Buyer-Seller Relationships in Car Distribution

Major changes are expected in car distribution and after sales services in the European Union after October 2003, when the loophole that was created 15 years ago in EU will be closed. It gave car manufacturers control of most dealerships, supposedly to assure top quality maintenance. Domestic car importers have been allowed to sell cars selectively and exclusively through their own dealerships, effectively preventing other distribution outlets from distributing cars or offering full after sales services. These practices are believed to drive up the price of cars, a fact that has aggravated consumers in several countries, especially in the United Kingdom. A cross-cultural study of dealer-supplier dependence, trust, commitment and other important relationship constructs, and their effect on future intended behaviour was conducted in the autumn of 2001. Questionnaires were sent to all dealers in Finland and a selection of dealers in Belgium and Holland.