The brands have proposed to end the dealers. And they have a weapon: the electric car

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The last to reflect aloud on this has been Carlos Tavares, CEO of the Stellantis automobile group that encompasses Fiat, Peugeot, Citroën, Alfa Romeo or Opel, among other brands. But it is not the only clue that we have heard about. manufacturers want eliminate retail and the electric car may be a good time for it.


Framed among his complaints about the electric car, to the detriment of hybrid models (one more)Tavares has announced that a way to recover the higher production costs of these cars will have to be assumed by suppliers, but also by dealers. According to the CEO of Stellantis, these are necessary movements for their brands to remain competitive.

This announcement is yet another declaration of intent, after Maria Grazia Davino, head of sales for Stellantis in Europe, last October, already advanced to Reuters that in June 2023 it would be end all concessions that the group has in Europe, transforming itself into an agency model.

The objective is, as in other sectors, to control the distribution of the product in all its phases, having a greater impact on the final price and increasing profit margins. It is something that is already happening in markets as diverse as video games, fashion or, in this case, the automobile sector.

Goodbye, intermediary…

Hi, online shopping. This disengagement with the dealers is not an exclusive move by Stellantis. In China is being imposed store or “boutique” business model. They are spaces in shopping centers where the customer knows the product but orders it online. It’s another way to get in touch with the customer without having to incur the expense of a physical space the size of a dealership.

In fact, the report Global Automotive Executive Survey 2021 (GAES 2021), carried out by the consulting firm KPMG, shows that the vast majority of car manufacturer managers believe that most vehicle sales will be online in 2030. In Spain, the percentage of managers who support this argument is 62% and grows to 78% if we look beyond our borders.

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The ideal context proposed by the brands is that of a space that serves exclusively for the delivery of vehicles and where the relationship between customer and seller is verticalized. In addition, in this way the customer offers all his data directly to the brand, which can offer more personalized software services for its vehicles, a space where manufacturers hope to grow to differentiate themselves from the competition.

It is a model in which Volvo already works with its XC40 Recharge and C40 Recharge. Both electric models are sold exclusively online and the Swedish firm, owned by Geely, has also announced that it hopes to switch to exclusively electronic sales. Something we thought impossible just a few years ago.

Photo | Rahul Bholal

The last to reflect aloud on this has been Carlos Tavares, CEO of the Stellantis automobile group that encompasses Fiat,…

The last to reflect aloud on this has been Carlos Tavares, CEO of the Stellantis automobile group that encompasses Fiat,…

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