The National Franchise Dealer Association (NFDA) is warning dealer councils across the UK against new block exemption rules, and the tactics manufacturers may use to get around them.
In a letter written to all dealer councils, the NFDA urges members to alert their networks to the potential impact of changes to block exemption law, as well as highlighting how they can help dealers.
Sue Robinson, director of RMI NFDA commented: â€œManufacturers should appreciate that a dealer council has a duty to its network to represent their interests fully.Â Obtaining proper advice helps fulfill that duty.
The European Commission has created an expectation that manufacturers should operate in a transparent manner with their dealers and adhere to minimum standards of behaviour in their commercial relationships, as set out in a published code of conduct. We are urging all dealer councils to lobby manufacturers for such a code that would make the relationship between dealers and manufacturers as fair as possible.
Some dealers may feel they have no choice but to sign a new agreement which does not reference a proper code of conduct to support efficient, fair and transparent commercial relationships.â€