See Also "Fiat Chrysler to Electrify 30 Models by 2022"
Fiat Chrysler to Establish Captive Finance Company
The automaker's chief executive told investors today that the company will establish its own captive finance company by 2022. One option being considered is the purchase of Chrysler Capital from Santander Consumer USA, which is five years into the 10-year preferred financing agreement it signed with FCA in 2013.

BALOCCO, Italy — Fiat Chrysler Automobiles will establish its own captive finance company by 2022, FCA CEO Sergio Marchionne said Friday, June 1, during an investor meeting in which he presented the automaker's five-year plan.
One option being considered is purchasing Chrysler Capital from Santander Consumer USA Inc. The automaker also is considering establishing its own captive finance company from scratch.
Purchasing Chrysler Capital would require that FCA exercise a special clause contained in an equity option agreement included in the automaker’s 2013 private label financing agreement with Santander to operate Chrysler Capital as a separate division.
When the original 10-year deal was forged, Santander paid $150 million to operate as a “hybrid captive” for FCA.
FCA and Santander Consumer have been in exploratory talks regarding the potential sale of Chrysler Capital, according to a statement released by the Dallas-based bank. Santander Consumer "is committed to pursuing an outcome for Chrysler Capital that is in the best interests of the company, its shareholders, and other key stakeholders," the statement reads. "There are a number of possibilities for the next phase of our relationship with FCA."
Talks are currently focused on determining the value of Chrysler Capital, Santander Consumer executives told investors and media representatives today during a conference call.
FCA sold 2.1 million new vehicles in the U.S. in 2017. In the first quarter, Santander Consumer reported a 28% penetration rate for Chrysler Capital loans, which was up from 23% in the prior-year period but well short of the 65% target the two companies set for April in the original preferred financing agreement.
Ally Financial also serves as a preferred finance source for FCA. In the first quarter, Ally originated $9.5 billion in auto loans, 26% of which involved Chrysler retail sales.
In October, Santander Consumer named Rich Morrin president of Chrysler Capital and auto relationships to build loan product offerings for dealers and strengthen relationships with them.
Originally posted on F&I and Showroom
More Dealer Ops

Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins
A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.
Read More →
Timing the Market Can Hurt Long-Term Program Performance
For dealer-owned reinsurance entities, avoiding volatility entirely can mean falling behind inflation and missing market rebounds that drive long term surplus growth. Missing just a handful of strong market days can materially impact cumulative returns—an important reminder for long horizon trust and investment strategies.
Read More →
Dealer Ads and the FTC
The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.
Read More →
Used Autos Supply Dwindles
The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.
Read More →
Managing Risk Effectively Through Changing Times
The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.
Read More →
Survey Reveals What Won't Fix What's Breaking Car Sales
AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.
Read More →
IA American Appoints Two Execs
Senior vice presidents of the company's agent and dealer channels chosen to support general agents and help auto dealers with sales and performance.
Read More →
Cox Automotive Acquires Inspection Firm
Full ownership of Alliance Inspection Management, or AiM, meant to unlock growth for Manheim inspection capabilities
Read More →
Assurant Expands Partnership With Holman
Extended collaboration delivers training, products and performance development to 30 newly acquired Holman dealerships
Read More →
Franchises, Throughput Down in First Half
A handful of states see franchise growth through June, while EV sales per store boost overall business in U.S.
Read More →