CAR SPARE : ClariNews: EU move on car spare parts sparks industry rowNewsgroups:clari.web.biz.industry.aut omotive,clari.web.world.europe.union,cla ri.web.biz.top -->ClariNet story EUROPE-CARS from Reuter / Fredrik DahlEU move on car spare parts sparks industry rowCopyright 1997 by Reuters / Wed, 12 Mar 1997 11:02:06 PST BRUSSELS, March 12 (Reuter) - European Union internal tradeministers are set to admit defeat on Thursday in their effort toagree common rules on protecting design in the EU's huge carspare parts market, EU diplomats say. The issue sets European car manufacturers against thecompanies which make spare parts for their models. The ministers are expected to exclude spare parts from aplan to harmonise EU legislation on protecting industrialdesigns and models. Member states would therefore continue toset their own national rules, the diplomats said. The move will disappoint the parts industry, which says thatthousands of independent spare parts and repair businesses areat risk. European car manufacturers dispute that argument, saying thepresent situation would not change. They reject charges thatthey could monopolise the market for spare parts such aswindscreens and door panels. The ministers are expected to defy the will of the EuropeanCommission, which wanted the legislation to include a so-called``repairs clause'' allowing independent manufacturers to copyspare parts in exchange for a fee. EU diplomats say they expect the package to be adoptedunanimously on Thursday without the repairs clause. But the final outcome is still uncertain as it must also beapproved by the European Parliament, which may seek negotiationswith EU member states. The debate involves legislation on harmonised EU rules toprotect industrial designs from illegal copying if they fulfilcertain criteria -- for example, they have to be new and have anindividual character. But accepting suggestions by the European Parliament andarguing that it was a special case, EU Internal MarketCommissioner Mario Monti proposed allowing spare parts to befreely copied if parts makers paid a ``fair and reasonable'' sumto the car manufacturer. That drew fire from car manufacturers and EU statesincluding France and Germany. A Dutch official said most member states opposed the``repairs clause'' because they saw practical problems. Marc Greven, legal director at the European carmanufacturers' association ACEA, said it would have deprived carmakers of full rewards for their investment in research andinnovation. ACEA wanted EU harmonisation of design protection rules, butnot according to the Commission's proposal. He noted thatBritain was the only EU country now where carmakers could notget design protection for spare parts. ``We want harmonisation more or less on the basis of whatexists in most member states today,'' he said. However, an industry body representing consumers, insurers,and makers and distributors of spare parts said the ministerialproposal would ``give free rein to a 25-year monopoly for EU carmakers in the supply of spare car body parts to consumers''. ECAR (European Campaign for the Freedom of the AutomotiveParts & Repair Market) warned of the consequences. ``The livelihoods of thousands of independent spare parts andrepairs businesses will be threatened and the EU's 180 millionvehicle owners who spend more than 30 billion Ecus ($34 billion)each year on car body repairs can expect to face sharplyincreased costs which will feed through into higher insurancepremiums,'' ECAR spokesman Rupert Hughes said in a statement. But ACEA's Greven said ECAR was making false claims. He agreed that the Commission's proposal could increasecompetition but allow the independents to take a ``free ride'' onthe investments of car manufacturers.
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