Würzburg, June 15, 2005

As of October 1, 2005, the ban on establishment in the European automobile trade will be abolished. This will noticeably reduce the power of manufacturers and importers. In return, the entrepreneurial freedom of both brand-affiliated and independent garages will increase. The reason: in future, it will no longer be exclusively the manufacturer/importer who decides on suitable locations, but also their sales partners. There are also new opportunities for former dealers who are now "only" service partners: They can use their showrooms and sales expertise again by cooperating with authorized dealers.

However, the new freedom of establishment will not only have an impact on car manufacturers' future European sales bases. Experts assume that the freedom of establishment will increase the pressure on car manufacturers to harmonize factory prices across the EU.

Even if the freedom of establishment comes into force uniformly within the EU, there are special framework conditions in the neighboring Eastern European countries. The decisive factor here will be whether dealers in the former accession countries will benefit from a competitive advantage over their colleagues in the former EU member states due to significantly lower factory gate prices.

kfz-betrieb" reports on all aspects of the new freedom of establishment in Europe in a special edition that will be published on June 16.

"kfz-betrieb" is a trade magazine published by Vogel Auto Medien, Würzburg. The most widely read trade magazine in the automotive industry celebrates its 95th anniversary in 2005 and is the official organ of the German Motor Trade (ZDK), the professional lobby for over 40,000 car dealerships and garages.

If you have any questions, please contact:

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