Volkswagen Financial Services AG and WesBank
Joint Venture announcement: Volkswagen Financial Services AG and WesBank
Johannesburg, South Africa, March 10th, 2014. Volkswagen Financial Services South Africa (PTY) Limited, a joint venture between Volkswagen Financial Services AG and WesBank, launched operations on March 1st, 2014.
German Volkswagen Financial Services AG owns 51% of the shares of the new finance provider. Through its business division WesBank, which operates within the vehicle and asset finance business, FirstRand Limited holds 49%. The range of products and services provided by Volkswagen Financial Services South Africa includes:
- traditional instalment sale finance
- dealer funding
- automotive insurance
- fleet management (forthcoming).
“Entering the South African market is consistent with Volkswagen Financial Services’ pursuit of international growth”, said Frank Witter, CEO of Volkswagen Financial Services AG: "With WesBank, specialists in the field of vehicle and asset financing, we are very pleased to have a partner at our side with so many years of experience and knowledge of the South African market."
Chris de Kock, CEO of WesBank, is confident that the new alliance will be a success: "We are combining the best of both worlds – the local expertise of WesBank and the international experience of Volkswagen Financial Services. The new company is intended to be the undisputed powerhouse for automotive financial services within the Volkswagen and Audi dealer networks in South Africa."
The newly established joint venture is a further development of the cooperation model with WesBank that has been in place up to now, and strengthens the link between the manufacturer and financial service provider through an even closer and more intensive form of collaboration.
"We aim to promote the sales of Group brands by offering attractive products and services and to increase our current finance penetration rate. The finance penetration is to be increased through individually tailored offers for our customers. We will also reinforce the relationship between the dealer and customer," explained Patrik Riese, Managing Director of Volkswagen Financial Services South Africa with responsibility for Sales and Marketing. He added: "A first step in this direction is our offer of fully comprehensive cover in the form of a unit price insurance policy (flat-rate insurance) for selected Audi and Volkswagen models." The flat rate model provides a fixed insurance rate irrespective of the driver's risk rating or claims history.
Within South Africa, the Volkswagen Group SA deals with Volkswagen Passenger Cars, Volkswagen Commercial Vehicles and the Audi brand. A total of 111,722 units in the total vehicle market were sold during the 2013 calendar year. This makes South Africa one of the top 20 sales markets globally for the Volkswagen Group.
Information for editors
Volkswagen Financial Services are responsible for the worldwide financial service activities of the Volkswagen Group – with the exception of the brands Scania, Porsche and Porsche Holding Salzburg. The key business fields embrace dealer and customer financing, leasing, the banking and insurance business, fleet management and mobility offers. Volkswagen Financial Services have a total of 10,133 employees worldwide – including 5,259 alone in Germany (as at: 31.12.2012). The 2012 Annual Report of Volkswagen AG reported total assets for Volkswagen Financial Services of around EUR 111.1 billion, an operating result of EUR 1.41 billion, and a portfolio of around 9.6 million current contracts.
WesBank is acknowledged as the leader in Vehicle and Asset Finance with over 40 years experience and R115 billion in assets currently under management. WesBank focuses on providing secured finance to both the retail and corporate markets, as well as related services such as insurance, fleet management and full maintenance rental. WesBank is the partner of choice for over 60 leading international brands in fields such as original equipment manufacturers (OEMs), insurance providers and oil companies. WesBank is a global company with successful operations throughout Africa as well as the UK.