The Spanish and Swiss joint ventures are now operational

Banque PSA Finance has regained full competitiveness in these countries

Following the 10 July 2014 announcement that a framework agreement had been signed between Banque PSA Finance and Santander Consumer Finance (SCF and its subsidiaries), and the start-up of partnership activities in France, the United Kingdom and Portugal in early 2015, two additional local partnerships have now obtained the relevant regulatory approvals to operate in Spain and Switzerland from 2 October 2015[1]. These joint ventures will provide wholesale financing to Peugeot, Citroën and DS dealers in the two countries, as well as retail financing to the dealers' customers.

The partnership agreements between Banque PSA Finance and Grupo Santander cover 11 European countries, as well as Brazil since 24 July 2015. The rest of the countries included in the agreement are expected to create their joint ventures in 2016.

These partnerships will increase the competitiveness and profit margins of Banque PSA Finance and should also strengthen the balance sheet of Groupe PSA Peugeot Citroën by delievering around €1.5 billion in cash upstream between 2015 and 2018.

Commenting on the announcements, Jean-Baptiste de Chatillon, Chief Financial Officer of PSA Peugeot Citroën and Chairman of Banque PSA Finance, said: 'The first joint ventures, launched in France and the United Kingdom in February, have already helped to boost the Group's competitiveness and improve its first-half results. Now with the launch of these two new companies, Banque PSA Finance will be able to benefit from more favourable refinancing conditions in Spain and Switzerland, and offer more competitive rates to Peugeot, Citroën and DS customers, while significantly increasing profit margins.'

[1] In all, the framework agreement provides for the creation of ten local partnerships and one commercial partnership in Europe. The first two joint ventures were launched in France and the United Kingdom in February 2015 and a white label agreement was launched Portugal in August 2015. The two companies received approval to jointly operate from the European competition authorities on 3 December 2014, and in the case of Spain, from the banking sector regulator on 25 June 2015.

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