Stellantis Develops Fresh Retailer Model in Europe In Support Of Its EV Ambitions - Stellantis (NYSE:STLA)

Stellantis N.V. STLA said it would reorganize its European dealer networks in July 2023 to cut costs and support its investment in electrification.
Starting next summer, the parent company to brands like Jeep, Dodge, Fiat, Maserati, and Peugeot said it would end all current sales and services contracts with dealers in Austria, Belgium, Luxembourg, and the Netherlands, with the rest of Europe to follow, for all 14 brands.
Stellantis will move towards an agency model that gives carmakers more control of sales transactions, prices, and contracts with customers, and dealers will exist to help with deliveries and servicing, TechCrunch reports.
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The move is part of Stellantis's Dare Forward 2030 strategic plan, which aims to reach carbon net zero emissions by 2038.
By 2025, Stellantis aims to launch only BEVs in the luxury and premium segments before electrifying its entire portfolio.
This would lead to an "increased assumption of costs by Stellantis and the reduction of exposure to the risks of our distributors," the company stated.
Uwe Hochgeschurtz, Stellantis Chief Operating Officer, Enlarged Europe, said, "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."
Light commercial vehicles under the Stellantis umbrella are expected to enter the new distribution structure from January 1, 2024.
Price Action: STLA shares traded higher by 1.13% at $15.21 in the premarket on the last check Friday.
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