5 mins read
Key takeaways
- Due to limited visibility of its account structures and liquidity across Europe, Alliance Automotive Group (Alliance Automotive) needed a cash management solution to centralize its funds and optimize its liquidity
- Alliance Automotive maintains cash at multiple banks, which J.P. Morgan sweeps and consolidates into a centralized notional pool, optimizing liquidity and enabling the company to fund projects globally without external lending
- Post-implementation, Alliance Automotive optimized visibility, increased interest earnings and laid the groundwork for applying this solution worldwide
About
Automotive parts distributor Alliance Automotive Group (Alliance Automotive) implemented a notional pooling solution that optimized visibility and increased liquidity in the EMEA region with minimal disruption to its daily operations. Now, it has laid the groundwork to expand this solution globally.
The challenge
Alliance Automotive, the EMEA division of large U.S. automotive parts dealer Genuine Parts Company (GPC), wanted to optimize and centralize its cash management.1 With operations throughout Europe, the company had an excess of banking relationships. As a result, the treasury team had limited visibility of the company’s liquidity. According to Group Treasurer at Alliance Automotive, Vijay Mistry, this meant that significant amounts of inaccessible cash were being overlooked and that the company could not maximize its returns. Alliance Automotive turned to J.P. Morgan to develop a tailored multicurrency notional pool solution.
“We wanted to find a cash management solution to pool all our funds together,” says Mistry, “Our most important objectives were to have daily visibility and maximum returns.”
The solution
In just under six months, Alliance Automotive went live with its notional pooling solution.2 Liquidity is centralized into the pool from the company’s accounts throughout the region which, as Mistry explains, provides instant funding access for participants.
The solution also provides the flexibility to use excess cash in one currency and borrow against another. Mistry reports that Alliance Automotive has full control and visibility of its cash positions and can optimize returns across euros, pounds and dollars. As a result, Alliance Automotive efficiently mobilizes cash to help fund its businesses in various countries with reduced FX costs and without external lending.
The company has gained significant savings by using excess liquidity in the pool to help fund acquisitions. In 2023, it funded multiple acquisitions without needing to borrow funds. Mistry shared that another benefit of the notional pool has been the additional interest income.
$4.4M Within nine months of going live, the excess cash surfaced by the solution generated $4.4 million in interest. 2
“One of the greatest benefits is that implementing the notional pool solution with J.P. Morgan has not impacted day-to-day operations. There has been no disruption to the business, and it’s a win-win solution for everybody.”
Vijay Mistry
Group Treasurer, Alliance Automotive Group
The results
With the success of the EMEA pool, Alliance Automotive’s parent company GPC plans to implement a similar pool on a larger scale to connect its global operations. Mistry shared that by using this solution, the company is well equipped to optimize its cash and account structure to create even more efficiencies and cost savings.
“We’ve created an open-ended, future-proof solution that can fit into any strategy. The best part is that we can become an incumbent in a global pool without changing things from a technical or systems perspective.”
Vijay Mistry
Group Treasurer, Alliance Automotive Group
To learn more, visit https://www.jpmorgan.com/payments/solutions/treasury/liquidity-and-account-solutions
Disclaimer
© 2025 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC. Deposits held in non-U.S. branches are not FDIC insured. Non-deposit products are not FDIC insured. The statements herein are confidential and proprietary and not intended to be legally binding. Not all products and services are available in all geographical areas. Visit jpmorgan.com/disclosures/payments for further disclosures and disclaimers related to this content.
