Stellantis reveals plans to ‘fire and rehire’ UK dealers

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tellantis has said that sales and service distribution agreements for all of its brands in the UK – Vauxhall, Peugeot, Citroen, DS Automobiles, Fiat, Fiat Professional, Abarth, Alfa Romeo and Jeep – will be terminated with two years’ notice.

A new distribution network will be selected shortly afterward “on the basis of key objective drivers and criteria”.

Retailer representatives will be invited to dedicated meetings to contribute to the development of Stellantis's distribution plans and strategy, paving the way for the new Stellantis distribution scheme.

Stellantis said its business partners will benefit from a wider range of solutions and services and have the possibility to develop their activity alongside Stellantis to “be at the forefront of future mobility”. A new model will benefit customers, the distribution network and Stellantis itself.

Brand model ranges are evolving rapidly towards electrification in line with customer expectations and regulatory changes. Omnichannel retail, including online sales, have changed customer purchasing patterns. This environment, together with upcoming BER (EU block exemption regulations) expected in 2023, will lead to changes to the current distribution contracts and standards.

In Europe, 98% of Stellantis models should be electrified by 2025, with 35% of Stellantis sales being LEVs. These figures are forecast to rise to 100% and 35% respectively by 2030. From 2023, there should be a strong acceleration in this process, and Stellantis said it aims to be at the forefront of the changes by allowing its network to adapt with a sufficient time lead.

Customers will be able to take advantage of a multichannel approach with a wider range of services. Retailers and Stellantis brands will have a new and efficient business model aimed at creating synergies, optimising distribution costs and increasing customer satisfaction.