Founded in Brussels in 1805, D’Ieteren has long built its identity around the motor industry, and more particularly the German brands of which it is the leading importer (VW, Audi, Seat, Skoda, Porsche…). But in the face of profound changes in the car market and shifting consumer habits, the group realised long ago that it had to move beyond the simple role of distributor of new cars and become a mobility and services operator.
That first means everything surrounding the management of cars themselves. Alongside its extensive network of dealerships and garages, D’Ieteren group has also moved into the used-car market, bodywork and repairs through Wondergroup, windscreen replacement, notably under the Carglass, Safelite and Autoglass brands, the distribution of spare parts, and accessories for industrial and agricultural machinery.
But that is not all: at D’Ieteren, mobility is understood in the broad sense. The group is not content simply to sell a new car to a private customer; it intends to invest and make money throughout the entire relationship with the client, even when the customer is not driving their own car.
That is how the portfolio of companies has expanded into car-sharing with Poppy, charging points through EDI, solar and energy solutions via Go-Solar, taxis through the Husk platform and the acquisition of Taxis Verts, and even bicycles, whether through leasing via Joule or sales and servicing via Lucien. Moleskine is mentioned only for form’s sake, because the link between motoring and this premium notebook and writing-accessories brand is not entirely clear.
Being present both in the traditional used-car market…
If D’Ieteren has long pursued diversification by investing in mobility in the broad sense and offering several ways of getting around, it is because the company has clearly seen that the automotive world is changing.
The new-car market is under pressure. Faced with the high price of new vehicles, households are keeping their cars longer because they no longer necessarily want to own a vehicle for ten years. They now compare several options, are uncertain about switching to electric, and are increasingly turning to the used-car market.
That is a challenge for a distributor historically organised around high volumes of new vehicles. It means fewer physical transactions, more pressure on margins, fixed costs that are too heavy at some sites and profitability under threat.
For D’Ieteren, that means shifting from a product logic to a recurring service logic: subscription, leasing, maintenance, charging, insurance, sharing or management of a mobility package.
… and electric vehicles
The gradual arrival of electric cars coming off fleet leases is nevertheless creating new questions: battery health, remaining range, warranty, repairability and resale value. D’Ieteren must therefore adapt its network, technical knowledge and repair activities. Battery condition certification could become as important as mileage in the used-electric-car trade.
Electrification is changing the economics of after-sales. The move to electric vehicles certainly creates opportunities, but it also weakens some traditional sources of revenue. An electric car has fewer mechanical parts and less wear and tear than a combustion-engine vehicle, and so requires less routine maintenance.
D’Ieteren has therefore decided to invest simultaneously in electric charging infrastructure, in training technicians to increase their battery- and software-related skills, and in new services capable of replacing part of the traditional mechanical revenue. In other words, the transition requires significant investment before the new business model has reached maturity and profitability.