Mercedes-Benz is consulting its retailers on agency model franchise contracts as Volkswagen Group revealed the switch is likely to be completed for its electric vehicle (EV) model sales by the start of 2023.

While Mercedes refused to confirm a potential shift to an agency model agreement for its franchisees, dismissing suggestions that retailers had begun consultation on the switch as “speculation”, VW has confirmed the change in on the cards for its Audi, Cupra, Seat, Skoda and Volkswagen Commercial brands.

A spokesman for Volkswagen Group told AM: “At this week’s European Dealer Council, Volkswagen AG confirmed the intention to implement an agency model for the sale of battery electric vehicles of the brands Volkswagen, Volkswagen Commercial Vehicles, Škoda, Audi and Cupra.

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The latest AM industry special issue

Spotlight on the customer

In this issue:

What consumers really want - trends and habits dealers must understand to provide the right buying experience

Barriers to EV purchase - many private motorists need extra help before they take the plunge

Delighting used car buyers - it's essential for retailers to offer tailored experiences and great value

Aftersales customer care - valuable interactions are vital as dealerships face fishing in a diminishing pool

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