Stellantis' Strategic Shift to a Vertical Agency Model - Portugal and Spain Set to Transition Between 2024-2026
Ricardo Oliveira
Boosting EV demand in mass market. Evangelizing AI tools - Futurist with a track record of over 30 years in the automotive industry, pioneering electric mobility and new trends.
In a significant strategic shift, Stellantis is revising its agency distribution model in Europe. The automotive giant is moving away from its initial brand-based approach to a more focused country-by-country strategy. This move comes after Stellantis faced unexpected IT challenges during pilot programs in Austria, Belgium/Luxembourg, and the Netherlands.
Why the Shift to a Vertical Agency Model?
Traditionally, automakers, including Stellantis , have relied on traditional retail sales. The transition to an agency model represents a strategic pivot to enhance efficiency in distribution, gain better control over pricing, and foster closer relationships with customers, especially in an era where online transactions are becoming increasingly prevalent.
Originally, Stellantis planned to implement the agency distribution uniformly across Europe, with a two-step process. The first step was to transition the premium brand cluster ( Alfa Romeo , DS Automobiles , and Lancia ) and light commercial vehicles from 2024, followed by volume brands ( 雪铁龙 , Fiat , Opel /Vauxhall, Peugeot ) from 2027.
Adapting to Challenges: A New Approach
However, due to the IT issues encountered, Stellantis has adapted its strategy. Uwe Hochgeschurtz , the Chief Operating Officer of Stellantis’ Enlarged Europe region, outlined the new approach: a 'vertical' model where all brands will switch to the agency model simultaneously, but on a market-by-market basis. This rollout is expected to be complete by 2026 in 10 large markets, which constitute the majority of Stellantis' sales in Europe.
Importantly, this revised strategy involves a staggered approach, with at least a three-month interval between each country's transition. This period will be used to ensure full compliance with local regulations and rules.
Implications for Portugal and Spain
For Portugal and Spain, this strategic shift is particularly relevant. These markets are part of a group that includes France, Germany, Italy, Poland, and the U.K., all set to transition to the new agency model between 2024 and 2026. This move is expected to bring a more streamlined and efficient sales experience in these regions, aligning with Stellantis' broader European strategy.
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Conclusion
Stellantis' decision to pivot to a country-by-country vertical agency model reflects a flexible and adaptive approach in the face of unexpected challenges. The focus on aligning all brands under this model, while ensuring compliance with local norms, demonstrates a commitment to operational excellence and customer-centricity. As Portugal and Spain gear up for this transition, it marks a significant step in Stellantis' journey towards a more unified and efficient European market presence.
This article is based on the latest insights from Automotive News Europe regarding Stellantis' strategic shift in their car retail model in Europe.
Ricardo Oliveira
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11 个月Mercedes is preparing a 180o approach, with no dealers and virtual stores with augmented and virtual reality.
Automotive Executive at VW, Toyota and PSA / Commercial Manager / Sales & Marketing / Dealer Network Development / After Sales / Customer Service
11 个月Dear Ricardo, the spread of the New Agency Model across Europe is faster than I could expect.
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11 个月The challenges may be hard but the direction is not changing. It’s time for retailers to start making a plan to retain their customer relationships.
CEO | Managing Director | Automotive | Mobility | Electric Vehicle | Digitalization Strategy | Sales | Operations | Business Growth
11 个月Thanks Ricardo Oliveira. What is clear is that Stellantis overestimated the challenges of the Agency model. In these transition there are to.main topics: - IT: Adapt all thr systems to a direct Sales model to control all the touch points in the customer journey is the biggest investment in the transition process. In the "traditional distribution" model, dealers do lot of things thar now must be done by the OEM, for example invoicing. - Change of midset: Is a completely different way of working for Stellantis and this is a challenging cultural change. Now they wil be responsible for selling cars and managing the stock. This new approach seems more rational.