Fiat Europe boss Gaetano Thorel has rejected the prospect of moving to digital-led direct-to-customer sales, stating “our dealers are our engine”.
Thorel said: “They’re the face of the brand. They’re crucial. When you go outside of Italy, to Germany, to France, even to the UK, our network [of dealers] represents our face in the market. The dealer is our ambassador.”
This bucks the trend of many manufacturers who are pushing customers online, with Volvo, for example, now exclusively selling its electric range on the web.
Thorel added: “Selling online is important. It is growing. But when you think about buying a car for €30,000-€40,000, you want to touch it and go somewhere you can touch it. And to me, our showrooms are these places to touch it.”
Along with Fiat, Honda has also told Autocar the dealer experience is still key to its selling process.
“We have a very loyal following,” said Honda UK product boss Andrew Winfield. “[Most customers] have bought five or six [Hondas] in the past. They're happy talking to their dealer because they've known them for many years. They know the dealer by name.”
Along with Volvo, car makers such as Tesla and Mercedes-Benz are giving more credence to the online world, using the switch to an agency-style model to push more customers to buy directly from their websites.
This is because the agency model brings in a centralised sales process and a common pricing structure so models are listed identically, whether sold online or in showrooms. This also does away with haggling so car makers can take control of the buying process.
Mercedes-Benz UK CEO Gary Savage said this means “more profit from fewer sales". The brand is no longer chasing volumes and the new model is about "upping the value of sales".
READ MORE: Mercedes' agency switch means 'more profit from fewer sales'
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