8 Need of a tailor made approach CECRA’s leitmotiv: If vehicles can no longer be adequately sold and repaired, why should they be manufactured? Commission’s* observation on the crisis: Due to its (automotive branch) close links to other sectors and the wide spread of supply industry and vehicle trade, the negative economic effects reaches out to millions of employees in all Member States * Commission IP/09/318 Interlinked but with specific needs Vehicles sales Repair & maintenance Parts

9. 9 Trends  Economic crisis, general comments... From dealers side particular attention should be given to... All the measures modify deeply the market structure Development of the sales of “small cars” Increase of used car stocks Reducing of margins on new cars Credit to finance vehicle stock Delay of the impact on Trucks and commercial vehicles (long term investment) CECRA, Oslo, 24/03/09

10. 10 Governement to rescue: scrapping schemes CountrySummary Details GermanyNew Scrapping incentive scheme worth €2,500 for 2009 (could be extended) FranceNew “Super-bonus” scrapping incentive scheme worth extra €1,000 off new car ItalyRe-launch of €1,500 scrapping incentive scheme U.K.Discussions concerning scrapping scheme SpainRe-launch of Plan Vive, possible extension to captive finance companies Poland Rumour of new scrapping scheme with VAT (22%) deduction for new car buyers in exchange for scrapping their old car (exact details uncertain) Austria New scrapping scheme announced for 2009 worth around €1,500 when scrapping a car over 13 years old Romania€1,000 euro to purchase a car when scrapping a vehicle over 10 years Portugal €1,000-1,250 euro for a car which emits less than 140 g/km CO2 when scrapping a vehcile over 10 years old BelgiumBelgium government close to agreeing a scrapping incentive scheme Source: global insight

11. 11 Challenges (1)  Short term proposals Urgent decision to prolong BER 1400/2002 Extension of incentives schemes to recent old cars & trucks Specific credit line to promote stock management could be assumed by a state guarantee Extension of the “lay off employment” supported by states to aftermarket Fiscal exoneration for professional taxation on investment Road taxes Interest deduction on consumer credits CECRA, Oslo, 24/03/09

12. 12 Challenges (2)  Long term cycle, new priorities Fuel efficiency Increasing safety and environmental standards Balanced international trade Remodelling of the financial and credit system Which car in 2020? Hybrid, electric, bio fuels...? Challenge of maintenance & parts Anticipate the aims of anticompetitive behaviour due to new market organisation Innovation in distribution formats and return to customer proximity All those elements should be under control, so as to guarantee the essence of European economic competitiveness CECRA, Oslo, 24/03/09

13. 13 BER 1400/2002 Expiry of MVBER 1400/2002

14. CECRA, Oslo, 24/03/09 14 Block exemption in practise (1) Block Exemption Regulations = Safe harbours Exemptions from the direct application of the General Competition law rules of the EC Treaty

15. CECRA, Oslo, 24/03/09 15 Block exemption in practise (2) 2 types of Block Exemption Regulations Sector-specific Tailored solution for a specific sector Motor Vehicle BER (MV-BER 1400/2002) Generic One-size-fits-all for all sectors Vertical Restraints BER (VR-BER 2790/1999)

16. 16 BER explanation BER 1400/2002: “ Charter of the sector” From dealers side (among others):  Possibility of opening a secondary outlet  Multi-branding is permitted  Define contractual clauses: Arbitration rules Transfer of businesses Contractual duration Justifying the termination of dealer and repairer agreements For all operators competition increase for the benefits of the consumer CECRA, Oslo, 24/03/09

17. 17 The Commission’s approach Solution: Simplify! MVBER has helped to protect competition… …but certain sector- specific measures have not been effective, Other measures may be duplicated elsewhere

18. CECRA, Oslo, 24/03/09 18 BER 1400/2002 Over the past years the Block Exemption Regulation 1400/2002: Has led to better competition in the internal market, Provided legal certainty and safety for the 350,000 involved SMEs, in particular with regard to the high investments that they have to undertake (year by year it represents an average of 500.000 € to 1.000.000 €). Legal certainty is absolutely essential during the current period of economic and financial crisis. Is THE most comprehensive guide covering in detail all the requests concerning the sector (Guidelines, Q&A, Single answers to stakeholders etc.). Each structural modification of the existing rules would present new interpretations and would therefore bring extreme uncertainty and danger which sounds irresponsible especially knowing that the sector is facing a very difficult period. Prolonged the Commission's twenty five years tradition of successful policy in regulating the sector. There is no convincing reason to abolish it.

19. CECRA, Oslo, 24/03/09 19 The scenarios for the future Sector-specific instrument Motor Vehicle BER (MV-BER) 1.Prolongation for few years of current MVBER 1400/2002 2. Modernised MVBER with/without Guidelines ORGeneric instrument Vertical Restraints BER (VR-BER) 1.VR-BER alone 2.VRBER with Guidelines + code of conduct

20. 27 Commissioners EU Commission EU ParliamentCouncil 785 Members27 Members (ministers of EU Member States) CECRA, Oslo, 24/03/09 Lobbying process National+EU level

21. CECRA, Oslo, 24/03/09 21 The BER making process Stakeholders National Competition Authorities Opinion European Commission European Parliament Adoption by the college of Commissioners Council Opinion Proposal

22. CECRA, Oslo, 24/03/09 22 The need for a stakeholders’ Alliance Body Repairers Authorised and Independent Repairers Garage Equipment & Tools Producers Motorist Consumers Independent Parts Distributors Engine Rebuilders and Remanufacturers AIRC CECRA EGEA FIA FIGIEFA FIRM

23. 23 Thank you for your attention... For further enquiries please contact: Mr Charles de MARCILLY European Public Affairs Director T. +32 2 771 96 56 M. +32 4 86 36 06 37 charles.de.marcilly@cecra.eu www.cecra.eu CECRA, Oslo, 24/03/09