The future of the car trade agency versus authorized dealer
Corona has hit the car trade, and digitalization is also forcing the industry to rethink its approach. That’s why manufacturers are considering alternatives to the traditional sales channel. One solution: the agency model, which VW, for example, is relying on for its ID.3 sets. But what exactly is it and what are the advantages??
The corona crisis hit the automotive industry with full force. In all respects. And so the pandemic has also clearly shown the weaknesses of the car trade. The logical consequence: a high degree of pressure to adapt the business models that manufacturers are relying on in cooperation with dealers. A simple continuation of the more than one hundred year old and correspondingly proven sales representative strategy? Unthinkable at the moment, even after the pandemic has subsided. With regard to the latter, the situation does not allow any solid forecasts anyway. Advancing digitalization and the resulting changes in customer behavior – even the automotive market is not spared from online shopping – are doing the rest. The market players must act.
"agency model" this is not only the buzzword on everyone’s lips among manufacturers and dealers, but also the most promising solution for many of them. For example, at VW, where the distribution of the ID.3 as a lighthouse project for the new strategy. But what exactly distinguishes the agency model from conventional sales via authorized dealers??