The European Commission approved sweeping new car sales rules today but delayed at the last minute the liberalisation of dealerships.
The most controversial clause, giving dealers the right to open showrooms anywhere in the European Union had been due to take effect on October 1st, 2004 but was delayed by one further year, a spokesman said.
The rules drafted by Competition Commissioner Mr Mario Monti greatly increase competition in car repairs and spare parts, and allow dealers to sell more than one brand in the same showroom.
Although most changes take effect on October 1st this year, car makers have a one-year transition period.
The new rules promulgated by the EU's executive arm are designed to narrow the gap in pre-tax car prices, which vary by as much as 50 per cent for the same model. They may also spur limited Internet and supermarket car sales.