Ford has backed down on plans to implement the agency sales model across its European retail network, sticking with franchises but downsizing its dealer network to reflect its lower sales aspirations.
Ford had planned to roll out agency – or direct sales – across Europe following a trial in the Netherlands last year, as part of its transition to a higher-priced model line-up with more of a focus on profit than volume.
The move was planned to give Ford more control over pricing and to facilitate a more direct relationship between it and its customers. It would also have allowed for the brand to introduce a more consistent approach to marketing, strategy and messaging across all its retailers.
Revealing the plans to Autocar last year, Ford of Europe boss Martin Sander said: "Agency is definitely the way to go. We've decided that we are going to switch to the agency model in Europe over the next years.”
However, the firm is now instead planning a new hybrid approach that leans on the strengths of its established franchise dealerships while leveraging the opportunities of data sharing.
Anna Lena Strigel, sales and brand management boss for Ford's EVs in Europe, told Autocar: "We've evolved pretty much our thinking to become what we call an 'advanced franchise' model, where we use the latest systems to get more insights about customers, and we can really follow the customer journey end to end, while still keeping the franchise partner as the very important backbones of our system.
"Learnings have brought us to an evolved franchise network."
Strigel didn't go into details about the precise findings and results of Ford's trial last year but suggested the decision to stick with franchises is possible because of the role that data-sharing can now play in Ford's sales operations.
"We believe in the power of having full transparency of data sharing between OEMs [manufacturers] and franchise partners," she said. "In terms of the systems, that's a real evolution - and a real requirement for being successful going forward."
Improved management of data across its sales points means Ford can better gauge the effects of marketing campaigns, see what its cars are being cross-shopped against, determine how far prospective customers get through the buying process and provide better, more relevant information to its customers, based on frequently asked questions.
Physical dealerships remain integral in this model, though, because while some 90% of Ford customers "start the journey online", according to Strigel, "nearly all customers actually make the switch between digital and physical".
"For most customers, a car is the second biggest investment that they're making in their life, apart from a house, so it's something they consider very well," she said.
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