Mercedes and the Volkswagen Group are reportedly pushing to change their UK dealer networks from franchise to agency models.
Such a move allows manufacturers greater control over the sales process, including the adoption of non-negotiable pricing with retailers paid a handling fee for sales. Typically, demonstrators are the only stock assigned to the dealer under an agency model, and the manufacturer holds most of its vehicles at separate sites.
Auto Retail Network reported that Mercedes is in consultation with its UK dealers regarding a move to an agency model. The manufacturer is said to have attempted the move several years ago but did not proceed after objections from the network.
The Volkswagen Group also reportedly announced that it would move its battery-electric vehicles to an agency model from 2023 at its European dealer council in May, according to AM Online.
The switch would apply to its Audi, Cupra, Seat, Skoda and Volkswagen Commercial brands and follows the group’s launch of an agency scheme in Germany and Austria for sales of its electric ID range in 2020.
Manufacturers have discussed agency models for years and Toyota New Zealand implemented one in April 2018. Its market share of private registrations dropped from 14.6% to 13% in the first 12 months, then hit 15.4% the next year and 16.8% at the end of 2020.
