Evidence has emerged that
Barclays Asset and Sales Finance (BA&SF) is increasingly
unhappy with its financing joint venture with Iveco.
Well placed sources said that Barclays
no longer sees the joint venture between BA&SF and Iveco
Capital as a core part of its future plans.
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It is also understood that David
Nield, the deputy chief executive of Iveco Capital, recently left
Barclays, along with Paul Johnston, a senior member of the credit
team.
Nield was promoted to the position of
head of BA&SF’s asset finance arm in June, becoming part of the
executive team reporting directly to Ian Stuart, managing director
of BA&SF.
A well-placed source said that “at
Barclays, they do not see it [the joint venture with Iveco] as a
strong, continuing relationship”.
The source added: “They may try and
sell their stake back to Iveco, or to someone else. The truth is
that Barclays does not want to be involved with it anymore.”
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By GlobalDataBarclays said it cannot comment “on
the terms of commercial arrangements that we have in place”.
Iveco Capital communication director
Nigel Emms said: “The JV agreement signed three years ago for a
five-year period remains unchanged.”
Barclays owns a 51 percent controlling
stake in the JV, in which Barclays provides commercial vehicle
financing and leasing solutions to Iveco customers in the UK,
Italy, Germany, France and Switzerland. Iveco holds the remaining
49 percent.
Iveco, which is part of the Italian
carmaker Fiat Group, reported a slowdown in quarter three 2008. The
unit’s revenues were down 6.2 percent to €2.4 billion, while
volumes dropped 18 percent, mainly because of a slowdown in Western
Europe, the region where it has put in place its finance
partnership with Barclays.
In July, the UK arm of Iveco Capital
launched a contract hire product, while BA&SF agreed to take
residual value (RV) risk on operating lease transactions. Simon
Duston, deputy chief executive of Iveco Finance at the time, said
BA&SF’s strong asset management capability was one of the main
reasons for it having agreed to take RV risk.
