The agency sales model is represented by Stellantis, the owner of, for example, Fiat, Opel, Peugeot, Citroen and many other brands. What does this mean in practice for customers and car dealers?
The new (for Stellantis) retail model, dubbed the agency model, will go into full force on September 4, 2023, initially in Austria, Belgium, Luxembourg and the Netherlands. The rest of Europe, including Poland, will adopt this car sales system during 2024, with contracts due to be signed in the next few months.
Stellaantis is changing
According to the Samara Automotive Market Research Institute, Stellantis (which includes brands such as Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, Ram and Vauxhall) announced of more than 8,000 sales cooperation agreements with dealers and more than 25,000 after-sales agreements in 10 strategic European countries in recent weeks.
The agency model in the first four markets, i.e. Austria, Belgium, Luxembourg and the Netherlands, will come into effect from September 4, 2023. In the rest of Europe (including Poland), the concern will start implementing the new model in 2024, with contracts to be signed in the next few months. According to company representatives, the new contracts should help accelerate the pace of development of electric mobility and ensure the company’s strong position in the European market for electric vehicles. The company currently has 24 all-electric vehicles (BEVs) on the market and this number is expected to nearly double by the end of 2024. As Stellantis highlights in a statement, its electric vehicles such as the Peugeot e-208 and the new Fiat 500 are top sellers in the European electrified market.
Long negotiation process
Uwe Hochgeshurtz, COO of Stellantis, emphasizes that “the dialogue between Stellantis, the European dealer associations and the entire dealer network has been pragmatic, business-based, full of transparency and a very constructive discussion.” However, as IBRM Samar adds, this dialogue lasted a very long time (the first announcements about the changes were made in 2021), and the media reported that the date of implementation of the new distribution model was postponed. Initially, it was reported that the agency model was due to appear on select Stellantis brands in June 2023. The fears of dealers (and not only Stellantis) are not surprising, because the new distribution system means revolutionary changes that will make the dealer primarily an agent for selling cars at pre-set prices by the manufacturer.
Revolution at Volkswagen
As reminded by the institute, Stellantis is not the only company that seeks to introduce, for example, a car sales model on the Polish market. During a press conference in January this year, Paweł Scholz, President of Volkswagen Group Polska, laid out plans for a new car distribution system that has been much discussed lately (and causes considerable concern among dealers of all brands). “The automotive industry is changing, including sales. Customer behavior and expectations are changing. The simple interaction of customers with our brands, both online and offline, is critical to a good and comfortable shopping experience. The Volkswagen Group has implemented and is consistently implementing an agency sales model. In the case of individual customers, it will cover all electric models of Volkswagen, Volkswagen commercial vehicles, Skoda, Cupra and Audi. We are currently preparing to implement this solution in Poland,” said Pavel Scholz. – For fleet customers, the agency sales model covers all models of the brands Volkswagen, Volkswagen Commercial Vehicles, Skoda, Cupra and Audi. It has already been successfully implemented in several European markets, including Poland. added.
Source: Wprost
I am Jason Root. I work in the news website industry and mostly cover the automobile industry. I have also written for Daily News Hack. My work revolves around new car models, prices, and features. In addition, I often write about used cars and tips for buying them. My articles are meant to be helpful for those who are in the market for a new or used car.
