German Renault dealers say new contracts violate EU law

Cologne. The German association of Renault dealers has asked the European Union to examine new dealer contracts. The contracts violate EU rules, according to Andrea Weiss, a lawyer representing the dealers.

The contracts went into effect in October 2003.

According to Weiss, the contracts are flawed because the manufacturer has the option of canceling the whole contract -- for both the workshop and for the selling of parts and new cars -- if the dealer does not fulfill any requirement, such as the rules regarding the selling of parts.

Hans-Werner Hauth, Renault's sales chief, has said he will alter the contracts if the EU agrees with the dealers.

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