Stellantis to Consolidate Financial Services in China

Ken Zino of AutoInformed.com on Stellantis Buys First Investors Financial Services

Stellantis has costly plans for 75 new EV models.

Stellantis N.V. (NYSE: MTA – Euronext Paris: STLA) said today that intends to consolidate its auto financial services in China into a Stellantis wholly owned Auto Finance Company (AFC). The latest move comes after the restructuring of financial services in Europe and the United States. It is in keeping with its “asset light business model” developed in part given the extremely high cost of converting to electric and autonomous vehicles in what has become a global race for survival. Stellantis has plans for 75 new EV models by 2030. (AutoInformed on: Stellantis Consolidates Financial Services for All Brands, Dare Forward 2030 – Stellantis Survival Plan Unveiled )

Stellantis now says PSA Finance Nederland (PFN), a fully-owned financing subsidiary of BPF (Banque PSA Finance) and DPCA have entered into an equity transfer agreement with Dongfeng Group, whereby their respective shares in the JV Dongfeng Peugeot Citroen Auto Finance Company (DPCAFC is the 15-year-old auto finance joint venture between Stellantis, DPCA and Dongfeng Group) will be sold to Dongfeng Group, subject to regulatory approval.

The proposed transaction should be completed during the second half of 2022 once the mandatory authorizations have been obtained from the relevant anti-trust authorities and banking and finance regulators.

“As we continue our push to drive profitable growth in China, we need to also reset our financial services offering in the country, as we have done in other major markets,” said Stellantis CEO Carlos Tavares. “This move will greatly support our revival plan in the country while also driving a more seamless customer journey.”

About Ken Zino

Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
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