News

2017

Volkswagen Finance China Blue Starry Sky Autism Children CSR Program holds its 2017 Appreciation Event in Beijing

[Beijing, 23 Dec, 2017] Recently, Volkswagen Finance China held its appreciation event of Autism Children CSR Program "Blue Starry Sky" of 2017 in Beijing. As the closing event of 2017 "Blue Starry Sky" program, it aims to express the appreciation to the representatives of all parties who have contributed to the "Blue Starry Sky" program over the past year, and to look forward to moving on in 2018.

23rd December, representatives of children and parents of institutions, volunteers from Volkswagen Finance China and social community as well as representatives of special education institutions, federations, civil affairs bureaus and hospitals arrived at Beijing 77 Cultural Park – 77 Theater to celebrate the New Year. By watching the children’s lovely face and their performance, representatives from all walks of life once again emerged in the pure beauty and hope.

To thank Volkswagen Finance China for its long-term commitment to the caring program of autistic children, the cooperating special education institution honoured the “Charity Devotion Certificate of Merit" award to Volkswagen Finance China on the day of the event. Then, a warm short video was displayed, leading the guests to review the whole experience of 2017 "Blue Starry Sky", as well as expressing the gratitude to employees, social volunteers and institutions who have always been involved in voluntary activities.

"Blue Starry Sky" is the continuous CSR program of Volkswagen Finance China since year 2016, aiming to call on society to care and pay more attention to more about autistic groups. The program has launched various activities in Beijing, Shanghai and Chengdu since 2016. Between 2017, Volkswagen Finance China has invited more than 100 social volunteers and enthusiastic employees to participate in five "Blue Starry Sky" activities including art workshop, Shanghai Wildlife Park, children’s professional experience, Beijing science and technology museum experience, etc. Through professional volunteer training and interaction with children, the power of love has been delivered to more and more autistic children and their families.

In 2018, Volkswagen Finance China will continue to hold abundant activities and involve more staff and volunteers from all walks of life to participate, bringing love and care for the "children from the stars ".

Volkswagen Financial Services China Has Been Awarded the Title of "Top Employers China" for the Sixth Consecutive Year

【12th December, 2017, Shanghai】Recently, international authoritative Top Employers Institute announced the "Top Employers China 2018" certification result, Volkswagen Finance (China) Co., Ltd and Volkswagen New Mobility Investment Co., Ltd. (hereinafter referred to as "Volkswagen Financial Services China ") won the title of Top Employers China for outstanding performance in enterprise talent strategy, leadership development, and employee career planning and development etc. This is the sixth consecutive year of winning this award by Volkswagen Financial Services China.

 Volkswagen Financial Services China has always been committed to create a transparent, people-oriented working environment and has been helping employee career growth and improving employee satisfaction rate through the development of multi-dimensional training, further education opportunity and humanistic care.

The "Top Employers China" award was established in 1991 and was chosen by the Top Employers Institute as one of the most influential and charismatic annual awards in global human resources field. This year's selection is on nine categories, including talents strategy, manpower planning, on-board, learning & development, performance management, leadership development and career development & succession management, compensation & benefits and culture.

As a top employer, Volkswagen Financial Services China invests in every employee and paves the way for their career development. In addition to covering all staff training programs, Volkswagen Financial Services China also designs a series of development projects for leaders and professionals. As a key part of human resource strategy, talent development is the important engine of the company's ROUTE2025 strategy.

Meanwhile, Volkswagen Financial Services China pays attention to healthy relationship between employees and society, continuously carries out the corporate social responsibility project at the employee level, realizes harmonious healthy development pattern of employees, communities and society, and improves senses of the enterprise honor and the professional sense of belonging of staff by side.

Volkswagen Finance China Named “Best Auto Finance Company”  for Sixth Consecutive Year

[Beijing, 12th December 2017] Recently, the CBN Financial Value (CFV) Ranking, the most influential and forward-looking ranking in China’s financial industry, released the results of its 2017 selection. At the award ceremony, Volkswagen Finance China was presented the award of “Best Auto Finance Company”, for the sixth consecutive year, in recognition of its innovative products, advanced brand philosophy and high-quality service.

The China Business News (CBN) Financial Value (CFV) Ranking, produced by CBN, is a very prestigious annual evaluation of Chinas’ financial industry. CBN is the financial media of China 's top media group, Shanghai Media Group ( SMG ), and has become the largest and most complete financial media group in China. The CFV of 2017 has invited a panel of eminent Chinese economists and financial professionals to participate in the formulation of the selection system and the evaluation of subjective indicators, and to plan, guide and supervise the selection process. This annual list includes the annual financial institutions, annual financial figures and other seven categories of awards. Over past 11 years, the CFV has recorded a dramatic change in global financial turmoil and witnessed the rise, reform and advancement of China‘s financial industry.

At present, with the Chinese consumer concept of consumption has changed significantly; the loan installment is becoming more and more popular. It also provides more market opportunities for the development of China auto finance. Volkswagen Finance China aims to penetrate China market, keep an eye on industry changes and insight into consumer demand. Since its establishment in Sept. 2004, the loan permeability of Volkswagen Finance China has quadrupled in 13 years. Volkswagen Finance China is providing financial service to multiple brands within Volkswagen Group, striving to provide consumers and distributors more convenient and more high-quality experience.

