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Stellantis will start reshuffling its dealer network next year

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VERONA — Stellantis will begin a realignment of its European dealer network from Austria, Belgium and the Netherlands, and its van and premium brands in all markets next year, the regional sales chief said on Wednesday.

As part of its efforts to cut costs and fund its electrification strategy, the automaker, formed by the merger of Fiat Chrysler and France’s PSA, has said it will cancel all current sales and service contracts with European dealers for its 14 years from June. brands would end by 2023.

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The plan is to move its distribution structure in Europe to an ‘agency model’, giving car manufacturers greater control over sales transactions and pricing, while dealers focus on transfers and maintenance and no longer act as the customer’s contract partner.

“We will launch in June next year with all our van brands and with our premium brands – Alfa Romeo, DS and Lancia – in all markets, and in three pilot markets, Austria, Belgium and the Netherlands with all our brands,” says Stellantis. head of sales for the ‘Extended Europe’ region, said Maria Grazia Davino.

She added that the new distribution structure would be operational in all 10 largest markets in Europe by 2026.

“We will anticipate everything we can, but this is our schedule at the moment,” she said at an “Automotive dealer day” event in Verona, northern Italy.

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Davino said the core elements of the new contract that Stellantis will propose to retailers are expected to be ready this summer, while a final draft would be prepared by the end of the year.

“Our direction is to consider a 5% fee to our retailers on new car sales. We are working on this hypothesis,” she said. “We are of course in a transition, then we’ll see.”

She added that in the first phase of this process, retailers would earn different fees for different brands, with some higher for premium brands. Retailers also get a variable performance bonus based on sales targets, she said. (Reporting by Giulio Piovaccari, editing by Keith Weir)

This post Stellantis will start reshuffling its dealer network next year

was original published at “https://financialpost.com/pmn/business-pmn/stellantis-to-start-reshuffle-of-dealer-network-next-year”

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