As the ink dries on the PSA Groupe–Fiat Chrysler Automobiles merger, the French OEM is studying partnership possibilities for its financing arm, Groupe PSA North America Chairman and Chief Executive Larry Dominique told Auto Finance News.
The combined PSA-FCA entity would create the world’s fourth-largest auto manufacturer by volume — behind Volkswagen, Renault-Nissan-Mitsubishi and Toyota — with a market cap of about $46 billion. Combined, FCA and PSA sold 8.7 million vehicles last year, generating €169 billion ($187.8 billion) of revenue, according to merger documents.
“[The merger] as announced will take approximately 12 to 15 months to complete,” Dominique said, noting that both companies will conduct business as independent entities and any details of potential synergies will not be discussed until closing.
“What I can say at this time is everything we are doing and planning in North America for PSA is ‘business as usual,’” Dominique said. “Our plans for Peugeot’s launch in 2023 remain in place, as does expansion of our Free2Move mobility services and possible independent aftermarket activities. As an OEM, we will of course have captive finance when we launch cars and are currently studying, along with our Banque PSA Finance captive, the market, technologies and possible partnerships.”
“In Europe, Peugeot uses captive finance through a unit of Santander [Bank], which is interesting because Santander owns 80% of Santander Consumer USA,” Orenbuch said.
While the OEMs navigate the intricacies of the merger, it’s “less likely” for Groupe PSA and FCA to make any “sweeping changes” to their financing business, Orenbuch said. “[Financing] is not going to be the first couple of things on [the OEMs’] list,” he added.
Santander Consumer USA declined to comment.
The combined OEM will be run by a board of 11 members, with five nominated by FCA and five from Groupe PSA. FCA’s John Elkann will continue to serve as chairman, and PSA Chief Executive Carlos Tavares will remain in his role for an initial term of five years.
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