partner
Fiat Group Automobiles Financial Services (FGAFS) is to provide
point-of-sale finance to buyers of Jaguar and Land Rover cars in
Europe from the middle of next year, when the contract with current
PoS finance provider Ford Motor Credit expires.
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Following carmaker Ford’s sale of the two brands to Tata Motors
in June of this year, it was announced that, from June 2009,
point-of-sale finance products for customers of the luxury vehicles
will be provided by FGAFS, which is an equally-owned joint venture
between manufacturer Fiat Group Automobiles and the bank Crédit
Agricole.
The agreement covers 10 European territories – Austria, Belgium,
France, Germany, Ireland, Italy, Netherlands, Portugal, Spain and
the UK.
Mark Foster, corporate communications manager at Land Rover,
said that FGAFS had been chosen out of an unspecified number of
competing bids thanks to its “expertise, wide range of products,
geographical coverage and competitive terms”. In addition, the
strong credit rating of Crédit Agricole means FGAFS “will be able
to offer competitive finance to customers”, he noted.
Previous finance provider Ford Credit did not wish to renew its
relationship with Jaguar Land Rover, Foster added.
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By GlobalDataAlthough the partnership between Jaguar Land Rover and FGAFS
will be primarily retail-customer focused, FGAFS will also be able
to provide finance for fleet customers via dealers, Foster
confirmed.
Trading as Jaguar and Land Rover Financial Services, FGAFS will
offer finance and “a full range of complementary insurance
products” via “online PoS systems connecting the dealers directly
to the underwriting and processing centre,” Foster said. However,
while the promotion of financial services on the Jaguar and Land
Rover websites will be considered, “there are no plans to offer
finance facilities directly to customers [on the internet],” he
added.
Dealers will be able to offer customers a full suite of
financing solutions, including hire purchase, lease purchase, PCP,
and contract hire.
Gualberto Ranieri, vice president of corporate communications at
Fiat Group, said that in his view, FGAFS’s experience of providing
consumer finance for Fiat Group’s two premium brands – Alfa Romeo
and Lancia – may have swayed Jaguar Land Rover’s decision. “We have
expertise in dealing with premium car customers,” he said.
“It’s a good deal for both parties,” Ranieri continued. “For
FGAFS, it is a confirmation of the quality of our financial
services business, while Jaguar Land Rover can be sure that we will
meet the demands of premium-brand customers.”
FGAFS is present in 13 European countries and manages a total
portfolio of over €15bn (£12bn).
