Independent lubricant suppliers in Europe declared a legislative victory two weeks ago with the regions adoption of rules meant to encourage more competition in the supply of automotive aftermarket materials, including engine oils.
After more than a year of debate and discussion, the European Commission presented a new Motor Vehicle Block Exemption Regulation written to keep automakers from using warranties to control oil changes and other types of maintenance and repairs. The Independent Union of the European Lubricants Industry (UEIL) said the changes should allow independent automotive service providers to better compete with dealerships and that, in turn, should increase sales opportunities for UEIL members.
But association members added that it remains to be seen whether the new block exemption regulation will also improve access to automotive lubricant specifications.
Overall, the UEIL is quite pleased with the new regulation as it has addressed most of the concerns of the lubricant industry, said Maite Caballero Tomas, a public affairs consultant with UEILs management agency, Interel, in Brussels.
The Motor Vehicle Block Exemption Regulation is part of the EUs policies on vertical integration of industries. In general, the commission discourages such integration out of a belief that it generally inhibits competition and hurts consumers. Critics of the previous car block exemption complained that repair and maintenance costs in Europe were inflated because of automaker practices that disadvantaged independent service providers and independent suppliers of parts and automotive care products.
Independent lubricant companies complained specifically about warranties that voided coverage if services such as oil changes were performed anywhere except authorized dealerships. They also complained about automakers working with individual lubricant suppliers to develop specifications for the engine oils and transmission fluids used in their vehicles. Such tie-ins give the chosen lube marketers a head start in supplying those lubricants once the vehicles come to market – an advantage amplified when automakers recommend a particular brand of lubricant.
The new Motor Vehicle Block Exemption aims to address both complaints. First, it specifically adds lubricants to the list of parts covered by the regulation. It generally prohibits automakers from conditioning warranties according to where repairs and maintenance are performed.
The regulation also states that independent suppliers must have access to technical information about replacement parts. UEIL representatives believe this should mean that independent lubricant suppliers have equal and early access to lubricant specifications. But Tomas noted that the rules are ambiguous on this point. The regulation allows access to information regarding the fitting of parts but not to their manufacture. The association believes lubricant specifications are equivalent to fitting information on solid parts, she said, but the issue needs clarification.