JLR finds new European financial services partner in banking giant BNP Paribas
07 February 2022
Jaguar Land Rover (JLR) and BNP Paribas have teamed up to provide financial services to the carmaker’s retailers and customers in nine key European markets. The companies want to jointly broaden automotive financing services by early 2023. From next year, retail partners and JLR customers will be offered a range of financing services, covering stock financing, classic loans, lease-to-purchase, long-term lease, and insurance products.
JLR said it had chosen strategic markets in Europe to provide these services covering ‘all aspects of mobility.’ The manufacturer is initially putting its focus on some of the region’s largest automotive markets – this includes Germany, France, Spain, Italy, Belgium, Luxemburg, Netherlands, Austria, and Portugal.
For years, the premium carmaker has worked with FCA Bank – a joint venture between FCA and Crédit Agricole. JLR and FCA Bank renewed their contract in 2018, which covers the funding of JLR vehicles for the franchise dealer networks in eight markets, as well as a range of point-of-sale financing, leasing and insurance services for customers.
But JLR is now switching its financial services provider, with BNP Paribas stepping into FCA Bank’s shoes. BNP Paribas is known for working with carmakers in Europe. In December last year, it was reported that the French bank was in exclusive talks with Stellantis, as well as Crédit Agricole and Santander, over the reorganisation of Stellantis’ leasing and financing operations in Europe. Stellantis now plans to sell its 50% stake in FCA Bank to Crédit Agricole Consumer Finance, which owns the other half of the business.
‘We are proud to be joining forces with BNP Paribas to create the conditions for further growth and to write another chapter in the company’s history,’ said Francois Dossa, executive director, strategy and sustainability at JLR. ‘This partnership enables us to offer competitive mobility financing solutions across key European markets to create unique and customer-centric experiences as we continue to accelerate our “Reimagine” corporate strategy.’
JLR added the collaboration will build on BNP Paribas Personal Finance for financing, Arval for leasing and fleet management, and BNP Paribas Cardif for insurance. The goal is to offer integrated services covering major mobility financing needs.
‘We are delighted to begin a strategic partnership with an iconic player in the automotive sector, placing sustainability at the heart of the business thanks to an ambitious strategy for the electrification of its vehicles,’ said Thierry Laborde, chief operating officer of BNP Paribas.
‘Our complementary areas of expertise are a key asset for making this partnership a success. BNP Paribas is fully committed to bringing all our capabilities as an integrated group, to bear in support of JLR’s distributors and customers across these nine strategic markets,’ he added.
Meanwhile, JLR is focused on overhauling its own corporate strategy. The company recently scored a £625 million (€749 million) loan to support the research, development, and export of battery-electric vehicles (BEVs). The luxury brand wants to go all-electric from 2025, planning to launch several BEVs in the coming years. The Tata-owned company is actively seeking more collaborations that it says would allow it to explore synergies, especially in the field of clean energy, connected services, data and software development.