(Bloomberg) — Stellantis NV is overhauling its European leasing and financial services with partners BNP Paribas SA, Credit Agricole SA and Banco Santander SA as the automaker seeks to simplify a patchwork of existing operations.
The maker of Jeep, Peugeot and Fiat brands is creating a joint-venture leasing company with Credit Agricole, according to a statement on Friday. It will also set up ventures with BNP and Santander to manage financing activities.
“This is a strategic move to leverage our financial performance across all European countries,” Stellantis Chief Executive Officer Carlos Tavares said in the statement. The agreements are expected to be signed in the first quarter of 2022.
The carmaker was formed from a merger earlier this year between Fiat Chrysler and PSA Group, creating a global empire with a collection of lending arms. FCA and Credit Agricole co-own FCA Bank, while PSA and Santander have similar joint ventures in various countries.
The European reorganization follows a move in the U.S., where Stellantis reached a deal to buy Houston-based auto lender First Investors Financial Services Group to set up its own finance arm. It was the only major traditional automaker in the country without its own finance company.
The move to streamline auto financing in Europe is part of Tavares’s push to extract 5 billion euros in synergies from the merger. He has unveiled plans for common electric-vehicle platforms, battery supplies, software and has also pledged to revise auto distribution channels in Europe.
Key Highlights
- Credit Agricole to acquire the 50% stakes in FCA Bank and Leasys Rent, currently owned by Stellantis. The two will continue to operate their financing activities with others carmakers
- BNP will operate financing activities through JVs with Stellantis in Germany, Austria and the U.K.
- Santander to operate financing activities with Stellantis through JVs in France, Italy, Spain, Belgium, Poland, the Netherlands, and via a commercial agreement in Portugal
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