Volkswagen Financial Services (VWFS), the captive for Europe’s biggest carmaker, plans to increase its European finance penetration for VW, Audi, Seat and Skoda brands, from 30% to 40% within four years.
The announcement was made by Frank Witter, chairman of the manufacturers financial unit, at a conference at the Otto Beisheim School of Management in Vallendar, Germany last Friday.
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We can increase the penetration in the European markets, he said. In Germany, 54% of all Volkswagen group cars are financed or leased through us.
Financial services customers are more loyal. There is a date that the customer has to make a decision, when the finance contract ends, and we know about that date. This is an opportunity for us to talk to the customer and offer whats new out there.
Of the vehicles VWFS finances, 70% involve car loans and 30% are leased, Witter said.
VWFSs balance sheet increased to around 90bn (£74.8bn) at the end of 2011 from 87.8bn at the end of June. About 25% (22bn) was held in the form of customer deposits, a proportion the company aims to increase to 33%, said Witter, without specifying a time frame.
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