Automaker Stellantis is planning to reconstruct its European dealers' network next year, as the company plans to reduce costs and expenses in July next year. Among the countries that will be affected by this are Austria, Belgium, Luxembourg, and the Netherlands, while the rest of the countries will progressively follow in the implementation.  

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ELLESMERE PORT, ENGLAND - JULY 06: A general view of the Vauxhall assembly plant after the announcement of future electric vehicle production on July 06, 2021 in Ellesmere Port, England. Vauxhall's parent company, Stellantis, confirmed in a press conference on Tuesday that it would invest £100m, along with a government grant, to produce electric vehicles here, safeguarding 1,000 jobs.

Reorganizing European Dealer Networks

As the company implements budget cuts for the next summer, automaker Stellantis reconstruct its European dealer networks by ending all current sales and services contracts with Austria, Belgium, Luxembourg, and the Netherlands.

According to a report from TechCrunch, the company will be moving to an agency model that provides carmakers more freedom when it comes to controlling its sales, transactions, prices, and contracts with customers and dealers. Stellantis is the parent company of 14 brands, including Jeep, Dodge, Fiat, Maserati, Peugeot, Chrysler, Vauxhall, and more. 

The rest of Europe will progressively follow, as per Stellantis. Enlarged Europe Chief Operating Officer Uwe Hochgeschurtz stated that the company promotes a sustainable distribution model, as not only they can benefit from this move, but also the involved stakeholders. 

The COO added, "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." 

According to a statement released by the company, Stellantis has been conducting co-constructive interactions with its business partners for collaboration in the development of future models.

A comparative economic simulation was also conducted by the company under the new planned distribution model. Reuters reported that this shows that dealers would enjoy a much lesser equivalent profitability exposure to risks. 

Also Read: Stellantis, Samsung to Build EV Battery Factory in Indiana, $2.5B Budget to Create; 1,400 Jobs

The changes that will be implemented are part of the company's strategic plan 'Dare Forward 2030'. This plan aims for the whole company to reach carbon net zero emissions by 2038, achieving a 100% passenger car battery electric vehicle sales mix in Europe by 2030.

The company also aims to launch BEVs in their luxury and premium brands by 2025, as they electrify their whole tiers.

Current Problems

CGT Labor Union Representative stated that big problems occured at the factory close to the border with Switzerland. He said, "We had about 4,000 of them stuck in our parking lots and even outside the site as of noon yesterday."

Thousands of cars are currently stuck due to logistic problems. This impacted the production of Peugeot 3008 SUVs. 

As the company confirms the issues that are happening, Stellantis did not elaborate on the number of vehicles that are stranded in the company. Bloomberg reported that this kind of problem is affecting the entire industry for automotive, while Stellantis currently works on this problem to solve the issue as quickly as they can.

Related Article: Stellantis Pleads Guilty to Diesel Emissions Fraud, to Pay $300M for Violating the Clean Air Act

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Written by Inno Flores