The rights of third parties to provide OEM quality parts to the automotive aftermarket are protected in UK law within the Motor Vehicle Block Exemption Order (MVBEO). The law is clear, but there still seems to be some confusion in the marketplace.
The MVBEO, which came into force in 2023, provides safeguards against anti-competitive practices amongst suppliers, manufacturers, and distributors in the automotive sector in return for limiting those rights amongst automotive manufacturers and distributors, which would curtail free and fair competition.
Amongst the rights contained in the Order are the right of third-party actors to:
– supply OEM matching quality parts to the automotive aftermarket, including lubricants and cooling fluids
– access relevant OEM technical information with which to develop, produce and supply OEM-matching quality parts based on market standards and OEM specifications
– unfettered access to supply these OEM-matching quality parts without encumbrance to the automotive aftermarket
VLS’s parent association, the United Kingdom Lubricants Association (UKLA), has produced some advice leaflets to clarify what the Order means for the supply, purchase and use of lubricants and cooling fluids in the UK.
Vehicle Manufacturers cannot impose the use of their own lubricants and other fluids or those of a named lubricant manufacturer unless the Vehicle Manufacturer is paying for the products (e.g. warranty repairs or recall work). Vehicle Manufacturers can recommend the use of their own lubricants and other fluids or those of a named lubricant manufacturer, but they cannot be mandatory. OEM recommendations should always be accompanied by a relevant specification or market standard that allows motor factors, workshops and vehicle owners to correctly identify and choose the lubricants they wish to use.
What about warranties? Vehicle manufacturers cannot withdraw their warranty if matching quality lubricants and other functional fluids are used that meet the vehicle manufacturer’s requirements regarding quality and technical performance.
Workshops are free to choose any brand if it meets the technical requirements of the Vehicle Manufacturer and is of matching quality; therefore, motor factors are free to supply a variety of brands for a variety of vehicles. If a vehicle manufacturer ever wanted to contest the use of a specific lubricant that a workshop believed was of matching quality, it is their responsibility to prove that the lubricant does not meet the vehicle manufacturer’s technical requirements.
Vehicle manufacturers must provide all technical information, so-called Repair and Maintenance Information or RMI, including technical specifications on lubricants and other functional fluids, to whoever services, uses, maintains, or repairs these products to enable their correct application.
Workshops and motor factors can be confident that the MVBEO is there to protect free and fair competition in the automotive aftermarket.
For further information, access the VLS website https://ukla-vls.org.uk/wp-content/uploads/Block-Exemption-Order-leaflet-03-Web2.pdf or read the Competition and Markets Authority (CMA) guidance at https://www.gov.uk/government/publications/cma-guidance-onmotor-vehicle-agreements
