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Study on the Operation of the System of Access to Vehicle Repair and Maintenance Information Final Report

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Study on the Operation of the System of Access to Vehicle Repair and Maintenance Information Final Report Study on the operation of the system of access to vehicle repair and maintenance information Final Report Written by: Gena Gibson, Charlotte Brannigan, Anna-Liisa Kaar, Felix Kirsch, Fiona Twisse, Eugenia Bonifazi, Carrie Lorton (Ricardo-AEA) Miguel Troncoso Ferrer, Conchi Ruixo, Sara Moya Izquierdo (Gómez-Acebo & Pombo) Maarten Verbeek (TNO) October 2014 EUROPEAN COMMISSION Directorate-General for Enterprise and Industry Directorate B Sustainable Growth and EU 2020 Unit B.4 – Sustainable Mobility and Automotive Industry Contact: Luis Escobar Guerrero E-mail: European Commission B-1049 Brussels EUROPEAN COMMISSION Study on the operation of the system of access to vehicle repair and maintenance information Final Report Directorate-General for Enterprise and Industry 2014 EN Europe Direct is a service to help you find answers to your questions about the European Union. Freephone number (*): 00 800 6 7 8 9 10 11 (*) The information given is free, as are most calls (though some operators, phone boxes or hotels may charge you). LEGAL NOTICE This document has been prepared for the European Commission however it reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein. More information on the European Union is available on the Internet (http://www.europa.eu). Luxembourg: Publications Office of the European Union, 2014 ISBN 978-92-79-43598-0 doi: 10.2769/50934 © European Union, 2014 Reproduction is authorised provided the source is acknowledged. Printed in Belgium Study on the system of access to vehicle repair & maintenance information EXECUTIVE SUMMARY Overview and objectives of the study It is generally recognised that there is fierce competition between vehicle manufacturers in the market for new car sales. However, once a vehicle has been purchased, competition on the markets for repair and maintenance is less intense. Thus, independent operators are needed to increase consumer choice and provide competition for vehicle manufacturer networks in the aftermarket. This is expected to lead to lower costs to consumers for repair and maintenance, which are thought to represent a significant share of total consumer expenditure on motor vehicles. In order to compete in the vehicle repair market, independent operators must be able to access vehicle repair and maintenance information (RMI). Vehicle RMI is required to carry out a very broad range of operations related to maintaining a car throughout its lifetime. This technical information is increasingly important due to the greater complexity of vehicles, growing number of parts and more use of on-board electronics. Vehicle manufacturers are required under European legislation to ensure that independent operators have easy, restriction-free and standardised access to vehicle RMI under Regulation 715/2007 (the “Euro 5” Regulation) and related implementing and amending acts. This study aims to assess the operation of the system of access to vehicle RMI in the European Union, as well as its effects on competition, the internal market, environment and safety. Ultimately the Regulation on access to RMI aims to protect consumer choice, allowing an owner to take their vehicle to whichever outlet they choose. For example, consumers may prefer a garage due to its proximity, long-standing relationship, turn- around times and numerous other factors that may vary between authorised and independent repairers. Nevertheless, this freedom of choice should not come at the cost of vehicle performance or safety. Main findings and conclusions of the study Compliance with specific obligations The implementation and levels of compliance with the Regulations were assessed for major OEMs across Europe. In general, it appears that levels of compliance are high, and it is important to recognise that the situation has improved over the past few years. OEMs have invested significant effort into their systems to ensure that the required information is provided in compliance with the Regulations. The main difficulties appear to relate to several specific areas, which hinder the overall functioning of the system of access to RMI. Several of these have already been recognised and are being addressed by standards as follows: Wide variation in user interfaces and software compatibility for OEM websites: This can cause users great inconvenience, particularly occasional users or repairers that service many different brands. o Many of these issues are expected to be helped by the introduction of the CEN/ISO standards, which introduce a more standardised format for RMI delivered via OEM’s websites. Access to security/safety data: Although OEMs have a legal right to limit data relating to vehicle safety and security, there still appears to be a need for further clarification and guidance as it relates to the technical regulations of Euro 5. o The SERMI scheme (security related repair and service information) aims to create a European-wide process for accreditation, approval and 5 Study on the system of access to vehicle repair & maintenance information authorisation to access security-related RMI, which should streamline the current patchwork of systems. Other issues have not been explicitly targeted by ongoing efforts – independent operators have reported significant difficulties in accessing RMI in terms of incompleteness, delays to the availability & usability of information, contractual restrictions, and the prices of the data made available to them. Only a case-by-case analysis can determine the precise reasons for the issues encountered, but it appears that the main reasons for this disconnect are issues that are very difficult to resolve given the different business models of the actors concerned. Impact on competitiveness and the internal market Repairers The investments in tools and training required to meet the demands of more complex modern vehicles are significant, and it is rarely economically viable for repairers to purchase single-brand solutions. Independent repairers therefore rely on access to this information mainly through other third-party providers (included under the broader definition of “independent operators”), including: Spare parts information via multi-brand catalogues – provided by parts wholesalers and distributors; Multi-brand diagnostic tools – provided by manufacturers of diagnostic and repair tools; Multi-brand repair and maintenance information – provided by publishers of technical information; and Third-party training providers. All of these actors provide the main source of technical information to independent repairers and so are especially important for the independent repair sector, but also affect authorised repairers who are increasingly becoming multi-brand. SMEs are socially and economically important, yet they tend to struggle with the costs of the tools and training required to service modern vehicles, and with aggressive promotional pricing strategies for standardised products. The traditional standalone repairers are expected to be significantly affected - reflected in the increasing number of independent garages joining franchise networks. One of the principal reasons for joining is to obtain access to technical information from vehicle manufacturers, alongside access to training and marketing. Parts distributors and wholesalers The major issue concerning parts distributors and wholesalers is access to unequivocal parts identification information. It is clear that this is a complex topic, and litigation on this aspect has been ongoing for several years. Notwithstanding the issues related to how the Regulations should be interpreted, parts wholesalers report that the lack of unequivocal access to parts information typically leads to two or three parts being identified as relevant. Where repairers are unable to identify a single part, they usually order multiple parts and return those that are not needed. This leads to increases in overall costs (estimated at 10-15%), arising from additional expenditures on logistics and administration, which may ultimately lead to higher parts prices for consumers. Furthermore, as vehicle complexity increases, the issues are expected to become more prevalent. 6 Study on the system of access to vehicle repair & maintenance information Tool manufacturers Even though they are aware of their rights under the Euro 5 Regulation, tool manufacturers continue to prefer reverse engineering over directly accessing the technical information they require from OEMs. This is despite the drawbacks of reverse engineering – namely, that it entails considerable time, effort, cost and does not produce complete information. In some cases there are fundamental issues that either limit tool manufacturer’s access to technical information directly from OEMs, either in terms of being discouraged by informal barriers (such as delays and formatting), or by contractual clauses that limit its value. Ultimately, this is likely to affect the competitiveness of independent repairers, as multi- brand tool manufacturers are unable to place products on the market at the same time as the OEM-branded tools. Publishers of technical information Direct access to OEM data is the only way that data republishers can obtain all of the relevant information they need. Currently there is great diversity in the fee structures used by different OEMs, and republishers must negotiate with each OEM individually. Additional guidance may be helpful to allow organisations to better understand
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