TURIN — Stellantis is working with its European dealers on a shake-up that industry experts say is unmatched in its size and scope.
The automaker wants to transition a network estimated to exceed 15,000 franchise points to a so-called “retailer model.”
The move gives Stellantis more control over how its vehicles are sold and lowers the margin it pays dealers in exchange for taking on some new costs.
Stellantis believes the change will reduce overall costs, secure margins, make pricing more transparent and improve customer satisfaction.
“We are convinced that, when properly implemented, this distribution model will offer advantages for everyone,” Stellantis’ head of sales and marketing for Europe, Maria Grazia Davino, told Automotive News Europe.
To initiate the shift, Stellantis canceled all of its dealer contracts in its expanded Europe region this summer. Stellantis sent a letter of intent to the dealers it wants to retain.
Davino said Stellantis aims to have a first wave of new contracts in place by June 2023 (see chart below).