PRAGUE -- The ‘agency’ direct sales model of retailing is swiftly being adopted by a number of automakers, including Mercedes-Benz, BMW and Stellantis, but it’s not only way to modernize car sales, a panel of leading brand executives told the Automotive News Europe Congress in Prague.
The urgency to switch from a wholesale model is driven partly by the promise of cost savings on distribution, which is generally calculated to be 30 percent of the cost of the car, said Steve Young, managing director of retail analyst firm ICDP and the panel moderator.
“That is more than the combined costs of manufacturing and product development, so you have to worry if that is money well spent.” he said.