Financial services in the Volkswagen Group have a long and rich history. From its beginnings to promote sales of the legendary Beetle and VW Bus during the post-war period and the years of what came to be called the German Economic Miracle, the Volkswagen Financial Services division in its various forms has been an integral part of the Volkswagen Group for more than 70 years now. It all started in 1948 with the foundation of Volkswagen Versicherungsdienst GmbH. A year later, "Volkswagen Finanzierungsgesellschaft mbH" saw the light of day. In 1966, the VW Group entered the leasing business by establishing "V.A.G. Leasing GmbH". These three companies became the mainstays of the Group's sales promotion activities. Today, Volkswagen Financial Services are a full-service mobility provider that offers a wide range of products and services in areas alongside the traditional business fields of banking, leasing and insurance in order to keep customers mobile and enhance the sales of Volkswagen Group brands.
History of Volkswagen Financial Services
Second highest operating result in company's history
The year 2020 was marked by the Covid 19 pandemic. Despite this, Volkswagen Financial Services achieved its second-best operating profit in the company's history at €2.8 billion. Comprehensive support measures for dealer partners and joint campaigns with the Volkswagen Group's automotive brands for end customers mitigated the impact of the Corona pandemic.
At the same time, Volkswagen Financial Services also invested in future business models and new mobility offerings. For example, the business travel start-up Voya from Hamburg was acquired and a car subscription model for private customers was launched.
With the car subscription, customers can flexibly book different vehicle classes and sign a contract for three months, which can then be terminated on a monthly basis. All operating costs, except for fuel, are included in the offer.
Volkswagen Financial Services are further strengthening their position as a mobility expert in 2019. Three important shareholdings provide the necessary foundation for this growth:
The 60 percent stake acquired in the fleet management company FleetLogistics means an extended range of products and services can now be offered in international fleet and mobility management through a strategic partnership with TÜV SÜD. To this end, Volkswagen Financial Services AG took a 60 percent stake in FleetCompany GmbH, based in Oberhaching, Bavaria, which operates worldwide under the brand name FleetLogistics in over 70 countries.
More muscle for truck parking is the result of a majority stake now held in PTV Truckparking B.V. Volkswagen Financial Services AG acquired 75.1 percent of the shares to ensure the strategic expansion of its business field Parking Services. The company purchased, which is based in Utrecht/Netherlands, operates the "Truck Parking Europe" web platform for truck drivers, which makes it easier to find and reserve truck parking spaces along motorways. With more than a million downloads, Truck Parking Europe is the most successful trucker community-based platform/app in its field.
The 100% acquisition of LogPay Financial Services GmbH (LPFS) paves the way for a further expansion of the mobility business. In 2017 Volkswagen Financial Services had already acquired a majority interest in LogPay Transport Services GmbH, a company operating throughout Europe in the refueling and toll payment business that until then had been a wholly-owned LPFS subsidiary.
20 million contracts, EUR 200 billion in total assets
A successful year for Volkswagen Financial Services: the company's total assets exceed the EUR 200 billion mark for the first time. The portfolio of current contract grows to over 20.3 million units.
The heycar online platform for premium used cars also picks up speed. A large-scale advertising campaign is launched and Daimler is brought on board as a new investor.
Realignment as of September 1, 2017
Powerful new structure: Volkswagen Bank GmbH is now a wholly owned subsidiary of Volkswagen AG. Volkswagen Financial Services initiated a corporate restructuring in November of last year. The aim of the realignment has been to bundle the credit and deposit business within the European Economic Area (EEA) in Volkswagen Bank GmbH. All other activities, such as the leasing, insurance, service and mobility business, as well as the credit business outside Europe, remain with Volkswagen Financial Services AG. Through a new company, Volkswagen Financial Services Digital Solutions GmbH, selected services are developed and made available to its parent companies Volkswagen Bank GmbH and Volkswagen Financial Services AG.
