Stellantis is facing difficulties in its relationships with the dealer network in Germany, due to changes in the business model and a new corporate identity that could negatively impact the relationship with dealers. The latter are not willing to bear increasingly higher costs in a context of declining revenues. A similar situation is also happening in the United States, where many dealers are planning to close due to ever-increasing costs and lower profit margins, making the situation unsustainable.
High costs are creating discontent among Stellantis dealers in Germany
Among the company’s plans is the introduction of a new showroom image, requiring an investment of 150,000 euros for each dealership. This represents a significant burden for dealers, who are already facing declining sales, reduced margins, and unfavorable interest rates offered by Stellantis Bank. Furthermore, dealers report that showroom equipment costs are much higher compared to the benefits obtained.
“In the current context, many dealers are struggling to achieve even minimal profitability,” stated Thomas Gauch, president of the German Stellantis Dealers Association (JARFD), at a local industry meeting. This situation raises serious concerns about the future of their cooperation with Stellantis.
According to a report in Automobilwoche magazine, about 30% of German Stellantis dealers are considering ending their collaboration with the company. Many of these businesses are well-prepared for changing business partners, as they have been working for some time to create other sources of income. However, there are fears that the crisis in the relationship between Stellantis and dealers could impact customer experience.
A lower number of sales and service points could reduce service availability and decrease the competitiveness of Stellantis brands in the market. Germany, being one of the key automotive markets in Europe, could be particularly severely affected by these changes.