Santander Consumer USA and Stellantis Agree on US Contract Extension

Rhea-AI Summary

Santander Consumer USA Holdings Inc. (SC) has extended its financing partnership with FCA US LLC (Stellantis) through December 2025. The amended Master Private Label Financing Agreement enables SC to serve as the preferred provider for consumer loans, leases, and dealer loans while complementing Stellantis' new captive finance arm. This partnership, active since 2013, showcases the ongoing collaboration aimed at enhancing financing options for customers. SC manages an asset portfolio of approximately $64 billion as of Q4 2021.

Positive

• Agreement extends financing partnership through December 2025.
• SC remains the preferred finance provider for Stellantis.
• Partnership supports Stellantis' new captive finance company.

Negative

• None.

Agreement extends Chrysler Capital relationship, reaffirming the mutually beneficial financing partnership

DALLAS, April 27, 2022 /PRNewswire/ -- Santander Consumer USA Holdings Inc. ("SC" or "the Company"), which does business as Chrysler Capital, today announced it has reached an agreement with FCA US LLC ("Stellantis") to amend and extend the Master Private Label Financing Agreement (the "Chrysler Agreement") through 2025. Under the Chrysler Agreement, which is nearing the end of its original 10-year term, SC has been the FCA US preferred provider for consumer loans, leases and dealer loans. This amendment extends the contract term through December 2025 and updates certain terms to allow SC to serve in a complementary role to Stellantis' recently launched captive finance company, Stellantis Financial Services US.

"Santander Consumer has served as the primary finance provider for Stellantis since 2013," said SC CEO Mahesh Aditya. "While Stellantis announced in 2021 the formation of its own captive finance arm, SC and Stellantis have continued to enjoy a mutually beneficial working relationship. We are pleased to formally extend our partnership and look forward to continuing to help Stellantis succeed." 

"Santander Consumer has been a strong partner for Stellantis for many years," said Stellantis Chief Affiliates Officer Philippe de Rovira. "We are proud to have SC continue as a preferred partner, as we grow Stellantis Financial Services US into a full-service captive lender, offering a wide range of financing options to meet the needs of our customers."

About Santander Consumer USA Inc.

Santander Consumer USA Inc., headquartered in Dallas, Texas, is a full-service consumer finance company focused on vehicle finance, third-party servicing and delivering superior service to our more than 3 million customers across the full credit spectrum. SC, which began originating retail installment contracts in 1997, had an average managed asset portfolio of approximately $64 billion (for the fourth quarter ended December 31, 2021). The company is a wholly owned subsidiary of Santander Holdings USA, Inc., and is part of Madrid, Spain-based global banking leader Banco Santander. For more information about Santander Consumer USA, please visit www.santanderconsumerusa.com.

View original content:https://www.prnewswire.com/news-releases/santander-consumer-usa-and-stellantis-agree-on-us-contract-extension-301534665.html

SOURCE Santander Consumer USA Holdings Inc.

FAQ

What is the significance of the SC and Stellantis agreement announced on April 27, 2022?

The agreement extends the financing partnership through December 2025, allowing Santander Consumer to continue as the preferred provider for Stellantis.

How long has SC been a partner of Stellantis?

SC has served as the primary finance provider for Stellantis since 2013.

What financial services does SC provide under the Chrysler Agreement?

SC provides consumer loans, leases, and dealer loans as per the Chrysler Agreement.

What is Santander's average managed asset portfolio as of Q4 2021?

As of Q4 2021, Santander Consumer managed an asset portfolio of approximately $64 billion.