Stellantis’ New Retail Model Under Fire In Europe

Stellantis’ New Retail Model (NRM) has been a source of ongoing tension between the company and its European dealer networks. Launched as a pilot in Belgium, the NRM aims to overhaul the traditional dealership model, transitioning dealers into agents who sell vehicles directly on behalf of the manufacturer rather than purchasing inventory themselves.

This shift places new responsibilities on the manufacturer, including managing sales, delivery, and inventory. For dealers, it raises concerns about operating margins and overall profitability. The NRM’s implementation in Belgium has been marked by significant challenges, leading to poor commercial results and a potential reconsideration of the model’s broader rollout.

Poor Sales Performance in Belgium –

The agency model’s impact is evident in Belgium’s declining sales figures for Stellantis brands. In the first five months of the year, vehicle registrations plummeted: Peugeot (-43.1%), Citroën (-12.6%), Opel (-40.37%), Jeep® (-12.31%), Fiat (-42%), DS (-49.8%), and Alfa Romeo (-35.15%). These declines highlight the difficulties Stellantis faces in managing direct sales and customer relations, leading to fears of losing market share.

Challenges and Delays in Other Markets –

In addition to Belgium, Austria, Luxembourg, and the Netherlands were also selected as pilot countries for the NRM. However, results have been disappointing, with sales continuing to decline. Technical issues, particularly in inventory management and dealer replenishment, have further hampered the model’s success.

These challenges have led Stellantis to postpone the NRM’s implementation in Spain, initially set for October, now rescheduled for 2026. Similarly, in France, the rollout has been delayed to 2026 for light commercial vehicles and premium brands (Alfa Romeo, DS, Lancia), and 2027 for mainstream brands (Peugeot, Citroën, Fiat, Opel).

Potential Abandonment of the NRM –

Stellantis’ NRM faces significant hurdles. Poor sales performance, logistical challenges, and dealer dissatisfaction may lead to a re-evaluation or even abandonment of the agency model in favor of traditional dealership practices.

The repeated delays and ongoing difficulties suggest that Stellantis may reconsider the viability of the NRM. The structural issues and lack of clear customer benefits raise doubts about the model’s future. As other manufacturers, like Mercedes, Ford, and Jaguar-Land Rover, hesitate to adopt similar approaches, Stellantis’ path forward remains uncertain.

Source: ClubAlfa