Stellantis to Consolidate Financial Services in China

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.”