Concessionaires ask for protection for their business activity and employment

by time news

2023-05-08 13:54:22

The Concessionaires Association has asked all the parliamentary groups to support with their vote the amendment presented by the PdCAT that supposes a change in the Agency Law and that would provide concessionaires with the right to “fair” compensation when the brand decides to cancel his contract unilaterally. In this way, the viability and employment of SMEs that would be affected by these restructurings would be ensured.

The proposed amendment to the Agency Law aims to establish a minimum compensation framework for concessionaires in the event of unilateral termination of the contract that links them to their brands in three very specific aspects: unamortized investments, goodwill and labor personnel linked to your activity.

For Faconautosupport for the aforementioned amendment is urgent, because there is currently a clear tendency for brands to concentrate or for distribution contracts to become agency contracts, which entails a cancellation of their current contracts, something that in some brands implies its closure in a few weeks.

Gerardo Pérez, president of Faconauto, explained that “in our surrounding markets where distribution also has a significant weight in their economy, legislative changes similar to those proposed by Faconauto have recently been introduced.” As understood by this association, in Italy, a regulatory framework similar to the one included in the PdCAT amendment was approved in August 2022. Similarly, in November last year the Republican Group of the French National Assembly proposed a modification to the current French Commercial Code that would guarantee that the investments required of dealers are reasonable according to the economic context.

On the contrary, from Anfac they understand that «the amendment seeks a solution and a legislation that is only present in Italy and Belgium. It is not true, therefore, that Spain is the exception, but vice versa, Italy is the only country that specifically regulates this matter, as demonstrated by the Independent Legal Report prepared by the Gómez-Acebo & Pombo Firm.

From the Association of Manufacturers Anfac They do not agree with the content of this amendment, since, from their point of view, “we do not understand the reason for this amendment at a time when relations between brands and dealers are at their best in the last five years , as demonstrated by VCON’s own survey, presented on March 1 in the framework of the annual Faconauto Congress. According to that survey, dealer satisfaction levels with their brands are at record levels in the last five years. And not only satisfaction, but also profitability is the highest in the last five years. Therefore, there is no generalized conflict as Faconauto argues, “they explain.

For her part, the National Association of Vehicle Sellers and Repairers (GANVAM) considers that the modification in the Law on the Agency Contract promoted by the PdeCAT “would provide judges with instruments to protect the concessionaire in a context in which brand-distributor relations are unbalanced.” Thus, they argue that “if Parliament approved this amendment to the Law on the Agency Contract, the judges would have an additional instrument in favor of distributors. However, the laws are non-retroactive, so “in order not to raise false expectations, it is important to take into account that, unless otherwise indicated by transitory provision, the amendment could not be applied to contracts or situations prior to its entry into force.” », clarifies the Corporate Director of Ganvam, Jaime Barea.

According to Faconauto, the activity of dealers in our country is only covered by European standards, without entering into essential aspects for the sector, and also by Spanish general law. On the contrary, practically in all the countries around us the sector has some kind of specific standard.

Spain is no exception, according to Anfac

From Anfac they have explained to this newspaper that «in Spain there is already a protection for dealers, collected by the Supreme Court, which indicates in which cases the compensation of the agency contract law is applied analogously. Agreement of the 1st Chamber of the TS of December 10, 2005. And there is a European regulation that requires a two-year notice to either of the two parties for the cancellation or non-renewal of the concession contract.

Faconauto thus considers it necessary to complete a process that prevents Spain “from being the only country with a business and labor fabric as represented by its automotive dealers that leaves them in a situation of legal helplessness.” “We need the political parties to approve this legal balance to ensure the important investments that dealers make in every corner of our country. Without this legal protection, when a brand decides overnight to restructure its activity, as is happening right now, it puts a very valuable fabric made up of SMEs and thousands of qualified jobs at risk”, declared Gerardo Pérez.

#Concessionaires #protection #business #activity #employment

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