JLR to review agency move in 2027
04 March 2024
JLR will review its recent decision to stick with the franchised model and look again at agency in late 2027, according to UK managing director Patrick McGillycuddy.
Speaking exclusively to sister title Auto Retail Bulletin, McGillycuddy said: “When you look at the amount of change that we are already planning to implement, the amount of change we’d have to drive into our network, that would create disruptions for our clients. So actually, at this point in time, it wouldn’t be in the interest of our clients.”
He now believes most of the aims of the original agency plan can be achieved though the franchised model, with new agreements set to be implemented before the end of 2024.
In terms of timings and the roll-out of the new franchise plan, McGillycuddy said: “We’ve got a plan to implement the new agreement over the balance of this year, and then some of the deliverables will happen into next year. So there is no cliff edge in terms of implementation.”
While the agency plans have been dropped for now, JLR is sticking to its plans to reshuffle the network and, in particular, cull the number of Jaguar sites. Commenting on the future of agency, he added: “We’ve committed to review it again in 2027.”
JLR will again rework the margin structure under the new ‘refined franchise’ plan. In late 2022, JLR caused dissent among retailers by cutting the margin on new cars. At the time, retailers told Auto Retail Bulletin this was to cover the costs of a move to agency – something McGillycuddy denies was the case.
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