Stellantis inks deal to start captive finance in the US
The Stellantis automotive group has agreed to acquire F1 Holdings Corp. for approximately US$285 million, the parent company of First Investors Financial Services Group, a leading independent auto finance company in the United States.
"Direct ownership of a finance company in the U.S. is a white-space opportunity which will allow Stellantis to provide our customers and dealers with a complete range of financing options, including retail loans, leases, and floorplan financing in the near-to-medium term,” says Stellantis CEO Carlos Tavares.
The move supports the company's strategic plan to establish a U.S. captive finance company to support Stellantis sales and fully capitalize on its strong market position while creating long-term shareholder value.
The automotive group, which boasts brands such as Jeep, Ram, Dodge, Chrysler, Fiat, and Alfa Romero, is the only major OEM currently operating in the U.S. without a captive auto finance company.
The Transaction is expected to close by the end of 2021, subject to customary closing conditions and regulatory approvals.