Car distribution is changing profoundly: in addition to the transformations imposed by new technologies, related to electrification, electric mobility, and the ‘component crisis’ (chips in particular), there are also those related to the pandemic, which entail less physical contact between the seller and consumer and greater use of online tools.
As of 1 June 2022, the new EU Regulation on Vertical Agreements No. 270/2022 (the so-called VBER Vertical Block Exemption Regulation) came into force: vertical agreements are understood to be agreements between companies active at different levels of the production and distribution chain, such as franchising agreements, selective distribution agreements and exclusive distribution agreements.
The new Regulation considers significant changes in the relationship between car manufacturers and the members of their sales networks. i.e. dealers.
Among these changes, the first development concerns the so-called ‘dual distribution’: it refers to a scenario in which the supplier sells cars and after-sales services not only to distributors but also directly to end customers, thus entering into direct competition with its distributors, using digital channels to interact with end customers.
Another development concerns the increased use of independent agents as an alternative to that of the dealer, with a decidedly depowered role both in the relationship with the car manufacturer as well as with the customer. In this respect, the transformation of the relationship between manufacturers and the distribution network that is mirrored by the VBER redefines not only the role but also the operations of existing dealers. Today, the dealer acts as an independent entity, on his own account and as a licensee of the brand; as an agent, he will do so in the name and on behalf of the manufacturer. In this latter case, price lists and discounts would be set by the parent company instead of the dealer, eliminating so-called intra-brand competition (i.e. between dealers of the same brand), but also commercial negotiation.
The future will change the way European citizens buy a new car, there may be a real revolution that redefines the role of distribution networks .
It is undeniable that in future the purchasing process will change, with the customer who, in addition to the classic interlocutor in the territory - today a dealer and tomorrow an agent - will have the opportunity to combine the online and offline experience at will. For example, touching and trying the car at a showroom and then finalising the purchase online and returning to pick it up at a physical point. Or, vice versa, gathering all the necessary information on the web and then going to one of the authorised points of sale to finalise the contract.
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