Stellantis will restructure the European dealer network in July 2023

Stellantis will restructure the European dealer network in July 2023

Stellantis, the parent company of brands including Jeep, Dodge, Fiat, Maserati and Peugeot, said on Thursday it would overhaul its European dealership networks in July 2023 in a bid to cut costs and shore up its electrification investments.

Starting next summer, Stellantis said it will terminate all current sales and service agreements with retailers in Austria, Belgium, Luxembourg and the Netherlands, followed by the rest of Europe, for all 14 brands. Stellantis will move to an agency model that gives automakers more control over sales transactions, pricing and customer contracts, and dealerships will exist to help with deliveries and service.

This would result in “a greater assumption of costs by Stellantis and a reduction in the risk exposure of our distributors”, according to a statement released by the company.

“Stellantis’ vision is to promote a sustainable distribution model and all stakeholders will benefit from these changes with the customer experience at its core,” said Uwe Hochgeschurtz, chief operating officer of Stellantis in Europe, in a statement. . “Customers will be able to take advantage of a multi-brand and multi-channel approach with a wider range of services. The dealers will have a new and efficient business model aimed at benefiting from Stellantis’ portfolio of 14 brands, creating synergies, optimizing distribution costs and offering further sustainable mobility solutions. Our partners play an important role by being the representatives of our brands in the field”.

The light commercial vehicles under the umbrella of Stellantis are expected to enter the new distribution facility from January 1, 2024, a spokesman told Reuters.

The move is part of Stellantis’ Dare Forward 2030 strategic plan, which aims to achieve net zero carbon emissions by 2038. Included in the plan is a goal of achieving 100% of the passenger car battery electric vehicle sales mix ( BEV) in Europe by the end of 2030. By 2025, Stellantis aims to launch only BEVs in the luxury and premium segments before electrifying the entire portfolio. In Europe, all vehicles launched will be BEVs from 2026 onwards, the company said.

Stellantis also recently launched a strategy for its circular economy business unit, which involves achieving sustainability and profitability through the proven method of remanufacturing, repairing, reusing and recycling. Dealerships will still come in handy for Stellantis’ circular economy brand, for example any car part remanufactured by the company can be distributed and sold through dealer networks.

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