Stellantis to reorganise European dealers' distribution

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Stellantis to reorganise European dealers' distribution

MILAN Reuters -- Franco-Italian carmaker Stellantis said on Thursday that it would reorganise its European dealers' network in July next year, starting from Austria, Belgium, Luxembourg and the Netherlands.

The new distribution scheme that was created by the merger of Fiat Chrysler and France's PSA will be implemented in Europe gradually, according to a statement from the rest of Europe.

As part of its efforts to reduce costs and support investing for electrification, Stellantis said last year it would end all of its 14 brands' sales and services contracts with European dealers from June 2023.

The plan is to move towards an agency model in which carmakers take more control of sales transactions and prices while dealers focus on deliveries and servicing instead of acting as the customer's contractual partner.

Uwe Hochgeschurtz, Stellantis' chief operating officer for the Enlarged Europe' area, said the group aimed to promote a sustainable distribution model and all stakeholders would benefit.

A comparative economic simulation by Stellantis showed that dealers would enjoy equivalent profitability and reduced exposure to risks under the new planned distribution model.

A company spokesman said Stellantis' light commercial vehicle brands would enter the new distribution structure from Jan. 1, 2024.