An innovative approach that translated into the expansion of the international footprint of Leasys (the Group’s mobility and long-term rental company), which opened affiliates and branches in such key European markets as France, Spain, Germany and United Kingdom. The process will be completed in 2017 with Belgium and The Netherlands, showing a strong determination to achieve growth through business diversification.
Leasys’s international expansion is the natural consequence of the company’s success in Italy, where it is one of the industry’s leaders, and is part of the Group’s broader strategy to increase its market share by promoting more aggressively, with retail customers and fleets, the new range of FCA products, thanks to Leasys’s widespread presence in the market.
The internazionalization process of Leasys will be completed in 2017 with Belgium and The Netherlands, showing a strong determination to achieve growth through business diversification.
The decision to bank on the internationalization of Leasys
In June 2016, from among the main lines of development and strategic diversification, FCA Bank identified a need for strengthening the Long-Term Rental (LTR) business in a vehicle market that, for a few years now, has seen the European Fleet and Rent-a-Car channels grow continually, at much higher rates than the Private channel, with customers increasingly giving preference to LTR products.
The process led to the creation of a veritable European Long-Term Rental hub
The management identified the modalities to pursue this strategy in Europe, where, by the way, the FCA Bank Group was already present in some markets with companies specialising in the Fleet and LTR sector. In keeping with the choice to enhance the direct management of the business, it was decided to change the existing state of affairs, and, instead of maintaining and possibly expanding a constellation of local organisations operating on a stand-alone basis, to put in place a plan for the progressive realisation of a European Long-Term Rental hub. All this was done by benefiting from Leasys' success record and expertise, entrusting the Italian subsidiary with the management of the hub and thereby enabling the company to establish an organisation entirely devoted to the specific business.
The benefits of this approach
This approach provides the basis for a unified and coordinated management of the Group's Long-Term Rental activities and product portfolio, synergies will be attained through the centralisation of service and back-office activities, and it will be possible to support and transfer know-how to those markets where FCA Bank's positioning in the LTR sector needs to be increased or to be built up from scratch. However, the method is flexible and the creation of the LTR hub is a process that calls for specific actions, which are not necessarily always the same and have to be approved case-by-case by the Board of Directors of FCA Bank, based on the results obtained so far and the profitability and payback goals defined in the business plan.