European Commission Formally Warns VW about Italian Distribution Practices

12/03/96

Reuters reports that the European Commission (EC) announced last Thursday that it had sent Volkswagen and its subsidiary Audi formal objections warning the carmakers of distribution restrictions in Italy. The statement follows an investigation and gives the German companies until mid-January to reply.

The German carmakers have developed practices in Italy that try to prevent Austrian, German, and French consumers from buying their cars at cheaper rates in Italy.

The EC warned Volkswagen about such practices earlier this year because they violate the principle of free movement of goods. At that time it announced that it would send a formal statement to the companies this fall.

Paul Dever -- The Auto Channel