Motor Vehicle Block Exemption Regulation 1400/2002: Economic Impact on the European Automobile Industry

This work describes new changes of the European automobile industry, necessary due to a new regulation pattern, namely Motor Vehicle Block Exemption Regulation 1400/2002, in force since 01.10.2002, and currently regulating the European car market. The European car industry, which is a major contributor to the European Unions Gross Domestic Product is perceived as being special by the European Commission and therefore new rules were necessary. The European automobile industry is dominated by car producers, able to influence prices and market conditions. MVBER 1400/2002 shall therefore change the balance of powers and shall give dealers and consumers more independence. One main goal is the enhancement of consumers¿ possibilities to compare prices all over Europe. Through this new regulation all parties concerned have to adopt their practices and a bundle of changes is about to come. However how these changes will look like shall be assessed and analyzed in this work. This work presents an understanding of MVBER 1400/2002, explains its functioning and main components, and analyses major changes in the european automobile industry.