Automaker Stellantis Abandones Its Plan for Europe's Dealer Agency Structure
Stellantis Pauses European Agency Model Restructuring
Stellantis, the multinational automobile manufacturing company, has announced a significant shift in its strategic plans for Europe. The company, under the leadership of new CEO Antonio Filosa, has suspended its plan to transition to an agency sales model in Europe, originally slated for 2025.
The decision to halt the agency model restructuring came following substantial pressure from dealers and challenges posed by external headwinds such as tariffs and market share erosion. The suspension was announced by Jean-Philippe Imparato, Stellantis' chief operating officer for Europe, at an event in Verona, Italy.
Prior to this decision, the agency model was intended to provide Stellantis with more control over sales transactions and prices, while dealers would be responsible for deliveries and servicing. However, many dealers objected to the change, arguing it further compressed their margins in challenging economic conditions.
With the suspension of the agency model restructuring, Stellantis is focusing on a broader turnaround strategy. This strategy aims to address profitability, market share loss, brand portfolio complexity, and the European geographic footprint. The company is expected to present a new business strategy to support automotive manufacturing in the European Union.
The traditional dealership framework will be maintained in Europe for the time being. The update will include areas such as engines and Stellantis's struggling brand Maserati. It's important to note that the agency model is still operational in certain countries, such as Austria, Belgium, Luxembourg, and the Netherlands, where it has been in place since 2023.
Stellantis is not disclosing concrete future timing to resume or replace the agency model restructuring. However, the company aims to improve stability and growth first under the new CEO’s leadership. The decision to suspend the plan was made due to dealer pressure, and Stellantis remains engaged with European policymakers and continues scenario planning.
In Italy, Stellantis will soon present an update to the plan announced in December to increase auto production in the country. The update is intended to enhance the plan for Italy and will address challenges such as high labor costs and onerous regulation in the EU. The update will be discussed with the Italian government in June, or potentially before.
Among the calls for change will be an EU-wide scrappage scheme to help replace vehicles older than 10 years. Additionally, the EU is proposing government contributions for electric-vehicle battery production in Europe at €40 ($44.80) per kilowatt, worth almost half of the total manufacturing costs.
In summary, Stellantis has paused the agency model plan in Europe and is undergoing a comprehensive strategic reset focused on profitability, market share, and simplifying its brand and geographic portfolio. The company has not disclosed concrete future timing to resume or replace the agency model restructuring but aims to improve stability and growth first under the new CEO’s leadership.
- The suspension of Stellantis' agency model restructuring in Europe could potentially impact the finance sector, as changes in the automotive industry might affect financial institutions that have investments in the industry.
- Stellantis' decision to maintain the traditional dealership framework in Europe for the time being could have implications for the transportation sector, as the change might influence supply chains and logistics operations within the automotive industry.
