Santander Consumer USA increased its Chrysler Capital quarterly penetration rate as a leadership change will have Shawn Allgood head Chrysler Capital and auto relationships, the company announced in its second-quarter earnings.
Chrysler Capital’s quarterly penetration rate grew to 36%, compared with 32% during the prior-year period. Loans originated by subsidiary Chrysler Capital increased 25% year over year to $3.5 billion, while leases dropped 4% to $2.5 billion.
The subprime lender’s total auto originations increased 5% to $8.4 billion in the second quarter, compared with $7.9 billion during the prior-year period.
Allgood will succeed Richard Morrin, who has resigned to become chief executive at a privately held company outside the auto finance sector, the company noted. Allgood served as executive vice president at Chrysler Capital since April 2017.
The leadership shuffles have been announced on the heels of SCUSA’s modified pact with Fiat Chrysler Automobiles Group. The lender salvaged its Chrysler agreement with FCA by paying $60 million after failing to meet penetration rate goals within the first five years, according to the filing of an 8-K with the Securities and Exchange Commission. Santander’s contract with FCA, now in year seven, was signed for a 10-year period.
In addition to a new leader for Chrysler Capital, SCUSA shuffled around two other executives, with appointments effective Sept. 16. Juan Carlos Alvarez, SCUSA’s CFO since 2017, will become CFO of Santander U.S. and Santander Bank. He succeeds Duke Dayal at Santander U.S. Meanwhile, Fahmi Karam, SCUSA’s head of pricing and analytics, will succeed Alvarez as CFO. Karam will continue to lead the pricing and analytics group in addition to his new role.
Santander Consumer USA’s stock was trading at $27.30 per share on the New York Stock Exchange at press time, up 6.1%. The company has a market capitalization of $8.24 billion.