Press Release

Dec 8, 2021

Volkswagen Financial Services expect record result – Earnings momentum in 2021 continues

Fourth quarter of 2021 even more successful than third quarter

Continued very high demand for used cars and significantly lower risk costs

Digitalization strategy being systematically pursued

Reorganization in Europe according to sales channels

Braunschweig, 8 December 2021. After an already very successful first nine months, the earnings momentum at Volkswagen Financial Services is continuing in the fourth quarter. The largest automotive financial services provider is forecasting a record result for the current financial year on the basis of the positive business development during 2021. "2021 will go down in the history of Volkswagen Financial Services. The positive development in operating profit is continuing with an excellent fourth quarter of 2021," said Lars Henner Santelmann, CEO of Volkswagen Financial Services AG. CFO Frank Fiedler added: "The rapid increase in our expected earnings is due to the enormous demand for used cars and – compared with the previous year – the significantly lower risk costs for credit and residual value risks. In addition, we are still in a favorable refinancing situation. The cost reduction programs we initiated several years ago are also paying off. Up to this year, we have already been able to achieve savings of around EUR 600 million."

Volkswagen Financial Services are also making excellent progress with the systematic implementation of their digitalization strategy. By the end of the year, around 500,000 contracts will have been concluded online, which represents double the previous year's figure.

In order to remain at the forefront in an increasingly competitive environment, Volkswagen Financial Services are reorganizing themselves in Europe. The current country-focused organization is being transformed into a new structure based on sales channels. The three sales channels serve dealers, the digital direct business, and the fleet customers. "With this organizational realignment, we are creating the prerequisites for further international growth and for reflecting and meeting more effectively the specific requirements of the respective customer groups in our organization," Santelmann explained.

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 16,558 employees worldwide – including 7,472 alone in Germany. Volkswagen Financial Services report total assets of around EUR 225.6 billion, an operating result of EUR 2.8 billion euros and a portfolio of around 21.9 million current contracts (as at: 31.12.2020).

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