Stellantis, formed from the merger of Fiat Chrysler and Peugeot-Citroën, is growing despite a turbulent economy and banking woes. With an increase in global interest rates, customers have started seeking out longer-term financing and leasing agreements for their vehicles instead of the typical three-year terms. Stellantis has been responding to this need, allowing customers to keep their monthly instalment payments the same as when they opted for the shorter agreements.
In the effort to simplify and streamline the leasing and financing operations in Europe, Stellantis has established a 50-50 single long term multi-brand leasing company called Leasys with Credit Agricole Consumer Finance. They also created local joint ventures with BNP Paribas Personal Finance and Santander Consumer Finance. These banking partnerships will give Stellantis better funding options, which is expected to result in savings of more than 30%.
Philippe De Rovira, Chief Affiliates Officer of Stellantis, reported that demand for vehicles is not their main issue. Rather, it is delivering orders already in the portfolio and getting them to customers. The group intends to expand the corporate leased vehicle fleet to over 1 million by 2026 and doubling net income from banking activities to 5.8 billion euros by 2030. Though pricing has seen significant hikes in the last few years, Mr De Rovira states that Stellantis is not expecting to see a downward trend in vehicle pricing, but rather a stabilisation.
Stellantis, formerly known as Fiat Chrysler Automobiles, is the world’s third largest carmaker. Headquartered in London, the company is engaged in the design, engineering, manufacture, distribution, and sale of vehicles, components, and production systems under twelve automotive brands—Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Lancia, Maserati, Ram, SRT, Abarth, Alfa Romeo and Fiat Professional. Notable products includethe Jeep Grand Cherokee, Fiat 500, Chrysler Pacifica, and the Abarth 124.