Well-known car brands such as Ford, Volvo, Mercedes and Stellantis (collaboration of Fiat Chrysler and Peugeot) are moving from appointing cardealers to agents in Europe, or at least that is the intention. By switching from the familiar car dealer to an agent, the automotive sector expects to save 30% on sales costs. Goal is to use these savings to invest in the development of electric cars.
What will change?
An agent mediates the sale, but does not buy and sell the car itself. There will be a direct purchase agreement between the car manufacturer and the buyer. In the old dealer model, the buyer bought the car from the dealer. Thus, a cardealer could set the price of the car himself; the agent basically can not.
The dealer earns his living from the profit on realized sales. An agent, however, obtains a commission on each sale.
The dealer himself had to invest heavily, make sure he had enough stock and an attractive showroom. An agent does not need that. If the agent has a showroom, the cars will remain the property of the car manufacturer. So the financial risks and investments are much lower for an agent.
The customers belong to the car manufacturer and not to the agent. As compensation, the agent can claim a goodwill payment at the end of the relationship of up to the average annual commission earned over the last 5 years. The customers must then remain customers of the manufacturer. The latter seems uncertain to me. Not every buyer is equally brand loyal and may want a car of a different brand. A distributor cannot claim goodwill compensation at the end of the relationship. The manufacturer must, of course, give reasonable notice upon termination of the distribution relationship.

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