Carmakers set for Monti shake-up

MARIO Monti is set to remove privileges that shield carmakers from the Union’s tough competition rules.


But insiders say Monti is likely to clash with Loyola de Palacio's transport department, which fears the changes could affect safety. Under the new car regime, manufacturers will no longer be able to control supply and prices of their products by restricting dealerships.

Out will go loopholes that give car makers leeway over who sells their products and at what price. In will come the right for outlets such as supermarkets to sell cars and an end to strict retail territorial limits. But there are doubts over the ability of independent dealers to ensure access to service centres to maintain cars under warranty.

One official said: "At present there's a high degree of correlation between the brand of the car and the specialised expertise of the garage where the car is being maintained. If you break up the whole system and everybody maintains all brands of car there might be a risk that safety aspects won't be taken care of with the same level of attention."