Volkswagen Finance China always pay high attention to efficiency of the operation, regard excellent operation as pivotally strategic measure for company future healthy development, aiming to improve service efficiency with multiple-angle aspects to create an excellent operation process. At present, the timeless of approval and loan of Volkswagen Finance China has been improved by 81% and 76% separately compare to 2012, and service efficiency is greatly improved and optimized on the basis of ensuring service quality and operation compliance.

Volkswagen Financial Services continued to actively expand financing channels in China, have successfully placed seventh and eighth Chinese Auto Asset-Backed Securities (ABS) transaction in 2017, which has a volume of around 4 billion RMB (approximately 514 million euros) and 3.5 billion RMB((approximately 499 million euros) and were successfully subscribed by domestic and international investors during the book building process. Beyond that, Volkswagen Financial Services issued the second RMB bond in 2017 and was fully subscribed by domestic investors. The total amount of the bond was 4 billion RMB (approximately 534 million euros), which is the largest single tranche bond by an Auto-Finance-Company in renminbi so far.

Innovation has always been the primary driver for achieving localization and sustainable development for Volkswagen Finance China. It launched "Huimin Dai (Farmer Credit) " in 2017 for the specific customer groups who holding rural identity with no credit records a channel to buy a car by loan, developing more convenient and populist customized services to customers as well as created a more convenient car-buying experience from all around for variety of consumers. It has also earned Volkswagen Finance China “Most Innovative Auto Finance Company” recognitions in “2017 China Auto Golden Engine Award”.

In the future, Volkswagen Finance China will continue to cultivate China market and constantly insight into consumer demand, providing Chinese consumers with including second-hand car finance, digital marketing, financial leasing, and other high-level automotive financial services.

Volkswagen Financial Services placed Auto ABS transaction in China

  • Volume totals around 3.5 billion renminbi

Braunschweig/Beijing, 23 November 2017. Volkswagen Financial Services have successfully placed their eighth Chinese Auto Asset-Backed Securities (ABS) transaction. The securitisation transaction, Driver China eight, which is backed by vehicle financing contracts from Volkswagen Finance China, has a volume of around 3.5 billion renminbi (RMB), or approximately 499 million euros.

During the bookbuilding process, the tranche A was placed at a fixed interest rate of 5.14%, tranche B at 5.60%.

The following tranches were placed:

Tranche A:RMB 3.07 billion

  • Local rating:CCXI/CBR [AAA/AA+]
  • International rating:S&P/ Moody’s [AAsf/Aa3sf]

TrancheB:RMB 132 million

  • Local rating:CCXI/CBR [AA/AA]
  • International ratinng:S&P/ Moody’s [A-sf/A3sf]

With this transaction, the company marketed a diversified pool of receivables from around 64,000 financing contracts. The average financed value per vehicle amounts to around RMB 54,000, or approximately EUR 6,900. In addition to local ratings, the securitisation transaction has also been given international ratings and bears the quality label "Certified by TSI – deutscher Verbriefungsstandard" from True Sale International GmbH.

Volkswagen Finance China Blue Starry Sky Autism Children CSR Program holds its fifth stop in Shanghai Wildlife Park

[Shanghai, Nov 04, 2017] Recently, Volkswagen Finance China held its fifth stop of Autism Children CSR Program "Blue Starry Sky" of 2017in Shanghai Wildlife Park.

Volunteers from both Volkswagen Finance China and media arrived at Shanghai Early Bird Rehabilitation Centre on the day in the morning, got trained by the professional teachers, and have cordial interactions with the autistic children. Then volunteers and the children went to Shanghai Wildlife Park to start a wonderful discovery trip. The children are immersed in the wonderful world of wild animals. All of the attendances enjoyed the animal performance and the interactive games such as throwing handkerchiefs and passing game, which inspired the children's instinctive adaptability, helping them adapt to the environment better in life. Accompanied by volunteers, the children also felt the full of great love.

Blue Starry Sky is the continuous CSR program of Volkswagen Finance China since year 2016, aiming to call on society to care and pay more attention to more about autistic groups. Last year, the program had launched various activities in Beijing, Shanghai and Chengdu including art class and touring activities in Shanghai Disneyland, combining professional volunteer training. The power of love has been delivered to more and more autistic children and their families.

Joern Kurzrock, CEO & General Manager of Volkswagen Finance China, said, “Volkswagen Finance China has been making our efforts to fulfill corporate social responsibility for many years, while also infecting more people. Through different forms of activities, we are trying to produce strong cohesion, let more people understand and contact with the special group of autism, thereby give a strong impetus to the development of public welfare.“

In the past months, Volkswagen Finance China has carried out children's professional experience, science and technology experience, artistic experience and creative activities in Beijing, brings a rich and colourful life experience to the children. The 2017 “Blue Sky“series will be completed in Beijing at the end of the year.

In 2018, Volkswagen Finance China will continue to hold abundant activities and involve more staff and volunteers fromall walks of life, bringing care to autistic children and build a warm homeland with love.

