A view shows the logo of Stellantis at the entrance of the company’s factory in Hordain, France, July 7, 2021. REUTERS/Pascal Rossignol
December 17, 2021
MILAN (Reuters) -Carmaker Stellantis is in exclusive talks with BNP Paribas, Credit Agricole and Santander over the reorganisation of its leasing and financing operations in Europe, it said on Friday.
The group plans to create a 50-50 long-term leasing company with Credit Agricole Consumer Finance, and to reorganise its financing activities through exclusive joint ventures with BNP Paribas Personal Finance and Santander Consumer Finance.
The plan marks a further step in Stellantis Chief Executive Carlos Tavares’ strategy to shape the world’s fourth-largest carmaker, which was formed just less than a year ago through the merger of Fiat Chrysler and Peugeot maker PSA.
It will allow Stellantis to cut the number of financing and leasing entities it now operates in each European country from five to two.
“This is a strategic move to leverage our financial performance across all European countries,” Tavares said in a statement.
As part of the plan, Stellantis will operate financing activities through JVs with BNP Paribas Personal Finance in Germany, Austria and the UK, and with Santander Consumer Finance in France, Italy, Spain, Belgium, Poland and the Netherlands.
In Portugal it will work with Santander via a commercial agreement.
It will also sell its 50% stake in Fiat Chrysler’s former financial service arm FCA Bank, including Leasys’ short-term rent business, to Credit Agricole Consumer Finance, which currently owns the other half of the business.
The deal could be signed in the first quarter of next year, and the transactions completed in the first half of 2023, Stellantis added.
Societe Generale is acting as financial adviser to Stellantis.
The European plan comes after Stellantis earlier this year agreed to buy U.S. auto finance provider First Investors Financial Services Group for about $285 million.
It had been the only major automaker operating in the United States without owning a captive auto finance provider.
(Reporting by Giulio Piovaccari and Gilles Guillaume; Editing by Agnieszka Flak and Jan Harvey)
Source: One America News Network
