Global Automotive Manufacturers: Strategies in Finance, Insurance, Warranties and Assistance

Global Automotive Manufacturers: Strategies in Finance, Insurance, Warranties and Assistance is a report and accompanying PartnerBASE™ dataset that provides a detailed overview of the involvement and partnerships of the world’s leading automotive manufacturer groups for six key types of automotive financial service namely: finance and leasing; creditor insurance; extended warranties; road assistance; motor insurance; and GAP insurance.

The groups in scope in this respect are BMW, Daimler, Fiat Chrysler, Ford, Geely, GM, Honda, Hyundai, Mazda, Mitsubishi Motors, PSA, Renault Nissan, Suzuki, Tata Motors, Toyota and VW (albeit note that the analysis also covers their China-based joint ventures, e.g. Bejing Hyundai), and the study is based on research covering upwards of 50 separate brands belonging to these groups across 40 countries, representing the world’s largest markets for passenger car sales.

For each of the groups, the study demonstrates the extent to which their individual brands have arrangements for offering one or more of the six automotive financial services in each of the 40 countries and, if so, the operating models used in these cases (e.g. single external partner, multiple external partners, joint venture partner, captive partner etc.) and the identities of the partner organisations in question. Among other benefits, the resulting analysis demonstrates which providers of the six automotive financial services have been successful in winning significant product partnerships with each group across multiple countries.

Key findings from the executive summary include:

• across the 40 countries, Santander holds the most partnerships with automotive manufacturer brands for finance and leasing, and also those that are likely to be most significant, given that it is the leading external provider in this arena in both unweighted and weighted terms;

• BNP Paribas Cardif is similarly prominent in creditor insurance sold via automotive manufacturer brands although while Allianz holds the most relationships for both motor and GAP insurance plus road assistance, it is overtaken in the weighted analyses for these products due to the presence of strong competitors in the giant Chinese and US markets;

• likewise, the co-owners of Car Garantie and Allianz claim the most partnerships for extended warranties but are overtaken by AmTrust Financial Services and JM Family Enterprises in the weighted analysis due to the vast size of the US market for this product;

• over the most recent five-year period, Toyota group has generated the most profit (before tax) from its captive financial services operation among the automotive manufacturer groups surveyed, and also the highest ratio of pre-tax profit from financial services to total pre-tax profit, albeit Renault Nissan group’s net receivables have been growing most quickly.