Stellantis will restructure its network of European resellers in July 2023

Stellantis, the parent company of brands like Jeep, Dodge, Fiat, Maserati and Peugeot, announced on Thursday that it will revamp its European dealership networks in July 2023 in a bid to cut costs and support its investments in electrification.

As of next summer, Stellantis has announced that it will end all current sales and service contracts with resellers in Austria, Belgium, Luxembourg and the Netherlands, the remainder of Europe to follow, for all of its 14 brands. Stellantis will evolve into an agency model that gives automakers more control over sales transactions, pricing, and customer contracts, and dealerships will exist to help with deliveries and servicing.

This would lead to an "increase in the assumption of costs by Stellantis and a reduction in the risk exposure of our distributors", according to a press release issued by the company.

"Stellantis' vision is to promote a sustainable distribution model and all stakeholders involved will benefit from these changes with the customer experience at the heart," said Uwe Hochgeschurtz, COO of Stellantis in Europe, in a press release. “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 efficient business model aimed at leveraging 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.”

Light commercial vehicles under the Stellantis umbrella are expected to enter the new distribution structure from January 1, 2024, a spokesperson told Reuters.

The move is part of Stellantis' Dare Forward 2030 strategic plan, which aims to achieve net zero carbon emissions by 2038. The plan includes the goal of reaching 100% sales of battery electric vehicles (BEVs) ) for passenger cars in Europe by the end of 2030. By 2025, Stellantis aims to launch only BEVs in the luxury and premium segments before electrifying its entire portfolio. In Europe, all vehicles launched will be BEVs from 2026 and beyond, the company said.

Stellantis also recently launched a strategy for its Circular Economy business unit, which is to achieve sustainability and profitability through the proven method of refurbishing, repairing, reusing and recycling. Dealers will always be helpful for Stellantis' circular economy brand; for example, all auto parts that the company refurbishes can be distributed and sold through dealer networks.