In a pre-Christmas announcement, Stellantis signalled its intention to streamline its European financing operations in order to create a leading operational leasing group and enhanced captive finance arm. The move, coming in the wake of last summer’s merger between the French Peugeot PSA and Italian FCA groups, is designed to spearhead a push into the mobility market.
Stellantis is proposing to create a multi-brand operational leasing company in which Stellantis and Crédit Agricole Consumer Finance (CACF) each hold a 50% interest, resulting from the combination of the Leasys and F2ML businesses. It also intends to reorganize its financing activities through joint ventures set up with BNP Paribas Personal Finance (BNPP PF) or Santander Consumer Finance (SCF) in each country to manage financing activities for all Stellantis brands
Carlos Tavares, Stellantis CEO, said: “Following the recent completion of the acquisition of First Investors Financial Services Group in the US, Stellantis reaffirms its willingness to further strengthen its global financing activity, achieving a step further in Europe with long-standing banking partners and creating a fully-fledged leaser.
“This is a strategic move to leverage our financial performance across all European countries. This transformation, managed with leading partners, would allow Stellantis to offer a comprehensive range of products to all its customers, dealers, and brands.”
Under the plans, CACF would acquire the 50% stakes in FCA Bank and Leasys Rent currently owned by Stellantis, on the understanding that these entities would continue to operate their financing activities with others carmakers primarily under existing and future white label agreements.
BNPP PF would operate financing activities (excluding B2B operational leasing) through joint ventures with Stellantis in Germany, Austria and the UK in order to become Stellantis’ exclusive partner for financing activities in these countries.
SCF would operate financing activities (excluding B2B operational leasing) through joint ventures with Stellantis in France, Italy, Spain, Belgium, Poland, the Netherlands, and via a commercial agreement in Portugal, to become Stellantis’ exclusive partner for financing activities in these countries.
Stellantis hopes to sign the relevant agreements in Q1 2022, with the proposed transactions completed during the first half of 2023 once the required authorization has been obtained from the relevant anti-trust authorities and market regulators.
The move will see Stellantis double its fleet of cars on offer for leasing over the next decade, with plans to increase the number of vehicles to one million by 2026 and 1.4m by 2030.