According to the announcement issued by Dongfeng Group on April 13, Dongfeng Motor Group reached an equity transfer agreement with Peugeot Citroen Dutch Finance Company (PFN) and Shenlong Automobile Co., Ltd., wholly-owned subsidiaries of Banque PSA Finance under Stellantis Group, and reached a consensus on the transfer of the equity of Dongfeng Citroen Automobile Finance Company.
According to public information, Shenlong Automobile Finance Co., Ltd. was established in June 2006. It is a joint venture of Shenlong Automobile, Dongfeng Motor Group and Peugeot Citroen Dutch Finance Company, holding 50%, 25% and 25% respectively.
Based on the agreement reached between Dongfeng Group and Stellantis, Peugeot Citroen Dutch Finance Company and Shenlong Automobile agreed to transfer 25% and 50% of the shares of Shenlong Automobile Finance Co., Ltd. respectively, and Dongfeng Automobile Group will invest 37180,000 yuan to purchase 75% of the shares. The two sides also expect that the transaction will be completed in the second half of this year.
The completion of the equity transfer means that Shenlong Finance will become a direct wholly-owned subsidiary of Dongfeng Motor Group.
Stellantis's sale of financial services to Dongfeng Motor Group is one of Stellantis's plans to emphasize the light asset business model in China. For Dongfeng Motor Group, it may be a kind of "decompression" and the beginning of a new layout.
Stellantis's "light assets" in China
The divestiture of Shenlong Finance is actually one of Stellantis' clear "light assets" plans in China.
On March 1 this year, when releasing the "Go Forward 2030" strategic plan for the next decade, Stellantis said that it would develop its business in China market with light assets and strengthen the business of imported cars including Maserati and Jeep brands.
After the share transaction is completed, the new structure of Stellantis Group's overall financial business in China will be consistent with the "China market light asset business model" in the strategic plan of "Dare to Forward 2030".
Stellantis Group revealed that its auto finance business in China market will be integrated into an auto finance company wholly owned by Stellantis Group. After that, it will also provide financial business support for Peugeot, DS, Jeep, Maserati and Alfa Romeo.
Only Stellantis, another domestic auto finance company, Fiat Chrysler Auto Finance Co., Ltd. meets this requirement.
According to official website data, Fiat Chrysler auto finance was approved by China Banking Regulatory Commission in February 2007, with a registered capital of 65.438+05 billion yuan and a global auto finance business of 65.438+060 billion yuan. Previously, it was a wholly-owned financial company of Fiat Chrysler Group in China, dedicated to providing professional auto finance services for such FCA brands as Maserati, Ferrari, Alfa Romeo, Chrysler, Jeep, Dodge and Fiat.
This means that in the future, the financial business of Stellantis Group in China market will be mainly carried out through Fiat Chrysler automobile finance.
According to Stellantis's plan, in addition to improving its business in China market through light assets, it will also adopt a brand-new business model for the joint venture DPCA. Dongfeng Motor Group's acquisition of Shenlong Finance is considered as a prelude to the new business model.
Is Dongfeng ahead of Citroen in China?
In terms of business, Shenlong Auto Finance is mainly engaged in providing auto loans to dealers, providing auto consumer credit and other related businesses to individuals and corporate customers, so as to promote the sales of new and used cars manufactured or imported by the Group.
The board of directors of Dongfeng Motor Group believes that the equity transfer will form a synergistic effect between the Group's financial business and its main manufacturing business, and promote the high-quality development of the Group's main manufacturing business. After the completion of the equity transfer and delivery, the Group can integrate the auto finance business and enhance its financing capacity, thus alleviating the financial support pressure of the Group.
In addition, the acquisition of financial companies may also mean that the long-talked-about "Dongfeng will dominate the Citroen brand" will soon be put into practice.
Carlos Tavares, CEO of Stellantis Group, revealed on March 1 that DPCA will implement the "two rooms and one living room" scheme for the China market.
Specifically, DPCA will be the production base, maintaining the existing share ratio, Stellantis will dominate DPCA Peugeot brand, and Dongfeng Group will dominate Citroen brand.
On the same day Stellantis released its strategy, Dongfeng Motor Group Co., Ltd. also announced that it was negotiating with Stellantis Group on the new business arrangement of DPCA, but no legally binding agreement had been reached.
Neither party disclosed more management details, but the "two rooms and one living room" model is believed to bring more efficient, flat, pragmatic and independent development opportunities to Dongfeng Citroen and Dongfeng Peugeot.
The acquisition of finance company by Dongfeng Motor Group may also be to prepare for full control of Dongfeng Citroen. After that, Shenlong Automobile Finance Co., Ltd. may be more China-like.
Related questions and answers: How much is the monthly loan of Dongfeng Finance 10.5 million yuan? The annual interest rate of the loan is 9.3983%, which is not high and normal. At present, the general annual interest rate of automobile consumption loans is around 10%, and the calculation method is as follows: We assume the actual annual interest rate r and the monthly interest rate R/ 12. There are:105000 * r/12 * (1+r/12) 60/[(1+r/12) 60-/kloc.