What are the consequences of MVBEO?

Following on from part one, Harald Oosting, the chairman of the Verification of Lubricant Specifications (VLS), shares the implications of the UK Motor Vehicle Block Exemption Order (MVBEO).

The rights of third parties to provide OEM quality parts to the automotive aftermarket are protected in UK law within the MVBEO.

The MVBEO, which came into force in 2023, safeguards against anti-competitive practices amongst suppliers, manufacturers, and distributors in the automotive sector in return for limiting those rights amongst automotive manufacturers and distributors, which would curtail free and fair competition.

Amongst the rights contained in the Order are the right of third-party actors to:

• Supply OEM matching quality parts to the aftermarket, including lubricants and cooling fluids.
• Access relevant OEM technical information with which to develop, produce and supply OEM-matching quality parts based on market standards and OEM specifications.
• Unfettered access to supply these OEM matching quality parts without encumbrance to the automotive aftermarket.

The law is clear, but there still seems to be some confusion in the marketplace. Our parent association, the United Kingdom Lubricants Association (UKLA), has produced some advice leaflets to clarify what the Order means for the supply, purchase and use of lubricants and cooling fluids in the UK.

VMs cannot impose the use of their own lubricants and other fluids or those of a named lubricant manufacturer unless the VM is paying for the products; for example, warranty repairs or recall work. VMs can recommend the use of their own lubricants and other fluids or those of a named lubricant manufacturer, but they cannot be mandatory. OEM recommendations should always be accompanied by a relevant specification or market standard that allows the supply chain to correctly identify and choose the lubricants they wish to use.

What about warranties? VMs cannot withdraw their warranty if matching quality lubricants and other functional fluids are used that meet the VM’s requirements regarding quality and technical performance.

Workshops are free to choose any brand, so long as it meets the technical requirements of the VM and is of matching quality; therefore, you are free to supply a variety of brands for a variety of vehicles. If a VM ever wanted to contest the use of a specific lubricant that a workshop believed was of matching quality, it is their responsibility to prove that the lubricant does not meet the VM’s technical requirements.

VMs must provide all technical information, repair and maintenance information or RMI, including technical specifications on lubricants and other functional fluids, to whoever services, uses, maintains or repairs these products to enable their correct application.

You can be confident that the MVBEO is there to protect free and fair competition in the automotive aftermarket.