Automotive Industry and Markets


Selective sales are the preferred business model in the automotive industry

Public procurement system

Public bodies are large customers of the motor industry. The regulations for public tendering is therefore of massive commercial significance for the motor industry. The reform of public procurement law means a great deal of change for public procurement on both a European and a national level. The award of public orders above the EU threshold value was amended in many ways at European level when the directives for classic procurement, for procurement in sectors and for awarding concessions took place on 17 April 2014.

Germany has until 18 April 2016 to implement the EU Procurement Directives into national law. In principle, the VDA welcomes the objectives of the directives such as equal treatment, non-discrimination, mutual acknowledgment, proportionality, transparency, support for small and medium-sized enterprises and the clarification of basic terminology and concepts to ensure legal security.

Unfortunately these objectives of the European legislators have not been consistently achieved. The VDA will continue to campaign for these deficits in the implementation of the directives in national law to be balanced out.

The VDA continues to reject the restructuring of procurement law pursued by German legislators. The practical implementation of the EU procurement directives can only take place in the time-tested cascade system, in other words while retaining the VOB, VOL and VOF procurement regulations.

Sensible procurement practice and the acceptance by all parties of the procurement regulations can be ensured simply by the expertise of the persons involved in the procurement process, in other words the customer and contractor, are included. In addition, the special role of the state must be given due consideration. In this case it is not only acting as regulator, but also as a party involved in the market.

The VDA rejects the possibility for direct payment to the subcontractor proposed for public bodies since this option does not comply with the principle of the duty of reciprocity that applies in German civil law. Under this principle the fulfillment of the contract between the customer and contractor must be separate from the fulfillment of the contract between the contractor and subcontractor. In principle, each must meet its duties to the party with which the contract has been concluded. In view of this, a regulation of this nature will interfere with contract relationships in the automobile added value chain and will result in considerable disadvantages for small and medium-sized enterprises.

Dr. Ralf Scheibach
Dr. Ralf Scheibach Head of Department Law and Financial Services

Tel: +49 30 897842-260 Fax: +49 30 897842-600
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