Dealer vs. Manufacturer: Good Roar, Lion

Dealer vs. Manufacturer: Good Roar, Lion

What has happened so far: At the third hearing before the cartel court in the case of the Upper Austrian Peugeot dealer versus Groupe PSA, Peugeot Société Anonyme's request for exclusion from the public was again granted; PSA successfully argued the risk that other manufacturers could gain insight into trade secrets. However, the request to allow retailers to take part in the PSA surveys was rejected. The next round of negotiations scheduled for May 16th will once again not be public.

The fact is: An Upper Austrian authorized dealer is suing Peugeot for “abuse of a dominant market position”. Peugeot - like all other manufacturers - sets numerous and sometimes extremely detailed specifications that authorized dealers often find economically unviable. The dealers are meticulously prescribed everything from the clothing of the employees, the furniture in the waiting rooms to the constantly mentioned tiles in the showroom. Retail spokesman Josef Schirak, who has long been a major critic when it comes to dealer contracts, always complained in discussions with KFZ Wirtschaft about the “one-sided contracts” that were, so to speak, slapped on the dealer's table. There has been no talk of negotiations for a long time.

"The development has been going on for several years, but at some point it has to be stopped. The camel's back has overflowed."

“THE BARREL HAS OVERFLOWED”

The dealer, who wishes to remain anonymous, said in the Oberösterreichische Nachrichten: "The development has been going on for several years, but at some point it has to be stopped. The camel's back has overflowed." There are simply too many regulations that are not economically viable. He gives the example that is often used as an example when it comes to pointing out the absurdities of dealer contracts. A few years ago he opened a new showroom. At Peugeot's request, he had to tear out the tiles again because they had an "undesirable color". He also had to replace furniture and bear the costs himself. And: The manufacturer does not contribute to training costs for employees. Peugeot simply stated that in principle it does not comment on ongoing proceedings.

ONLY POSSIBLE IN AUSTRIA

The current procedure – PPE versus dealer – is only possible in this form in Austria, especially since the Motor Vehicle Sector Protection Act (KraSchG) has been in place in Austria since June 1, 2013 (see box). The dealer association could not sue itself; that is only possible for a dealer. It is not a given that a dealer has been found who will take on the burden of the lawsuit. After all, the retailer is threatened with losing the brand. In any case, the fact is: If the court ultimately decides that Peugeot is abusing its dominant market position, this would undoubtedly have a signaling effect beyond Austria's borders. Industry insiders agree that a condemnation of the French brand would have a general impact on European automobile sales. Because Peugeot is not alone with the standards it sets for dealers; In addition, the legal antitrust requirements are similar across Europe. Essentially, it's about getting the manufacturer to talk to the dealers on an equal footing, to treat them as partners and to discuss future investments.

BRISANT DOCUMENT

The antitrust hearing brought to light an explosive document that clearly illustrates the relationship between the contractual partners, published under the title “Spare parts purchasing as forced happiness?” on A&W Pro. Contents of the so-called circular to dealers: “As an authorized Peugeot dealer, you must purchase all original spare parts and all other parts, equipment and accessories covered by selective distribution and mentioned in the PSA spare parts catalog and/or price list, exclusively from the above-mentioned authorized distributors of Groupe PSA.”

“The current procedure is only possible in Austria due to the KraSchG.”

THE KALCHER CASE

PPE was already omnipresent in the headlines at the end of last year. Brand spokesman and Peugeot dealer Bernhard Kalcher's dealer contract was surprisingly terminated. At its facility in Fehring, Styria, Kalcher sells light vehicles from Microcar and Ligier in addition to the brands Peugeot, Honda and SsangYong. In 2001, Kalcher created a cluster with six partners and ultimately sold 450 new Peugeot cars. The termination is a “ordinary termination,” says Kalcher to KFZ Wirtschaft. This was delivered by email. This means: The dealer contract was terminated within the statutory notice period as of October 2020, but the workshop contract remains in effect. The Club of Austrian Peugeot Dealers unanimously confirmed Bernhard Kalcher in his role as dealer association chairman at the general meeting on January 10, 2019. His term of office officially runs until 2021. At least until his dealer contract ends in 2020. Most recently, a letter from Peugeot to the dealer association became public, according to which the import management continues to refuse a negotiating mandate with Kalcher. In this letter, Peugeot insists on “a person we trust”. If this is chosen, we can talk about working with the dealer association again.