A CAR retailer is calling for caution ahead of the publication of a report on opening up the market.

This week, the European Commission will publish a report on possible changes to existing "block exemption" regulations. They cover distribution and servicing agreement rules for vehicle manufacturers and dealers, allow manufacturers to specify who can sell their cars and set standards for dealers.

The regulations expire in September and, with organisations such as supermarkets expressing interest in selling cars, consideration is being given to expanding the number of vehicle retailers.

Mark Squires, chief executive of the Newcastle-based Benfield Group, urged caution.

"No one is quite sure yet as to what the European Commission will recommend, but whatever changes are proposed, the needs of the car-buying public must come first," he said.

"The idea of opening up the car market is to increase competition and ensure that customers get the best possible levels of service.

"But provided that existing motor dealers are giving customers the levels of service, support and price competitiveness they expect, there seems little need for the status quo to be radically altered.

"If the exclusivity element of the current legislation is revoked or diluted, there is no guarantee that standards of customer service and competition will automatically improve.

"Breaking the link between vehicle sales and after-sales service also seems to go against common sense. We would urge the policy makers to carefully examine all the facts before considering going down such a radical road."