Portfolio delinquency, struggling customers and credit
provisioning continued to impact results for Volvo’s captive arm,
although the company said it is starting to see “early signs of
stabilisation”.
The Swedish truck maker announced that in Q3 2009 it posted an
operating loss of SEK3.3 billion (€320 million), which is less than
analysts had expected.
In line with the parent company, Volvo Financial Services reported
a SEK3 million operating loss, but added that activities undertaken
to reduce loss frequency and severity were helping stabilise
financial results.
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During the quarter, credit provision expenses amounted to SEK418
million (compared to SEK124 million in the same period last year),
while write-offs of SEK628 million were recorded.
New financing volume was SEK6.3 billion, down from the SEK10.9
billion figure recorded in Q3 2008.
In total, 5,480 new Volvo Group units were financed during the
quarter, halving the 11,715 units financed in Q3 2008.
The average penetration rate decreased from 28 percent to 23
percent.
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