Crédit Agricole Consumer Finance and Fiat Chrysler Automobiles extend their FCA Bank joint venture until December 2024
Crédit Agricole Consumer Finance, a leading consumer finance group in Europe, and Fiat Chrysler Automobiles Italy (“FCA”), a global automaker agreed on 19 July 2019 to extend their 50:50 joint venture company FCA Bank until 31 December 2024.
The renewal of the partnership between Crédit Agricole Consumer Finance and FCA lays the grounds to further enhance FCA Bank's profitability by continuing in its offer of best-in class financial services.
The terms of the renewed agreement will allow for an expansion of FCA Bank’s rental and innovative mobility offer with the aim to further enlarge FCA Bank’s product range. In other respects the terms of the renewed agreement are substantially the same as those of the agreement in force, under which, FCA Bank more than doubled its volumes and more than tripled its net results from the start of this partnership, while efficiently managing its costs and risks. In order to preserve FCA Bank’s value and long term viability the agreement will be automatically renewed unless notice of non-renewal is provided no later than three years before end of the term. Consistent with the current agreement, a notice of non-renewal would trigger certain put and call rights potentially leading to the acquisition of FCA Bank by FCA to preserve its support to FCA business; if such rights are not exercised, the agreement will last until 31 December 2024.
With 18 markets and 18 brands managed, FCA Bank is a leading player in Europe for financial solutions dedicated to the automobile sector. FCA Bank obtained a full banking license in 2015. FCA Bank offers a complete range of financial products and services to FCA Group brands and various other prestigious Automotive Groups that include Jaguar Land Rover, Ferrari, Aston Martin and Morgan; its portfolio of partners also includes the Erwin Hymer Group, Europe’s largest manufacturer of motorhomes and caravans as well as well-known motorcycle manufacturers, such as Harley Davidson and MV Agusta.
Crédit Agricole Consumer Finance, Crédit Agricole SA's consumer credit subsidiary, distributes a broad range of consumer credit and related services for distribution channels as a whole: direct sales, point-of-sale financing (automobile and home appliances) and partnerships. Present alongside major distribution, specialised distribution and institutional brands in the various countries where it operates, Crédit Agricole Consumer Finance is a key partner in business. Crédit Agricole Consumer Finance managed €88.5 billion in outstanding loans at 31 December 2018.