Volkswagen Finance China Blue Starry Sky Autism Children CSR Program holds its forth stop with creative painting in Beijing

[Beijing, 9th Sept, 2017] Recently, Volkswagen Finance China held its forth stop of Autism Children CSR Program "Blue Starry Sky" of 2017 with creative painting in Beijing.

Volunteers from both Volkswagen Finance China and media arrived at Beijing Xinyi Education Centre on 9th September in the morning, got trained by the professional teachers, and have cordial interactions with the autistic children. Then the children and volunteers experienced the rhythmic dancing, collage and scratch painting together. Throughout the morning, the children were immersed in a sea that comprised of music, colour and creativity. The experience enhanced their sense of colour and trained their observation and imagination skills as well as their endurance. Accompanied by volunteers, the children also feel the full of great love.

Blue Starry Sky is the continuous CSR program of Volkswagen Finance China since year 2016, aiming to call on society to care and pay more attention to more about autistic groups. Last year, the program has launched various activities in Beijing, Shanghai and Chengdu including art class and touring activities in Shanghai Disneyland, combining professional volunteer training. The power of love has been delivered to more and more autistic children and their families.

Joern Kurzrock, CEO & General Manager of Volkswagen Finance China, said, “Volkswagen Finance China keeps fulfil its social responsibilities and give back to society as a long-term business philosophy. By carrying out diversified activities, we remains focused on autistic children since we launched the program 2016, encouraging autistic children with a more open and inclusive mentality, helping them to integrate into society better and also receiving good feedback. In the future, we will continue to pay attention to autistic children by multiple ways, associating other parties to deliver the force of love and responsibility to more families.”

Several more events of Blue Starry Sky will be held in Shanghai and other cities. Followed by this event and the first three stop in Beijing, Volkswagen Finance China will continue to hold abundant activities and involve more staff and volunteers from all walks of life to participate, bringing love and care for the "children from the stars ".

Volkswagen Financial Services placed seventh Auto ABS transaction in China

  • Volume totals around four billion renminbi

Braunschweig/Beijing, 6 September 2017. Volkswagen Financial Services have successfully placed their seventh Chinese Auto Asset-Backed Securities (ABS) transaction. The securitisation transaction, Driver China seven, which is backed by vehicle financing contracts from Volkswagen Finance China, has a volume of around four billion renminbi (RMB), or approximately 514 million euros.

Volkswagen Financial Services have continuously grown in China during the last few years. At the end of the 2016 financial year, the level of current contracts amounted to 863,000 units, an increase of 30.9 percent over the previous year (2015: 659,000). Altogether, Volkswagen Finance (China) collaborates with 2,786 dealers in 310 cities throughout China (as at 31.12.2016).

During the bookbuilding process, the tranche A was placed at a fixed interest rate of 4.95%, tranche B at 5.20%. The order books were oversubscribed 1.7 times (Class A) and 1.8 times (Class B) at placement pricing levels.

The following tranches were placed:

Tranche A:RMB 3.51 billion

  • Local rating:CCXI/CBR [AAA/AA+]
  • International rating: S&P/Fitch [AAsf/AAsf]

Tranche B: RMB 150 million

  • Local rating:CCXI/CBR [AA/AA]
  • International rating:S&P/Fitch [A-sf/A-sf]

With this transaction, the company marketed a diversified pool of receivables from around 74,000 financing contracts. The average financed value per vehicle amounts to around RMB 54,000, or approximately EUR 6,900. In addition to local ratings, the securitisation transaction has also been given international ratings and bears the quality label "Certified by TSI – deutscher Verbriefungsstandard" from True Sale International GmbH.

With a figure of around EUR 33 billion (previous year: around EUR 26 billion), the share of Auto ABS in the refinancing mix of Volkswagen Financial Services amounted to more than 19% as at 31.12.2016 (previous year: around 16%).

The marketing of the transaction was carried out by the lead underwriter CITIC Securities Co., Ltd. together with the joint lead underwriters Standard Chartered Bank (China) Limited and Bank of China Co., Ltd.

Volkswagen Finance China Blue Starry Sky Autism Children CSR Program holds its second stop in China Science and Technology Museum

[Beijing, 19 August, 2017] Recently, Volkswagen Finance China held the second stop of Autism Children CSR Program of 2017 in China Science and Technology Museum.

Volunteers from both Volkswagen Finance China and media arrived at China Science and Technology Museum on 19th August early in the morning, got trained by the professional teachers, and then interacted with autistic children in Science Park and together watching the IMAX movie. While watching the movie “African Safari” at the dome cinema, the children enjoyed the beautiful scenery of Africa and amazed at the variety of African animals. In such a place that encapsulates 5,000 years of human civilization, the children experienced the splendid ancient culture and expanded their horizons. Accompanied by volunteers, the children also feel the magic world of science and technology as well as the great love.

On the day, Volkswagen Finance China was awarded the Certificate of “Caring Enterprise of Xinyi Heart-Warming Program”, issued by Ms. Hong Yang, Vice President of Beijing Fengtai District Disabled People's Federation, showing the recognition and thanks to Volkswagen Finance China for its long-term care for the autistic children.

