Fiat gets nod for auto financing services in China (II)

Auto supplier Fiat Group China yesterday announced the establishment of Fiat Automotive Finance Co Ltd (Fiat AFC), the Italian industrial conglomerate's auto-financing arm in China, after receiving government approval.With a registered capital of 500 million yuan, Fiat AFC will be a wholly-owned subsidiary of FIDIS SpA, Fiat Group Automobiles' financial services company, which has operated around the world for 25 years.

From the beginning of 2008, Fiat AFC will provide retail and dealer financing services for the entire line of vehicles produced and sold by Fiat Group companies in China, both under its brands and the brands of local partners, the company said in Shanghai yesterday.

Fiat AFC will provide financial services to not only Fiat-brand passenger cars, but also luxury brands Ferrari and Maserati, Iveco commercial vehicles and Case construction equipment.

"It is strategically important that our financing services arrived in China. Fiat AFC will be the financial services arm of all Fiat Group companies operating in this second biggest and fastest-growing automotive market," said Alain Breuils, chairman of Fiat AFC and Fiat Group worldwide financing services senior vice-president.

"With an experienced and dedicated management team, advanced IT system, tailor-made products and risk management competence, we are making efforts to provide full support to Fiat Group customers, dealers and industrial partners, growing with them in the Chinese market," Carlo Nizia, CEO of Fiat AFC, added.

Since the first auto financing company GMAC-SAIC Automotive Finance Co Ltd was established in August 2004, China has given the go-ahead to a fleet of global auto groups offering loans to local customers. They include General Motors, Volkswagen,
Ford, Toyota, DaimlerChrysler, PSA Peugeot Citroen and Volvo AB.

In January, Nissan and Dongfeng, the third-largest Chinese auto group also began operating their own auto financing partnership.

According to a September report by the Xinhua News Agency, the country's first auto financing company, GMAC-SAIC AFC, celebrating its third anniversary in China, announced an increase of 125 percent in its retail financing business compared to the same period last year.

The company, which provides wholesale financing services to 440 auto dealerships nationwide, saw its operating assets exceed $1.3 billion as of the end of August.

Statistics from the China Association of Automobile Manufacturers show that domestic auto sales volume reached a record 7.15 million units during the January-October period, equivalent to nearly all of last year's sales.

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