Volkswagen Financial Services achieve record result again in 2017
- One billion euro efficiency increase through digitalisation by 2025
- Operating profit increases by 16.9% to EUR 2.46 billion
- Portfolio at new record total (+8.1%) with 19.7 million contracts
- Total assets climb to EUR 186.9 billion (+9.9%)
"We have been very successful during the past few years and are now setting the course for the coming years from this position of strength. The key to this is the complete digitalisation of our business model. This is leading to growing online sales for our service spectrum, the concomitant optimisation of our sales and marketing costs, and a leaner IT system landscape that enables considerable productivity gains. This will boost efficiency by around one billion euros by 2025 – with an unchanged core team. Over the same period, we plan to expand our contract portfolio from the current 19.7 million to 30 million contracts," says Santelmann.
CFO Fiedler is also optimistic for the financial year 2018: "Assuming that the good overall economic conditions continue during the current year, earnings for the Volkswagen Financial Services division are expected to remain at the previous year's level."
The growth drivers for the contract portfolio continue to be services such as maintenance and wear & tear or tyre services, which are of particular importance for the fleet business among other segments. As at 31.12.2017, the volume of service contracts amounted to more than 4.0 million units for the first time, corresponding to an increase of 16.8%. The total number of new contracts rose to almost eight million units by the end of the last financial year, an increase of more than 5.5%.
The Chinese, Italian and Spanish markets, in particular, recorded a high volume of new contracts during the last financial year. "Overall, we have grown very well worldwide together with the Volkswagen Group brands. Current contracts in the Chinese and Spanish markets have reached a level of more than one million units for the first time. We are very pleased about these new records," says Dr. Christian Dahlheim, Chief Sales Officer of Volkswagen Financial Services AG. The 2017 figures for total current contracts and new contracts also include the contracts of Porsche Financial Services for the first time. The previous year's figures have not been adjusted.
As at 31.12.2017, Volkswagen Financial Services had 15,770 employees, 2.9% more than in the previous year. 6,670 of them were employed in Germany.
|New contracts worldwide (in thousands*)
||January to December 2017||January to December 2016||Change in %|
|Portfolio of current contracts worldwide (in thousands*)||31. December 2017||31. December 2016||Change in %|
Information for editors:
Volkswagen Financial Services are a business division of the Volkswagen AG group of companies and comprise Volkswagen Financial Services AG along with its associated companies, Volkswagen Bank GmbH, Porsche Financial Services, and the financial services companies in the USA, Canada, and Spain that belong directly or indirectly to Volkswagen AG – with the exception of the financial services of the Scania brand and Porsche Holding Salzburg. The key business fields embrace dealer and customer financing, leasing, the bank and insurance business, fleet management and mobility offers. Volkswagen Financial Services have a total of 15,770 employees worldwide – including 6,670 alone in Germany. Volkswagen Financial Services report total assets of around EUR 186.9 billion, an operating result of EUR 2.5 billion euros and a portfolio of around 19.7 million current contracts (as at: 31.12.2017).
Contacts for press inquiries:
Marc Siedler (Press Officer)
Phone: + 49 (0)531 / 212-87675
Stefan Voges (Head of External Communications)
Phone: + 49 (0)531 / 212-2621
Malte Krause (Press Officer)
Phone: + 49 (0)531 / 212-5574