When Groupe PSA, an auto manufacturer based in France, reenters the North American market within the next few years, it will bring its captive Banque PSA Finance, Auto Finance News has learned.
“Our captive Banque PSA Finance will expand into the U.S., but we may [also] partner [with other lenders],” Larry Dominique, president and chief executive of Groupe PSA North America, told AFN.
The captive has partnered with Santander Consumer Finance in Germany, Austria, and Poland, in addition to financial arrangements with BNP Paribas Personal Finance to create PSA subsidiaries Opel Bank, Opel Financial Services, and Vauxhall Finance.
“If we do a full range of financing services, we need to look at the scale we may need from a financial point of view,” Dominique said. The manufacturer needs to determine if it has the “depth and knowledge” to operate its captive without a U.S. lender partner, he said.
However, because the retail introduction of Groupe PSA is at least three years away, Dominique is not “in a hurry.” The manufacturer will use the next two years to explore the lending space and potential partners, he said, adding that Groupe PSA could potentially begin financing mobility operations prior to retail sales.
Groupe PSA brands Peugeot and Citroën had been players in the U.S. market, but left in 1974 and 1991, respectively.
In April 2017, the auto conglomerate announced a three-phase return to the U.S. market and this week it chose Atlanta as its North American headquarters.
