Stellantis is restructuring its dealership network in Europe following the new auto group's creation in January from the merger of Fiat Chrysler Automobiles and PSA Group.
The group will end current contracts for its 14 brands, with effect from June 2023, Stellantis said in a statement on Wednesday.
Stellantis has promised investors more than 5 billion euros ($6.10 billion) in annual savings from the merger, with 7 percent of expected synergies coming from savings on sales operations and general expenses.
The dealership restructuring comes as the automaker seeks to anticipate regulatory changes for car sales in the European Union. The company also needs to adapt changes in distribution models brought on by electrification and increasing online sales, it said.
"Omni channels, including online sales journeys, have changed customer purchasing patterns. This environment, together with upcoming BER (EU block exemption regulations) expected in 2023, will lead to changes to the current distribution contracts and standards," Stellantis said.
Stellantis brands include Fiat, Maserati, Jeep, Dodge and Ram -- all formerly owned by FCA, along with Peugeot, Citroen, Opel and DS, which were part of PSA.
The group wants to promote a distribution model based on a multi-brand distribution network, it said. "Customers will benefit from a multi-brand and multi-channel approach with a wider range of services," the statement said.
It was unclear whether the process would bring a reduction of Stellantis' network in Europe. "We are going to work with representatives of networks to establish factual criteria on which we are going to build in 2023 a performing network," a spokesman for the group said.
Stellantis CEO Carlos Tavares says he is affording each of the brands a 10-year window to execute a business plan.
European vehicle dealer and repairer lobby CECRA said it would carefully follow the evolution of the restructuring.
It also noted that the Austrian Supreme Cartel Court had recently banned the Peugeot brand from tying dealer payments to customer satisfaction surveys and from subsidizing prices of vehicles sold at its manufacturer-owned outlets.
"CECRA and all dealers across Europe took note of the decision of the Supreme Court which should be taken into account together with the new EU rules to pave the way to a balanced distribution model between manufacturers and their networks after June 2023," it said in a statement.
Stellantis said the new distribution network will be selected shortly and retailer representatives will be invited to meetings as the company develops new distribution plans.
Reuters contributed to this report
