Auto maker Stellantis reorganizes its European financing operations

  • Stellantis creates a 50-50 leasing JV with Crédit Agricole
  • Aims to more than double the fleet of leased vehicles
  • Co to operate financing JVs with BNP, Santander
  • Co sells 50% of its stake in FCA Bank
  • The plan is expected to be completed in the first half of 2023

MILAN, December 17 (Reuters) РThe automaker Stellantis is in exclusive talks with BNP Paribas (BNPP.PA), Cr̩dit Agricole (CAGR.PA) and Santander (SAN.MC) over the reorganization of its leasing operations and funding in Europe, he said Friday.

The group plans to create a 50-50 long-term rental company with Crédit Agricole Consumer Finance, and to reorganize its financing activities through exclusive joint ventures with BNP Paribas Personal Finance and Santander Consumer Finance.

The plan marks a further step in the strategy of Stellantis CEO Carlos Tavares to shape the world’s fourth largest automaker, formed just under a year ago by the merger of Fiat Chrysler and Peugeot PSA manufacturer.

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This will allow Stellantis to reduce from five to two the number of financing and leasing entities it now operates in each European country.

“This is a strategic decision to leverage our financial performance in all European countries,” Tavares said in a statement.

Director of subsidiaries Philippe de Rovira said the plan would also allow Stellantis to strengthen its position in the European corporate rental vehicle market, where it aims to more than double its fleet by the end of the decade.

“We consider that in this segment we have a huge growth opportunity in the years to come,” he said.

Stellantis’ corporate rental vehicle fleet, which now numbers 700,000, is expected to reach one million by 2026, he said.

As part of this plan, Stellantis will operate financing activities via JVs with BNP Paribas Personal Finance in Germany, Austria and the United Kingdom, and with Santander Consumer Finance in France, Italy, Spain, Belgium, Poland and the Netherlands. Low.

In Portugal, it will work with Santander via a trade agreement.

It will also sell its 50% stake in Fiat Chrysler’s former financial services arm, FCA Bank, including Leasys’ short-term leasing business, to Crédit Agricole Consumer Finance, which currently owns the other half of the leasing business. ‘business.

De Rovira said the overhaul of its EU funding deal would have no impact on jobs.

The deals could be signed in the first quarter of next year and the transactions completed in the first half of 2023, Stellantis added.

Societe Generale acts as financial advisor to Stellantis.

The European plan comes after Stellantis agreed earlier this year to buy U.S. auto finance provider First Investors Financial Services Group for around $ 285 million. Read more

It was the only major automaker operating in the United States without owning a captive auto finance provider.

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Writing by Giulio Piovaccari; edited by Agnieszka Flak and Jan Harvey

Our Standards: Thomson Reuters Trust Principles.

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