For the 273.000 leased diesel in Germany, VW Financial has increased the value adjustments to a good 100 million euros.
© Andrea Warnecke/dpa
For lease diesel vehicles, the Group division now sees additional residual value risks of €400 to €500 per car.
More about the diesel crisis
Because of the price fall of the leasing cars Volkswagen Financial Services AG increased the value adjustments. For the 273.000 leased diesel cars in Germany, the value adjustments have been increased by almost 50 million euros to just over 100 million euros, said division CFO Frank Fiedler on Monday in Frankfurt. There are additional residual risks per car of €400 until €500, around two to three percent of the vehicle’s car.
The decision of the general admissibility of the diesel engine driving bans by the federal administrative court in Leipzig did not lead to acute changes for the customers of new lease contracts. Since the judgement, we have no fluctuations in volume and price, said Fiedler. That was already charged at the customers before.
According to the verdict of the federal administrative court, municipalities can impose appropriate driving bans in principle. Of the special vulnerable diesel cars with the Euro-5 emission standard was said that the stock of currently 16 000 cars will drop to around 3 000 cars by the end of the year.
Record Result 2017
VW financial had a record result last year. At 2,1 billion euros, which was almost 17 percent higher than in the previous year, CEO Lars Henner Santelmann explained. The total contract volume including all joint ventures rose by 8,1 percent to 19,7 million units – also a new record.
In particular, grow factors were services such as maintenance and wear or tire service. On the 31th of December 2017, the volume of service contracts exceeded for the first time more than 4 million units. (plus 16,8 percent). All other areas – finance, leasing and insurance – increased. New business grew in the past financial year almost eight million contracts, which corresponds to a plus of more than 5,5 percent.