Mercedes-Benz is consulting its retailers on agency model franchise contracts as Volkswagen Group revealed the switch is likely to be completed for its electric vehicle (EV) model sales by the start of 2023.

While Mercedes refused to confirm a potential shift to an agency model agreement for its franchisees, dismissing suggestions that retailers had begun consultation on the switch as “speculation”, VW has confirmed the change in on the cards for its Audi, Cupra, Seat, Skoda and Volkswagen Commercial brands.

A spokesman for Volkswagen Group told AM: “At this week’s European Dealer Council, Volkswagen AG confirmed the intention to implement an agency model for the sale of battery electric vehicles of the brands Volkswagen, Volkswagen Commercial Vehicles, Škoda, Audi and Cupra.

“As you may be aware, an agency model was successfully launched for the fully electric ID. models of the Volkswagen Passenger Car brand for the German and Austrian markets in 2020.

“This confirmation means we can now plan a comprehensive engagement programme as we co-develop the implementation plans and timings with our retailer partners, ensuring that the retail network remains a key player, and also ensuring that the new sales model delivers profitable growth for the brands and retail investors in the long term.” He added: “This change isn’t going to happen overnight. It may well be the end of next year or by the start of the year after that.