nextprevious
Annual Report

Volkswagen Financial Services

Award for environmentally compatible fleet management

Volkswagen Financial Services reinforced its pioneering role in sustainable fleet management and was awarded the “ÖkoGlobe 2010”. By offering innovative products, Volkswagen Financial Services ensures peace-of-mind mobility for a growing number of customers around the world.

Volkswagen Financial Services (logo)

STRUCTURE OF VOLKSWAGEN FINANCIAL SERVICES

Volkswagen Financial Services’ portfolio of services includes dealer and customer financing, leasing, banking and insurance activities, and fleet management. The global financial services activities of the Volkswagen Group, with the exception of the Scania brand, are coordinated by Volkswagen Financial Services AG. The principal companies in this division include Volkswagen Bank GmbH, Volkswagen Leasing GmbH and Volkswagen Versicherungsdienst GmbH in Europe and VW CREDIT, INC. in North America.

BUSINESS DEVELOPMENT

With its innovative products along the automotive value chain, Volkswagen Financial Services once again made a significant contribution to the Volkswagen Group’s earnings and sales situation in fiscal year 2010.

The “Umwelt-Programm” (Environmental Program) fleet program, which Volkswagen Leasing GmbH initiated in cooperation with Naturschutzbund Deutschland (NABU – Nature and Biodiversity Conservation Union), combines intelligent economic and ecological aspects, allowing fleet operators to lease the most efficient and lowest-emission models available.

In September 2010, this innovative program received the “ÖkoGlobe 2010” international environmental award in the “Environmentally Compatible Fleet” category and, following its success in Germany, is to be used as a model for future international projects.

At the beginning of 2010, there was already another new development in the spotlight: since then, the Audi brand has offered the “Systematic Mobility” business customer program to self-employed people such as lawyers, physicians, or craftsmen. This allows these customers to include selected service components in their leasing package and to pay a fixed monthly fee that also covers costs of regular servicing, wear and tear, and vehicle roadworthiness tests.

In November 2010, following the success of the credit protection insurance in the previous year, Volkswagen Financial Services AG launched the KreditschutzbriefPlus, which ensures continued mobility in the event of unemployment or inability to work. The comprehensive package is designed to meet the needs of customers who wish to financially secure their individual mobility.

Volkswagen Financial Services AG is continuing the systematic internationalization of its business activities. In July 2010, it established a subsidiary in South Korea, Volkswagen Financial Services Korea Co., Ltd. The new company will offer financial services for the Volkswagen Passenger Cars, Audi and Bentley brands. In August 2010, another subsidiary, Volkswagen Bank RUS, obtained a banking license from the Russian Central Bank. This company offers financial services for Volkswagen Passenger Cars, Audi, Škoda, SEAT and Volkswagen Commercial Vehicles brand dealerships.

Volkswagen Bank direct is also enjoying steady growth. Having been launched in 1990 as the first automotive direct bank, it is now one of the leading direct banks in Germany.

In 2010, Volkswagen Bank direct celebrated its 20th anniversary with approximately one million customers and €20 billion in deposits. This successful model is to be transferred to other markets in future.

Volkswagen Financial Services received a series of prominent awards in 2010 in addition to the ÖkoGlobe. For instance, Volkswagen Bank GmbH was voted “Best Brand” in the “Passenger Car Banks” category by readers of specialist journal “auto motor und sport” in March for the fourth consecutive year. Furthermore, Volkswagen Leasing GmbH won the “Flotten-Award” presented by specialist journal “Autoflotte” in the “Leasing and Fleet Management” category in April 2010 for the fifth consecutive year.

A total of 2.7 million new finance, leasing and insurance contracts were signed in fiscal year 2010, 7.6% higher than in 2009. The prior-year figures were adjusted to reflect the current definition. The number of contracts in the Customer Financing/Leasing area increased by 2.2% to 5.2 million as of December 31, 2010. The total number of contracts in the Service/Insurance area rose to 2.2 million, up 4.5% on the previous year. Financed or leased vehicles accounted for 34.9% (32.9%) of total Group delivery volumes based on unchanged credit criteria. Volkswagen Bank GmbH continued its positive performance in the direct banking business in 2010. The number of accounts managed by Volkswagen Bank direct was 1,380,164 at December 31, 2010, 2.0% higher than at the end of 2009.

In the fleet management business, the joint venture company LeasePlan Corporation N.V. recorded a total of 1.3 million vehicle contracts at the end of 2010; this was 1.2% fewer than on December 31, 2009.

At the close of the fiscal year, Volkswagen Financial Services employed a total of 7,741 people.


Volkswagen Financial Services AG's Conference and Finance Center (photo)

Volkswagen Financial Services AG's Conference and Finance Center

SALES REVENUE AND EARNINGS

Volkswagen Financial Services generated sales revenue of €13.6 billion in 2010; this is an increase of 16.5% on the previous year. Thanks to the improved economic conditions, operating profit increased to €932 million (€606 million). This means that Volkswagen Financial Services once again made a significant contribution to the Volkswagen Group’s earnings.

53.7 %

INCREASE IN OPERATING PROFIT

  Download

VOLKSWAGEN FINANCIAL SERVICES

 

 

 

 

2010

 

2009

 

%

1

Excluding provisions and deferred tax liabilities.

2

Profit before tax as a % of average equity (continuing operations).

3

Liabilities as a % of equity.

Number of contracts

 

thousands

 

7,430

 

7,223

 

+2.9

Customer financing

 

 

 

3,660

 

3,567

 

+2.6

Leasing

 

 

 

1,524

 

1,508

 

+1.1

Service/Insurance

 

 

 

2,246

 

2,148

 

+4.5

Receivables from

 

€ million

 

 

 

 

 

 

Customer financing

 

 

 

39,152

 

33,823

 

+15.8

Dealer financing

 

 

 

10,106

 

9,639

 

+4.8

Leasing agreements

 

 

 

13,764

 

14,069

 

–2.2

Direct banking deposits

 

€ million

 

18,924

 

18,309

 

+3.4

Total equity and liabilities

 

€ million

 

83,764

 

76,431

 

+9.6

Equity

 

€ million

 

8,700

 

7,748

 

+12.3

Liabilities1

 

€ million

 

72,076

 

66,180

 

+8.9

Equity ratio

 

%

 

10.4

 

10.1

 

 

Return on equity before tax2

 

%

 

13.3

 

8.5

 

 

Leverage3

 

 

 

8.3

 

8.5

 

 

Operating profit

 

€ million

 

932

 

606

 

+53.7

Profit before tax

 

€ million

 

1,096

 

673

 

+62.9

Employees at Dec. 31

 

 

 

7,741

 

7,717

 

+0.3

FURTHER INFORMATION
www.vwfsag.com

top
nextprevious
Deutsch | English
Download Manager
Collect files for a combined download.
Compare Key Figures
Create your personal overview of important key figures.