Press Release

Braunschweig, 11 November 2024. Volkswagen Group Mobility achieved positive growth in new contracts and its contract portfolio again during the third quarter of the current fiscal year. The number of newly concluded contracts rose by 5.4 percent compared to the same nine-month period last year to 7.5 million units. The contract portfolio also grew by 2.6 percent to now exceed 26 million units for the first time. By contrast, the operating profit after nine months stands at EUR 2.1 billion, which represents a decline of nearly 17 percent year-on-year. Accordingly, Volkswagen Group Mobility confirms the earnings forecast for the current fiscal year adjusted in September and expects operating profit for 2024 to be noticeably below the previous year's level.

Dr. Christian Dahlheim, Chairman of the Board of Management of Volkswagen Financial Services AG, commented: "The still very challenging market environment means that we too are keeping a close eye on our cost structure and continuing to work rigorously on our efficiency program. Regardless of this, our growth in new and existing contracts shows that we can continue to convince our customers of our tailored mobility and service products."

Dr. Ingrun-Ulla Bartölke, Chief Financial Officer of Volkswagen Financial Services AG, explained: "Several factors are impacting our operating result. In addition to the difficult business environment outside of Europe, factors such as the inverted yield curve and increased risk costs, as expected, are also putting pressure on margins. In addition, the normalization in the used car business is continuing, so we are recording declining, but still positive, marketing results."

Kai Vogler, CEO of Volkswagen Financial Services Overseas AG, added: "While the special effects from the deconsolidation of our already terminated business activities in Russia had a negative impact on earnings in the first half of the year, our markets have performed in line with expectations. In Mexico and Brazil, the markets have even recorded a highly positive development during the first nine months of the current fiscal year. The used car business in Brazil enjoyed particularly high growth, with the portfolio increasing by 39 percent. This shows that our used car strategy also enables us to remain involved with the customer and the vehicle for longer outside of Europe as well."

Positive trends continue in penetration rates and used cars 

Penetration rates, i.e. the percentage of all new Volkswagen Group vehicles that are leased and financed through Volkswagen Group Mobility companies, continue to develop positively. In the North America region (USA and Canada), for example, penetration rates were increased by more than nine percent thanks to close cooperation with the brands and dealer partners. The development in the all-electric vehicles segment in Europe, with a penetration rate of over 50 percent, particularly reflects the continuing dynamic trend of "using" rather than "owning" vehicles. Leasing has become the dominant method of acquisition for electric vehicles, playing a crucial role in the market expansion of electromobility – nowadays in the private customer segment as well.

In the used car business, Volkswagen Group Mobility also recorded a nine percent increase in new contracts overall. In the portfolio business, the French (+16 percent) and Brazilian (+39 percent) markets stood out during the third quarter of 2024.

Volkswagen Bank continues to grow – deposit volume at record high

Since the structural reorganization of Volkswagen Group Mobility in summer 2024, the deposit business of Volkswagen Bank can also be used to refinance the rapidly growing leasing business. Following an increase of around EUR 15 billion in the first six months of the current year, around EUR 2 billion in additional customer deposits were generated from July to September. The deposit volume now amounts to around EUR 54 billion, which corresponds to an increase of 64.1 percent compared to the previous year.

The total assets of the Volkswagen Group Mobility companies decreased to EUR 281 billion (-1.54 percent) as at 30 September 2024 due to the scheduled repayment of central bank tender transactions.

* Figures rounded

Volkswagen Group Mobility is a business division of the Volkswagen AG group of companies and comprises Volkswagen Financial Services AG along with its subsidiaries and affiliates (e.g. Volkswagen Bank GmbH and Volkswagen Leasing GmbH), Volkswagen Financial Services Overseas AG, Porsche Financial Services GmbH, Volkswagen Credit Inc. (USA), and Volkswagen Credit Canada Inc. – with the exception of TRATON Financial Services and Porsche Holding Salzburg. The key business fields embrace dealer and customer financing, leasing, bank and insurance activities, fleet management, and mobility services. The companies of Volkswagen Group Mobility have a total of 18,171 employees worldwide – including 7,691 alone in Germany. Volkswagen Group Mobility reports total assets of around EUR 268 billion, an operating profit of EUR 3.25 billion, and a portfolio of around 22.2 million current contracts (as at 31.12.2023).

The Board of Management of Volkswagen Financial Services AG reports on the Volkswagen Group Mobility business division for Volkswagen AG as part of the financial reporting.

More information at www.vwfs.com.