Romanian Competition Council wants measures against car dealerships abusing warranty system on EUR 1.4 bln spare parts market

The Romanian car spare parts market reached the EUR 1.4 billion level in 2010, a slight increase compared to the year before, and spare parts retailers control most of this market, according to data from Romania's Competition Council, which analyzed the sector. The Council will advise Consumer Protection officials to take measures against some car dealerships, which abuse the warranty system by imposing their own spare parts brands.

The Council found that 11 spare parts retailers have one third of the market turnover in 2010, an increase from a quarter in 2008. Large importers had the best results during this period, unlike car dealerships, which saw lower revenues from the sale of spare parts. The Competition Council's analysis revealed car makers have a monopoly for car parts with visible origins – such as car bodys, wind shields- for which they have legal protection for models and designs. However, the Competition Council proposes a change in legislation, allowing a 'repair clause', that would open this market segment to competition. This clause would mean that designs or models for a piece of an ensemble will no longer be protected legally when repairing to restore to original condition. So, when car owners repair their own cars, they will be able to choose between the 'original' car parts and alternative, possibly cheaper, parts. A survey organized by the Council revealed that there are car dealers that only allow repairs at their own garages or service centers, including this in the contract, or suggesting car owners would lose their warranty if they have their car repaired anywhere else. Three quarters of respondents said they had to accept the use of branded parts, even for repairs which were not covered by the warranty. As for counterfeit products, the perception of survey respondents was that the weight of counterfeit car spare parts was of 27 percent in Romania, above the European average. So far, the production of counterfeit car parts is punishable as a crime, by jail time of three months to three years or a fine between RON 50,000 and RON 150,000 (the equivalent of some EUR 11,000 to EUR 35,000), while the use of these parts is a summary offense. However, the Council wants to make the use of counterfeit car parts into a crime too, hoping this would help reduce the counterfeit products market. editor@romania-insider.com