February 1, 2023

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Stellantis formalizes the transition to the agency model

Theme sales model From auto manufacturers in recent months it has become topical again because May 31, 2023 The current BER exemption law (BERs are rules to protect competition in certain sectors) for the automotive sector will expire, and the next law, 461/2010, will introduce very important innovations, such as having separate contracts for the sale of vehicles, spare parts and subsidies.

stellantsafter sending its cancellation notice to its dealers last summer (existing contracts for 14 brands will expire in June 2023), formalizing Go to the agency form. What does this mean for the trader? Basically a selling agency become an agentIn this case, the customer signs the contract with the car manufacturer who thus has full control over discounts and inventory. The percentage of the agent who receives a commission for each car sold is lower, and thus the percentage of the car manufacturer, which in this way increases recover profit margins.

However, Stellantis must bear various costs, such as warehouse and distribution costs, which now fall on the shoulders of dealers. The transition to this model should then allow for tighter price controls canceling the contractwhich is one of the most distinctive aspects of the current customer-merchant relationship.

According to Stellantis, customers will benefit from a multi-brand, multi-channel approach with a Wide range of services. Austria, Belgium, Luxembourg and the Netherlands will lead the transition from July 2023, with the rest of Europe gradually following as the new distribution scheme is adopted. According to the Automotive Group, comparative economic simulations with the new model showed dealer network profitability at least equal to, if not higher than it currently is.

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