Network termination: new contracts for Opel dealers

Jürgen Keller: “The Opel dealers remain the interface to the customer.” © Photo: Dietmar Stanka / AUTOHAUS

The fears of Opel dealers come true. The Rüsselsheim car manufacturer announces the existing contracts throughout Europe and wants to “tackle the basics”. The key messages from Germany boss Jürgen Keller.

By Ralf Padrtka / AUTOHAUS

Opel wants to work with its distributors in Europe put on a new footing. To announce the Rüsselsheim car manufacturer end of April 2018 existing dealer contracts with two-year period. Affected by the step were Europe-wide all 1,600 contracts, said Germany boss Jürgen Keller in conversation with AUTOHAUS. In this country, there are 385 trading companies.

“Starting this Tuesday, we will send the termination letters in conjunction with a letter of intent,” Keller said. At the same time, the starting signal for the talks with the dealer representatives is given. “I expect that we can complete this in the summer and then submit the contract.” He expects the new agreements to be introduced in early 2020.

In Germany, according to Keller, only twelve companies will not receive a new contract offer. Therefore, there is no question of a thinning out of the distribution network. In the industry there had been speculation recently that Opel in the event of a termination could reduce the number of dealer locations.

The multi-level distribution system remains untouched. Keller: “We will continue to have the dealerships with affiliated branches and the network of Authorized Opel Representatives AOV.” The car dealers would continue to play a significant role in the vehicle marketing play. “They are and remain the interface to the customer for us,” emphasized the manager.

At the same time, however, Opel must face up to the new challenges of rapid change in the automotive industry and customer expectations. Therefore, one has refrained from merely supplementing the existing agreements, so Keller. “The changes in the industry are so profound that we need a new contractual framework.”

Future-oriented setup

With regard to the content, the head of the German department said that the new regulations would bring a significant reduction in the complexity and administrative burden on trade. This is especially true for the fulfillment of standards, Simplification also means that in future every dealer car and commercial vehicles could drive away. So far, there were two separate contracts for the divisions. Keller: “Together we want to work the market for light commercial vehicles even better and more professionally.”

In the area electromobility Keller also sees positive developments. “We do not plan a reduced one sales network for electric vehicles. Everyone partner will be able to distribute the future electrified models. That is a very crucial point. “Opel plans to include an electrified version for every passenger car model by 2024. Four vehicles will be available by 2020 – when the new contract starts.

After takeover Through the French PSA Group, Opel is currently working on various levers to become sustainably profitable after years of losses. For this purpose, all business units were analyzed in detail. in the distribution The carmaker has identified a large performance gap. “We have a lot of very good dealers, but we also have companies that are not where they should be in terms of profitability and performance, so we need to do something fundamental,” Keller said. The aim is to “create an even stronger performance culture in the trade”.

The network termination is not unexpected for the German Opel dealers. Your interest representation VDOH has already prepared for the negotiations and put together a qualified team. In addition, managing director and lawyer Uwe Heyman has made a detailed expertise. The companies want the Association inform about the course of the talks by means of a circular and, if necessary, a new Extraordinary General Meeting. (Rp)