Volkswagen Financial Services report stable contract portfolio
Under the conditions imposed by the global COVID-19 pandemic, Volkswagen Financial Services achieved an operating result of EUR 1.16 billion during the first six months of 2020 (previous year: EUR 1.28 billion; -9.8%).
While the portfolio of current contracts had increased by the end of June this year compared to the respective point in time last year to reach more than 21.3 million units (+1.8%), the number of new contracts acquired in the first half-year declined year-on-year to 3.4 million units (-17.4%).
"As a result of the COVID-19 pandemic, we have had to accept a substantial drop in new contracts during the first half of the year. In addition, the operating result is adversely impacted by higher risk costs for credit and residual value risks, which are affecting the entire portfolio," says Frank Fiedler, CFO of Volkswagen Financial Services AG.
To further safeguard their business despite the repercussions of the COVID-19 pandemic, Volkswagen Financial Services will intensively pursue their existing cost reduction and efficiency programme, Operational Excellence (OPEX), in addition to implementing numerous stabilisation measures, such as the sales programme already launched jointly with the Volkswagen Group brands.
Image: Frank Fiedler, CFO, Volkswagen Financial Services (copyright: Volkswagen Financial Services)