Car manufacturers are facing a new era in Europe. The largest have already announced an important transformation of their sales networks, leaving behind the traditional format of dealerships and betting on agencies. A novel concept, of which we will tell you what is behind it.
Mercedes was the first brand to publicly announce the transformation of traditional concessionaires into agencies. A new concept in which dealers will no longer be the true sellers of the cars, but intermediaries between the brand and the customer, in exchange for a commission for the units delivered. A line that is going to be imposed in the coming years, and in which well-known brands are already present.
Volkswagen and Audi are others that already operate with their new generation of electric models. Although they have not officially announced it yet, today they offer a mixed model, whereby they sell the electric ones online and also in the concessions. It might seem that it is a whim of the brands, a new sales model that have been removed from the sleeve, but it is not like that. Actually, there is much more behind this strategy.
The new agencies will promote the online purchase of cars
Europe is behind this measure, since on June 1, 2023, the new Category Exemption Regulation (BER) will come into force, replacing the 1400/2002 standard with the new 461/2010, which protects competition in particular sectors. It means that brands will be able to offer separate contracts for the sale of cars, spare parts and accessories, and repair and maintenance services to distributors in their commercial networks.
Until now, this regulation has been providing exemptions in the antitrust rules for trademarks, so the new rule eliminates this exemption to increase competition. However, it gives more power to brands because they will not only set a fixed price for each model in all dealerships eliminating the offers and haggling, but also force retailers to exclusively sell their models in a single facility.
To a large extent, there is no problem between dealers and brands, since The former will continue to offer their services as an official repair and maintenance network, leaving the sale of new cars in the hands of the manufacturer, and being only intermediaries, except for an agreement such as Stellantis that, for a time, will allow them to continue selling cars. However, the alarm has already gone off in Italy, as they already point to serious consequences, ranging from the loss of thousands of jobs to a decrease in the quality of customer service, which will lose out on personalized advice completely. The debate is served a little over a year and a half before the new rule enters into force.