EU ruling ‘could cut car servicing costs’

- 3rd June 2010

Motorists in the UK could see their car servicing costs fall after a new ruling by the European Commission.

The organisation has adopted new competition rules which limit the market share threshold above which agreements between car manufacturers and authorised repairers will no longer be block exempted.
Through the changes, manufacturers will be unable to make warranties on services which are only completed by related garages, meaning drivers will have more choice in where they can get car maintenance carried out.
It is believed that, in turn, the move could drive down the cost of repairs.
Joaquin Almunia, the competition commissioner and vice-president of the commission, said the new framework for regulations will bring “tangible benefits” to consumers.
He added: “It will also reduce the cost of distribution by doing away with overly restrictive rules.”
According to recent figures by Unbiased.co.uk, 60 per cent of households in the UK tend to seek advice on car maintenance and repair issues.