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Volkswagen Financial Services: best-ever handling result

Volkswagen Financial Services have again grown roughly during a 2015 financial year. At this year’s annual press conference, a Chairman of a Board of Management of Volkswagen Financial Services AG, Lars Henner Santelmann reported: “2015 was both an eventful and an superb financial year for Volkswagen Financial Services. With a figure of 1.9 billion euros, we achieved a best handling outcome ever.” Santelmann voiced his pleasure during a poignant improvements in roughly all pivotal financial indicators for a financial services business multiplication of a Volkswagen Group: sum resources increasing to 157.9 billion euros (+14.9%) and a portfolio of stream contracts including all corner ventures rose to 16.6 million contracts (+11.4%). Chief Financial Officer Frank Fiedler added: “For a 2016 financial year, we are awaiting a really good outcome again that will during slightest be during a turn of a prior record of 1.7 billion euros achieved in 2014.”

All business units have contributed towards a arise in altogether stream contracts. The categorical drivers of expansion valid to be word and services such as upkeep and wear rip or tyre services, that are of sole significance for a swift business, among other segments. As during 31.12.2015, a word portfolio amounted to 5.1 million contracts, an boost of roughly 19 percent. The turn of stream use contracts went adult 12.5 percent to 2.7 million. The altogether figure for new contracts acquired in a segments financing, leasing, word and services rose to 6.8 million during a final financial year, an boost of roughly 5 percent. The patron deposits invested with Volkswagen Financial Services amounted to around 28.1 billion euros (2014: 26.2 billion euros) as during 31.12.2015, a and of 7.2%. At a finish of final year Volkswagen Financial Services had 15,182 employees, that is 4.6% some-more than a prior year’s figure. 6,513 of them were operative in Germany.

The initial 9 months of superb business opening were followed by a fourth entertain that was significantly overshadowed by a diesel emissions issue. For Volkswagen Financial Services, 4 specific fields of movement emerged as an evident consequence:

Firstly, Volkswagen Financial Services grown a trust debate to rebuild confidence together with a Volkswagen Group brands. In Germany and many other European countries, appealing new offers were done accessible to business with components such as extended warranty, upkeep and investigation or special financing conditions.

Secondly, endless pot were set aside on a basement of a existent leasing portfolio so as to be prepared for a possible decline in a residual values. In a box of new contracts, a measures of a trust descent have a stabilising outcome on the residual value.

Thirdly, Volkswagen Financial Services have benefited in their refinancing activities from their successful diversification-based strategy.
Fourthly, a well-developed conditions has been taken as an event not usually to feat a intensity for short-term cost reduction though also to outcome tolerable improvements in efficiency.

The new plan ROUTE2025 has also helped Volkswagen Financial Services cope with a diesel emissions issue. It describes a many critical areas of activity and fields of expansion for a future. When successfully implemented, it should make a company’s business mod-el even some-more eccentric of any fluctuations in particular segments. The subject of digitalisation is quite critical in ROUTE2025. “By 2020 we’ll be offered all a pivotal products online as well,” pronounced Santelmann. “With such a development, we are not usually responding to changing patron needs, though we are also means to open adult new patron and product segments. These embody financing, word and services for used cars that are not sole by a dealerships,” Santelmann added.

Volkswagen Financial Services see a fourth expansion dimension in this new sales and placement channel. “In further to what is already a broad-based position with a 3 expansion drivers Products, Brands and Markets, we are now creation a association additionally fit for a future,” Santelmann explained and announced a design of expanding a portfolio to 30 million contracts by 2025. Santelmann looked optimistically to a destiny interjection to a company’s good vital position: “We will courageously welcome a opportunities for expansion accessible to us. we therefore see glorious prospects forward for Volkswagen Financial Services.”