Fleet Financing

Stellantis and Crédit Agricole target 1 million multi-brand leasing vehicles

The group of manufacturers Stellantis is setting up a multi-brand leasing company in a 50/50 partnership with Crédit Agricole Consumer Finance (CACF), with the objective of operating a fleet of more than one million vehicles by 2026.

The French bank will buy a 50% stake in FCA Bank and Leasys Rent, both of which are currently owned by Stellantis. The agreement will see Stellantis and CACF combine the operations of Leasys and Free2Move Lease on the Leasys platform to create “a European leader” in long-term leasing.

Top 5 leasing companies

Figures reported by the two partners show that at the end of 2020, Leasys managed a fleet of 314,000 vehicles, while Free2Move had 369,000. The combination of the two companies will immediately create a player among the top five in the European leasing market. automotive, with operations in 10 countries.

Stéphane Priami, Deputy Managing Director of Crédit Agricole and Managing Director of CA Consumer Finance, said: the automotive market is undergoing profound change and is facing changing habits.

He added that the deal would strengthen the bank’s strategic plan to meet customer demands for “all-inclusive and innovative” offerings.

1 million vehicles

Carlos Tavares, CEO of Stellantis, said: “The development of a leasing business in Europe is essential for both partners. The ambition of this new joint venture between two leading companies is to manage a fleet of more than one million vehicles in the medium term and to exploit the potential of our joint long-term rental operations.

As a manufacturer, Stellantis owns brands such as Fiat, Alfa Romeo, Citroën, Peugeot, DS, Opel, Vauxhall, Maserati, Abarth, Jeep, Chrysler, Dodge and Ram.

Other OEMs with multi-brand leasing operations include BMW with Alphabet and Daimler with Athlon, and Toyota with Kinto.

New finance, rental and mobility company

In addition to the merger of Leasys and Free2Move, CA Consumer Finance also plans to become 100% owner of FCA Bank and Leasys Rent, and to launch an autonomous operation of financing, leasing and automobile mobility on a European scale. in 18 countries.

This new activity would target three different areas: white label agreements and joint ventures currently managed by FCA Bank (plus securing new joint ventures); enter into new agreements to finance cars, vans and motorcycles to dealers, distribution groups and rental companies; and the financing of the short-term rental, subscription and mobility activities of Leasys Rent. Its goal is to become a 10 billion euro company by 2026.

“This ambitious project would lead to profitable and diversified growth. The Crédit Agricole group would create a European leader in leasing, with Stellantis, while benefiting from a 100% innovative automotive financing platform that would allow it to serve all market players in 18 countries, including white brands, with an offer complete and operational, ”says Priami.

Stellantis financial partnerships

In addition, Stellantis is setting up joint ventures for consumer credit with BNP Paribas Personal Finance in Germany, Austria and the United Kingdom; and with Santander Consumer Finance (SCF) in France, Italy, Spain, Belgium, Poland, the Netherlands. SCF will also become the exclusive financial partner of Stellantis in Portugal.

Contracts for all new agreements are expected to be signed in the first quarter of this year, with transactions finalized in the first half of 2023, after clearance and approval from national regulators.

Image: Stellantis