Stellantis agrees with some institutions to reorganize financial services and double net banking income by 2030. After starting exclusive negotiations on 17 December 2021, the fourth European carmaker has signed binding agreements with Bnp Paribas Personal Finance, Credit Agricole Consumer Finance and Santander Consumer Finance which aim to “better organize its current financial services platform in Europe”, he explained.
“I am very happy to confirm the signing of these agreements with our historic European banking partners”, underlined the CEO, Carlos Tavares, “our strategy is to make the most of our financial services lines, both in Europe and in North America, with the goal of doubling our net banking income by 2030. The new platform is laying the foundation for achieving this and increasing value creation across our financial services business. ”
Agreements that support the commitment of financial services, part of the Stellantis strategic plan “Dare Forward 2030”, and which aim to create a multi-brand operating leasing company in which Stellantis and Credit Agricole Consumer Finance each hold a 50% stake, resulting from the union of the Leasys and F2M Lease businesses, in order to become a European leader with a fleet target of around 1 million vehicles in 2026.
Another objective is to reorganize the financing activities through joint ventures set up with Bnp Paribas Personal Finance or Santander Consumer Finance in each country to manage the financing activities for all the brands of the group. The proposed transactions are expected to be completed in the first half of 2023, once the necessary authorization has been obtained from the relevant antitrust authorities and market regulators.
Pending the closed market for data on car registrations in Italy in March, those on car registrations in France have already been released. In total 147 thousand cars were registered, -20% year on year, Stellantis did worse than the market: -30% year on year. “With this figure, the first quarter of 2022 closes with a drop of -20% for France, a figure lower than our current expectations of a flat trend for sales in Europe for Stellantis”, commented an analyst, believing that this contraction is the result of a limited offer in light of the difficulties in the production of cars due to the lack of chips and other components.
An aspect, the latter, remarked yesterday by Tavares during the meeting with the unions in which he confirmed the group’s plans with the complete electrical conversion of the Italian plants and announced that no mergers and acquisitions are necessary. He then stressed once again that production costs for EV are 50% higher than ICE cars and that while the group is committed to maintaining its market share, volumes continue to decline, which is why the government plans. to support EV purchases are essential.
In this regard, the Italian government has finally reached an agreement on the incentive plan for cars, which provides funds for 650 million euros a year in 2024-2026 for the purchase of EV, hybrid and ICE cars with emissions up to 135. gr CO / Km. “We expect the incentives to mitigate the contraction of the Italian car market in the coming months”, said Intesa Sanpaolo, recalling that, according to the previews of La Repubblica, in March the Italian car market should have fallen by a further 25 % year over year. In any case, Intesa Sanpaolo reaffirmed the buy rating and the target price of 24 euros on the Stellantis stock which at the moment is showing an increase of 0.43% to 14.464 euros on the stock exchange. (All rights reserved)
