Reorganization of Volkswagen Financial Services
On 1st March 2023, the management board of Volkswagen Financial Services Aktiengesellschaft and the board of managing directors of Volkswagen Bank GmbH resolved to initiate a reorganization of the subgroups of Volkswagen Financial Services Aktiengesellschaft and Volkswagen Bank GmbH.
To implement the planned reorganization, the majority of the German and European companies (including the respective subsidiaries and participations) as well as other assets, liabilities and further legal relationships of Volkswagen Financial Services Aktiengesellschaft and Volkswagen Bank GmbH (including its participations) shall be combined and consolidated under a new financial holding company supervised by the ECB. The shares in Volkswagen Leasing GmbH shall be completely transferred to Volkswagen Bank GmbH. The current Volkswagen Financial Services Aktiengesellschaft shall act as a holding company for non-European companies. In the context of the planned measures, existing control and profit and loss transfer agreements shall also be adjusted and extended to the new financial holding company. Both the new financial holding company and the holding company for non-European companies will continue to be an integral part of the Volkswagen Group, but with different geographic business focus.
By bundling its activities in a European financial services provider, the refinancing strength of Volkswagen Bank GmbH can best be used for the growth of the leasing business in Germany and Europe. The Volkswagen Group is thus laying the foundation for the successful implementation of the Group's strategy in the mobility sector, taking into account the regulatory framework.
The reorganization was implemented on July 1st, 2024.
Ad-Hoc-Release
Notice Concerning Notes
FAQ
1. Please describe the core elements of the new set up of Volkswagen Financial Services.
- Establishment of a new “Volkswagen Financial Services AG” financial holding for the European financial services activities including the UK, which is supervised by the ECB.
- Volkswagen Bank GmbH and Volkswagen Leasing GmbH are integrated and consolidated within this new European financial holding.
- Renaming of the existing Volkswagen Financial Services AG into “Volkswagen Financial Services Overseas AG”, which is the holding company of the non-European business activities.
- The new structure was implemented by July 1st, 2024.
2. What are the reasons and goals for the restructuring of Volkswagen Financial Services?
- The new structure paves the way for a successful implementation of the Volkswagen group NEW AUTO strategy in the field of mobility services.
- In the Volkswagen Financial Services strategy MOBILITY2030 we formulated an ambitious growth path.
- For this growth we are enhancing our sustainable and competitive refinancing structure e.g. by usage of Volkswagen Bank GmbH’s broad range of funding instruments to fund the planned growth path of the European business.
- By implementing this new concept of two holding companies – one for the European and the other for the overseas financial services business – we are establishing a sustainable group setup and governance structures, considering the changing regulatory environment.
- Both holding companies are 100% affiliates of Volkswagen AG and remain integral and strategically important parts of the Volkswagen Group but with different geographic business focus.
- In the context of the reorganization, the existing domination and profit and loss transfer agreements are adapted accordingly and extended to the new financial holding company.
3. When will the project be implemented?
The new structure was implemented by July 1st, 2024.
4. Will the credit rating of Volkswagen Bank GmbH and Volkswagen Financial Services AG change?
The rating agencies confirmed the existing ratings as of July 1st.
5. Will there be a Profit and Loss Transfer Agreement between Volkswagen AG and VWFSAG Overseas?
In the context of the realignment the existing domination and profit and loss transfer agreements are adapted accordingly and extended to the new financial holding company. There will be a Profit and Loss Transfer Agreement with the new Volkswagen Financial Services AG as well as the Volkswagen Financial Services Overseas with Volkswagen AG.
