Stellantis N.V. (NYSE / MTA / Euronext Paris: STLA) has completed the acquisition of F1 Holdings Corp., parent company of First Investors Financial Services Group from an investor group led by Gallatin Point Capital LLC. The acquisition, previously announced on 1 September 1 2021, closed today at the agreed upon conditions and within the period indicated at signing. (Stellantis to Buy First Investors Financial Services)
This is either an opportunity or survival necessity, depending on your viewpoint. It will allow Stellantis to provide customers and dealers a range of financing options, including retail loans, leases, and floorplan financing in the near term. A so-called “captive U.S. finance company” will provide revenue, marketing incentives and mobility services in the digital age for customers who purchase Jeep, Ram, Dodge, Chrysler, Fiat and Alfa Romeo vehicles.
“This is a key strategic move to further extend our financial performance and create long-term value for Stellantis shareholders,” said Richard Palmer, Chief Financial Officer of Stellantis.
First Investors has been renamed Stellantis Financial Services US Corp. It will be the underpinning for Stellantis to develop a full-service captive finance arm. Stellantis Financial Services will provide U.S. customers, dealers and partners with a complete range of financing options in the near-to-medium term, including retail loans, leases, and floorplan financing.
The executive management team, with an average tenure of 18 years in the financial industry, is expected to remain in place, Stellantis said in a statement.