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    1. Home
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    3. >Stellantis freezes plan to overhaul dealer structure in Europe
    Finance

    Stellantis Freezes Plan to Overhaul Dealer Structure in Europe

    Published by Global Banking & Finance Review®

    Posted on May 13, 2025

    2 min read

    Last updated: January 23, 2026

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    Quick Summary

    Stellantis halts its European dealer overhaul plan, maintaining traditional frameworks except in select countries. Updates on Italy's production strategy are expected soon.

    Stellantis Suspends European Dealer Structure Overhaul Plan

    (This story has been corrected to clarify that dealers in Austria, Belgium, Luxembourg and Netherlands will still move to the 'agency' model, in paragraph 6)

    VERONA, Italy (Reuters) -Stellantis suspended a contested plan to overhaul the legal structures of its dealership network in Europe, its chief for the region said on Tuesday, as the carmaker also prepares to update a plan to revive vehicle production in Italy.

    As part of efforts to cut costs and support investments for electrification, former CEO Carlos Tavares launched a plan in 2021 to end previous contracts with European dealers and move towards a new distribution framework based on an "agency model".

    Tavares left his post in December.

    In an agency model, carmakers take more direct control of sales transactions and prices, while dealers focus on deliveries and servicing and no longer act as the customer's contractual partner.

    Many dealers were reluctant to make the change, saying it was compressing their margins on vehicle sales.

    Speaking at a dealer's event in Verona, Italy, Imparato said Stellantis was suspending the plan in Europe, with sales networks sticking to the traditional dealership framework, except for Austria, Belgium, Luxembourg and the Netherlands where a transition to the new agency framework was already launched in 2023.

    Imparato said Stellantis would soon address requests to the European Union to support auto manufacturing in the region, which he said was complicated by high labor and energy costs and heavy regulation.

    Requests will include a EU-wide scrappage scheme to help replace vehicles older than 10 years and public contributions for electric-vehicle battery production in Europe of 40 euros per kilowatt, worth almost half of the total manufacturing costs.

    In Italy, Stellantis will soon present an update to the plan it announced in December to increase auto production in the country, Imparato said. He added that "a few things have changed since then", including EU's decision to give automakers three years to comply with emission rules initially set for 2025.

    The update, aimed at enhancing the plan for Italy, will include areas such as engines, as well as Stellantis' struggling brand Maserati, he said.

    "We will discuss it with the government soon and then we will present it, in June, or even before," Imparato said.

    (Reporting by Giulio PiovaccariEditing by Keith Weir and David Gregorio)

    Key Takeaways

    • •Stellantis suspends its plan to overhaul European dealer structures.
    • •The agency model transition continues in Austria, Belgium, Luxembourg, and Netherlands.
    • •Stellantis seeks EU support for auto manufacturing amid high costs.
    • •Plans to update Italy's vehicle production strategy will be presented soon.
    • •EU emission rules compliance deadline extended for automakers.

    Frequently Asked Questions about Stellantis freezes plan to overhaul dealer structure in Europe

    1What is the main topic?

    The main topic is Stellantis suspending its plan to overhaul the dealer structure in Europe, except in a few countries.

    2What is the agency model?

    In the agency model, carmakers control sales transactions and prices, while dealers focus on deliveries and servicing.

    3What changes are expected in Italy?

    Stellantis plans to update its strategy to increase vehicle production in Italy, with a focus on engines and the Maserati brand.

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