Volkswagen Financial Services report stable contract portfolio
- Half-year operating result totals EUR 1.16 billion (− 9.8 percent)
- Current portfolio grows to over 21.3 million contracts (+ 1.8 percent)
- New contracts during first half-year amount to 3.4 million (− 17.4 percent)
To further safeguard their business despite the repercussions of the COVID-19 pandemic, Volkswagen Financial Services will intensively pursue their existing cost reduction and efficiency program, Operational Excellence (OPEX), in addition to implementing numerous stabilization measures, such as the sales program already launched jointly with the Volkswagen Group brands.
"The global COVID-19 pandemic has severely hindered our business during the first half of 2020 and we are still facing major uncertainties in the second half of the year too. We therefore expect the operating result of the Volkswagen Financial Services division at the end of the year to be significantly below the previous year's level," says Fiedler.
In Germany, the largest single market for Volkswagen Financial Services, the portfolio of current contracts as at 30 June 2020 totaled almost 6.36 million units (previous year: 6.30 million; plus 1.0 percent). The number of new contracts, however, fell 17.0 percent during the same half-year period to almost 993,000 units (previous year: 1.2 million units).
|Portfolio of current contracts worldwide
|at as 30 June 2020||at as June 2019||Change in %|
|New contracts worldwide
|January to June 2020
||January to June 2019||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 and Canada 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 16,571 employees worldwide – including 7,414 alone in Germany. Volkswagen Financial Services report total assets of around EUR 223.5 billion, an operating result of EUR 2.96 billion and a portfolio of around 21.5 million current contracts (as at: 31.12.2019).