FCA to Develop Captive Financial Services Company in U.S.

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Jun 01, 2018, 08:45 ET

AUBURN HILLS, Mich., June 1, 2018 /PRNewswire/ --

To be created through an acquisition or built from scratch
Expected to bolster Company's sales volumes and earnings
Time is right to make strategic move

Fiat Chrysler Automobiles N.V. announced today it intends to establish a captive financial services arm to provide U.S. consumers with more options to finance vehicle purchases while supporting the Company's sales volumes and bolstering its earnings.

More than 2.1 million new cars and trucks were sold by FCA in the U.S. last year. FCA currently is the only major automaker in the U.S. without a captive financing arm.

"Given our strong financial performance and improving credit profile, we believe the time is right to pursue a U.S. Finco strategy," FCA Chief Executive Officer Sergio Marchionne said. "FCA will have adequate capital to fund the equity needed and expects to have the credit rating to make the Finco funding competitive."

Chrysler Capital, which is owned and operated by Santander Consumer USA Inc., along with a variety of banks, currently provides consumer financing for most FCA vehicle purchases in the U.S.

FCA is exploring whether to acquire an existing financial services business, which could include exercising an option to acquire Chrysler Capital, or to build its own Finco. Exploratory discussions with Santander regarding Chrysler Capital have begun.

About FCA
Fiat Chrysler Automobiles N.V. ("FCA"), the seventh-largest automaker in the world based on total annual vehicle sales, is an international automotive group. FCA is listed on the New York Stock Exchange under the symbol "FCAU" and on the Mercato Telematico Azionario under the symbol "FCA".

The transaction was executed by FCA's wholly owned subsidiary, FCA US LLC. Headquartered in Auburn Hills, Michigan, FCA US LLC designs, engineers, manufactures and sells vehicles under the Chrysler, Jeep, Dodge, Ram and FIAT brands, as well as the SRT performance vehicle designation. The company also distributes Alfa Romeo and Mopar products. FCA US is building upon the historic foundations of Chrysler, the innovative American automaker first established by Walter P. Chrysler in 1925, and Fiat, founded in Italy in 1899 by pioneering entrepreneurs, including Giovanni Agnelli.

Forward Looking Statement
Any forward-looking statements contained in this document speak only as of the date of this document and the Company does not undertake any obligation to update or revise publicly forward-looking statements. Further information concerning the Group and its businesses, including factors that could materially affect the Company's financial results, is included in the Company's reports and filings with the U.S. Securities and Exchange Commission, the AFM and CONSOB.

SOURCE FCA US LLC