July 7, 2022

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Carmaker Stellantis reshuffles European financing functions

  • Stellantis to develop 50-50 leasing JV with Credit Agricole
  • Aims to more than double leased motor vehicle fleet
  • Co to operate JVs in funding with BNP, Santander
  • Co to sell 50% stake in FCA Lender
  • Plan predicted to be done in H1 2023

MILAN, Dec 17 (Reuters) – Carmaker Stellantis is in exclusive talks with BNP Paribas (BNPP.PA), Credit Agricole (CAGR.PA) and Santander (SAN.MC) in excess of the reorganisation of its leasing and funding operations in Europe, it stated on Friday.

The team plans to develop a 50-50 lengthy-phrase leasing company with Credit Agricole Consumer Finance, and to reorganise its financing pursuits via special joint ventures with BNP Paribas Personal Finance and Santander Purchaser Finance.

The prepare marks a further phase in Stellantis Chief Executive Carlos Tavares’ technique to form the world’s fourth-premier carmaker, which was formed just considerably less than a yr back through the merger of Fiat Chrysler and Peugeot maker PSA.

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It will permit Stellantis to minimize the amount of funding and leasing entities it now operates in each individual European nation from 5 to two.

“This is a strategic transfer to leverage our financial overall performance throughout all European countries,” Tavares reported in a assertion.

Chief Affiliates Officer Philippe de Rovira explained the strategy would also allow Stellantis to greatly enhance its position in the European corporate leased auto industry, the place it aims to far more than double its fleet by the conclusion of the 10 years.

“We think about that in this phase, we have a massive opportunity for development in the coming yrs,” he mentioned.

Stellantis’ corporate leased car or truck fleet, now at 700,000, is expected to reach one particular million in 2026, he reported.

As aspect of the strategy, Stellantis will operate funding activities as a result of JVs with BNP Paribas Individual Finance in Germany, Austria and the United kingdom, and with Santander Consumer Finance in France, Italy, Spain, Belgium, Poland and the Netherlands.

In Portugal it will work with Santander by way of a industrial agreement.

It will also sell its 50% stake in Fiat Chrysler’s former money support arm FCA Bank, including Leasys’ shorter-time period lease business enterprise, to Credit Agricole Customer Finance, which at the moment owns the other 50 % of the small business.

De Rovira explained the overhaul of its European funding procedure would not influence positions.

The promotions could be signed in the to start with quarter of up coming calendar year, and the transactions done in the to start with 50 % of 2023, Stellantis included.

Societe Generale is acting as economic adviser to Stellantis.

The European strategy comes following Stellantis before this calendar year agreed to purchase U.S. vehicle finance supplier 1st Traders Monetary Solutions Group for about $285 million. examine additional

It had been the only significant automaker functioning in the United States with no owning a captive auto finance service provider.

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Writing by Giulio Piovaccari enhancing by Agnieszka Flak and Jan Harvey

Our Requirements: The Thomson Reuters Believe in Ideas.