JLR remains firmly on course to go full agency in autumn 2024, confirmed Andrew Jago, general manager of fleet and business (pictured above).
Talking to Broker News, Andrew said JLR continued its position that brokers can only access the company’s vehicles through retailer relationships.
Our desired position is for the retailer to have a relationship with the customer direct. We really want to use our positioning at the premium and luxury end of the market and we want to make sure we deliver an experience that supports that customer expectation.
Andrew continued that at the start of 2022 it moved all its key accounts – blue chip and public sector – from end user terms to a direct sales model.
The change to a direct model also included localisation as part of the move.
What does that mean? We firmly believe that we want to use our retailers as the sole source of distribution. So we don't want to be using third party logistics providers, and we want to make sure that we have a relationship between our retailers that are local to the end user driver, so that they are the best place to serve the driver's needs. From a sustainability point of view it makes far more sense.
For example, previously a preferred supplier relationship would have seen, for example, a blue chip using Inchcape with funding through Arval. But Inchcape could then be trucking cars 300 miles away from the supply and retailer. We basically said, no - the preferred supply piece goes and the agreement is with us and the local fleet and business centre which hands the car over to the driver. So that's been a big change.
Andrew went on to say that the feedback had been overwhelmingly positive from all three stakeholders – retailers, customers, and the leasing companies.
He added that autumn 2024 continued to be the agency agreement date with a full omnichannel experience.
How will brokers access vehicles? If retailers choose to supply them, that's their choice. But the terms of supply are with retailers. It would possibly make it more difficult to engage with brokers.
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Ralph Morton is the leading journalist in the leasing broker sector and editor of Broker News, the website which provides information and news for BVRLA-registered leasing brokers. He also writes extensively on the fleet and leasing market in both the UK and Europe.
