UK: JLR selects Fiat/Crédit Agricole JV as financial partner
Tata-owned Jaguar Land Rover (JLR) has selected Fiat Group Automobiles Financial Services (FGAFS) to be its exclusive partner in the main European markets, providing a full range of automotive financial services for its dealers and customers.
FGAFS will provide funding capabilities at competitive costs while at the same time giving Jaguar Land Rover the required geographical coverage and specialised automotive expertise. The agreement will gradually replace the arrangement with Ford, whose financial arm provided support during the Ford ownership of Jaguar Land Rover.
Under the arrangement, FGAFS, which is a 50%-50% joint venture between the bank, Crédit Agricole Group and Fiat Group Automobiles, will start taking on all Jaguar Land Rover's financing activities in the ten Europe affiliates from February next year, with the transition being completed by June 2009.
Jaguar Land Rover chose FGAFS after a competitive process that attracted a number of bidders. FGAFS will be able to offer Jaguar or Land Rover branded products with competitive terms to customers and dealers. Crédit Agricole, which will provide the funding to FGAFS, is an internationally renowned bank with a strong credit rating.