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A key year for the agency model
The landscape of the dealership is changing, but if manufacturers get it right, consumers will notice little change. The agency model, commonly known as a direct consumer model, has been a major talking point over recent years. OEMs want to be proactive in creating a positive experience for their consumers by owning their consumer relationships without having the dealer as a third party.
The benefit of the agency model is that it allows organisations to retain brand loyalty, have fuller control over pricing and profitability, and focus on a better showroom experience. This presents an opportunity for more manufacturers to take advantage of ongoing supply challenges and recalibrate how they interact with customers. Mercedes is going live with its agency model in agreement with retailers this year, and Cox Automotive predicts this will be a catalyst for many others to follow suit.