Cash-free payment solutions
The takeover of PayByPhone makes Volkswagen Financial Services the world's largest provider of cash-free payment solutions for parking procedures. The Vancouver-based company acquired provides services in Canada, the USA, Great Britain, Switzerland and Australia.
18 million contracts
Volkswagen Financial Services achieved an operating result of more than two billion euros for the first time during the 2016 financial year. The portfolio rose to more than 18 million current contracts.
Car leasing in Germany reaches fifty years of age. The pioneer, Volkswagen Leasing GmbH, is meanwhile the largest automobile leasing company in Europe.
Online payment solutions are now part of the business. Volkswagen Financial Services acquire the majority in Sunhill Technologies. With mobile payment solutions for parking processes in 90 German cities, Sunhill is the leading provider in the German market.
MAN Truck & Bus
Volkswagen Financial Services AG aquires "MAN Finance International GmbH" and thus expands its financial services activities. Business now includes financing, leasing and renting for MAN Truck & Bus.
Financing and insurance for motorcycles
"Ducati Financial Services" starts its business in Germany. Under the umbrella of Volkswagen Financial Services AG, it offers financing and insurance for motorcycles in Germany. The offer includes not only retail financing and insurance but also the financing of the around 80 German dealers. The volume of current contracts increases to more than ten million.
The "Volkswagen Autoversicherung AG"
Volkswagen Financial Services AG and "Allianz SE" start a car insurance joint venture to intensify their motor insurance activities. The company "Volkswagen Autoversicherung AG" offers customised and affordable car insurance for customers of the Volkswagen Group brands. Volkswagen Leasing GmbH acquires Euromobil Autovermietung GmbH from Volkswagen and Audi Partnerverband, thereby strengthening its own rental business, particularly in the area of short-term rentals.
One billion euros
Through its new subsidiary Volkswagen Versicherung AG, Volkswagen Financial Services AG offers guarantee insurance as a primary (direct) insurer for the first time in Germany.
Volkswagen Finance Private Limited in India is granted a financial services licence from the Indian Central Bank. For the first time, the year-end result exceeded the level of one billion euros.
Volkswagen Financial Services AG offers financial services in the Baltic States Lithuania, Latvia and Estonia together with the Nordea Finance companies and the importer Auto Group Baltic. In July, Volkswagen Financial Services AG founds "Volkswagen Financial Services Korea Co., Ltd." in South Korea. Volkswagen Bank RUS, a subsidiary of Volkswagen Financial Services AG, is granted a banking licence from the Russian Central Bank.
The environment award "Die Grüne Flotte" ("The Green Fleet") is awarded for the first time by Volkswagen Leasing GmbH and Naturschutzbund Deutschland e.V. (German Nature Conservation Association) for ecologically responsible fleet management.
India and Norway
Volkswagen Financial Services AG founds a subsidiary in India, Volkswagen Finance Pvt. Ltd., and offers financing within the framework of cooperations with local banks. Together with the Norwegian importer MøllerGruppen, VW FS AG offers financial services for the first time on the Norwegian market as part of a joint venture.
Volkswagen Leasing GmbH introduces the first supra-regional natural gas fuel card for corporate customers.
Germany's largest corporate kindergarten
Volkswagen Financial Services offers mobility packages for used Volkswagens for the first time; they combine financing or leasing contracts with the "Best Service" packet (servicing, oil change, and original VW parts). Volkswagen Financial Services AG opens the company kindergarten "Frech Daxe". The number of current contracts now totals more than five million.
„Sauber + Sorglos“ package
The "Sauber + Sorglos" ("Clean + Carefree") package comprises inexpensive financing and leasing offers with insurance services. Volkswagen Financial Services now also take over financial service activities in Brazil.
The AutoEuropa Bank
Mexico becomes a further location for banking and leasing business. AutoEuropa Bank is founded as a brand-independent provider of dealership financing.
Volkswagen AG hands over coordination of the Group's worldwide financial services to Volkswagen Financial Services.
