Automotive News Europe — 2024-04-08
Automotive Industry
Ford had already delayed the introduction of direct sales until 2026.
Ford has dropped its plan to convert its European retail network to the agency direct-sales model, according to a report.
Ford had already delayed the introduction of direct sales until 2026 after piloting it in the Netherlands ahead of a Europewide rollout.
Now the automaker is scrapping the system altogether and instead is developing an 'advanced franchise' model," Ford's Europe head of EV sales, Anna Lena Strigel, told the British car magazine Autocar.
Ford declined to comment on the report. "We cannot give any concrete details about our plans," a Ford spokesman told Automotive News Europe sister publication Automobilwoche.
Ford's dealer representatives also declined to comment because there has been no official statement from the automaker. Ford has told its retailers in Germany that the changeover will be postponed by years and will not be completed until 2030, said one dealer, who declined to be named.
Ford will still downsize its European dealer network as it focuses on higher-priced SUVs and profitable commercial vans ahead of its transition to be become an electric-only brand in Europe.
Automakers have been attempting to introduce the agency model in their European markets to standardize online sales and in person purchases in showrooms. The transition has met with opposition from dealers who receive a fixed fee for a sale under the agency system instead of a variable commission payment.
Under the agency system, automakers invoice customers directly.
Companies including Stellantis, BMW, Audi and Jaguar Land Rover have delayed or revised their plans for agency sales.
Stellantis is revising the rollout of its agency distribution model in Europe after pilot programs in Austria, Belgium/Luxembourg and the Netherlands were halted because of IT glitches.
BMW's Mini brand postponed the introduction of the agency retail model in Germany because of IT glitches.
In the UK, Audi has delayed the introduction of agency sales after opposition from dealers, Car Dealer magazine reported.
Jaguar Land Rover scrapped its plan for agency sales, Car Dealer magazine also reported.