Hong Kong/Paris, December 16th , 2013 – Geely Automobile Holdings Limited (“Geely Automobile”) and BNP Paribas Personal Finance announced today that they have entered into an agreement to establish a joint venture company to engage in auto financing in the People’s Republic of China.
The registered capital of the joint venture company will be RMB 900 million, of which RMB 720 million will be provided by Geely Automobile in consideration of an 80% stake in the company. BNP Paribas Personal Finance will provide RMB 180 million and hold the remaining stake. The signed contract will be submitted to relevant authorities, including the China Banking Regulatory Commission, for review and approval.
The joint venture company will provide auto financing products and services in the PRC, including wholesale financing solutions to auto dealers to finance the purchase of cars and operating facilities, as well as retail financing to end-customers.
“We are excited to be partnering with BNP Paribas Personal Finance to establish this auto financing company,” said Daniel Li, Vice President and CFO of Zhejiang Geely Holding Group and Executive Director of Geely Automobile. “China’s automotive market continues to grow at a rapid pace and customers are increasingly looking for new, innovative ways to finance their auto purchases. We are thrilled to be able to offer safe, professional and convenient auto financing solutions to our customers. These financing solutions will also enable us to help our distributors improve their operating efficiency and maximise their revenue potential. Combining Geely Automobile’s access to customers and distributors with BNP Paribas Personal Finance’s experience and expertise will help stimulate further sales growth and cater to the evolving needs of customers, creating a winning partnership.”
Thierry Laborde, CEO of BNP Paribas Personal Finance said, “BNP Paribas Personal Finance is present in around 20 countries and regions, offering a full range of personal financing services. For BNP Paribas Personal Finance, participation in China’s auto financing sector represents a big step in our commitment to the financial market in China. We are impressed with Geely Automobile’s strong position in the automotive industry and its global vision. We look forward to working together with Geely Automobile to bring auto financing services to Chinese customers.”
Eric Raynaud, Chief Executive Officer of BNP Paribas Asia Pacific highlighted: “This partnership is another key milestone of the Group’s development plan in Asia Pacific and in China in particular following our announcement in July 2013 to enter a 50:50 equity joint venture with Bank of Beijing in the insurance sector. China represents a key market for us where we already provide clients with services in corporate and investment banking and wealth management activities through our 100% subsidiary BNP Paribas China Ltd. We have also been enjoying since 2005, a successful partnership with Bank of Nanjing in retail and commercial banking, and with Haitong Securities since 2003 through HFT Investment Management in asset management.”
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About Geely Automobile Holdings Limited:
Geely Automobile Holdings Limited (the “Company”) (SEHK: 175) is an automobile manufacturer, focusing on the development, manufacture and sale of passenger vehicles. The Company sells most of its products in the China market and has also expanded its sales through export to other developing countries. The Company’s shares are listed on the main board of the Hong Kong Stock Exchange; the controlling shareholder of the Company is Zhejiang Geely Holding Group Company Limited, a private company which is wholly-owned by Mr. Li Shufu, the Company’s chairman, and his associates. With its headquarter established in Hangzhou and eight manufacturing plants in Linhai, Ningbo, Luqiao, Lanzhou, Xiangtan, Jinan, Chengdu and Cixi in China, the Company had a total annual production capacity of 625,000 vehicle units per shift at the end of 2012. The Company sells over 10 major sedan models, which are powered by its self-developed1.0L-2.4L petrol engines, and developed on five product platforms under three product brands – “Gleagle”, “Emgrand” and “Englon”. The Company’s vehicles are retailed through 981 dealers in China (as of the end of 2012). The Company also exports its products through 37 sales agents and 43 sales and service outlets in 37 overseas markets with a significant focus on countries in the Middle East, Eastern Europe, and Central and South America. Exports have become an increasingly important part of the Company’s business and accounted for 21% of the Company’s total sales volume of 483,483 units in 2012. With a total workforce of 18,512 staff at the end of 2012, the Company generated US$4 billion in revenues in 2012.
About BNP Paribas Personal Finance:
BNP Paribas Personal Finance is the leader in France and in Europe for personal loans via its activities in consumer credit and mortgage lending. A 100% subsidiary of the BNP Paribas Group, BNP Paribas Personal Finance has more than 16,000 employees and operates in over 20 countries.
Under brands including Cetelem, Findomestic, and AlphaCredit, the company offers a full range of personal credit products at points of sale and car dealerships and directly to consumers through its customer relations centres and Internet.
Worldwide automotive financing services are one of the historical know-how and expertise of BNP Paribas Personal Finance either in the new car business or in the second-hand car market. Developing its automotive financing services offer also is one of the main three strategic areas of growth of BNP Paribas Personal Finance.
BNP Paribas Personal Finance has added an insurance and savings offer for its clients in France, in Italy, Germany and Bulgaria. BNP Paribas Personal Finance has developed an active partnership strategy with retailers, web merchants and financial institutions (banks and insurance companies), based on its experience with marketing credit offers and integrated services tailored to partners’ business and commercial objectives. It is also a leading player in the field of responsible lending and financial education.