NUERTINGEN, Germany (Reuters] – Carmaker Stellantis plans to begin a restructuring its European dealer network in June 2023 with the help of premium brands Alfa Romeo Lancia and Lancia.

Stellantis was formed in 2012 by the merger between Fiat Chrysler (OTC:), maker PSA and Fiat Chrysler (OTC-) maker PSA. It announced in May it will completely restructure the European dealer network to meet the needs of electrification and the boom in online sales.

Stellantis will terminate all existing service and sales contracts with European dealers regarding its 14 brands. This is effective from June 2023.

While the company continues to explore options to build future relationships with dealers, it is now moving to an “agency model”, European Sales Chief Maria Grazia Davino stated. This refers to an arrangement in which carmakers have more control over sales transactions, while dealers are responsible for servicing and handovers, but not acting as the contractual partner.

Davino stated that, “To be transparent we are still building it up,” at an auto conference held in Nuertingen near Stuttgart. We are moving in the direction towards an agency model.

The European Union’s Block Exemption Regulation(BER) will undergo significant modifications as of June 20, 2023. It has given antitrust exemptions for carmakers, allowing them franchise networks in which they can control who sells their product and where.

Stellantis is a 14-brand company that includes Fiat Chrysler (Petite, Opel and Jeep) and issued termination notices in June to all dealers. Contracts will continue to be valid for the next two years.

The world’s fourth largest carmaker has promised more than 5 billion euros ($6.1 billion) in annual synergies and said 7% of them would be driven by savings on sales operations and general expenses.

Although the company didn’t specify what the future contracts might look like at that time, it stated that they were taking the change in anticipation of increasing online sales and new market participants such as ecommerce platforms.

It is not yet known whether this process will lead to a reduction of Stellantis’ network in Europe.

Stellantis announced in May, that it will not include dealers of Stellantis luxury Brand Maserati as well as those in America. These are the home of many of the brand’s most loved brands like Ram and Dodge.