8:22 am, November 25, 2022
Stellantis has ‘kicked the agency model down the road’ as it puts off plans to change its dealer contracts.
In a briefing to its franchise partners yesterday DS Automobiles managing director Jules Tilstone says the agency model in the UK will be delayed by six months.
The change affects dealers representing Alfa Romeo, DS Automobiles and all commercial brands in the UK.
The agency model change to contracts will now be pushed back to January 1, 2024.
Previously it was due to change in line with other European markets.
Car Dealer reported in February that Stellantis planned to move to an agency model for the brands in May next year.
Tilstone’s briefing note said: ‘Today we face significant current issues in our industry environment with Europe-wide logistic constraints that you are all fully aware of.
‘At this time, we will now concentrate our energies on pilot markets for the new distribution model – Austria, Benelux and The Netherlands – which will move to the genuine agency model from 1st July 2023.
‘For us in the UK, Alfa Romeo, DS Automobiles, and all commercial vehicle brands will now move to this new model on 1st January 2024, along with the other G7 Europe markets.’
Tilstone says new contracts for dealers will be drawn up in the first half of next year.
As part of the agency arrangement, dealers would earn just a five per cent fee on new cars sold, although retailers could eventually earn different fees for different brands.
‘This is the first sign of car manufacturers kicking the agency model can down the road,’ one partner told Car Dealer.
‘This is a big change to what we were told and surprising as we were all gearing up for it to happen next summer. Some of us wonder whether this means it might change again in the future.’
The announcement in the UK followed a European briefing yesterday that agency sales would go ahead in the summer of next year in the markets Tilstone mentioned.
Uwe Hochgeschurtz, Stellantis chief operating officer in Europe, said: ‘Stellantis’ vision is to promote a sustainable distribution model and all involved stakeholders will benefit from these changes with the customer experience at the core.
‘Customers will be able to take advantage of a multi-brand and multi-channel approach with a wider range of services. Dealers will have a new and efficient business model.
‘Our partners play an important role by being the representatives of our brands in the field.’
Stellantis follows Mercedes-Benz and Volkswagen in transitioning to agency sales.
Some 50 per cent of its cars and vans are expected to be sold under agency sales by 2023.
Volkswagen, meanwhile, confirmed to Car Dealer it intends to implement an agency model for the sale of its pure electric cars.
The German carmaker is also considering rolling out the model to its other brands.
