Volkswagen finance arm’s profit up on huge demand for diesel cars

Volkswagen diesel cars

Volkswagen‘s funding arm anticipates to publish record revenues this year, it stated on Friday, due to the increased demand for diesel cars, an indication that the business’s emissions-cheating scandal has not prevented clients.

Operating profit at Volkswagen Financial Services might surpass 2 billion euros ($2.1 billion) for the very first time, after the department formerly showed it anticipated incomes to match in 2015’s 1.92 billion, Lars Henner Santelmann, head of the system, stated.

“Even in the difficult business year 2016 we have had the ability to continue our effective development course of previous years,” Santelmann informed press reporters.

He pointed out expense cuts, recoring need in southern Europe and lower-than-expected refinancing expenses.

“We have sold more diesel cars in Germany this year than a year previously and at a greater rate than a year earlier,” Santelmann stated.

Braunschweig-based Volkswagen Financial Providers deals with dealership and consumer funding and the German group’s banking and leasing organisation. Its operations leave out the Scania and Porsche brand names and the Porsche Holding Salzburg distributor.

The financing arm of Europe’s biggest car manufacturer has increased its portfolio of new agreements 10 percent to 7.44 million agreements from 6.76 million in last year.

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