MV-BEO “watershed moment for industry says LKQ ECP CEO

12 June 2023  

The new Motor Vehicle Block Exemption Order (MVBEO), which came into force earlier this month, is a ‘watershed moment’ for the independent aftermarket, according to LKQ Euro Car Parts CEO Andy Hamilton, who said: “The new MVBEO regulations have delivered on many of the industry’s key requests. It is more comprehensive – now covering software, training and improved access to data and information alongside parts – and it is now shorter in duration, coming up for review again before the end of the decade. This should allow the framework to be updated to keep pace with the rapidly evolving vehicle market.”

LKQ UK & Ireland, which includes LKQ Euro Car Parts & LKQ Bodyshop, was one a number of companies and organisations including the IGA, IAAF and UK AFCAR who lobbied for the MVBEO to build on and expand the framework provided by the outgoing MVBER framework.

Andy continued: “This is a real success for the independent aftermarket, where its ability to service modern vehicles was slowly being squeezed by OEMs capitalising on the shortcomings and loopholes of the ageing MVBER framework and advances in vehicle technology that support new business models.

“I’d like to thank the many workshops and bodyshops that engaged with us, as well as the IAAF and UK AFCAR who have worked closely with the CMA as it developed these new regulations. The evidence submitted was overwhelming to the point where we had to be listened to.

“As vehicles continue their gradual evolution to becoming tech hardware, there remain gaps in the legislative landscape that OEMs will no doubt exploit to restrict access to independents and, by extension, limit consumer choice. This includes cybersecurity where the UK currently has no plans to introduce a standardised certification system, such as the SERMI scheme that is due to come into force in Northern Ireland and the EU this summer. Meanwhile, the threat of damaging MOT reforms is still casting a shadow over the industry’s future.”

Andy added: “Because of all these issues, we and our partners in the industry are not resting on our laurels, but as our efforts on MVBEO show, when the industry unites around a common purpose, we can work with the legislator to challenge the dominance of the global OEMs and achieve outcomes that support a thriving independent aftermarket and its loyal following among British consumers.”

The MVBEO, introduced by the Competition and Markets Authority (CMA), replaces the EU-derived Motor Vehicle Block Exemption Regulations (MVBER).