JLR Move To An Agency Model In The UK By 2025

Jaguar Land Rover’s plan to shift all of its UK dealers to the so-called ‘agency model’ by the end of 2024 will include a reorganisation of its showrooms as a “house of brands” where Jaguar, Range Rover, Discovery and Defender will all have their discrete area.

The most radical change, however, will be the shift to agency itself, under which JLR will take control of the buying process, whether online or via the showroom, with the dealers paid an agent fee for handling each sale.

That’s a big departure from the current wholesale model, whereby JLR sells cars to their dealer network.

That works well in that JLR recoups its money quickly, but it also hands the dealer responsibility for the final sale price – and ultimately, it becomes them and not the car company that forms a bond with the buyers.

Not all dealers love the idea of shifting to agency. For example, Australian dealers for Mercedes, one of the first to move to direct selling, are suing the company for hundreds of millions in compensation after they claimed it would leave them out of pocket. .

Information for this story sourced from AUTOCAR.