TURIN – The reorganization of the Stellantis sales network will start from Austria, Belgium, Luxembourg and the Netherlands from July 2023. The rest of Europe will progressively follow the implementation of the new distribution scheme. A change of skin already announced in 2021 when the Italian-French group had canceled the contracts with the dealer network with effect in June next year.
The plan is to move to an “agency model” where automakers take more control of sales transactions and pricing, while dealerships focus on deliveries and service, lacking pricing margins and commercial policies in autonomous way. A step that also takes into account the new EU regulation VBer (Vertical Block Exemption Regulation). Stellantis should adopt a different solution: the concessionaires operate in their own name and on their own behalf, the agents in the name and on behalf of third parties, while the Italian-French group aims at commission agents, i.e. companies that work in their own name, but on behalf of third parties. Or as Maria Grazia Divino, Enlarged Europe sales & marketing manager, defined them at the last Automotive Dealer Day in Verona: retailer dealership.
“Stellantis’ vision is to promote a sustainable distribution model and all stakeholders will benefit from these changes which will be focused on the customer experience,” underlines Uwe Hochgeschurtz, Chief Operating Officer of Stellantis for wider Europe. “Clients will benefit from a multi-brand, multi-channel approach with a wider range of services. Dealerships will have a new and efficient business model designed to leverage Stellantis’ portfolio of 14 brands, create synergies, optimize distribution costs and offer additional sustainable mobility solutions. Our partners play an important role by being the representatives of our brands in the field”. The group led by administrator Carlos Tavares claims to have carried out a comparative economic simulation which demonstrates that, with the new distribution model envisaged, retailers will enjoy “at least equivalent profitability” and less exposure to risks. For the light commercial vehicle sector, the transition to the new network will take place from January 2024.
The company also recalls the ongoing process towards electric and sustainable mobility. Changes that are influencing the distribution model of the sector, leading the range of different brands towards electrification. All 14 Stellantis brands collectively aim to achieve 100% of the European passenger car sales mix with battery electric vehicles (BEVs) by the end of 2030. Starting in 2025, the company will exclusively launch BEVs for the luxury and premium and then extend the offer to the whole range. From 2026, only electric vehicles will be launched in Europe. “Stellantis’ goal is to lead this change – underlines the company – by allowing its network to adapt sufficiently in advance in an increasingly competitive context with new players”.