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Premium brands will be first for restructure of Stellantis sellers’ network

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NUERTINGEN, Germany, Oct 14 (Reuters) – Carmaker Stellantis (STLA.MI) will begin a restructuring of its European sellers’ network, attributable to start in June 2023, with its premium brands equivalent to Alfa Romeo and Lancia, the corporate’s European gross sales and advertising and marketing chief stated on Thursday.

Stellantis, fashioned at the beginning of the 12 months by the merger of Fiat Chrysler and Peugeot maker PSA, introduced in May that it will fully restructure its European sellers’ network because it seeks to adapt to adjustments within the trade introduced by electrification, together with a growth in on-line gross sales, and obtain promised post-merger synergies.

Stellantis will finish all present gross sales and repair contracts with European sellers for its 14 brands, with impact from June 2023.

The firm continues to be exploring choices for how you can construction future relationships with sellers however is transferring in direction of an “agency model”, European gross sales chief Maria Grazia Davino stated, referring to an association the place carmakers take extra management of gross sales transactions whereas sellers give attention to handovers and servicing, not performing because the buyer’s contractual accomplice.

“To be transparent, we are still building this up,” Davino stated at an autos convention in Nuertingen, close to Stuttgart. “We are going in the direction of an agency model.” . learn extra

As of June 2023, important adjustments will be made to the European Union’s Block Exemption Regulation (BER), which has granted antitrust exemptions to carmakers permitting them to function franchise networks the place they’ll dictate who sells their merchandise and the place.

Stellantis, which has 14 brands together with Fiat Chrysler, Peugeot, Opel, Jeep and others, issued termination notices to all present gross sales and repair sellers in June, however contracts will stay legitimate for one other two years.

The world’s fourth largest carmaker has promised greater than 5 billion euros ($6.1 billion) in annual synergies and stated 7% of them would be pushed by financial savings on gross sales operations and common bills.

The firm didn’t specify on the time what future contracts would appear like, however highlighted that the choice for a change was taken in anticipation of rising on-line gross sales and new market gamers equivalent to e-commerce platforms.

It is just not but recognized whether or not this course of will result in a discount of Stellantis’ network in Europe.

Stellantis stated in May that the network restructuring will not contain sellers of Stellantis luxurious model Maserati and people within the United States, dwelling of some of the group’s hottest brands equivalent to Ram and Dodge.

Reporting by Victoria Waldersee, further reporting by Giulio Piovaccari, modifying by Susan Fenton

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