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Stellantis undergoes ‘unprecedented’ shake-up of its European dealership community

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Sellers eye backside line

Pietro Carlomagno, president of ADEFCA, the European affiliation of Fiat, Alfa, Lancia and Jeep sellers, stated his group is “in a constructive dialogue” with Stellantis on how shift shall be applied.

What’s essential to ADEFCA is that the sellers don’t lose any pre-tax revenue on account of the change.

“The principle open situation is ensuring that the discount within the seller’s fee matches the financial savings they get from the discount in prices they pay now as half of the present seller mannequin,” Carlomagno stated.

He stated the brand new system would solely be useful to retailers if Stellantis maintains clear retail costs which can be the identical in any respect dealerships and on the Web.

Stellantis, which was created in January by the merger of PSA Group and Fiat Chrysler Cars, doesn’t have a single seller affiliation. Former FCA manufacturers are beneath ADEFCA’s umbrella, whereas Peugeot, Citroen and Opel/Vauxhall have their very own associations.

ICDP’s Younger sees some benefits from Stellantis’ mannequin.

“The truth that Stellantis seems to be dedicated to taking up the stock duty and value, and the brand-related services funding, is a optimistic,” he stated.

Younger is an enormous believer that automakers and sellers ought to do a greater job managing their inventories to forestall oversaturating the market, which ends up in reductions and decrease residual values. The poor provide of semiconductors has underlined the advantages of this method.

“The chip scarcity exhibits us how an finish to extra provide can rework profitability for everybody,” Younger stated. “However it’s a big change for a serious automaker.”

In response to ICDP, when Stellantis was shaped it had roughly 15,500 seller franchise factors in Europe, equally cut up between FCA and PSA manufacturers. The consultancy estimates that these franchise factors are managed by roughly 5,000 seller organizations.

Stellantis declined to offer detailed information about its seller community in Europe.

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