Volkswagen Financial Services saw its operating result grow 2.5% year-on-year in the first quarter of 2020, while its current portfolio increased 5.2% to 21.6m contracts.
The level of new contracts acquired, on the other hand, showed a slight decline. “In the first two months of 2020, our new business worldwide was up on the previous year – despite reductions in China. In March, however, we were forced to experience substantial declines in all the regions that were already severely affected by the corona pandemic,” said Lars Henner Santelmann, chairman of the board of management of Volkswagen Financial Services AG. Particularly in China, Italy and France, fewer new contracts were concluded compared with the same period last year.
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In Germany, the largest single market for Volkswagen Financial Services, the corona restrictions only came into effect at the end of March, with the result that the number of new contracts acquired was able to rise there to 569,000 units during the first quarter (previous year: 547,000 units; +4%). The total number of current contracts also increased in Germany by 5.3% to reach 6.41m units (previous year: 6.09m units).
The importance of the leasing business in Germany has grown steadily over recent years. A significant proportion of investments, particularly in vehicles and machinery, are made possible as a result.
In view of this high economic relevance and the business challenges many German companies are facing due to the COVID-19 pandemic, Santelmann emphasizes: “Leasing is the key to maintaining the operational capability of small and medium-sized companies. In the current phase, state guarantees to protect against default risks in the leasing business would be a particularly effective tool for avoiding production losses and investment stoppages that would result in a further downward economic spiral.”
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