VW Financial Service Korea is striding in the area of consumer financing services for imported cars. Covering not only the existing VW and Audi but also Ducati and MAN truck, their business is projecting a sharp increase.
VW Financial Service Korea, a subsidiary of German VW Financial Service, commenced their business with a starting capital of 24 billion won. For the first year, 4th quarter of 2011, the operational profit stood only at 1.6 billion won, but hiked to 58.3 billion won in 2012, and 188.7 billion won in 2013, and then 336.5 billion won in 2014, renewing record every year.
Their operational profit, equivalent to the revenue for the auto financing company, has already overtaken RCI or Toyota Financial Service Korea last year, and is chasing Mercedes-Benz Financial Service Korea.
Such a rise is in line with the growth of VW and Audi Brands in Korea. VW Financial Service Korea is planning to expand their services to Bentley on top of Ducati and MAN truck this year.
Such an aggressive expansion of their business from the existing passenger car sector to the commercial vehicles and motor cycles is mostly owing to President Hans-Peter Seitz who took office newly in January 2015. He was CFO of MAN financial service in both Australia and Germany.
President Hans-Peter Seitz mentioned that “All the brands under the umbrella of VW Group will be taken into consideration for cooperation,” and said “We are always open and ready for business collaboration with other brands.” In fact, VW Financial Service Korea is trying to get into a business of auto financing service with Lamborghini and Porsche.
When such a business practice will be kept in future, Mercedes-Benz Financial Service Korea as well as BMW Financial Service Korea will grow in tandem.
By the way, exorbitant profits by auto financing companies are fingered in the market, as they are making excessive earnings with low interest finances.