Blue Starry Sky is the continuous CSR program of Volkswagen Finance China since year 2016, aiming to call on society to care and pay more attention to more about autistic groups. Last year, the program has launched various activities in Beijing, Shanghai and Chengdu including art class and touring activities in Shanghai Disneyland, combining professional volunteer training.

Joern Kurzrock, CEO & General Manager of Volkswagen Finance China, said, “As a responsible corporate citizen, Volkswagen Finance China remains focused on autistic children since we launched the program 2016. Public service activity is the business of persistence. We will continue to pay attention to autistic children by multiple ways, associating other parties to deliver the force of love and responsibility to more families in the future.”

Several more events of Blue Starry Sky will be held in Shanghai and other cities. Followed by this event and the first one last month in Beijing, Volkswagen Finance China will continue to hold abundant activities and involve more staff and volunteers from all walks of life to participate, bringing love and care for the "children from the stars ".

Volkswagen Finance China Blue Starry Sky Autism Children CSR Program Launches Again in 2017

[Beijing, August 5,2017] Recently, Volkswagen Finance China launched the Autism Children CSR Program with the same theme Blue Starry Sky in Beijing as last year.

Volunteers from both Volkswagen Finance China and media came to Beijing Xinyi Education Centre on 29th July in the morning, distributed gifts and shared their warmly accompany with the children. Under the professional guidance of trainers from Xinyi, volunteers interacted with autistic children in a scientific way, then followed along with them to Beyou World, a career experience centre that enable children to perform various tasks like blocks building, letters delivering and paper box folding etc., to get in touch with the society better. Volunteers’ assistance on the games encouraged the children to gather a sense of self-confidence and presented happiness and smile faces which actually made the best interpretation for Blue Starry Sky program.

Blue Starry Sky is the continuous CSR program of Volkswagen Finance China since year 2016, aiming to call on society to care and pay more attention to more about autistic groups. Last year, the program has launched various activities in Beijing, Shanghai and Chengdu including art class and touring activities in Shanghai Disneyland, combining professional volunteer training. Volkswagen Finance China continues the successful cooperation with Beijing Xinyi Education Centre this summer, to bring enjoyable career experience for children. Together with employees and media volunteers, Blue Starry Sky will enlarge its influence, calling on the entire society to pay more attention to autistic groups out of care and love.

Joern Kurzrock, CEO & General Manager of Volkswagen Finance China, said, “Since Volkswagen Finance focused on autistic children and launched various events from 2016, positive response had been received from special education institution, parents and the entire society. We will continue to pay attention to autistic children by multiple ways, associating other parties to deliver the force of love and responsibility to more families.”

Several more events of Blue Starry Sky will be held in Shanghai and other cities after the first in Beijing, coloring those children’s world with loving care by multiple activities.

Volkswagen Financial Services issue bond in renminbi

• Largest single tranche bond by an Auto-Finance-Company in renminbi so far

• Contract portfolio in China at a record level

Braunschweig/Peking, 26 April 2017. Volkswagen Financial Services have issued a bond in renminbi (RMB) for the second time and fully placed it with Chinese investors. The volume of the security issued by Volkswagen Finance (China) Co., Ltd., a wholly owned subsidiary of Volkswagen Financial Services AG, amounts to four billion renminbi, or approximately 534 million euros. The transaction is therefore the largest single tranche bond by an Auto-Finance-Company in renminbi so far. The bond, which was placed in a bookbuilding process, has a term of three years and a coupon of 5.20 percent per year.

“Our second bond issue in China is an important step in intensifying our Chinese capital market activities," says Bernd Bode, Head of Group Treasury and Investor Relations at Volkswagen Financial Services AG. He goes on to explain: "It is our intention to refinance our growth in China locally within that country and in a diversified manner. That is why we are active on the Chinese financial market both with our financial bonds and with our ABS pro-gramme as well."

During the last few years Volkswagen Finance (China) has been able to steadily expand its financing business and achieved a new record level at the end of last year with a portfolio of more than 860,000 current contracts, which is 31% more than at the end of the previous year.

The most important components worldwide in the strategic refinancing mix of Volkswagen Financial Services are unsecured capital market issues, deposits from the direct banking business, and asset-backed securities. The funding volume generated worldwide through unsecured capital market instruments amounted to EUR 27.6 billion last year and thus con-tributed around 16 percent towards the refinancing of Volkswagen Financial Services.

The bond at a glance:

• Issuer: Volkswagen Finance (China) Co., Ltd.

• Volume: RMB 4 bn

• Issuer credit rating: AA+ (China Lianhe Credit Rating)

• Term: 3 years

• Issuing price: 100.00

• Coupon: 5.20 %

• Trade: China Interbank Bond Market

The bond was marketed by a banking consortium comprising CITIC Securities and the China Construction Bank.

Volkswagen Finance China “Blue Starry Sky” Charity Kicks off its Autism Awareness Program

【Beijing, January 20, 2017】Recently, Volkswagen Finance China launched its Autism Awareness Program, a CSR project which carries the theme of “Blue Starry Sky” and held artistic activities with local autistic children in both Chengdu and Beijing. Volkswagen Finance China, the first wholly foreign owned automotive finance company in China, teamed up with the China Social Welfare Foundation Blue Ribbon Funds to call on society to pay more attention to and care more about autistic groups.

