FCA to Develop Captive Financial Services Company in U.S
(12 days ago)
AUBURN HILLS, Mich: Fiat Chrysler Automobiles N.V. announced it intends to establish a captive financial services arm to provide U.S. consumers with more options to finance vehicle purchases while supporting the Company's sales volumes and bolstering its earnings.
More than 2.1 million new cars and trucks were sold by FCA in the U.S. last year. FCA currently is the only major automaker in the U.S. without a captive financing arm.
Given our strong financial performance and improving credit profile, we believe the time is right to pursue a U.S. Finco strategy, FCA Chief Executive Officer Sergio Marchionne said. FCA will have adequate capital to fund the equity needed and expects to have the credit rating to make the Finco funding competitive.
Chrysler Capital, which is owned and operated by Santander Consumer USA Inc., along with a variety of banks, currently provides consumer financing for most FCA vehicle purchases in the U.S.
FCA is exploring whether to acquire an existing financial services business, which could include exercising an option to acquire Chrysler Capital, or to build its own Finco. Exploratory discussions with Santander regarding Chrysler Capital have begun.