Volkswagen Financial Services secure their growth path with a new organisational set-up
• New and more efficient structures
• Strengthening Braunschweig as financial centre
Volkswagen Financial Services AG has initiated a corporate restructuring. The Supervisory Board has approved its implementation today. The plan is to bundle the credit and deposit business within the European Economic Area (EEA) in Volkswagen Bank GmbH, which will then become a wholly owned subsidiary of Volkswagen AG. All other activities will remain with Volkswagen Financial Services AG, which is also a direct subsidiary of Volkswagen AG. Through a new company, Volkswagen Financial Services Digital Solutions GmbH, selected and innovative services will be developed and provided to its parent companies Volkswagen Bank GmbH and Volkswagen Financial Services AG. The new structure is still subject to approval by the Supervisory Board of Volkswagen AG.
"With this strategic realignment, we make the structures of Volkswagen Financial Services more efficient, strengthen Braunschweig as a financial centre, and start a growth offensive," explains Lars Henner Santelmann, CEO of Volkswagen Financial Services AG. He adds: "Our target of 30 million contracts by the year 2025 is highly ambitious. With the new structure, we are securing the growth path of our strategy."
As a result of the restructuring, the European credit and deposit business will be separated from the other financial service activities. As a consequence, the supervision of the European Central Bank (ECB) will be limited to Volkswagen Bank GmbH and its credit and deposit business in the EEA.
"With this strategic repositioning, we are providing greater transparency and clarity for the supervisory authorities. We enhance flexibility and leverage efficiencies to further strengthen our successful business model," says Dr. Michael Reinhart, Management Board member of Volkswagen Financial Services AG with responsibility for Risk Management and Credit Analysis. He continues: "In addition, we are also creating financial scope for capital-efficient growth in strategically important business fields." The existing collective labor agreements will not be changed. The companies will be headquartered in Braunschweig. The project is expected to be completed in 2017.