VW seeks record profit for its finance unit this year image

Volkswagen’s finance arm mulls 2015 operating profit above last year’s record-breaking tally of 1.7 billion euros ($1.80 billion), according to comments made by the division’s chief executive officer, Frank Witter.

Volkswagen AG is currently the largest automaker in Europe and also the second-biggest in the world, so naturally its finance division is just as strong, with VW Financial Services handling all dealer and customer financing services, together with he German group’s banking and leasing business. Its operations cover the entire company, save for the Scania and Porsche brands and the Porsche Holding Salzburg distributor. “We kept growing in a profitable way thanks to close cooperation with group brands, expansion to new markets and the launch of new products in existing markets,” commented the CEO during the firm’s annual press conference in Frankfurt.

The executive added that VW’s finance arm also managed to lift its tally for the portfolio of credit, leasing and insurance contracts by 16 percent last year to a new record of 12.4 million contracts.

Wolfsburg-based parent VW AG last week reported the details on the positive individual brands’ financial results after announcing overall forecast-topping group results for last year, thanks to increased demand for the luxury divisions Audi and Porsche. Following up, VW Financial Services said operating profit rose 5.5 percent to 1.7 billion euros from 1.61 billion in 2013 and pre-tax earnings edged 2.1 percent to 1.75 billion euros for the same period. The division’s insurance and servicing operations lifted the results thanks to a jump in contracts to a 4.55 million total, the chief executive added.

Via Reuters