Executive View: Agency Model - driving divergence across brands

Jonny Stephens, senior manager at independent management consultancy BearingPoint explores, the recent changes in agency programmes.

Last month I attended the FT’s Future of the Car Summit in London. Executives from across the industry discussed the hot topics and of course Agency distribution models were still on the agenda.

A panel including Kristian Elvefors (head of sales at Polestar), Maria Grazia Davino (group MD UK at Stellantis) and Carlos Lahoz Pardo (VP of sales & ownership at Kia) spoke to their organisation’s outlook on direct sales. Polestar born into the model, Stellantis transitioning to agency - albeit later than originally planned - and Kia sticking with a franchise distribution model.

However, the fact is, any number of sales executives from leading OEMs could have sat on that panel and provided insights into their recent thinking and decisions around agency. With so many OEMs making recent announcements to postpone and modify their programmes or to retain or rework their franchise estate, the fascinating division in operating approach is starting to crystallise.

This topic has been on the downstream agenda for years now – but it is telling of the importance of the decision and the extent of the change that organisations are still so strategically divided.