Stellantis buys auto-finance company to offer loans, leases through dealers – Detroit Free Press

This Jan. 19, 2021 file photo shows the Stellantis sign outside the Chrysler Technology Center in Auburn Hills, Mich. Automaker Stellantis NV, which was formed earlier this year by a merger involving Fiat Chrysler, said Wednesday, Sept. 1 it will pay $285 million for an auto-finance company to provide loans and leases to customers through its dealers. Netherlands-based Stellantis said it will pay cash to acquire F1 Holdings Corp., the parent of Houston-based auto-finance firm First Investors Financial Services Group. The deal is expected to close by year end.

AUBURN HILLS, Mich. — Automaker Stellantis NV, which was formed earlier this year by a merger involving Fiat Chrysler, said Wednesday it will pay $285 million for an auto-finance company to provide loans and leases to customers through its dealers.

Netherlands-based Stellantis said it will pay cash to acquire F1 Holdings Corp., the parent of Houston-based auto-finance firm First Investors Financial Services Group. The deal is expected to close by year end.

Stellantis CEO Carlos Tavares said owning a finance company in the U.S. will let the automaker provide customers and dealers options including loans, leases, and “floorplan” or inventory financing that is common in the car-dealership business.

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Stellantis said it is the only major car maker operating in the U.S. without its own auto-finance company.

Stellantis was formed this year by a merger of Fiat Chrysler and PSA Peugeot. They figured that combining would help them compete with larger rivals Volkswagen, Toyota and Renault-Nissan as the auto industry goes through enormous technological changes including a shift toward electric and vehicles with more automation. 

Besides Dodge, Chrysler and Fiat, its other brands include Jeep, Peugeot and Alfa Romeo.

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