PNC, one of the largest U.S. mortgage lenders, is looking to grow its financial services business with a $3 billion investment in Volvo Financial Services.
The financial services company is a subsidiary of the Finnish automaker, which has a $2.2 billion stake in Volvo, and it has been one of Volvo’s biggest lenders, with an outstanding credit rating of Baa2.
Volvo has made significant investments in its banking services, including buying out the credit card business of U.K.-based Lloyds Banking Group in January, and the company is looking for new sources of financing.
“Volvo’s finance operations are the envy of the financial services industry, and we are excited to be joining forces with PNC to help the automotive company achieve its growth goals in financial services,” PNC chief financial officer David Hurd said in a statement.
“The combination of Volvo and PNC’s leadership in finance will benefit both companies and consumers.
We’re looking forward to sharing more details in the coming weeks.”
Volvo will be a subsidiary and a joint venture of PNC and Volvo, but it will be owned by PNC.PNC Financial services is one of a number of new U.A.E. lenders that have been announced as part of the deal.
Volkswagen Group also recently announced that it would buy a stake in Bank of America.