The Financial Services Authority (FSA) in UK has been regulating the insurance market which has had a direct impact on the automotive retail industry. Thus, all activities are now restricted due to the regulations like selling, claim handling and administration of insurance activities. European Commission has liberalized the market from crash repair parts or ‘visible’ spares so it has given the non-manufacturers a chance to enter the market and exploit the avenues and make profits that were supposed to go to the retailers originally.
Block Exemption Regulations have affected the way in which vehicles are to be sold and these regulations have been made in order to allow more new entrants and to increase competition. The retailers have suffered due to these regulations. A number of regulations have been introduced due to the climate change and the awareness that automotive industry has contributed in increasing waste pollution. The End of Life Vehicle Directive (ELV) has been introduced to increase the re-cycling and re-use of old cars so a lot of re conditioned cars have entered the market. Thus, the aftermarket suppliers are responsible for disposing of the old car parts. The latest switch in the industry is to low carbon fuel to prevent pollution and this will require expensive technology change.
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