Joern Kurzrock, CEO & General Manager of Volkswagen Finance China, said, “Since Volkswagen Finance entered the Chinese market in 2004, we have not only committed ourselves to providing customers with innovative products and services but we have also paid close attention to social developments and take social responsibility and being active members of society very seriously. This year, autistic children are the main focus of Volkswagen Finance China’s charity efforts. We will continue to engage in charity by assembling all our forces to fulfil our corporate responsibility and honour our commitment to society.”

On December 16th, 2016, volunteers from Volkswagen Finance China went to Chengdu Huixing Rehabilitation Centre to establish a spiritual connection with the children there by working with them on handicraft thereby allowing them to express their inner feelings and artistic abilities. During the event, the volunteers and children worked together to create handicraft that was full of warmth and colour. The rich colours came together to form a colourful world of love and happiness and created a “blue starry sky” which belonged to all the children that participated.

On December 24, Volkswagen Finance China set off again to spread its love and led more than 20 volunteers to the Xinyi Education Centre in the Fengtai District of Beijing to visit autistic children there and accompany them to celebrate the arrival of Christmas. On that day, the volunteers assisted the children in painting and making handicraft all the while playing one lively melody after another, instantly turning the entire classroom into a world of happiness and laughter. Intimate interaction and sincere companionship made the children once again feel like the world is full of love and happiness, building a "Blue Starry Sky" full of hope for them.

Moreover, Volkswagen Finance China’s Blue Starry Sky Charity Program will also go to Shanghai and hold an exhibition of artistic works by these children from across China to further raise public awareness about autism

2016

Volkswagen Financial Services Market China

Accomplishes Remarkable Achievements in 2016

Winning the Title of “Best Auto Finance Company” for Fifth Consecutive Year

【January XX, 2017, Beijing】 Recently, CBN Financial Value (CFV) Ranking, the most influential and forward-looking ranking in China’s financial industry, released the results of its 2016 selection. Volkswagen Financial Services China (VWFS China) has distinguished itself by winning the award of “Best Auto Finance Company”, for the 5th consecutive year, in recognition of its innovative products and advanced brand awareness. The award not only shows consumers’ recognition of its high-quality services but also underlies the company’s customer-centric service concept as well as its long-term commitment to the Chinese market.

CBN Financial Value (CFV) Ranking, produced by The China Business News, is an annual brand evaluation of Chinas’ financial industry. For CFV selections, the CBN Research Institute and authoritative experts will undertake an in-depth and comprehensive survey and evaluation of Chinese financial institutions and finally independently identify the leading businesses in banking, insurance, financial lease, auto finance, and auto manufacturing based on their objective data.

Volkswagen Financial Services China was also honored as “Auto Finance Company of the Year” by Best Car Awards (BCA), an annual event led by one of the top three economic-focused newspapers in China, The Economic Observer.

Behind all these accolades were Volkswagen Financial Services China’s unceasing efforts in keeping abreast of the Chinese market as well as to continue offering consumers new products based on informed knowledge of the marketplace and their specific needs. In 2016, VWFS China continuously enriched its product portfolio by issuing GPS credit, bundled credit and other innovative products. Penetration rate and contract structure were further improved and optimized, and its new retail credit contracts volume exceeded 527,000. During the year, VWFS China also issued 3 ABS products and 1 financial bond product to diversify its financing channels and maximize benefits for retail customers.

Meanwhile, VWFS China has embraced digitalization strategy by innovatively digitalizing all its products and services, providing customers as well as dealership partners with a more convenient and efficient experience. Having online pre-approval platform and dealer communication platform being launched, VWFS China is starting a new digital automotive financial services model.

Mr. Joern Kurzrock, CEO and General Manager of VWFS China, remarked, “Facing the rapid development of China’s auto finance market, Volkswagen Financial Services China has seized the opportunity to provide Chinese consumers with innovative and localized products and services for an even more satisfying and efficient experience.”

Innovation is always a primary driver in VWFS China’s quest for business localization and sustainable development. It has also earned Volkswagen Financial Services China several other important recognitions in 2016 – “2016 China Auto Golden Engine Award” and China Auto Finance awards (“Most Innovative Auto Finance Company” and “Best Auto Finance Product - Bundled Credit”).

Reinhard Fleger, Chief Representative China/India & ASEAN Region of Volkswagen Financial Services, said, “The outstanding performance and the various awards won by Volkswagen Financial Services in 2016 represent the recognition from consumers and the market and also an inspiration for us to fulfill our ultimate commitment to Chinese consumers as always. In the future, we will continue to explore and practice in the face of opportunities and challenges and constantly meet and exceed consumer and market expectations.”

