Car dealers vs Agents: Is the agency model on its last legs already?

By Staff
1 Min Read

Is the agency model a fad that is destined to die?

Stellantis has delayed its agency model introduction and JLR has morphed its plans too in recent weeks. But does this mean the idea of switching from a franchised dealer network model, to a different way of working is faltering or doomed?

While some brands may be taking stock, many car manufacturers do not appear to be abandoning their future plans to introduce agency in the UK at some point. Although some analysts point out that agency looks a better proposition during a demand-led ‘pull’ new car market than in the emerging market where OEMs have stock coming that they must find customers for.

AM understands Volkswagen Group is still moving ahead with its plans (albeit quietly and much more under the radar than other brands, and leading with EVs only), Ford is still testing the waters in the Netherlands ahead of changes planned for the UK, while Toyota and Honda are also progressing.

Mercedes-Benz and Volvo are also continuing to forge ahead with their already active agency strategies in the UK.

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