Europe Auto: Need for OEM-Dealer Integration Accelerated by Changes in Block Exemption Regulation
Changes to the Block Exemption Regulation (BER) are meant to increase the competitiveness of the European automobile industry. The key elements include allowing either selective or exclusive distribution arrangements, disengaging dealerships and service, providing greater role for intermediaries and broader definition of original spare parts. In order to take advantage of the changes, VMs and dealers have to adopt new business processes and technologies. Improved communication with dealers is a necessity for VMs to improve customer satisfaction. This paper highlights the role of open IT standards like web services in providing the required integration for VM and dealers.