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France: Authority in favor of opening up auto repair market

 |  October 8, 2012

The French competition authority said that France should open the auto-repair market to more services and parts providers thereby increasing competition in the monopolistic market. Currently, French carmakers tend to generate higher profit margins from repair and maintenance than car sales due to restricting repair services to their own network. The French authority has said that carmakers should clarify warranty contracts regarding servicing cars outside the manufacturer’s own repair network, as this often jeopardizes the coverage of customers using repairs outside these networks. Although, such a change should be made gradual, in order to minimize job losses at carmakers like PSA Peugeot Citroen (UG) and Renault SA (RNO) and give part makers time to increase production.

Full Content: Business Week

Related Content: The U.S. Auto Industry Under Duress: Fit, or Finished?

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