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A block exemption loophole?(Cover Story)

Automotive News Europe,  December, 2002  

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Byline: Bradford Wernle, Sylviane de Saint-Seine Automotive News Europe

Dealer groups charge some automakers are using a loophole in new block exemption rules to regain some power the European Commission tried to take away.

PSA/Peugeot-Citroen is offering dealers fixed-term contracts under the new distribution rules. Peugeot is offering dealers a six-year contract and Citroen, five years. BMW is also eyeing fixed-term contracts.

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Under current regulations, most European manufacturers give dealers an open-ended, or rolling, contract requiring a two-year notice by either ...

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