An accusation that began like this
It all started last October 19th when the Competition and Market Guarantor Authority started an investigation against DR Automobiles: according to the Authority “the company would have provided misleading information regarding the place of production of the DR and EVO branded vehicles during the promotion and sale of the cars, in violation of the rules of the Consumer Code”. The accusation, according to theAGCM was that “in some cases the DR omittedthere would be relevant information on their origin, suggesting that they are produced entirely in Italy, while they are Chinese-produced vehicles”.
The sanction
On the same day, Authority officials carried out inspections at the headquarters of the DR Automobiles company with the help of the Special Antitrust Unit of the Financial Police. Then it seemed that the case was resolved due to the clarifications provided by the Molisana company.
But no: today a fine of 6 million euros was received for DR Automobiles for unfair commercial practices. Sanction imposed by the Antitrust. According to theCompetition and market authority, “in commercial communications Dr Automobiles misleadingly indicated Italy rather than China as the place of production of the cars marketed under the Dr and Evo brands”. Furthermore, “together with the subsidiary Dr Service & Parts – is reported -, did not guarantee an adequate supply of spare parts or appropriate after-sales assistance”.
The advertising is contested
“The authority – is explained – has ascertained that Dr Automobilesin the context of messages and/or commercial communications released at least from December 2021 through various channels, indicated Italy as the origin and place of actual production of the cars marketed under the Dr and Evo brands. However, these are vehicles produced in China, except for marginal finishing and completion interventions . The deceptive practice – concludes the Agency – coincided with a period of strong increase in sales of Dr and Evo brand cars on the Italian market”.
The investigation also ascertained that Dr Service & Parts and Dr Automobiles, at least starting from 2022, did not guarantee an adequate supply of spare parts nor even correct after-sales assistance, through the network of dealers and/or authorized workshops, which – among other things – have not been provided with suitable technical training. “This practice – is highlighted – may hinder the exercise of consumer rights, including the right to obtain car repairs and adequate after-sales assistance, also in the context of the legal guarantee of conformity of the purchased product”. The Authority has decided that the two companies, within sixty days from the notification of the measure, communicate the initiatives undertaken to put an end to this illicit conduct.
DR’s response
In reality it wasn’t even 60 minutes later DR strongly contested the sanction. Here is his answer, we publish it in full: “DR Automobiles Groupe is challenging the AGCM’s provision. DR Automobiles Groupe takes note of the AGCM’s decision, although it does not agree with its merits, which is why it is preparing to challenge it.
During the procedure, DR offered maximum availability, proposing tangible commitments aimed at remedying the concerns expressed by the Authority, which however were not accepted by the latter.
On the merits, DR observes that the relocation to the Far East of part of the production of cars (common practice in the automotive sector) marketed by DR Automobiles Groupe has never been hidden from the public, as demonstrated by numerous press articles and television reports, as well as by information disclosed through the group’s official web and social channels.
At the same time, the advertising campaigns never intended to publicize a claimed complete manufacturing of cars in Italy, but rather to underline the strong bond of the automotive group with our country and the Molise region from a proprietary and historical point of view. In addition to highlighting the important phases that take place in the Macchia d’Isernia (IS) HQ in terms of research and development, design, planning, addition of functionality, finishing and completion of the cars marketed.
All aspects that have not been adequately valorised by the AGCM provision.
DR Automobiles Groupe intends, in any case, to increase the production phases in Italy, expanding its industrial center in Macchia d’Isernia with a new production plant, with a view to developing new models, including fully electric ones.
As regards the conduct sanctioned in terms of after-sales assistance, the AGCM challenged the DR Group on the waiting times suffered by some consumers for the repair of their cars, failing to consider that this was derived from the objective unavailability of some spare parts due to the well-known disruption to the automotive sector supply chain that occurred in the post-pandemic period.
A situation common to the entire sector and in any case now in the absorption phase, as demonstrated by the data recorded by the Group as early as 2023 and further improved in the first quarter of 2024, which show average delivery times for spare parts of just over 2 days“.
The comment by Massimo Di Risio
Massimo Di Risio, founder and president of the DR Automobiles Group, comments on the 6 million euro fine imposed by the Antitrust as follows: “Incredible!!! We fully contest the AGCM provision which we are about to challenge, confident of a total overturn. The company – continues Di Risio – is solid and able to support even a possible, however unlikely, confirmation of the sanction. Let’s keep running, just as we are used to doing“.
#Competition #guarantor #fine #million #responds #false #FormulaPassion.it
