Stellantis Overhauling European Dealer Network in 2023

Ken Zino of AutoInformed.com on Jeep Avenger EV Debuts in Paris

Jeep sales in Europe will be a challenge. Click for more info.

Stellantis (NYSE / MTA / Euronext Paris: STLA) said today in Amsterdam once again that it aspires to be first in customer satisfaction in all markets, products and services.

Environmental and regulatory changes, of course, are now increasingly affecting the auto industry’s long-standing distribution model with the inevitable electrification of product lines the prime mover in the need to maintain customers and their satisfaction – while complying with evolving law and shareholder expectations.

In essence, electrification is a challenge facing all global automakers. Currently in the US Ford Motor is facing a major dealer revolt over its proposed electrification model. At Stellantis – the mega merger of FCA and PSA companies – the problem is acute – with its Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep®, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall automotive brands, as well as Free2move and Leasys services – the multi-brand distribution network is, well, complex.

All Stellantis brands collectively aspire to 100% passenger car battery electric vehicles (BEVs) sales mix in Europe by end of 2030. Stellantis will have BEV-only launches in the luxury and premium segments as of 2025. These then progress throughout the portfolio. Crucially, all launches in Europe will be BEVs in 2026 and beyond.

With this Stellantis and its business partners have been conducting “co-constructive interactions to contribute to the development of the future” sales model, considering the BER framework (Block Exemption Regulations – Competition Policy –  in the US  this essentially an antitrust framework that promotes competition and prevents the formation of cartels ) with Austria, Belux (Belgium and Luxembourg) and The Netherlands piloting the transformation process as of July 2023. The rest of Europe will follow in the implementation of the new distribution scheme.

“Customers will be able to take advantage of a multi-brand and multi-channel approach with a wider range of services. Dealers will have a new and efficient business model aimed at benefitting from Stellantis’14-brand portfolio, creating synergies, optimizing distribution costs and offering additional sustainable mobility solutions. Our partners play an important role by being the representatives of our brands in the field,” said Uwe Hochgeschurtz, Stellantis Chief Operating Officer, Enlarged Europe.

Stellantis is making some bold predictions here. “The comparative economic simulation with the planned model makes it possible to demonstrate at least an equivalent profitability, if not superior, for our network, while considering an increased assumption of costs by Stellantis and the reduction of exposure to the risks of our distributors.

“In preparation for this shift, Stellantis’ organizations at country level are part of this transformation flow and designed to be more flexible and agile towards the new customer journey, creating a more efficient and sustainable ecosystem capable of play along the evolution of the automotive sector,” Stellantis said.

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