Stellantis NV will consolidate its auto financial services in China to create a wholly owned auto finance company as a part of its restructuring in the world's largest auto market, where it has struggled.
The automaker that makes Jeep, Peugeot and Citroën vehicles and its joint venture with Chinese automaker Dongfeng Motor Corp. Ltd. will sell their stakes in JV Dongfeng Peugeot Citroën Auto Finance Co., the 15-year-old auto finance firm with Dongfeng. The Wuhan-based automaker will take over the shares. The deal is subject to regulatory approval and is expected to close in the second half of the year.
The restructuring is a part of Stellantis' Dare Forward 2030 strategy to operate an "asset light business model" in China as the company's predecessors, Fiat Chrysler Automobiles NV and French automaker Groupe PSA, failed to get a foothold in the market prior to their merger last year.
