Stellantis, the parent company of brands such as Jeep, Dodge, Fiat, Maserati and Peugeot, said on Thursday it would reorganize its European dealer networks in July 2023 to cut costs and support its investments in electrification.
Starting next summer, Stellantis said it would terminate all current sales and service contracts with dealers in Austria, Belgium, Luxembourg and the Netherlands, with the rest of Europe following suit, for all 14 of its brands. Stellantis will evolve into an agency model that gives automakers more control over sales transactions, pricing and contracts with customers, and there will be dealers to help with deliveries and maintenance.
This would lead to an “increased takeover of costs by Stellantis and the reduction of our distributors’ exposure to risk,” according to a pronunciation issued by the company.
“Stellantis’ vision is to promote a sustainable distribution model and all stakeholders involved will benefit from these customer experience-centric changes,” said Uwe Hochgeschurtz, Chief Operating Officer of Stellantis in Europe, in a statement. “Customers will benefit from a multi-brand and multi-channel approach with a wider range of services. Dealers gain a new and efficient business model aimed at benefiting from Stellantis’ 14 brand portfolio, creating synergies, optimizing distribution costs and offering complementary sustainable mobility solutions. Our partners play an important role by being the representatives of our brands in the field.”
Light commercial vehicles under the Stellantis umbrella are expected to enter the new distribution structure from January 1, 2024, a spokesman told Reuters.
The move is part of Stellantis’s Dare Ahead 2030 strategic plan, which aims to achieve carbon-neutral emissions by 2038. The plan includes a target to achieve a 100% sales mix of passenger car electric vehicles (BEV) in Europe by the end of 2030. By 2025, Stellantis aims to launch BEVs only in the luxury and premium segment before electrifying its entire portfolio. In Europe, from 2026 and beyond, all BEVs will be launched, the company said.
Stellantis has also recently launched a strategy for its business unit dedicated to circular economy, achieving sustainability and profitability through the proven method of remanufacture, repair, reuse and recycling. Dealers will still benefit Stellantis’ circular economy brand – for example, all auto parts the company refurbishes can be distributed and sold through dealer networks.