Stellantis N.V. (NYSE / MTA / Euronext Paris: STLA) today announced it has entered into a definitive agreement to acquire F1 Holdings Corp., parent company to First Investors Financial Services Group1, an independent auto finance company in the United States of America. The all cash transaction for ~$285 million, subject to adjustments for closing balance sheet and certain outstanding options from an investor group led by Gallatin Point Capital LLC and including affiliates of Jacobs Asset Management, LLC. The Transaction is expected to close by the end of 2021, subject to customary closing conditions.
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” can provide revenue and marketing incentives in the digital age for customers who purchase Jeep, Ram, Dodge, Chrysler, Fiat and Alfa Romeo vehicles. Continue reading
GM Workers in Mexico Reject Corrupt Union to Form New One
GM Workers in Silao, Mexico.
Workers at General Motors plant in Silao, Mexico, have formed a new union – the national union of automotive workers, SINTTIA. The union seeks to represent GM workers and negotiate a new collective employment agreement. In a crucial vote on 17 and 18 August, workers rejected the current collective bargaining agreement, controlled by what they say is – with justification in AutoInformed’s view – the corrupt Miguel Trujillo López union, affiliated to the Confederation of Mexican Workers (CTM).
Silao builds Chevrolet Silverado LD Crew Cab and Reg Cab, as well as GMC Sierra LD Crew Cab and Reg Cab trucks that are among GM’s most profitable vehicles. GM did not immediately respond to AutoInformed’s request for comments. (Variables Abound – Meet the New NAFTA; Collision Course – Trump, Mexico, NAFTA; Ford Invests $1.6 Billion in Mexico. NAFTA Sucking Sound of Lost U.S. Jobs Continues During Fierce Presidential Race) Continue reading →