Stellantis to lose 138 sites by mid 2023, further investor reductions expected

Stellantis is pushing ahead with the overhaul of its UK operations with fewer partners operating more contiguous territories and a bigger emphasis on multi-franchising.

By mid-2023 it will have lost 138 retail sites in the UK. It said further reductions in investors can be expected and that customer satisfaction was the driving force behind the restructuring.

The group yesterday announced a raft of moves – including a management restructuring – to improve its standing in the UK and help it attain a 20% market share in the UK from 2025 in car and van sales.

The company is launching a Premium Brand division for DS and Alfa Romeo as it gears up to introduce an agency model for the two brands. LCV sales for Vauxhall, Peugeot, Citroën and Fiat will also shift to an agency distribution model from 2023.

It is aiming to drive efficiencies for its mainstream brands – Vauxhall, Peugeot, Citroen, Fiat/Abarth and Jeep – through a centralised operations function.

“This will create much stronger back office support to the retail network that will give us a competitive advantage,” said Stellantis group managing director Paul Willcox.

It is also introducing a regional approach with aftersales, quality experience and network development functions carried out on a multi-franchise basis.

And the group has split out contracts for LCV and cars to attract investors who want the van franchise rather than inheriting it as an add-on to the car franchise.