Strong growth and a
significant price for VW SF

Volkswagen Financial Services have been operating in Denmark together with their joint venture partner Semler for around three and a half years. And now, with the acquisition of the Danish multi-brand fleet services provider Opendo, the VW FS subsidiary is entering the commercial leasing and fleet management business there for the first time. What's more, Volkswagen Semler Finans Danmark (VWSF) has recently been honored with the prestigious "Børsen Gazelle" award as a result of the company's highly successful growth journey. High time to take stock of the progress so far.

By the end of 2024, the portfolio will encompass around 113,000 units, spanning leasing, vehicle financing, insurance and maintenance contracts. That's an impressive increase of around 38 percent over the previous year. Within a very short time, VWSF has risen to become the number one in the Danish private leasing market and boasts the largest vehicle portfolio in Denmark's passenger car segment.

The planned expansion of VWSF is based on the local "Northstar" strategy, which takes into account both the VW FS strategy MOBILITY2030 and the "Future Drive 2030" strategy plan of joint venture partner Semler. "The fact that our two shareholders have a very similar mindset is something that helps us not just in this area," noted Rene Sterregaard, Managing Director Front Office. In the light of the very positive business performance, VWSF had to adjust its local growth strategy after only twelve months to align with the actual growth trajectory achieved.

The dizzying market rise of electromobility in the land of the Vikings is fueling the success of the Danish VW FS business. According to Denmark's umbrella organization for the mobility sector (mobility.dk), around 60 percent of newly registered vehicles in 2024 were fully electric. This figure is expected to surge further to 75 percent in 2025. Today, one in ten vehicles on Danish roads is already electric – by 2029, it is projected to be one in two. This rapid growth is primarily due to the Danish government's consistent and long-term efforts to decarbonize private transport. The progressive vehicle tax system, in particular, ensures that e-vehicles are significantly cheaper than combustion engine vehicles. In addition, appropriate investments were made in charging infrastructure at an early stage. This is also confirmed by the latest EV Index from technology and mapping services provider HERE. According to these index rankings, Denmark has the best-developed charging network in Europe (see HERE-SBD EV Index 2024 | EV Infrastructure). Moreover, the Danes are very open to leasing, which is also reflected in VWSF's business performance. Compared to the previous year, operating leasing is expected to grow by over 60 percent.

"With Opendo, we are now fully equipped to enter the commercial leasing market in earnest and establish ourselves at the top," said Tinz. He added: "We now have multi-brand capability and can cover a wide range of customer needs, from small businesses to large vehicle fleets. At the same time, we can scale our Danish business more quickly and further enhance our relevance in the market."

In addition to expanding the fleet business, the focus in the coming years will be on further implementing the local growth strategy. The Danish colleagues have set themselves ambitious targets. The aim is to achieve an operating result of one billion Danish kroner by 2032. That would be a six-fold increase compared to the status quo. "We firmly believe that the Danish market and our growth trajectory will support this increase," Tinz insisted. The used car business, which is already strong in Denmark, plays an important role in this growth. As at the end of March 2024, around 33 percent of the VWSF portfolio consisted of used vehicles. Tinz is certain: "The successful go-live of #One.Remarketing in October was a great foretaste of the potential that exists. I am confident that we can leverage this potential, especially given the great partnership with our colleagues at Vehicle Trading International (VTI)."

Optimizing customer service and customer satisfaction will also be a priority in the coming months. Sterregaard explained: "Due to our rapid growth, we are unfortunately not at the level we would like to be at the moment. To address this deficit, we have hired a full-time 'Customer Happiness Officer' to critically scrutinize and improve all customer-facing processes." Additionally, efforts will also concentrate on improving the CRM systems, expanding digital solutions and fostering direct customer dialog, including monthly reviews of customer feedback.

One thing is already clear today: the market entry in Denmark is already a resounding success story.