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Stellantis and Crédit Agricole Consumer Finance to create multi-brand leasing company

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Stellantis has revealed plans to partner with Crédit Agricole Consumer Finance (CACF) to create a new multi-brand leasing company which will operate across Europe.

The car manufacturing giant has said that CACF would acquire a 50% interest in Leasys and its Free2Move Lease businesses in a combination agreement that will create the new operation alongside an enhanced captive finance arm in partnership with other leading European banks.

It said that the move would enable a streamlined customer journey and bring consistent and attractive financing activities to all Stellantis brand customers, franchised car dealers and distributors.

The new structure will also “support the future of mobility services”, it added in a statement issued this morning (December 17).

As well as CACF, negotiations are already underway with BNP Paribas Personal Finance (BNPP PF) and Santander Consumer Finance (SCF).

Stellantis chief executive, Carlos Tavares, 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.”

Back in October Stellantis announced that it would expand its all-inclusive Free2Move Car On Demand monthly car subscription service to the UK. 

Under its new plan, Stellantis said that BNPP PF would operate financing activities (excluding B2B Operational Leasing) through joint ventures in Germany, Austria and the UK in order to become exclusive partners for financing activities in those countries.

SCF would operate financing activities (excluding B2B Operational Leasing) through JVs 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 said that the relevant agreements could be signed in Q1 2022, with proposed transactions potentially completed during the first half of 2023.

Last week AM reported that Stellantis plans to accelerate its turnover from software-enabled services and subscriptions to €4bn (£3.4bn) in 2026 and €20bn (£17bn) in 2030 as it targets a new role as a “sustainable mobility tech company”.

Seven months after the OEM behind Abarth, Alfa Romeo, Citroen, Fiat, DS, Peugeot and Vauxhall told its franchised car retailers they would be issued with two-year termination notices as part of a reorganisation of its distribution networks ahead of the introduction of new EU Block Exemption rules, further detail has emerged of its strategic direction.

It plans to leverage profits from the creation of 34 million monetizable connected cars by 2030 with the offer of features on demand and other services, including telematics-based vehicle insurance.

Partnerships have already been struck with microchips producer Foxconn and autonomous car and telematics specialist Waymo to help drive the shift.

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