JANUARY 9, 2002

EU to demand major changes from car makers

THE European Commission is planning to announce later this month big changes to the way in which cars are sold in Europe. The current rules expire in the autumn and new regulations have been under discussion for several years. This could have a dramatic effect on some of the automobile companies because it may force them to accept a more liberalized system of services rather than allowing them to control the procedure. This is likely to have an effect on the bottom line of all the European car companies, already under pressure because of the over-capacity in the automobile business.

The new regulations are expected to be a big boost for car dealers who are expected to be allowed to sell more than one brand of car rather than being restricted by the automakers.