75 years – an impressive age and a proud milestone! Volkswagen Financial Services celebrated this special anniversary in 2024. The birth of the company is considered to be the founding of Volkswagen Finanzierungsgesellschaft mbH in the summer of 1949, back then as a subsidiary of Volkswagenwerk GmbH. Since then, the company has experienced steady growth: through the global development and expansion of its banking, leasing, insurance and service operations, Volkswagen Financial Services laid the foundation for their continued success and are now active throughout the world. In 2023, the Volkswagen Group Mobility business division, which now encompasses the key financial services entities of the entire Volkswagen Group, achieved an operating profit of 3.25 billion euros. The number of contracts currently on the books is around 22.3 million.
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Could a long company history in fact be particular challenge? "I don't believe that traditional companies lack the ability to change. We have always evolved and adapted," the Chairman insisted. And that, he noted, is also the great strength of VW FS: "The ability to transform is at the heart of this company, one of its mainstays. That's why it's so rewarding to work here. We have a future-proof business model that we are constantly expanding, and we are embedded in a group with strong brands."
So, is 75 years of Volkswagen Financial Services a reason to celebrate? "Absolutely!" says Dr. Dirk Schlinkert. He's a historian who once helped build up the Volkswagen AG corporate archive in Wolfsburg. "Such a major anniversary brings with it the opportunity to take stock of how the company has become what it is and to consider where it's headed in the future." Above all, he suggests, it allows us to recognize the values and strengths that have made the company successful. According to Schlinkert, "It's primarily the history that makes a brand and its name unique and desirable. The longer a company's history, the more distinctive it becomes." He argues: "With brands, it's like it is with people – age is an adornment. But in the world of companies, it's pretty darn unlikely that you'll be staying in the market for long. In the financial sector too, you have to hold your own against tough competition and make a difference in the market day after day to win over the customers and convince them to buy your product."
There is another reason why VW FS are looking to the future with optimism. The company is positioning itself strategically to master the challenges in the demanding economic environment that currently prevails. This strategy is based on technological innovation, an expanded product range, international growth and a corporate culture change. In general, Christian Dahlheim sees transformation as an opportunity: "Change is also fun," he contends. Change, he says, offers the chance to learn and improve.
A key element of VW FS's future strategy is the increased use of artificial intelligence (AI). The focus here is on automating processes in order to increase efficiency and relieve employees of routine tasks. Today, AI already plays a crucial role in jobs like residual value assessment for used vehicles.
VW FS are also intent on expanding their product range. Traditionally, the core business has revolved around financing and leasing new vehicles. Recently, however, the company has significantly broadened its services. As Dahlheim points out, by introducing flexible mobility solutions such as car subscriptions and short- and long-term rentals, VW FS have bridged an important gap to meet evolving customer needs.
Alongside portfolio expansion, internationalization plays a central role in the VW FS strategy – the company accompanies the Volkswagen Group brands into international markets. While Europe remains the largest market for VW FS, Dahlheim sees considerable growth potential in Asia in particular and above all in India. Incidentally, expanding into new markets is nothing new for VW FS: the company was already tapping into promising new markets like Brazil and South Africa as early as the 1950s.
Fittingly, VW FS have restructured their international business this year. With the establishment of Volkswagen Financial Services Overseas AG, the company has made a clear separation between its European and non-European operations. The Overseas entity now consolidates all business activities outside of Europe.
This, too, is another measure designed to ensure that the Braunschweig-based company, which employs around 18,500 people in the Volkswagen Group Mobility worldwide, is fit and well set-up for at least another 75 good years!
