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.
(China Daily December 21, 2007)
