The European Union declares war on small garages!
They are about to scrap a rule which allows thousands of small garages to carry out repairs and servicing. At the moment manufacturers are obliged to provide parts and computer codes to independent garages. The change is due to happen in 2010, and as many as 20 million motorists could be affected here.
Of course, the manufacturers could continue to supply the computer codes, but I wouldn't bet on it. Expect small garages to close fairly rapidly. They could continue to supply parts to DIY mechanics, but why should they?
The likely consequences are not difficult to imagine. Already hourly charges in the (main) dealers are approaching twice what they are in small independents, something like £95 as against £56. It is difficult to see the higher figure being reduced, especially if the dealers have to fetch more customers, or provide more courtesy cars, and if they have accept greater overheads as they extend the number of dealerships.
Make no mistake, if small independent garages are removed, repairs and servicing will be remote and more expensive.
Manufacturers must be rubbing their hands in anticipation, and their bankers with them. It is difficult to disagree with the statement that monopoly is everywhere likely to be be wasteful, costly and detrimental to the people. If competition is removed, the monopolist can have a field day. Of course Governments could always appoint "Offmot" to regulate and control, but this, too, is expensive.
They are about to scrap a rule which allows thousands of small garages to carry out repairs and servicing. At the moment manufacturers are obliged to provide parts and computer codes to independent garages. The change is due to happen in 2010, and as many as 20 million motorists could be affected here.
Of course, the manufacturers could continue to supply the computer codes, but I wouldn't bet on it. Expect small garages to close fairly rapidly. They could continue to supply parts to DIY mechanics, but why should they?
The likely consequences are not difficult to imagine. Already hourly charges in the (main) dealers are approaching twice what they are in small independents, something like £95 as against £56. It is difficult to see the higher figure being reduced, especially if the dealers have to fetch more customers, or provide more courtesy cars, and if they have accept greater overheads as they extend the number of dealerships.
Make no mistake, if small independent garages are removed, repairs and servicing will be remote and more expensive.
Manufacturers must be rubbing their hands in anticipation, and their bankers with them. It is difficult to disagree with the statement that monopoly is everywhere likely to be be wasteful, costly and detrimental to the people. If competition is removed, the monopolist can have a field day. Of course Governments could always appoint "Offmot" to regulate and control, but this, too, is expensive.
Posts
No comments:
Post a Comment