Stellantis, the parent company of brands such as Jeep, Dodge, Fiat, Maserati and Peugeot, said on Thursday it will reorganize its European dealer networks in July 2023 in a bid to cut costs and support its electrification investments.
Starting next summer, Stellantis said it will 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 move to an agency model that gives automakers more control over sales transactions, pricing and customer contracts, and dealers will exist to help with deliveries and service.
This would result in “increased cost absorption by Stellantis and reduced risk exposure to our distributors,” according to a statement released by the company.
“The vision of Stellantis is to promote a sustainable distribution model and all stakeholders will benefit from these changes with the user experience at the core,” Uwe Hochgeschurz, COO of Stellantis Europe, said in a statement. “Customers will be able to benefit from a multi-brand and multi-channel approach with a wider range of services. Dealers will have a new and efficient business model aimed at leveraging Stellantis’ portfolio of 14 brands, creating synergies, optimizing distribution costs and offering complementary solutions for sustainable mobility. Our partners play an important role by representing 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 spokesperson said Reuters.
The move is part of that of Stellantis Grind forward 2030 a strategic plan that aims to reach zero carbon emissions by 2038. The plan includes a target to achieve a 100% electric vehicle (BEV) sales mix of passenger cars in Europe by the end of 2030. By 2025 Stellantis aims to launch only BEVs in the luxury and premium segments before electrifying its entire portfolio. In Europe, all launches will be BEVs from 2026 onwards, the company said.
Stellantis also recently launched a strategy for its business unit dedicated to circular economy, which includes achieving sustainability and profitability through the tried and true method of remanufacturing, repairing, reusing and recycling. The dealerships will still be useful for Stellantis’ circular economy brand – for example, all the car parts the company remanufactures can be distributed and sold in dealer networks.