Carmaker Stellantis said it will end all current sales and service distribution contracts with European dealers for its 14 brands, with effect from June 2023, with the aim of restructuring its network.

The move comes as the world's fourth largest carmaker seeks to anticipate regulatory changes in the industry and better adapt it to changes in distribution models forced by electrification, it said in a statement.

Current contracts will be terminated at the end of this month, giving dealers a two years' notice, while the new distribution network will be selected shortly thereafter, based on objective key criteria and factors, Stellantis said.

The group wants to promote a distribution model based on a multi-brand distribution network of Stellantis, ensuring high standards of its sales and after-sales activities, it added.

"Customers will benefit from a multi-brand and multi-channel approach with a wider range of services," it said.

Italian daily MF had initially reported the news.

Stellantis, which was formed at the beginning of this year through the merger of Fiat Chrysler and Peugeot maker PSA, has promised more than €5 billion in annual savings.

It has said 7% of expected synergies would be driven by savings on sales operations and general expenses.

European vehicle dealer and repairer lobby CECRA said in a statement it would carefully follow the evolution of the restructuring.