Press Release

Braunschweig, 15 May 2023. Volkswagen Financial Services have made a good start to the financial year 2023. Although operating profit fell to EUR 980 million due to reduced special effects, the total number of new contracts was around 4.3 percent higher year-on-year at a figure of just under two million units – driven in particular by the financing, leasing and services business. At the same time, the total number of current contracts fell to 21.5 million units, a decrease of 2.7 percent compared with the prior-year period. "We are currently experiencing the expected normalization of our business due to the higher availability of new vehicles. This is reflected in a positive development in new contracts. In addition, we are now seeing pandemic-related catch-up effects in the form of new contracts from the open order backlog," said Anthony Bandmann, Member of the Board of Volkswagen Financial Services AG responsible for Sales and Marketing. Frank Fiedler, Chief Financial Officer of Volkswagen Financial Services AG, added: "The decline in the operating profit is in line with our expectations. The dominating effects of the last two years in the form of lower risk costs and high used car revenues will not have the same impact in 2023. Furthermore, effects from derivatives are adversely affecting the quarterly result. Overall, however, we are satisfied with the first three months of the year."

The new business with used cars also continued to develop positively. The number of new contracts amounted to around 243,000 units – an increase of 16.3 percent compared with the first quarter last year. Bandmann commented: "Our focus on expanding our used vehicle business has continued to have a positive impact in the first three months of this year. We will stick to this strategy and continue to focus on marketing to our dealer partners." 

The normalization in vehicle availability is also reflected in Germany, the largest single market for Volkswagen Financial Services. The number of new contracts acquired there rose to around 544,000 in the first quarter, which corresponds to an increase of 19.6 percent year-on-year. The portfolio of current contracts, however, fell by three percent to around six million units (previous year: 6.19 million).

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 service business of the Scania brand and of Porsche Holding Salzburg. The key business fields embrace dealer and customer financing, leasing, bank and insurance activities, fleet management and mobility services. Volkswagen Financial Services have a total of 17,713 employees worldwide – including 7,692 alone in Germany. Volkswagen Financial Services report total assets of around EUR 240 billion, an operating profit of EUR 5.60 billion, and a portfolio of around 22.0 million current contracts (as at: 31.12.2022).

More information at: www.vwfs.com