Business license in China, subsidiary in Greece
Volkswagen Finance China Co Ltd. receives its business licence. The wholly owned subsidiary based in Beijing provides vehicle financing and operates the deposit business. The company replaces the representative office in China that had existed since 1997. With a branch office in Athens, Volkswagen Bank also starts up in Greece.
Russia and Sweden
With the foundation of "Volkswagen Group Finanz" in Moscow, Volkswagen Financial Services become active on the Russian market. The Swedish market also comes under the control of the holding company.
Access to securities markets for customers
The new "BörseDirect" ("StockMarketDirect") service gives "Volkswagen Bank direct" customers access to share dealing and the securities markets. Foundation of Volkswagen Financial Services Taiwan Ltd.
Ireland and Australia
Volkswagen Bank establishes a branch office in Ireland. In addition, business activities of Volkswagen Financial Services begin in Australia.
Online current account
"Volkswagen Bank direct" introduces its online current account Giro@home and "WAP-Banking", which enables transactions to be conducted via mobile phone. Portugal becomes a further new market for business activity.
Two million contracts
Volkswagen Financial Services AG takes over "Volkswagen-Versicherungsdienst GmbH" and expands its business into the field of motor vehicle insurance. Market entry in Switzerland and Turkey. The level of current contracts increases to more than two million.
Combined insurance services
In the form of "Prämie-Light", Volkswagen Financial Services market the first product that combines insurance services. New business activities in Poland and Belgium, Volkswagen Bank direct enters the market.
"AutoCredit", Rating and Asia
"Volkswagen Bank GmbH" introduces "AutoCredit", which relieves the customer of the risk associated with a used vehicle at the end of the contract term. Volkswagen Financial Services AG receive a rating for the first time and can participate in their own right in the international capital markets. The markets of the Asia-Pacific region and Japan are added to the company's sphere of activities.
Business in the Netherlands
Volkswagen Financial Services AG also becomes active in the Netherlands.
Foundation of "Volkswagen Financial Services AG"
Foundation of "Volkswagen Financial Services AG", which manages the financial service business in Europe for the Volkswagen Group. The company is now also active in Spain, Italy and France.
Expansion in Europe
After the launch of international activities in the Czech Republic, the company expands its services to cover the Slovak Republic and Great Britain during the course of the year.
Restructuring: holding company "Volkswagen Finanz GmbH"
As part of the restructuring of the financial services division, the companies "V.A.G Bank GmbH" and "V.A.G Leasing GmbH" are transferred to the holding company "Volkswagen Finanz GmbH".
ŠKODA Leasing and ŠKODA Bank
ŠKODA Leasing is opened as a branch office of V.A.G Leasing, which is later followed by the foundation of ŠKODA Bank as a branch office of V.A.G Bank.
Dealer network after German reunification
The bank and leasing company move into premises in Chemnitz to support the establishment of a dealer network following the opening of the border with the former German Democratic Republic. V.A.G Kredit Bank changes its name to V.A.G Bank and begins its activities as a direct bank in addition to its dealer and customer financing business.
SEAT Leasing GmbH and SEAT Kredit Bank
Foundation of SEAT Leasing GmbH and SEAT Kredit Bank GmbH as subsidiaries of V.A.G Leasing and V.A.G Kredit Bank.
From Wolfsburg to Braunschweig
"V.A.G Kredit Bank GmbH" and "V.A.G Leasing GmbH" move from Wolfsburg into the administration buildings of the former Olympia Werke AG in Braunschweig.
Company with full banking licence
Volkswagen Kredit Bank GmbH, a company holding a full banking licence, supersedes Volkswagen Finanzierungsgesellschaft mbH.
Volkswagen Leasing GmbH
Volkswagenwerk AG establishes the first German automobile leasing company with the registration of "Volkswagen Leasing GmbH".
Foundation of "Volkswagen Finanzierungsgesellschaft mbH" with the goal of promoting the sales of motor vehicles through the "granting of loans".