French-Italian automaker Stellaris expects reorganization
2022.11.24 13:24
French-Italian automaker Stellaris expects reorganization
Budrigannews.com – On Thursday, the French-Italian automaker Stellantis said that it would reorganize its European dealer network beginning in Austria, Belgium, Luxembourg, and the Netherlands in July of next year.
The group that emerged from the merger of France’s PSA and Fiat Chrysler stated in a statement, “The rest of Europe will progressively follow in the implementation of the new distribution scheme.”
Stellantis announced last year that it would end all current sales and services contracts with European dealers for all 14 of its brands in June 2023 as part of its efforts to cut costs and support investment in electrification.
The goal is to move toward an “agency model,” in which dealers focus on deliveries and service instead of being the customer’s contractual partner and carmakers take on more control over sales transactions and prices.
Stellantis’ “Enlarged Europe” area chief operating officer, Uwe Hochgeschurtz, stated that the group aimed to promote a “sustainable” distribution model that would benefit all stakeholders.
According to Stellantis, it conducted a comparative economic simulation that demonstrated that dealers would experience “at least equivalent profitability” and reduced risk exposure under the new planned distribution model.
Stellantis’ light commercial vehicle brands would begin using the new distribution structure on January 1, 2024, according to a company spokesperson.
