1. 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 2005 - Barcelona

2. Prof. Dr. Jürgen Creutzig 9th Annual Automotive News Europe Congress – 5th May 2005 - Barcelona Content 1.Introduction 2.Changes to Block Exemption Regulation (EC) N° 1400/2002 3.Abolition of location clause and its impact on retailers and repairers 4.EU’s CARS 21 initiative

3. 1.Introduction  CECRA – The Voice of the European Motor Trades and Repairs  350.000 enterprises in 25 Member States  118.000 authorised dealers and repairers  232.000 independent repairers Prof. Dr. Jürgen Creutzig 9th Annual Automotive News Europe Congress – 5th May 2005 - Barcelona

4.  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 2005 - Barcelona 1.Introduction

5.  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 2005 - Barcelona 2.Changes to Block Exemption Regulation 1400/2002

6.  Multi branding  Access to technical information  Relevant market Prof. Dr. Jürgen Creutzig 9th Annual Automotive News Europe Congress – 5th May 2005 - Barcelona 2.Changes to Block Exemption Regulation 1400/2002

7.  Reduction of margins  Unfair competition through direct sales  Standards not “necessary” Prof. Dr. Jürgen Creutzig 9th Annual Automotive News Europe Congress – 5th May 2005 - Barcelona 2.Changes to Block Exemption Regulation 1400/2002

8.  No protection of investments  Arbitration Prof. Dr. Jürgen Creutzig 9th Annual Automotive News Europe Congress – 5th May 2005 - Barcelona 2.Changes to Block Exemption Regulation 1400/2002

9.  Controversial rule  For 20% dealers more freedom  For 80% entrepreneurs more risks Prof. Dr. Jürgen Creutzig 9th Annual Automotive News Europe Congress – 5th May 2005 - Barcelona 3.Abolition of location clause and its impact on retailers and repairers

10.  Necessary conditions for expansion  Changes for local enterprises  Acceleration of consolidation Prof. Dr. Jürgen Creutzig 9th Annual Automotive News Europe Congress – 5th May 2005 - Barcelona 3.Abolition of location clause and its impact on retailers and repairers

11.  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 2005 - Barcelona 3.Abolition of location clause and its impact on retailers and repairers

12.  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 2005 - Barcelona 4.EU’s CARS 21 initiative

13.  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 2005 - Barcelona 4.EU’s CARS 21 initiative

14.  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 2005 - Barcelona 5.Final remarks