BBVA announces a strategic alliance for auto financing in Argentina
BBVA is all set to acquire a stake in FCA Compañía Financiera, a Stellantis firm specializing in auto financing in Argentina. This new joint venture must first be green-lighted by the competent authorities.
Under this strategic agreement, BBVA will acquire 50 percent of FCA Compañía Financiera (FCA CF), an Argentine company wholly owned by Stellantis and which offers financing to retail customers and the dealer network of Fiat, Jeep and RAM brands operating in the country.
The deal, which is worth an estimated 14.823 billion Argentine pesos¹, according to the company’s balance sheet as of September 2024, is subject to the approval of the corresponding supervisors in Argentina and the European Union and must also be cleared by the competition authorities in each region.
The Stellantis Group came about following the merger of the PSA Group with Fiat Chrysler Automobiles in 2021. With this latest deal, BBVA’s subsidiary in Argentina will have another joint venture to its name, this time with Stellantis, having already forged other vehicle financing alliances for individuals and dealers of Peugeot, Citroën and DS Automóviles.
¹Equivalent to €15.4 million, exchange rate as of September 30, 2024.
From left to right: Fernando Kejval, BBVA Commercial Banking Coordination Manager in Argentina; Hernán Jordán, director of Corporate and Institutional Banking at BBVA in Argentina; Jorge Bledel, country manager of BBVA in Argentina; Dominique Signora, regional director of Stellantis Financial Services; Adriana Barraco, executive director of PSA Finance; and Gustavo Ávila, general director of FCA Compañía Financiera.
“This latest transaction strengthens our long-term commitment to Argentina and allows us to enhance our service to customers in the financing of new cars within a market offering immense potential. This time we are teaming up with Stellantis, a leader in the sector”, remarked Jorge Bledel, CEO of BBVA in Argentina. The agreement also paves the way for further opportunities to improve customer acquisition, including both individuals and SMEs.
At the end of November 2024, a total of 370,000 units had been sold within the Argentine vehicle market. This is well below its real potential, so a recovery of the automotive sector is expected in the medium to long run.
BBVA Research estimates that Argentina will post GDP growth of 5.5 percent in 2025, driven by investment, the revival of private consumption and forecasts of lower inflation.