BMI Warns Dealers May Struggle As New Rules Lower Repair Costs For Drivers

The European Commission (EC) has introduced new rules restricting exclusive agreements between carmakers and their authorised repair shops with a view to encouraging competition and reducing costs for vehicle owners. BMI believes that in addition to giving car owners the flexibility to get their vehicles repaired at cheaper locations, the ruling will indirectly benefit the spare parts segment. However, we fear such rulings expose dealerships to strong competition at a time when they are already facing weak demand.

To read the full article, please choose one of the following options: