Volkswagen Financial Services’ Post

👉 Volkswagen Financial Services have made a solid start to the current financial year. During the first quarter of 2024, the number of current contracts grew by 0.9 percent to 25.3 million units, while new contracts increased by 15.6 percent to just under 2.4 million units. The operating profit in the first quarter amounted to EUR 786 million, a decline of around 20 percent compared to the same period last year. 🚗 There was once again strong growth in the used vehicle marketing business. New contracts in this segment totaled 253,000 units in the first three months of the year (up 4 percent compared to the same period last year). The portfolio rose by one percent to 2.6 million units. 🔎 Read the full press release here: https://lnkd.in/eBdcU7AF #vwfs #thekeytomobility

BMW Group's financial services unit is poised to generate higher profits, return on equity and lower net charge-offs as a percentage of total loans than Mercedes-Benz AG's Mobility unit, with the latter's variance being more than 2x above the long-term trend. Our analysis suggests Mercedes Mobility may generate about €1.5 billion in operating profit this year, a decline of about 5% from last year and an almost 60% drop from 2021's peak levels as credit quality further normalizes, though with robust liquidity. https://lnkd.in/ep9PK8Hh

#Automotive_Finance Market Share Expected Huge Growth during 2023–2032 https://bit.ly/41cKhBe #Automotive finance refers to the #financing or leasing of a #vehicle, typically an #automobile or a truck, through a #financial #institution or a #dealership. Automotive finance allows individuals and #businesses to #purchase or lease vehicles without having to #pay the full purchase #price upfront. Ally Financial Group Bank of America Capital One Chase Auto Finance Daimler Financial Services México Ford Motor Company GM Financial Hitachi Capital (UK) PLC Toyota North America Volkswagen Financial Services #growth #finance #financialservices #technologies #automotivetechnology #financeandaccounting

April is poised to be a heavy month of auto issuance, potentially weighing on spreads, with more than $11 billion of maturities. High grade autos have more than $82 billion of debt maturities remaining in 2024, and we estimate perhaps an additional $15 billion to support asset growth in their captive finance units, with Toyota Motor Credit Corporation, Volkswagen Financial Services, BMW Group each having more than $9 billion before year-end. Funding costs are poised to rise as the debt rolling off has a weighted average coupon of just 2.01%, while the auto index trades at yield of more than 5%. Hyundai Motor America and Nissan Motor Corporation have fewer technical pressures, one reason why their bonds have a favorable relative value compared to other high-grade peers, based on our checklist of seven credit drivers. 1Q will be the heaviest for refinancing in 2024, with over $34 billion coming to maturity. Full details here: https://lnkd.in/e3JZ9bPt

Volkswagen his third-quarter financial results for 2024 reveal significant challenges, underscored by a sharp drop in units sold, operating profit and net income. The German automaker reported a decline in global vehicle deliveries, with units sold down by approximately 8% year-over-year. This decrease has been attributed to a range of factors, including slowing demand in core markets such as Europe and China, and ongoing competition in the electric vehicle (EV) segment. The decline in units sold has directly impacted Volkswagen’s profitability. Operating profit fell by 42% compared to Q3-2023, where net income fell by around 64% compared to the same period last year, coming in at approximately €1.6 billion. Volkswagen has been investing heavily in its transition to EVs, aiming to position itself as a leader in sustainable mobility. However, the shift has been costly, and the competitive pressures in the EV space continue to intensify with new and established players alike. As part of its long-term strategy, Volkswagen is working to improve efficiencies, enhance its digital and software capabilities, and expand its EV offerings in hopes of stabilizing growth. In response to the tough quarter, Volkswagen reiterated its commitment to investing in innovation, digital services, and market expansion. However, the Q3-2024 results underscore the balancing act the company faces: managing short-term profitability challenges while executing a significant transformation to secure its future in an evolving automotive industry. Volkswagen is considering major changes in its production capacity worldwide. #Volkswagen #stocks #investing #stockmarket

#Automotive_Finance Market Share Charges Ahead with Huge Growth 2023-2032 https://bit.ly/41cKhBe #Automotive finance refers to the #financing or leasing of a #vehicle, typically an #automobile or a truck, through a #financial #institution or a #dealership. Automotive finance allows individuals and #businesses to #purchase or lease vehicles without having to #pay the full purchase #price upfront. Ally Financial Group Bank of America Capital One Chase Auto Finance Daimler Financial Services México Ford Motor Company GM Financial Hitachi Capital (UK) PLC Toyota North America Volkswagen Financial Services #growth #finance #financialservices #technologies #automotivetechnology #financeandaccounting

New Post: The Auto Magazine - Mercedes-Benz Q3 profitability impacted by market dynamics while preserving solid cash generation - https://lnkd.in/dPbZ_9eC Mercedes-Benz Group AG generated solid sales in the third quarter despite product transitions, a challenging market environment and fierce competition, particularly in China. Continued Free Cash Flow generation from the industrial business reached €2.39 billion for Q3 (Q3 2023: €2.35 billion) supported by favourable working capital development. Net liquidity reached €28.73 billion (Q3 2023: €28.49 […]

New Post: The Auto Magazine - Mercedes-Benz Q3 profitability impacted by market dynamics while preserving solid cash generation - https://lnkd.in/d9YCjsRw Mercedes-Benz Group AG generated solid sales in the third quarter despite product transitions, a challenging market environment and fierce competition, particularly in China. Continued Free Cash Flow generation from the industrial business reached €2.39 billion for Q3 (Q3 2023: €2.35 billion) supported by favourable working capital development. Net liquidity reached €28.73 billion (Q3 2023: €28.49 […]

The Road Ahead: Predictions for the Automotive Finance Industry in 2025. Auto lease-backed securities (ABS) are seeing heightened risk due to EV depreciation. By 2025, we expect >>>>> Want more subscribe

New Post: The Auto Magazine - Volkswagen Group achieves robust annual results for 2023, with a strong fourth quarter - https://lnkd.in/eVvp8dif Volkswagen Group achieved robust financial results in 2023. This was driven by a strong fourth quarter, with sales revenue of EUR 87 billion and an increase in operating profit of more then a quarter compared to the previous year. During the year, the Group made further progress with the implementation of its strategy and systematically pushed ahead with its restructuring. The focus was on customer-oriented products and compelling design, in addition to the strengthening of the regions, particularly China and North America. By introducing performance programs in all divisions, the Group has made notable strides towards a sustainable increase in […]