PARIS (Reuters) - Stellantis will close about one in five outlets in France in a bid to restructure its distribution network to cut costs and prepare for the electric car era.

The group, whose brands include Peugeot, Citroen and Fiat, is seeking to achieve greater flexibility in its sales network to adapt to new trends and customer demands at a time when cars are increasingly electrified and software-based.

"We will have fewer physical locations," said Guillaume Couzy, Stellantis country manager for France, specifying, however, that there will be "as many or even more" contacts between the company's brands and potential buyers.

The company's future outlets will be more multi-brand, Couzy added, so that customers will be able to find at each dealership a broader offering among the eight brands Stellantis markets in Europe.

The company's plan for reorganizing business relations with dealers, called the "New Retailer Model," is currently in the final stages of discussion among stakeholders.

New car sales in France fell by nearly 8 percent in 2022, and the slight improvement seen after the summer unexpectedly petered out in December.

(Translated by Chiara Scarciglia, editing Stefano Bernabei)