MILAN, April 13 (Class Editori) — After the reorganization of the financial branches in Europe and the US, Stellantis is reorganizing those in China. Its goal is to evolve towards a financing company fully controlled by the Group. The excellent move, however, was to sell, dissolving a JV with the Chinese Dongfeng Motor (DFM).
PSA Finance Nederland —a finance company fully controlled by Banque PSA Finance— and Dongfeng Peugeot Citroën Automobile (DPCA) have entered into an equity transfer agreement with DFM under which PSA Finance Nederland and DPCA will sell their respective shareholdings in Dongfeng Peugeot Citroën Auto Finance Company, the joint venture created 15 years ago, to DFM.
The closing is expected in the second half of the year, once the necessary authorizations will be obtained from the relevant antitrust and banking and financial supervisory authorities. Financial terms have not been disclosed. On the balance sheet, the 25% held directly by Stellantis at the end of December was valued at 137 million euros, as reported by Equita SIM this morning.
"As we move forward with our plan to achieve consistent growth in China, we felt the need to restructure our financial services offering in the country, just as has been done in other major markets," CEO Tavares commented. "This restructuring will lend considerable support to our recovery plan in the country, while enabling a simplification of the customer journey process".
"This is a reorganization consistent with the strategic plan Dare Forward 2030, supporting the ‘asset light’ business model of the company in China," as pointed out by Intesa Sanpaolo Research Department. Equita SIM remarked that this is a further rationalization of the Group after the recent sale of 25% to GEFCO, a logistics company, and it expects further adjustments to the Group’s perimeter in the coming months.
2021 closed with significant results for the brands of the Italian-French Group in China, where its market position is still lower than its European competitors, except for the super sports cars segment, in which Ferrari —which is, however, owned by holding company Exor— is dominating unchallenged.
DPCA, the joint venture formed by Stellantis and DFM, sold more than 100,000 vehicles in 2021, more than doubling the annual sales volume of 2020. Thanks to this result, 2021 was a turnaround year for DPCA. Among the over 100,000 vehicles sold, there were about 9,300 New Energy Vehicles (NEVs), making DPCA a net contributor to Stellantis' NEV and Corporate Average Fuel Consumption (CAFC) credits in China.
As for the Jeep brand, Wrangler reported record sales. Moreover, Jeep's product lineup ranked first in the APEAL section of the Vehicle Dependability Study (VDS) and second in JD Power's Initial Quality Study (IQS) among mainstream brands in China.
In the Independent Aftermarket (IAM), after an initial investment in independent parts distributors —Shanghai's JianXin and Shandong's United Auto Parts (UAP)— in 2018, followed by the one in Fujian's Longstar in 2019, Stellantis took control of UAP, by merging the three entities into one integrated national distributor and creating the fourth largest parts distributor in terms of revenue in China's IAM. With a 53.5% stake in the new integrated parts distributor, which generated a turnover of 176 million euros in 2021, Stellantis is demonstrating a significant growth potential. (All rights reserved)
(Source:Class Editori)
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