The manufacturer has validated a new contract with the representatives of the dealerships who are now considered as retailers and no longer distributors.
Stellantis has validated a new distribution model with its European dealers, the automotive group and dealer representatives announced on Monday. After 18 months of negotiations, the group resulting from the merger of Peugeot-Citroën and Fiat-Chrysler has validated a new contract with its dealers which makes them “retailers” (agents) and no longer distributors who buy vehicles for resell them.
Next step: the commissions earned on each car sold by dealers must now be discussed country by country and brand by brand. The European dealer associations said in a press release that they were “satisfied that an agreement has been reached on a considerable number of contractual points”, even if “certain differences might not be overcome”. These associations also welcomed the establishment of a new governance committee, bringing together their representatives and Stellantis at European level. The group had terminated in June 2021 the contracts governing its entire distribution network in Europe.
“Quite a significant change in business model”
“It’s a pretty big change in business model,” said one of the dealer representatives. Peugeot, Fiat, Opel, DS or Alfa Romeo dealers will invest less. In particular, they will no longer bear the cost of vehicle stocks and will invoice the sale to the customer on behalf of the manufacturer. Stellantis will take over part of the investments, for example those relating to brand image.
The manufacturer recovers control of the final sale price, now in the hands of dealers. The role of dealers in online sales has also been clarified. “We wanted it to be precise and protective for retailers,” said the dealer representative. “We have reached a level which does not exalt us, but which offers a good level of protection”, he noted.
Stellantis has indicated that this new distribution model will be implemented from mid-2023, starting with three markets (Austria, Belgium-Luxembourg, the Netherlands), before being gradually extended to all of Europe. “We appreciate the first positive reactions expressed by the European Dealers Association. This represents a fundamental step to address the next milestones,” commented Maria Grazia Davino, Group Sales and Marketing Manager for Greater Europe, quoted in a statement.
