Aftermarket: Legislation on Monopoly Parts Price Behavior
On the eve of 3.15, the chaos in the auto repair market once again caught the attention of the industry, and legislation has restrained auto manufacturers from monopolizing the price of parts and components of the auto aftermarket.
In response to problems such as overcharging of 4S shops, unclear consumption, consumers’ forced consumption, and unreliable sources of comprehensive repair shop accessories, and difficulties for enterprises to survive, on March 5, the China Automotive Technology and Research Center, the Ministry of Transport and other agencies In Tianjin, a media briefing on “Promoting the Construction of Open Information System for Automobile Maintenance Technical Information†was held.
At the meeting, including the organizers, all parties from auto parts and insurance agencies clamored for and took actions to break the auto market monopoly. Zhong Chi Auto Parts Co., Ltd. General Manager Zhang Houqi told reporters, "The vehicle factory to obtain profits, monopolize the accessories channel, through the accessories factory production of the original parts to increase the price of 50% -100%, 4S shop and then increase the price of 50% -100% for sales. â€
In China, automobile maintenance companies mainly include 4S shop systems authorized by automobile manufacturers to carry out automobile sales and maintenance services, and non-authorized integrated vehicle maintenance companies, of which integrated maintenance companies account for 90% of the industry. The total number of 4S stores is small, but because of the high quality of maintenance services, it has taken over 60% of the entire industry.
Promote maintenance information disclosure system
"Let's not lose anything and don't lose the key. In the Auto Parts City can be 200 yuan with the key, because there is no decoding, in the 4S shop to spend more than 2,000 yuan." Wei Tongwei, deputy director of the China Association of Automobile Maintenance Industry revealed that the car 4S shop on the maintenance of vehicles "small illness The turmoil of "great governance" and "replacement without maintenance" does not stop here.
Previously, many luxury car brands stipulated that as long as the engine enters the water, they must change the assembly, and inform consumers that there is no need to test. Some brand manufacturers require consumers to repair wherever they are, and “sweep code†must be conducted in the 4S store. 4S stores do not pay Any work can be charged 2,000 yuan.
The fundamental reason behind the chaos is that auto manufacturers use maintenance technology and monopolization of original parts to raise prices of maintenance parts. According to Chen Wenkai, CEO of Gasgoo Motors, who has worked in the automotive aftermarket for many years, “Parts of the entire automobile factory other than conventional maintenance are basically monopolized. Parts companies will sign an agreement with the entire vehicle manufacturer and they will not be allowed to sell accessories. In other places, it can only be an exclusive supply, that is, it can only be sold to the entire vehicle company first, and then it can be sold to the 4S shop at a high price after the OEM company rebrands it, earning the difference.â€
Disclosure of technology and standards is very important for reducing consumer costs. Cao Xuejun, chief engineer of the Beijing Institute of Automotive Research, told reporters that "the maintenance of technical information not only leads to an increase in maintenance prices, but also leads to an increase in insurance premiums and is eventually passed on to consumers."
Information disclosure includes the disclosure of relevant accessories, the disclosure of working hours standards, and the disclosure of maintenance technology and maintenance standards. Take the European Union as an example, the European Union's vehicle emission regulations (EC715/2007) define the technical information of automobile maintenance as: vehicle diagnosis, maintenance, periodic inspection, maintenance, reprogramming or reinitialization, and the manufacturer provides them with authorized distribution. Full information of dealers and maintenance companies, including all subsequent amendments and additions to this information, and all information required for the vehicle to install accessories or equipment.
At the same time, the European Commission has formulated and implemented the "Auto Industry Exemption Regulations" (EU461/2010) and implementation guidelines in accordance with the EU Competition Law, which clearly stipulates that automakers must impartially and without delay to authorized repairers and independent operators (including independent maintenance companies). , maintenance equipment manufacturers, maintenance technology information publishers, maintenance and technical training institutions, etc.) publicize automobile maintenance and technical information.
The legislative hindrance is the "Automobile Brand Management Measures"
Legislation must face many difficulties. The first is the “Automobile Brand Management Approachâ€. There is a clear contradiction between it and the Anti-Monopoly Law. Article 18 of the "Administrative Measures for Automobile Brands" stipulates that: Automobile dealers shall not provide automobile resources for those enterprises that have not been authorized to sell or have no operating conditions; Article 25 stipulates that automobile brand dealers shall engage in the authorization of automobile brand suppliers. Car brand sales, after-sales service, parts supply.
Regarding the contradiction between the "Automobile Brand Management Approach" and the "Anti-Monopoly Law," Cao Xuejun believes that "the approach is only an ordinance and the anti-monopoly law is a statute. The two are different in terms of levels. I think the anti-monopoly investigation is It is a better condition to promote the revision of the "Automotive Sales Management Measures." Since the anti-monopoly investigation has been conducted, judicial advice can be put forward."
“How to amend the “Measures†is a dispute of interests, and it is necessary to adjust the interests of all parties in the automobile sales process. However, even if the “approach†is amended, all problems cannot be resolved,†said Huang Yonghe, chief expert of the China Automotive Technology and Research Center.
At present, the European Commission puts forward the principle of determining whether technical information needs to be disclosed: First, whether the information belongs to technical information or other types of information that can be legally retained, such as business information; and second, the ability to retain the technical information to complete the work of independent operators. It has a significant impact and imposes restrictions on market competition. Third, whether the technical information is provided to members of the authorized maintenance network. If it is provided to members of the authorized network, it should be provided to independent operators without discrimination; Technical information is ultimately used to repair and maintain the car or for other purposes, such as manufacturing parts or tools.
The U.S. practice is more direct. According to the “Car Repairable Act†promulgated and implemented by the U.S. Congress in 2003, if an automobile manufacturing company refuses to make disclosure on the ground that it protects trade secrets or if a certain technical information does not directly affect car repair, it must go to the Federation. The Trade Commission testified and accepted the ruling.
Huang Yonghe also called for the "Anti-Monopoly Law" to formulate an anti-trust-related guide or rule in the automotive industry. "Everybody follows the rules to compete fairly, because the anti-monopoly law is too big. For example, the main problems in the field of car sales are vertical monopolies, and what the vertical monopoly of cars includes, and it can be stipulated."
Take Japan as an example, the Japan Automobile Fair Trade Agreement will be based on the "Anti-Monopoly Law" and "Anti-Improper Gifts and Representations" to formulate a code of conduct for fair trade in the automotive industry. Including the “Fair Dealing Statute of the Auto Industry†and the Implementation Rules, “Guidelines for the Implementation of Related Anti-Monopoly Laws on Transactions in the Circulation Industry: Appropriate Handbook for Auto Circulationâ€.
In order to break the monopoly, the Insurance Association plans to launch a "zero-to-zero ratio" of automobile prices, which is the ratio of the price of auto parts to the price of the entire vehicle, which is the ratio of the price of the commonly used main parts added together and the price of the entire vehicle. Cao Xuejun participated in the preliminary preparations and found that some brands are obviously high and the differences are relatively large. Some ratios may be 0.5, and some ratios are 1.5.
“The zero-to-high ratio means that high maintenance costs mean high maintenance costs and increase insurance premiums for customers. In Japan, the level of insurance premiums may be four times worse. If this car pays 2,000 yuan in insurance premiums, another vehicle will pay 8,000 yuan. Yuan premium, then the plan to buy the latter's consumption will take a good look."
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