Car makers still dream of move to agency sales model

Volvo was among the first brands to move to the agency model in the UK

Agency model means car makers sell directly to drivers, paying dealers a flat fee for each sale handled

Car makers haven’t given up on the dream of selling cars direct to customers, even as the number actually doing so has dwindled to just four.
Currently Mercedes-Benz, Volvo and Mini are the only car makers of any scale in the UK using the so-called agency model of selling directly to customers via their network of dealers, who get paid a flat fee per sales as the car maker’s agent (hence the name). Tesla also sells directly but owns its dealer network.
Other car makers, including Stellantis, Ford, JLR and Polestar, have decided to reverse earlier plans and continue with the wholesale model, in which they sell cars to dealers who then sell them to customers.
In this system, the dealer assumes the responsibility of sale and so can pull all kinds of levers to close the deal, including giving away their profit m