Source: Gasgoo
Ford has abandoned its plans to convert the European retail network to an agent direct selling model. After a pilot in the Netherlands, Ford has already announced that the agent direct selling model will not be fully rolled out in Europe until 2026.
Now, Anna Lena Strigel, Ford’s head of electric vehicle sales in Europe, has said that Ford will abandon the plan altogether and instead develop an “advanced franchise” model.
Ford declined to comment, with a spokesman saying: “We can’t share any specific details about our plans.” Ford dealer representatives also declined to comment because the company has not made an official statement. One distributor said Ford had told its retailers in Germany that the shift would be delayed by several years and would not be completed until 2030.
Image source: Ford
Ford is still reducing the size of its European retail network and focusing on SUV and lucrative commercial vans since Ford planned to transform into an all-electric vehicle brand in Europe.
Many car companies are trying to introduce the agent direct selling model in the European market in order to regulate online sales and offline stores’ prices. However, the switch was opposed by distributors because under the agent direct selling model, distributors only receive a fixed fee from the sale, rather than a variable commission. Under this model, car companies issue invoices directly to customers.
As a result, a number of car companies, including Stellantis, BMW, Audi and Jaguar Land Rover, have delayed or cancelled their agent direct selling plans. Stellantis is revising its agent direct selling model launched in Europe after pilot projects in Austria, Belgium, Luxembourg and the Netherlands were suspended due to information technology glitches. BMW Group’s MINI brand has also delayed plans in Germany because of information technology glitches. Audi has reportedly delayed plans in the UK because of opposition from distributors. Jaguar Land Rover has also scrapped its plans.
