Press release

June 7, 2011

New BER: All sunshine and roses?

Expected wave of layoffs does not materialize, but there is still need for discussion

From June 2013, the new Block Exemption Regulation (BER) will also apply to sales. When the new European regulations were published last year, there were immense fears: Some experts even saw a wave of redundancies rolling towards the European automotive industry. Although this did not happen, the situation between manufacturers and dealers is still tense, reports the trade journal "kfz-betrieb" in its June 3, 2011 issue.



However, the reality is different. Only a few manufacturers are terminating their contracts with reference to the new European law. Some of them have already done so in recent months. However, the vast majority of manufacturers and importers are merely adapting their current contracts. Burkhard Weller from the Toyota dealer association therefore said for his brand: "Sign and file - everything has become better and easier." ZDK Managing Director Antje Woltermann also states that the expected shock waves have failed to materialize. She has even noticed a new relationship between manufacturers and retailers.



Nevertheless, it is not all sunshine and roses. Many brands have excluded the standards and margin systems from the actual contract and can also adjust these outside of the dealer contract. Some manufacturers take advantage of this to make serious changes. Industry lawyer Prof. F. Christian Genzow comments: "I wonder why retailers accept these adjustments. Restrictions on multi-brand trade and higher standards, no possibility of selling the business without the manufacturer's consent and no justification for termination - this restricts key parameters for the protection of the trade. Those who give these up voluntarily are not doing themselves any harm."



Multi-brand trade in particular is one of the most important topics of discussion between manufacturers and retailers. With the new GMO, the former can restrict multi-brand trade. This has a decisive impact on the lifeblood of many retailers. There are also a number of other points that are causing discussions between the two sides. With the new BER, for example, manufacturers can ensure more difficult conditions for the cross-purchasing of new vehicles. Some manufacturers also want to see dealer contracts no longer governed by German law, but by other European legal systems. However, this would further undermine dealer protection. It is not without reason that the ZDK is calling for the Commercial Agents Directive to be extended to the motor vehicle industry.



"kfz-betrieb" is the most widely read trade magazine in the automotive industry and has been informing the automotive trade and service sector for 100 years. "kfz-betrieb" is the official organ of the German Motor Trade (ZDK), the professional interest group for around 38,000 car dealerships and workshops. Daily news from the entire automotive industry is available at www.kfz-betrieb.de and in the daily newsletter. The parent company Vogel Business Media is one of the leading German providers of specialist information with around 100 trade journals and 60 websites as well as numerous international activities. Its headquarters are in Würzburg. The company celebrates its 120th anniversary in 2011.

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