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Discussion Starter #1
While I was out and about yesterday at a local 4wd parts and service workshop (regarding another matter) I was told that Land Rover might very well soon be closing ranks and only selling ´genuine´ parts to it´s official dealer network. The only exception will be selected ´outside´ dealers within the EU and then only by contract that they will only sell retail and not on-sell to other businesses. Has anybody else heard this rumour or does it have some factual basis??

I must reiterate that LR has not confirmed that it is proceeding with this plan and so it might not happen or maybe in a different format.
If what I have heard is incorrect then please say so for all our piece of minds - as such a move would surely cause a lot of anger amongst owners who already pay exhorbitant prices for some parts.

Confirmation or denial welcome . . . .
 

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Discussion Starter #3
I don´t know what the legal status of such a move would be within the EU - I only wrote what I was told. I reckon that it would have an impact on non-EU business which sells genuine parts. The person who told me currently sells factory parts (that he obtains directly from England but I don´t know the source) and so his understanding is that he won´t be able to obtain genuine LR/RR parts if the plan goes ahead.

There is always the chance that, if the EU 3rd party retailers refuse to sign a contract or decide to mount a legal challenge, then LR might slam the door and only supply their dealer group. Is it possible? I can´t think of any maker (at least over here) that sells to outside retailers - if you want a genuine Jag or Toyota part you must go to a dealer.
 

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The EU has various laws which prevent the restriction of supply of goods.

I don't know exactly how it works but as an example, the block exemption rule was removed from book sales in the UK - at that point the supermarkets started selling new release hardback books (rrp £19.99) for £4.99-£9.99. It did have an adverse affect on independent book retailers (although some were purchasing from supermarkets and selling on their own shelves).

I design and sell bathooms and one high-end german manufacturer doesn't want their products sold by internet discounter but by knowledgeable retail showrooms so they won't honour warranties or even discuss aftersales with people who have purchased over the internet. The internet sales happen because wholesalers in german trade with internet discounters in the UK and the manufacturer cannot stop this.

So I think your parts supplier will be ok as the odds of this plan happening are very low.
 

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I support Tim's view. The motor industry has a block exemption in the EU for sales of new vehicles. The industry has demonstrated that the sale of its vehicles requires specialist knowledge which only it, the mfr can control. The same logic applies to the sale of high-end perfumes.

However parts are different, as it is deemed that in ordering "a left threaded grommet" or part number 634-5789 that no specialst expertise is required to be provided by the vendor.

Warranties in the EU must be honoured if the parts used are original, wherever they are fitted provided this has been competent. This could by you, if you have the experience. In my own case, I can rebuild an engine (haven't done it for years though!) but find replacing a piece of trim which has come loose a major undertaking. Ditto bodywork repairs - no idea (nor desire frankly). Modern auto electrics a bit daunting too.
 

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I've heard that LR has already stopped supplying Allmakes with Genuine parts. Something to do with the change to Tata ownership. If the company is now based in India/the-far-east, does the EU rule even apply?
 

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paul.adshead said:
I've heard that LR has already stopped supplying Allmakes with Genuine parts. Something to do with the change to Tata ownership. If the company is now based in India/the-far-east, does the EU rule even apply?
Yes, EU rules apply to goods sold in the EU.
Regardless of where the parent company is based.
 

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But if these are 'Indian goods', that an Indian company is selling, to its dealer network (some of which happen to be in EU), does EU law apply? Why not Indian law?

I can understand that the EU law would apply to say BMW or Volvo (which I'm guessing are still headquartered in EU), but what about say Cadillac (or Hummer)? Does the EU law, force a US company to supply goods to non EU-Cadillac-Dealers? I can't imagine it does.
 

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If you wish to sell cars in the EU then you cannot restrict the sale of parts.

What's the speed limit on the highway in New Zealand? 100kph?
Can you imagine NZPD (or whatever they are called) pulling over a BMW M5 that had been clocked at 248kph.
The cops are ready to draw weapons but the driver calmly gets out and is wrestled to the ground.
The cops tell him he's been pulled for excessive speeding and he calmly says,
" I am a german, zis is a german car and in germany zer iz no speed limit on ze autobahn, vat iz zis foolish 100kph of vhich you speak?"
Wherever you go, you play by the house rules.
 

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Tim (Scotland) said:
If you wish to sell cars in the EU then you cannot restrict the sale of parts.
Does that law only de-restrict the sale of parts in EU? What if a certain EU/UK based company sold parts in EU and globally (- say, online). Are LR able to restrict supplying parts to said company, if the final destination is outside of EU?
 

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LR cannot restrict the supply of parts to their own retailers under EU law.

They may be able to impose a non-eu condition as a term of trade (but maybe not).
They may have imposed unpleasant trading terms on Allmakes as a legal way of restricting supply.
But they cannot say "no as you are not one of our dealers".
A sharp lawyer may be able to find a loop hole, but the EU trade commission is a powerful body.
 

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Discussion Starter #14
My original item was about LR selling parts to non-dealer outlets (within the EU) but on the condition that they only sold them retail to end users - ie not on-selling to other outlets. Of course I realise, as do Tata, that they must play by EU rules as LR is based within the EU.
 

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Rowant said:
My original item was about LR selling parts to non-dealer outlets (within the EU) but on the condition that they only sold them retail to end users - ie not on-selling to other outlets. Of course I realise, as do Tata, that they must play by EU rules as LR is based within the EU.
It was your wording of "selected ´outside´ dealers" that we were disagreeing with.
As we have established that LR cannot restrict sales to non-LR outlets, the question becomes, can they impose "trading terms" on those outlets?
Again, from experience in my own industry, I'd say no. There are quite a few companies that we deal with who are not happy about how their products are sold within the EU but can do very little about it.
 

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But Stihl can argue that a chainsaw(or their other stuff) is a specialist and potentially dangerous tool and sellers should be specialists who give the customers the proper advice and service.
They wouldn 't be able to restrict the sale of genuine Stihl spare parts in the same way.
 
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