Volkswagen Group Mobility posts strong third-quarter growth

Volkswagen Group Mobility demonstrated a solid performance in the third quarter of 2024, fuelled by growth in new contracts and its overall contract portfolio. The company reported a 5.4 percent increase in newly concluded contracts, amounting to over 7.5 million units for the year thus far. Its total contract portfolio also surpassed 26 million units for the first time, reflecting a 2.6 percent growth compared to the previous year.

However, operating profit for the first nine months stood at €2.1 billion, marking a decline of 16.9 percent year-over-year. The group confirmed its September-adjusted earnings forecast for the year, anticipating that 2024’s operating profit will fall below the 2023 levels.

Dr. Christian Dahlheim, Chairman of the Board of Management of Volkswagen Financial Services AG, commented:

“The still very challenging market environment means that we too are keeping a close eye on our cost structure and continuing to work rigorously on our efficiency program. Regardless of this, our growth in new and existing contracts shows that we can continue to convince our customers of our tailored mobility and service products.”

Dr. Ingrun-Ulla Bartölke, Chief Financial Officer of Volkswagen Financial Services AG, acknowledged the complex economic climate that has affected the group’s margins.

She attributed the impact to external challenges beyond Europe, higher risk costs, and an inverted yield curve. Bartölke added that while the normalisation of the used car business continues, it remains a profitable segment, albeit with declining results compared to previous peaks.

Boost in penetration rates and used car segment

Volkswagen Group Mobility reported promising growth in penetration rates—the proportion of new Volkswagen Group vehicles financed or leased through its mobility arm. North America, including the US and Canada, saw penetration rates jump by over 9 percent, driven by collaboration with brands and dealer networks. In Europe, electric vehicles played a pivotal role, with over half of all new electric Volkswagen vehicles being leased, reflecting a shift towards vehicle usage over ownership.

The used car segment also saw a 9 percent rise in new contracts, with significant gains in France (16 percent) and Brazil (39 percent).

Kai Vogler, CEO of Volkswagen Financial Services Overseas AG, highlighted that: “In Mexico and Brazil, the markets have even recorded a highly positive development during the first nine months of the current fiscal year.

“The used car business in Brazil enjoyed particularly high growth, with the portfolio increasing by 39 percent. This shows that our used car strategy also enables us to remain involved with the customer and the vehicle for longer outside of Europe as well.”

Volkswagen Bank records significant growth

The restructuring of Volkswagen Group Mobility earlier in 2024 has allowed Volkswagen Bank to support the growing leasing business through its deposit operations. Customer deposits surged by approximately €17 billion in the third quarter, bringing the bank’s deposit volume to a record €54 billion—a 64.1 percent increase compared to the previous year.

Total assets of the Volkswagen Group Mobility companies dipped to €281 billion due to the scheduled repayment of central bank transactions.