20 Jan 22
News

Volkswagen Financial Services partners with Icare for multibrand maintenance

Volkswagen Financial Services (VWFS) and Icare SA have announced this morning that they will be establishing a joint venture. Icare SA is a subsidiary of BNP Paribas Cardif, a global specialist in personal insurance and itself part of BNP Paribas Group. 

Icare SA specialises in extended warranties and maintenance for vehicles. The joint venture, owned 51% by VWFS and 49% by Icare, will be based in France. It will focus on offering maintenance products via Icare SA to VWFS customers for brands outside the VW Group – thus strengthening the European fleet business of VWFS.

Leading fleet provider

“We can only achieve our goal of becoming the world’s leading fleet provider by expanding our multi-brand capability, since many fleet customers use different makes of vehicles within their fleets”, says Anthony Bandmann, Management Board Member of VWFS responsible for Sales & Marketing. 

As an illustration of the importance of maintenance products (and services) for full-service leasing: in Germany, around 80% of fleet customer leasing contracts include a maintenance contract. 

“The joint venture enables us to steadily expand our network of workshops”, says Bandmann. “Additionally, we anticipate that the close collaboration with our joint venture partner will also enable us to develop expertise in the multi-brand business. That is another key to becoming the global number one in the fleet business.”

The establishment of the joint venture is subject to approval by antitrust authorities. The amount of the investment has not been disclosed. 

Insurance solutions

In addition to this deal, VWFS and BNP Paribas Cardif have also announced that they are renewing their long-standing worldwide partnership agreement for providing insurance solutions in 13 European countries (Belgium, Czechia, France, Germany, Italy, Norway, Poland, Portugal, Russia, Slovakia, Spain, Sweden, Turkey), plus two in Latin America (Brazil, Mexico) and one in Asia (South Korea).

“Our partnership will continue to make insurance more accessible for customers, thanks in part to an optimised digital experience. And it takes on an extra dimension with the establishment of our new joint venture”, says Jean Bertrand Laroche, Deputy CEO of BNP Paribas Cardif for International Markets.  

Image: VWFS

Authored by: Frank Jacobs