The NFDA said that the statement had come after manufacturers had showed continued resistance to adopting proposals drafted by the NFDA around 12 months ago, which were presented, n conjunction with the ECD (European Car Dealers – a Division of CECRA) and provided an industry code of conduct to the relevant department within the Commission (DG Enterprise) as part of the ongoing CARS2020 project.

The NFDA said that: ‘Since 2010, most vehicle manufacturers in Europe have been reluctant to engage on the topic of a meaningful and binding industry code of good conduct designed to foster clearer and fairer relations between dealers and manufacturers. 


‘The significant degree of unfairness experienced by dealers at the hands of manufacturers (ranging from arbitrary terminations to onerous standards) was highlighted in two European Commission consultations in 2011 and 2013 and as part of the NFDA market study conducted in 2012, which polled approximately 1,000 dealership sites in the UK.’

In response the European Commission announced last week that unless an acceptable code can be agreed, it intends to initiate a legally binding solution, which could feasibly take the form of a new sector-specific regulation, intended to improve dealer-manufacturer relations.


In a statement, the NFDA said that it welcomes the Commission's stance on this issue, adding: ‘When markets are more buoyant, as they are now, the issue of unfairness in dealer/manufacturer relations may appear less acute; however, the outcome of this initiative should, as well as helping dealers grow in better times, support more predictable and transparent relationships when markets become more challenging.’

NFDA director Sue Robinson commented: ‘This is an important first step in bridging the harmful gaps left by the removal of the sector-specific block exemption.’