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Rise of big multibrand dealers curbs competition; Loss of small sales outlets hits consumers.(News)

Automotive News Europe,  June, 2005  by Ciferri, Luca

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Byline: Luca Ciferri

It was supposed to be a straightforward exercise in market regulation. The European Union's changes to the so-called block exemption rules were going to boost competition in the auto retailing business and this would lead to lower prices for the consumer.

The reality, so far, is somewhat different, says a study conducted by the International Car Distribution Programme.

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As a direct result of block exemption, big dealer groups are gaining ground at the expense of smaller outlets. In addition, carmaker-owned dealerships are on the rise in key markets such ...

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