AUTONEWS
As part of Stellantis NV's “Dare Forward 2030” strategic plan, the company plans to unleash an “entrepreneurial mindset” within the company, increasing its global online sales. In 2021, the company sold 100,000 vehicles online.
Carlos Tavares, CEO of the company, projects that online sales will double each year, reaching 800,000 units by 2024 and a third of the company's sales by 2030.
When listening to Carlos Tavares speak in this report, you might think that the brand's resellers are not online. In fact, they are, and have been for years. Dealer.com, a brand of Cox Automotive, has been handling digital dealer transactions for years, with its software providing digital retail, search engine optimization, display advertising, financial services, social media reputation management, video advertising, and more. most. The company also supports the national website.
Carlos Tavares (CEO Stellantis) also wants to expand online vehicle sales in Europe...“What I can say to this topic is that we are discussing this with European dealer associations. I consider it a regional issue,” said Tavares. “Each region has a different regulatory framework and different ways of entering the market, which means that we will discuss this regionally. We are discussing this with our European Union associations. I think the discussions from what I see in the minutes of these meetings are going very well”... said the CEO
But don't expect conventional online new car sales in the US anytime soon... “The US market holds dealers; it's just the way the laws have been established in most states,” said Sam Fiorani, vice president of Global Vehicle Forecasting at AutoForecast Solutions LLC. “If you are a startup like Tesla or Rivian, there are ways around the rules because the rules say the manufacturer cannot compete with the dealer. If you don't have dealers, in many states you can set up a factory-owned network. But if you already have Dodge, Chrysler and Jeep dealers, it's against the law in many states to create your own network.”
“One-third of our sales are order-to-delivery now,” said Ford Motor Co. CEO Jim Farley last month. Buyers who once sought instant gratification from dealer lots are now ordering the exact vehicle they want and waiting for their vehicle to be built and delivered, not unlike Tesla or Rivian. “It used to be less than 5%,” Farley said.
The trend is supported by a recent study by Cars.com which found that four out of 10 buyers surveyed said they plan to build a custom vehicle when they are next on the market for a new ride.
What else to expect...Carlos Tavares (Stellantis) also said the automaker is creating a holistic digital marketplace using artificial intelligence that will recommend products and services based on customer need. It will provide access to products and services related to accessories, maintenance, warranty and insurance for your vehicles, as well as providing over-the-air updates and online booking tools. The site will also offer mobility services, including daily car rental, car sharing or electric services.
“We are going to test the digital market on a smaller scale and progressively increase all brands and all services to more regions by 2027”... Tavares said last Tuesday. “We have a goal of total expansion in 2030”...said the executive
Others have similar intentions...But Stellantis is far from the only OEM looking for new digital revenue streams. General Motors expects to offer more than 50 products and services over the next 36 to 48 months, according to an exclusive interview with TheDetroitBureau.com.
And GM CEO Mary Barra said GM research suggests buyers are willing to spend an average of $135 a month, including $85 for subscription and other services, the rest for necessary hardware. The automaker is targeting revenues of up to $25 billion annually by the end of the decade.
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