Volkswagen Financial Services China Awarded “Top Employers China”

for the Fifth Consecutive Year

Beijing, December, 2016. The Top Employers Institute globally certifies excellence in the conditions that employers create for their people. It has just announced the results of this year’s research into the employee conditions of significant employers in China. Volkswagen Financial Services China (Volkswagen Finance China Co., Ltd & Volkswagen New Mobility Services Investment Co., Ltd) is one of the select organizations to achieve the Top Employers China 2017 certification and this is the fifth consecutive time for Volkswagen Financial Services China (VWFS China) to receive the honor.

“I am very proud that VWFS China once again received this award. Thanks for the high recognition from industry. This award will also provide further impetus to VWFS’s further development.” said Reinhard Fleger, Chief Representative China/India & ASEAN Region of Volkswagen Financial Services AG.

The Top Employers Institute assessed Volkswagen Financial Services China’s employee offerings on the following criteria:

  •   Talent Strategy
  •   Workforce Planning
  •   On-boarding
  •   Learning & Development
  •   Performance Management
  •   Leadership Development
  •   Career & Succession Management
  •   Compensation & Benefits
  •   Culture

As a Top Employer, Volkswagen Financial Services China invests in every employee and prepares them for further career development. Besides the comprehensive training scheme which covers all employees, special development programs are designed for leaders and talents. As an important part of HR Strategy, people development is the important engine for the overall achievement of ROUTE2025 strategy.

Harald Mueller, General Manager of Volkswagen Financial Services China said, “Employee is always the foundation of VWFS’s sustainable development. Receiving this award for five consecutive years fully demonstrates the success of our HR strategy. VWFS China has been kept investing in employees since its establishment. VWFS so values employees’ hard work and innovation that every single employee will be recognized and appreciated. As a Top Employer, VWFS China will continue to optimize our HR development and management to realize our ROUTE 2025 strategy.”

Volkswagen Financial Services placed Auto ABS in China

  • Volume of Driver China five totals around four billion renminbi
  • More than 775,000 contracts on the books in China after the third quarter

Braunschweig, 23 November 2016. Volkswagen Financial Services have successfully placed their fifth and to date largest Chinese Auto Asset-Backed Securities (ABS) transaction. The securitisation transaction, Driver China five, which is backed by vehicle financing contracts from Volkswagen Finance China, has a volume of around four billion renminbi (RMB), or approximately 547 million euros. This is the third ABS transaction issued by Volkswagen Financial Services in China this year alone. In addition, an unsecured bond was placed on the capital market for the first time in May with a volume of two billion renminbi. The Chinese market is one of the drivers of the global growth of Volkswagen Financial Services. The volume of current contracts in the Chinese market at the end of the third quarter amounted to more than 775,000 contracts, an increase of almost 23 percent.

"As a result of our continued strong growth in China, our refinancing needs are also increasing," says Frank Fiedler, CFO of Volkswagen Financial Services AG. He adds: "That's why we intend to expand our ABS and our capital market activities in China over the next few years. Driver China five is our highest-volume ABS transaction in China to date. We are very satisfied with the placement result that has been achieved."

With a figure of almost EUR 30 billion (previous year: around EUR 22 billion), the share of Auto ABS in the refinancing mix of Volkswagen Financial Services amounted to more than 18% as at 30.09.2016 (previous year: around 15%).

The order books were fully covered during the bookbuilding process, with orders placed by both Chinese and international investors; tranche A was placed at a fixed interest rate of 3.5%, tranche B at 4.0%.

The following tranches were placed:

  • Tranche A:                 RMB 3.5 billion

          Local rating:              CCXI/CBR [AAA/AA+]

          International rating:   Moody’s/S&P [Aa3(sf)/AA(sf)]

  • Tranche B:                  RMB 150 million

          Local rating:               CCXI/CBR [AA/AA]

          International rating:    Moody’s/S&P [A3(sf)/BBB(sf)]

With this transaction, the company marketed a diversified provisional pool of receivables from 69,000 financing contracts. The average financed value per vehicle amounts to around RMB 58,000, or approximately EUR 7,940. In addition to local ratings, the transaction has also been given international ratings and bears the quality label "Certified by TSI – deutscher Verbriefungsstandard" from True Sale International GmbH.

The marketing of the transaction was carried out by the lead underwriter CITIC Securities Co., Ltd., the joint lead underwriter HSBC Bank (China) Co., Ltd. ("HSBC"), and the co-lead underwriter Industrial and Commercial Bank of China Co., Ltd.

Volkswagen Finance China to Host Corporate Media Workshop in Beijing

 

Beijing, October 25th 2016.  Volkswagen Finance China, a wholly owned subsidiary of Volkswagen Financial Services AG, held a media workshop in Beijing. Since its inception in 2004, Volkswagen Finance China has upheld the spirit of continuous innovation, through the cooperation of the Group's brands and dealership partners with their tireless efforts to provide high-quality service and achieve remarkable results. In future, Volkswagen Finance China will continue driving China's automotive finance market; seize the digital opportunity and build Volkswagen Financial Service on-line eco system;, furthermore providing a first-rate and high-efficiency experience to Chinese consumers with digitalized products and services.

CEO and General Manager of Volkswagen Finance China, Mr. Joern Kurzrock shared his opinions on strategic topics of digitalization, operational excellence and product innovation. He’s made firm and sincere commitments: "Going forward, Volkswagen Finance China will continuously keep providing highly innovative and professional services to meet customers’ increasingly diverse needs regarding automobile consumption and financial services.”

