AUDI is moving its fleet sales to an agency model. The move from a dealership to agency system will happen in April 2018.
The change in strategy was unveiled to the company’s local business development managers at the company’s November leasing conference by new head of fleet, Tom Brennan.
Essentially it means Audi Fleet will now handle volumes rather than dealers. Audi dealers will be paid a handling fee per fleet car delivered.
Brennan said that Audi Fleet LBDMs were enthusiastic about the changes.
“We’re moving to an agency model because it is the preferred model in the UK,” explained Brennan.
“It’s well understood, most premium manufacturers work in that way and it’s the preference of our customers – both leasing and corporate. It will allow us to provide a better service to these customer groups and to work more closely with them.”
Brennan added that pressures in the market had made the previous dealer system unsustainable; and the agency route would give Audi Fleet control over the routes to market and the spend.
However, Audi expected to grow its 150 LBDMs which are based in Audi Centres who prospect for local business.
“We will need to grow our LBDM base – because there will be more cash takers which means more retail leasing. So we need to focus on the agency model to maintain sustainability in the dealerships.
“It’s the biggest change the brand has seen – it’s taken so much time and energy but we need to make sure we get it right.”
What the agency model means for Audi Fleet
- engaged and sustainable network from a fleet perspective
- provide better customer service
- build better conversations with leasing companies because Audi Fleet is in control
- allows Audi to maximise responsible volume in each sub-channel of true fleet
- dealers paid a handling fee instead of flexing the margin
