VWFS growth stumbles in Mexico and Turkey
Building on its record results for 2018, Volkswagen Financial Services (VWFS) continued its streak of growth in the first quarter of this year.
The contract portfolio increased by 5.5% versus Q1 2018 to more than 20.5 million units. These are, per category:
- 6.5 million financing contracts (+6%)
- 5.6 million insurance contracts (+3.8%)
- 4.4 million leasing contracts (+7%)
- 4.1 million service contracts (+5.8%)
The volume of new contracts remained stable, at the high level of 1.95 million units. These are:
- 586,000 new financing contracts (-4.4%)
- 514,000 new insurance contracts (-2.5%)
- 458,000 new leasing contracts (+4.3%)
- 392,000 new service contracts (+5.9%)
The negative results in financing and insurance were mainly the result of difficulties in the Turkish and Mexican markets. The main German market continued to grow, to 547,000 new contracts (+1.7%) and a total of
6.09 million contracts overall (+2.2%).
“Increasing economic challenges in some parts of the world were compensated by strong growth elsewhere,” observes Lars Henner Santelmann (pictured), Chairman of the Board of Management at VWFS. “This confirms the importance of our broad global presence, which we have successfully expanded in recent years.”