There will be very significant changes to car maintenance in the EU, starting on June 1. Car-makers will be required to share repair information with shops, if they are authorized or not. This new law will dissolve the exemption for EU antitrust protections that car-makers have enjoyed.
Dealership monopoly of authorized shops to end
In the EU, car-makers have not been required to honor a warranty if a car has had mechanical work anywhere other than an “authorized shop.” Authorized dealerships also usually get extra technical information from the car maker that independent shops do not get. Antitrust regulations in the European Union call this particular relationship illegal. As of June 1, car-makers must share that technical information with all repair shops. Car-makers will also be required to honor vehicle warranties no matter where a car is serviced – but not until 2013.
EU laws intended to save customers money
Jaoquin Almunia, the head of antitrust in the EU, announced the cost-savings of these new maintenance regulations. Repairing a car is about 40 percent of the cost of owning a vehicle. The general cost of new cars has been dropping, but maintenance costs have gone up. Competition between repair shops will be increased, in theory. Dealerships that work with multiple brands will be able to compete on a more level playing field as well.
Similar car maintenance laws in the United States?
Car maintenance in the European Union is much like the United States. Currently, there is no litigation or legislation on the docket to follow the suit of the European Union. Most European car-makers do sell vehicles in the United States as well, so they will be affected. Will the United States make serious changes to the car maintenance system, spurred on by the European Union? While a change like this might be possible, the more liberal monopoly / antitrust laws in the United States mean it is not a probable change.
