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Stellantis moves to set up its own lending unit

Stellantis is buying Houston-based auto lender First Investors Financial Services Group to set up its own finance arm in the U.S., a move that should support sales and eventually boost profit. The only major traditional automaker in the U.S. without its own finance company agreed to pay $285 million to a group of investors led by Gallatin Point Capital and Jacobs Asset Management, according to a statement. The transaction is expected to close by year-end. Stellantis was formed via the merger between Fiat Chrysler and PSA Group early this year. Carlos Tavares, the PSA boss who became the combined company’s chief executive officer, called the deal to acquire First Investors a milestone that will increase earnings and enhance customer loyalty. “Direct ownership of a finance company in the U.S. is a white-space opportunity which will allow Stellantis to provide our customers and dealers a complete range of financing options,” Tavares said Wednesday in the statement.  Having an in-house finance company has helped rivals General Motors Co. and Ford Motor Co. pad profits, especially during the global semiconductor shortage that has limited production and crimped sales. GM bought subprime lender AmeriCredit Corp. in 2010 and renamed it GM Financial. The operation generated a $2.76 billion profit in the first half -- roughly a third of the companyÂ’s adjusted earnings before interest and taxes. Trouble for Santander? The First Investors acquisition could spell trouble for Chrysler Capital, the operation that Santander Consumer USA Holdings Inc. and Chrysler set up in 2013 before the U.S. automaker completed its merger with Fiat. In a statement, Santander Consumer said itÂ’s committed to supporting Stellantis through the term of their existing agreement and its transition. Santander Consumer will also have “ongoing conversations with Stellantis about long-term mutually beneficial opportunities beyond 2023,” the company said, adding that its consumer business remains strong and has “delivered solid results for our shareholders.” This, along with support from its parent company, will allow the lender to “pursue additional opportunities as they arise.” The lenderÂ’s U.S.-listed stock fell 1.5% in New York trading Wednesday after Bloomberg reported Stellantis was preparing to announce a new finance partner. Stellantis shares rose as much as 1.3% in Paris trading Thursday.

Fiat/PSA's dominance in small vans hangs up EU's merger approval

BRUSSELS — EU antitrust regulators are concerned about Fiat Chrysler and Peugeot / PSA's combined high market share in small vans and may require concessions to clear their $50 billion merger, people familiar with the matter said. The companies, which are seeking to create the world's fourth biggest carmaker, were told of the European Commission's concerns last week. If Fiat and PSA fail to dispel the European Commission's doubts in the next two days and subsequently decline to offer concessions by Wednesday, the deadline for doing so, the deal would face a four-month-long investigation. The EU competition enforcer, which has set a June 17 deadline for its preliminary review, declined to comment. Fiat was not immediately available for comment while PSA had no immediate comment. Hiving off overlapping businesses, usually a regulatory demand to ensure more competition, could prove tricky for the carmakers because of the technicalities. Fiat and PSA are looking to merge to help offset slowing demand and shoulder the cost of making cleaner vehicles to meet tougher emissions regulations. The deal puts under one roof the Italian carmaker's brands such as Fiat, Jeep, Dodge, Ram, Maserati and the French company's Peugeot, Opel and DS. Related Video: Government/Legal Chrysler Dodge Fiat Jeep Maserati RAM Citroen Opel Peugeot

2019 Ram 2500, 3500 Heavy Duty get the Lone Star treatment

Just like with most other pickup trucks, the 2019 Ram 2500 Heavy Duty and 3500 Heavy Duty models are getting a Texas-only special edition. It's called Lone Star, like its 1500 counterpart, and it's a midlevel trim roughly analogous to the Big Horn available in the rest of the country. What distinguishes it as a Lone Star are standard chrome door handles, bumpers and grille surround. The dead giveaway, though, will be the Lone Star badges that dot the exterior. The truck also gets some towing goodies such as a standard Class V tow hitch, electronic trailer brake controller and power trailer mirrors. Inside, buyers can choose from four color combinations including black and gray, black and brown, black and beige, and all-black with either bench or bucket front seats. There's also the option to have a door over the passenger side dash cubbie, and that door will feature the Lone Star badge. The Lone Star trim is available in just about any 2500 or 3500 configuration you desire. Regular, Crew and Mega Cabs are all available, as are both standard and long beds. The 6.4-liter gas engine is standard with the midrange Cummins diesel an option on the 2500, and the high-output Cummins diesel with its 1,000 pound-feet of torque an additional option on the 3500. Four-wheel drive and two-wheel drive are both available. The Lone Star Ram Heavy Duty models will go on sale in Texas during the second quarter of this year. The 2500 starts at $39,340 with destination, and the 3500 starts at $40,790. That's a price increase of about $4,000 over the base models.