Since 2015, Volkswagen Finance China has launched the online pre-approval platform and dealer communication platform, starting a new digital automotive financial services model. With the popularity of digital life style, Volkswagen Finance China will continue in-depth explorations of sales, consumption processes and working environment in these areas of development.

Meanwhile, Volkswagen Finance China is always a pioneer in field of product innovations by providing consumers with high quality services, such as bundled credit product, used car finance product and GPS credit product etc.

Volkswagen Finance China considers operational excellence as foundation of the healthy and steady business development, which also comprises service efficiency improvement, as well as an uncompromising commitment to compliance.

In the first half year of 2016, Volkswagen Finance China's new contract volume increased nearly 40% year-on-year, and the finance penetration reached nearly 12% while the contracts structure was further optimized.

Mr. Reinhard Fleger, Chief Representative of the China/India/ASEAN region at Volkswagen Financial Services has stated: "Based on Volkswagen Finance’s successful experience in global automotive markets, we will continuously further drive China Auto Financial Services market forward.”

Volkswagen Financial Services securitise Chinese auto loans for
the fourth time

•Receivables volume totals around three billion renminbi

Braunschweig/Beijing, July 8, 2016. Volkswagen Financial Services have successfully placed their fourth Chinese Auto Asset-Backed Securities (ABS) transaction. The securitisation transaction Driver China four, which is backed by vehicle financing contracts from Volkswagen Finance China, has a volume of around three billion renminbi (RMB), or approximately 405 million euros. The order books were fully covered during the bookbuilding process, with orders placed by both, Chinese and international investors; tranche A was placed at a fixed interest rate of 3.16% and tranche B at 4.69%. The order books were oversubscribed 1.41 times for the Class A notes and 2.07 times for the Class B notes at placement pricing levels.

With the transaction, the company securitised a diversified pool of receivables from around 53,000 financing contracts. The average outstanding financed value per vehicle amounts to around RMB 57,000, or approximately EUR 7,700. In addition to local ratings, the transaction has also been given international ratings and bears the quality label "Certified by TSI – deutscher Verbriefungsstandard" from True Sale International GmbH.

The following tranches were placed:

• RMB 2.632 billion Class A notes,
  Local rating: Lianhe Ratings/China Bond Rating [AAA/AA+]
  International rating: Moody’s/S&P [Aa3(sf)/AA(sf)]
• RMB 135 million Class B notes,
  Local rating: Lianhe Rating/China Bond Rating [AA-/A+]
  International rating: Moody’s/S&P [A3(sf)/BBB+(sf)]

The marketing of the transaction was carried out by the lead underwriter China Merchants Securities Co., Ltd., the joint lead underwriter HSBC Bank (China) Co., Ltd., and the co-lead Underwriter Industrial and Commercial Bank of China Co., Ltd.

Volkswagen Financial Services securitise Chinese auto loans for
the third time

•Tightest ABS transaction in China ever
•Receivables volume totals around three billion renminbi
•Around 53,000 automobile credit contracts securitised

Braunschweig/Beijing, January 12, 2016. Volkswagen Financial Services have sold Chinese Auto ABS (Asset-Backed Securities) to investors for the third time. The securitisation transaction Driver China three, which is backed by vehicle financing contracts from Volkswagen Finance China, has a volume of around three billion renminbi (RMB), or approximately 419 million euros. In a volatile market environment the order books were fully covered during the bookbuilding process, with orders placed by both, Chinese and international investors; tranche A was placed at a fixed
interest rate of 3.30% and tranche B at 5.10%. The order books were oversubscribed 2.41 times for the Class A notes and 2.10 times for the Class B notes at placement pricing levels. This makes Driver China three the Auto ABS transaction with the lowest pricing in China ever.

"With China Driver three as an opening transaction for Volkswagen Financial Services to kick off the new financial year, we are significantly expanding our refinancing volume in renminbi generated by Auto ABS," says Frank Fiedler, CFO of Volkswagen Financial Services AG. As regards the further international rollout of the diversification-based refinancing strategy, Fiedler adds: "We will be expanding our refinancing volume via Auto ABS in the international arena as planned and will be introducing our familiar ABS programme into further currency areas over the next few years."

With the transaction, the company securitised a diversified pool of receivables from around 53,000 financing contracts. The average outstanding financed value per vehicle amounts to around RMB 57,000, or approximately EUR 7,400. In addition to local ratings, the transaction has also been given international ratings and bears the quality label "Certified by TSI – deutscher Verbriefungsstandard" from True Sale International GmbH.

The following tranches were placed:

• RMB 2.632 billion Class A notes,
Local rating: CCXI/CCRC [AAA/AA+]
International rating: Fitch/Moody's/S&P [AAsf/Aa3sf/AAsf]
• RMB 157 million Class B notes,
Local rating: CCXI/CCRC [A+/A]
International rating: Fitch/Moody's/S&P [A-sf/Baa1sf/BBBsf]

The marketing of the transaction was carried out by the lead underwriter CITIC Securities Co., Ltd and the co-lead underwriter Bank of China Limited. The Bank of Tokyo-Mitsubishi UFJ (China), Ltd acted as financial advisor.

