Stellantis, the parent company to Jeep, Dodge, Fiat, Maserati and Peugeot, said it would reorganize its European dealer networks in July next year to cut costs and support its electrification investment, as per Tech Crunch.
Beginning in the summer of 2023, Stellantis said it would end all current sales and services contracts for all its 14 brands with dealers in Austria, Luxembourg, Belgium, and the Netherlands, with the rest of Europe to follow.
The company will move to an agency model that gives automakers more control of sales transactions, costs and contracts with consumers, and dealers will exist to aid with deliveries and servicing.
This would lead to an “increased assumption of costs by Stellantis and the reduction of exposure to the risks of our distributors,” according to a statement released by the company.
“Stellantis’s vision is to promote a sustainable Distribution model and all involved stakeholders will benefit from these changes with the customer experience at the core,” said Stellantis chief operating officer in Europe Uwe Hochgeschurtz.
“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 aimed at benefiting from Stellantis’ 14-brand portfolio, creating synergies, optimizing distribution costs and offering additional sustainable mobility solutions. Our partners play an important role by being the representatives of our brands in the field.”
In addition, a spokesperson told Reuters that light commercial vehicles under the Stellantis umbrella are anticipated to enter the new distribution structure from January 1, 2024.
Dare Forward 2030
“The move is part of Stellantis’s Dare Forward 2030 strategic plan, which aims to reach carbon net zero emissions by 2038. Included in the plan is to achieve 100% passenger car battery electric vehicle (BEV) sales mix in Europe by the end of 2030.” said the company.
“By 2025, Stellantis aims to launch only BEVs in the luxury and premium segments before electrifying its entire portfolio. In Europe, all launched will be BEVs from 2026 and beyond.”
Recently, Stellantis also launched a strategy for its business unit dedicated to circular economics, achieving sustainability and profitability through remanufacturing, repairing, reusing and recycling.
Dealerships will still come in handy for the company’s brand of circular economics. For instance, any car parts that the automaker remanufactures can be distributed and sold across dealership networks.
