BBVA bought 50% of the Stellantis financial company to increase car loans in the country

In the midst of the rebound in collateral credit, a bank gets fully involved in the business of financing the purchase of automobiles. ANDBBVA announced this Wednesday that it acquired 50% of FCA Compañía Financiera, a 100% Argentine company that is owned by Stellantisthe automotive holding company that brings together brands such as Fiat, Alpha Romeo, Jeep and RAM.

The operation, sealed on September 24 for a value of $14,823 million, still must be validated by the authorities of both Argentina and the European Union.

The Stellantis Group is the result of the merger of the PSA Group with Fiat Chrysler Automobiles in 2021. The BBVA subsidiary in Argentina will thus add another ‘joint venture’ with Stellantis, given that it already has another cooperation agreement for the financing of vehicles for individuals and dealers in the brands Peugeot, Citroën and DS Automobiles.

“This operation reinforces our long-term commitment to Argentina and allows us to strengthen customer service in the financing of new cars in a market with great potential and with the help of Stellantis, a leader in the sector,” said Jorge Bledel, CEO of BBVA. in Argentina. The agreement also offers new opportunities to boost customer acquisition from both individuals and SMEs.

The Argentine vehicle market at the end of November 2024 reached 370,000 units soldwhich is far below its real potential, so a recovery of the automotive sector is expected in the medium and long term, they explained in the entity. According to BBVA Research estimates, Argentina presents GDP growth expectations of 5.5% for 2025, driven by investment, the reactivation of private consumption and forecasts for a reduction in inflation.

In this way, BBVA, which had to face rumors of selling its Argentine subsidiary this year, not only ratifies its position in the countrybut it is fully entering a niche that its main competitor in Spain, Banco Santander, led until now.

At the beginning of September, Stellantis had announced a disbursement of US$385 million in Argentina, to produce a family of vehicles and develop components and, also, a new engine at its plant in Ferreyra, Córdoba. Recently, within the framework of his visit to Italy, President Javier Milei met with John Elkann, president of the automotive group and also owner of Ferrari and the Juventus soccer club.

Stellantis is the main vehicle seller in Argentina. Last year, it consolidated a 28.1% share among its brands Fiat (13.1%), Peugeot (9.9%), Citroën (2.9%), Jeep (2.1%) and Ram (0 ,1%). In eight months of 2024, with a market 16.1% lower than the same period in 2023, its share was 24.7%, according to data from the Association of Automobile Dealers of the Argentine Republic (Acara).