Skoda's History and Decision Making Process
Skoda currently operates under an existing system of selling through dealers. However, as part of the Volkswagen Group, Skoda management decided to switch to a direct sales model.
Implementation Plan of the Sales Model
This new sales model includes a plan that Skoda will slowly implement, starting with the new Elroq SUV. It will then include electric vehicle sales to private and fleet customers.
Financial Incentives and Dealer Returns
Skoda's German President Jan-Hendrik Huelsmann stated that with the new system, partners will be provided with financial returns similar to the returns they received in previous years. This provides a glimmer of hope regarding the financial returns dealers can expect from the new sales model.
Transferring Inventory Risk and Financing Costs
Under the new agreement, inventory risk and financing costs for new vehicles will be transferred to Skoda. However, personnel and building costs will remain the responsibility of the dealers.
Trends and Change in the Automotive Industry
The direct sales system initiated by Tesla is also adopted by other automobile manufacturers. Big brands such as BMW and Mercedes aim to make more profits and have more control over dealers by switching to this model.
Advantages and Prospects of Direct Selling
Direct selling offers automakers the opportunity to make more profits and manage customer relationships directly. However, there are also expectations about the long-term effects of the transition to this model and the change in the role of dealers.