Nissan Financial Services Challenged on Auto Captive Finance Business Model

VICTORIA, AUSTRALIA – February 26, 2010: The auto finance industry was represented at the inaugural ANZ Debt Conference held on 18 February. George Leondis, Executive Director of Nissan Financial Services (NFSA), was challenged by the panel on the continued viability of the captive auto finance business model in light of the global financial crisis and the relative competitive advantages of the major bank backed financial institutions.

In response Leondis pointed out that from time-to-time all business sectors and the players within face challenges and market pressures at varying degrees. Leondis emphasised that Nissan is committed on a global level to support and expand its presence in financial services with significant investments made in recent times in countries including China, Thailand, Mexico and Australia. Specifically Leondis said “Nissan’s mission is very different to the typical bank operated finance company in that shareholder value is significantly enhanced because we believe in the ‘united purpose’ concept, which means we have in fact a dual purpose to 1) support and grow Nissan motor vehicle sales and 2) build customer loyalty through a close financial relationship”.

In relation to Australia, Nissan launched its local finance arm, NFSA, at the very height of the global financial crisis in October 2008, providing critical wholesale and floorplan support to the Nissan dealer network. Since that date, NFSA has experienced significant growth in the Australian finance business. Underpinned by a strong funding position, this growth is anticipated to continue as the business supports the Nissan dealer businesses and retail customers with their purchases of Nissan vehicles.”