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July 29, 2011updated 12 Apr 2017 4:12pm

Volkswagen FS helps group to leap in profits

Volkswagen Financial Services (VWFS) lifted its first half operating profit by 53% year-on-year to 553m as parent group Volkswagen more than doubled its profit. The German car manufacturers first half results show the finance and leasing arm contributed to strong growth over the period. VWFS signed 1.1 million new finance, leasing and insurance contracts in Europe, a 20% increase on the previous year, and 1.5 million worldwide from 1 January to 30 June 2011.

By Grant Collinson

Volkswagen Financial Services (VWFS) lifted its first half operating profit by 53% year-on-year to €553m as parent group Volkswagen more than doubled its profit.

The German car manufacturer’s first half results show the finance and leasing arm contributed to strong growth over the period.

VWFS signed 1.1 million new finance, leasing and insurance contracts in Europe, a 20% increase on the previous year, and 1.5 million worldwide from 1 January to 30 June 2011.  

Finance and leasing contracts represented 68% of the division’s total business at 5.4 million contracts globally and leased or financed vehicles represented 35% of group deliveries worldwide.

The results show sales revenue from VWFS was up 24% to €8.4bn for the first six months to the end of June and the division’s total assets grew 8.4% from €87.9bn to €95.2bn.

Volkswagen Group recorded an operating profit of €6.1bn compared with €2.8bn for the first half of 2010.

Prof. Dr. Martin Winterkorn, chairman of the Board of Management of Volkswagen said the business is confident for the remaining six months of 2011.

He said: “Volkswagen is robust enough to remain in the fast lane. Our expertise in technology and design allows us to provide a diverse, attractive and environmentally friendly range of products to meet our customers’ desires and needs.”

grant.collinson@vrlfinancialnews.com

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