Binding rules for the automotive industry from 2024 onwards
The previous Motor Vehicle Notice of the Competition Commission (WEKO) contains central dealer protection regulations and consumer rights within the automotive industry. From January 1, 2024, these rules are to become binding for all authorities and courts - as in the EU - as a motor vehicle ordinance of the Federal Council. This is how the Federal Council is implementing the will of Parliament, which goes back to a motion by National Councilor Pfister. The driving force behind this request was also the Association of Independent Car Dealers Switzerland VFAS.
The market power of the few motor vehicle manufacturers and their importers has repeatedly proven to be a latent danger for the more than 5000 SME dealers/garages in Switzerland. Time and again, there have been violations of antitrust law: Manufacturers attempted to seal off the Swiss market from foreign countries by preventing or impeding parallel or direct imports. The denial of warranties for imported vehicles also occurred, or independent workshops were not supplied with spare parts. Technical access to brand-specific diagnostics or electronic service manuals is denied. Authorized dealers have had their rights curtailed.
This "register of sins," as enumerated by the Association of Free Car Dealers Switzerland VFAS, is long. Swiss consumers and SMEs are the ones who suffer from such excesses: There is less choice at higher prices and hindrances for consumers and SMEs ("High Price Island Switzerland"). The WEKO therefore issued a motor vehicle notice in 2002 with numerous dealer protection and consumer provisions. However, this has rarely been implemented in practice - due to the lack of binding force for courts.
The road to legislative change
In 2018, National Councillor Gerhard Pfister submitted a motion (No. 18.3898) with the aim of allowing the WEKO notice to flow into a motor vehicle ordinance and thus make it binding for courts and authorities - as in the EU. The motion was supported by a broad alliance under the political leadership of the VFAS with the associations AGVS, ACS, Carrosserie Suisse, SAA, VSS, 2rad Schweiz, Unia and Syna. The National Council and the Council of States have approved the motion. The new ordinance will now come into force on January 1, 2024.
What rights SMEs and consumers will now receive
As of January 1, 2024, the following conduct on the part of manufacturers/importers will be considered a violation of the Cartel Act:
- Obstacles to imports, for example by making it more difficult to obtain a manufacturer's warranty.
- Restrictions to distribute vehicles of other brands.
- Restrictions on access to original spare parts and the right to use equivalent original spare parts without risking the loss of the warranty
- Restrictions on access to all types of mechanical and digital tools necessary for vehicle maintenance.
- Restrictions on access to information and professional instruction.
- Restrictions to perform service and repairs on imported vehicles with factory warranty.
- Refusal of a service contract if the independent or branded dealer meets all the manufacturer's standards.
VFAS President Roger Kunz is very happy as the driving force behind the concern of the Swiss Parliament: "For the VFAS, the protection of Swiss car dealers and garages and motorists is central. The effort has paid off. Now the motor vehicle rules of the WEKO will be placed on a binding legal basis." The association has represented the interests of the independent and free car trade in Switzerland since 1956. It opposes all restrictions and impediments to the free car trade. According to VFAS surveys, direct and parallel imports generate an annual economic value added of 1.5 billion Swiss francs.
Source: VFAS
