The Competition and Markets Authority (CMA) has revoked the Supply of New Cars Order 2000, bringing changes to the regulatory framework governing relationships between manufacturers and franchised dealers.
NFDA has responded to the decision, outlining its position on what the removal could mean for retailers and the wider automotive sector.
“The New Cars Order was frequently criticised as an ineffectual protection for dealers, failing to result in fair terms being offered to dealers, whether as a means of delivering equivalent terms or avoiding supply pressure. The drafting of the Order was simply too loose. It could have been improved, of course, had government been minded to do that, but the reality is that although the removal of the Order might appear negative for dealers, the Order did not adequately address the problems it was meant to resolve anyway. While the NFDA would remain focused on any market distortions that might arise in light of macro-economic and market developments, the Order, in its current form, would not have resolved these concerns effectively anyway were they to arise. Indeed, while NFDA would reserve its position, removing the Order might remove some of the confusion around the Order’s remit and some of the burden of associated regulatory compliance. Much will depend on how manufacturers react and the NFDA will maintain a watching brief.”
Sue Robinson – NFDA Chief Executive