“To be the leader of the automotive market in three years”

According to Febiac data, the fifteen brands of the Stellantis group represent just over 20% of new registrations in Luxembourg, placing the vehicle group resulting from the merger of Fiat Chrysler Automobiles (FCA) and PSA group (PSA) in the second position behind Volkswagen AG which accounted for 34% of new registrations. On the occasion of Auto Show in Brussels and a few days from 59th edition of the AutofestivalStephen Levy, country manager of Stellantis Beluxspeaks about the group’s vision for the Luxembourg market.

How does the Stellantis team view the Luxembourg car market?

Stephane Levi. – “It is a market in itself and we try to treat it as such. We also have to improve certain points in our way of communication and be less consistent with what we do in Belgium, because the channels are different, as well that the customers or the assistance for the purchase of the electric vehicle. Our strategy is therefore to work in a local anchorage to meet ourselves specifically with Luxembourg customers. This is what we have started to do, especially for th 59th edition of the Autofestival.

In Belgium, the group is in first position in terms of market share. This is not the case in Luxembourg and this situation is not normal.

Stephane Levi, country manager Belux, Stelantis

What are the ambitions of the Stellantis group in Luxembourg?

“In some European countries including Belgium, the group is in the first position in terms of market share. This is not the case in Luxembourg and this situation is not normal. Our ambition is to become one in three years. We have very good locally anchored distributors, great dealerships, brands and models with potential, great engines. There is no reason not to take the first step. Together with our local partners, I am convinced that we can this. Last year the Peugeot 208 and Peugeot 308 worked well, as did the Fiat 500. These are cars that please without being in the Premium segment, this is proof that there is a window of opportunity in Luxembourg.

What will you do to achieve this goal? Does this ambition require the restructuring of some dealerships, as will be the case with Autopolis?

“We really work with the dealers, in particular Autopolis. There is no secret, in the first place you have to be number 1 in customer service. Autopolis has done a lot of work on this point for many years. We should also accelerate in certain segments, including the B2B domain where German competition is strong. We have brands that need to have more visibility and prominence in this area, in particular fiat and Alfa Romeoo Jeep. But overall, this is work that should apply to all of our brands. Apart from DS which achieved a good performance, in Luxembourg we are in each brand between 1 and 2 points below the performance achieved in Belgium. This is not acceptable.

To stick to your goals, will you reorganize your network? In France, Stellantis announced a loss of 1,200 points of sale…

“We are in a logic of concentration and multi-brand. We reduce costs at the distributor level to maintain a profitable activity in the face of an electrification of the market that makes all cars more expensive, and if we want to keep the widest possible clientele in terms of purchasing power, we must reduce distribution costs and go through more concentration and fewer massive showrooms.

When I come to a showroom, I can have 3-4 emblematic models then behind the variations of different models with digital media. Customers come to dealerships less often, but they do go there at least once. Our role is to ensure that the entire course is simple. If a customer starts configuring his car on the internet and leaves his contact details, it’s incomprehensible to see this same customer doing the same thing at the dealership. The digital and the physical are not rivals, they are complementary and having a network is very important.

Then, changes are put in place to make it sustainable. In Luxembourg, the dealership network is very well balanced and very well scaled in terms of territorial network. On the other hand, there are changes to be made so that in both areas dealers can work on their car brands, preferably in the group. Stelantisto cover their fixed costs and be sustainable.”

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