The the independent aftermarket representative body has said the upholding of a conviction by the Supreme Court in Stockholm against Kia Motors is a major victory for the independent automotive sector.
The Swedish court dismissed Kia Motor’s petition to appeal against their conviction in December 2012 for breach of competition in the Swedish market on its 7 year new car warranty. Under the EU Motor Vehicle Block Exemption Regulation 461/2010, manufacturers have a duty to honour the vehicle’s warranty when it is serviced outside of the dealership, and non-OE parts being fitted onto a vehicle is an insufficient reason for the warranty to be declared invalid.
In Kia Motor 7 year warranty terms had stated “it is a requirement that any prescribed service is performed by a brand authorised workshop.” Aftermarket body the SBF, which like the IAAF is also a FIGIEFA member, reported Kia to the Swedish Competition Authority who agreed the terms were likely in breach of Block Exemption Regulations. Following this, the SBF sued the vehicle maker in the Swedish Market Court which then convicted Kia Motors for breach of competition.
The IAAF is calling on the independent sector to inform the federation when mcar manufacturers and their dealers are miscommunicating information to motorists regarding their rights under Block Exemption legislation.
Wendy Williamson, IAAF chief executive said: “The Swedish verdict is fundamentally important; it’s the first of its kind within the EU, and is a huge victory for the aftermarket. It sets an important precedent for the independent aftermarket within Europe.” She added, “The aftermarket has to educate ill-informed motorists about their rights, so it is essential the IAAF is made aware of any Block Exemption infringements as soon as possible so we can react quickly to resolve them. This case is a stark reminder to manufacturers and dealers to abide by the current legislation. Under these rules, everyone has a ‘Right2Choose’ and car owners are no longer obliged to go to their dealer during the vehicle’s warranty period.”