Volkswagen FS division reports operating profit in H1 2009

Volkswagen's financial services division which includes its leasing business recorded an operating profit of 321 million in the first half of 2009, compared with 523 million last year. The finance arm of Europes largest carmaker also generated sales revenue of 6.3 billion, 18 percent more than in the previous year, which according to the company was primarily due to higher proceeds from the sale of leased vehicles taken back.

By Antonio Fabrizio

Volkswagen’s financial services division – which includes its
leasing business – recorded an operating profit of €321 million in
the first half of 2009, compared with €523 million last year.

The finance arm of Europe’s largest carmaker also generated
sales revenue of €6.3 billion, 18 percent more than in the previous
year, which according to the company was primarily due to higher
proceeds from the sale of leased vehicles taken back.

In particular, in the first six months of 2009 the rental and
leasing business was €3.52 billion, compared with €2.97
billion last year.

In the same period, 1.6 million new finance, leasing and
insurance contracts were signed, 23 percent more than in the first
half of 2008.

The results include the financing of the company’s car and light
commercial divisions, as well as Scania, the Swedish truck-maker in
which last year VW increased its interest in share capital to 49.29
percent.

The company’s CV division sold 135,000 vehicles in the first
half of 2009, 45 percent fewer than last year.

In Q1 2009, VW sold its Brazilian CV business to MAN Group, and
the group’s operating profit results include the proceeds of around
€600 million from the sale.

Antonio Fabrizio