Stellantis to Strengthen Its European Financing Businesses

Stellantis hopes to reinforce its transition to a mobility service provider in Europe by creating a multi-brand vehicle leasing company.

To this end, it is currently in negotiations with BNP Paribas Personal Finance (BNPP PF), Crédit Agricole Consumer Finance (CACF) and Santander Consumer Finance (SCF) aimed at better organizing Stellantis’ current European financing landscape to bring improved financing activities to all customers, dealers and distributors.

If all goes to plan the automaker group will create the leasing company in which it and CACF each hold a 50% interest, resulting from the combination of the Leasys and F2ML businesses and reorganize the financing activities through joint ventures set up with BNPP PF or SCF in each country to manage financing activities for all Stellantis brands.

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 other carmakers primarily under existing and future White Label agreements.

BNPP PF would operate financing activities (excluding B2B Operational Leasing) through JVs with Stellantis in Germany, Austria and the U.K. and SCF would operate financing activities (excluding B2B Operational Leasing) through JVs with Stellantis in France, Italy, Spain, Belgium, Poland, the Netherlands and via a commercial agreement in Portugal.

The relevant agreements could be signed in Q1 2022 upon completion of the information and consultation procedures with staff representative bodies regarding this plan.

Proposed transactions should be completed during the first half of 2023 once the required authorization has been obtained from the relevant anti-trust authorities and market regulators.

Stellantis CEO Carlos Tavares says: “Following the recent completion of the acquisition of First Investors Financial Services Group in the U.S., 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.”