Volkswagen Financial Services issue debut bond in renminbi 

•Bonds follow Auto ABS as a refinancing instrument in China
•Contract portfolio in China at a record level

Braunschweig/Peking, 13 May 2016. Volkswagen Financial Services have issued a bond in renminbi (RMB) for the first time and fully placed it with Chinese investors. The volume of the security issued by Volkswagen Finance (China) Co., Ltd., a wholly owned subsidiary of Volkswagen Financial Services AG, amounts to two billion renminbi, or approximately 270 million euros. The bond, which was placed in a book-building process, has a term of three years and a coupon of 3.6 percent per year. The issue was oversubscribed 2.2 times overall, which reflects the high confidence of in-vestors.

"Our business in China has grown strongly during the last few years. With our entry into the Chinese bond market, we now have a further alternative at our disposal to fund our growth," says Frank Fiedler, CFO of Volkswagen Financial Services AG. He adds: "The fact that we are now also active in the unsecured capital market in China following the establishment of our ABS programme is a consequence of our clearly defined refinancing strategy. It is our intention to refinance ourselves locally and do so with a diversified range of instruments."

Up to now, Volkswagen Financial Services have issued three Auto ABS (Asset-Backed Se-curities) transactions to refinance their Chinese business, which are secured by receivables of Volkswagen Finance (China). During the last few years Volkswagen Finance (China) has been able to steadily expand its financing business and achieved a new record level at the end of last year with a portfolio of 645,000 current contracts.

The most important components worldwide in the strategic refinancing mix of Volkswagen Financial Services are unsecured capital market issues, deposits from the direct banking business, and asset-backed securities. The funding volume generated worldwide through unsecured capital market instruments amounted to EUR 34.2 billion last year and thus con-tributed around 22 percent towards the refinancing of Volkswagen Financial Services.

The bond at a glance:

•Issuer:                        Volkswagen Finance (China) Co., Ltd.
•Volume:                      RMB 2 bn
•Issuer credit rating:      AA+ (China Chengxin International Credit Rating)
•Issue rating:                AA+ (China Chengxin International Credit Rating)
•Term:                         3 years
•Issuing price:               100.00
•Coupon:                      3.60%
•Trade:                        China Interbank Bond Market

The bond was marketed by a banking consortium comprising Morgan Stanley Huaxin Securi-ties and the Bank of China.

2015

Volkswagen Finance China Congratulated with “Best Auto Finance Company of the Year” Award for the Fourth Consecutive Year

[Beijing, December, 2015] Volkswagen Finance (China) Co., Ltd. (VWFC) was awarded as the “Best Auto Finance Company of the Year” on China Business News’s 2015 China Financial Value (CFV) Ranking Ceremony, the fourth consecutive year that VWFC receives the award. Besides, the company was also crowned “Best Auto Finance Company of the Year 2015” on the Golden Engine Awards earlier this year. These two awards fully attest to the recognition gained by VWFC in China market.

Joern Kurzrock, CEO of VWFC said, “We are deeply honored to once again receive this award. Recently, along with the introduction and rapid development of China’s “Internet +”, auto finance is embracing the Internet. The changing market brings new challenges as well as new opportunities.VWFC has always been adhering to the spirit of continuous innovation, aiming at providing the first-rate and high-efficiency experience to our consumers with our digitalized products and services.” 

In 2015, VWFC launched its online Pre-approval Platform and Dealer Communication Platform, setting a new pattern for auto finance in China. In addition, in the middle of the year, VWFC, joining hands with Ipsos - a world-leading market research company, published “2014 China Auto Finance Consumer Behavior Report”, the first report on actual auto finance consumers in China.

Reinhard Fleger, Chief Representative of the Region China/India/ASEAN at Volkswagen Financial Services AG commented, “After over ten years of exploration in China, VWFC has not only been devoted to its own development, cares the prosperity of the entire China auto finance industry, but also fulfills its social responsibility.”

Starting in 2012, VWFC established supportive relationship with Hui Yao Primary School in rural arear in Hebei Province. During the last 3 years, VWFC has built a campus road, donated a library, sponsored school supplies and sports goods, replaced with new multi-function desks and chairs, launched Rongyao Scholarship, organized “Student Beijing Cultural Trip”, provided professional soccer training and so on.

The CBN Financial Value Ranking is an authoritative yearly selection carried out by the China Business News group. Over the past nine years, it has recorded the upheavals and rapid changes of global finance, and has witnessed the rise, revolution and development of China’s finance industry. This year, the analysis and appraisal work was jointly conducted by the CBN Research Institute and authoritative experts who independently and objectively identified the true leaders of China’s banking, insurance, leasing, auto finance, Internet finance and other fields, with the aim to provide Chinese elites with an authoritative and influential finance benchmark.

Volkswagen Finance China Awarded “Top Employers China” For the Fourth Consecutive Year

[Shanghai, December, 2015] The Top Employers Institute globally certifies excellence in the conditions that employers create for their people. It has just announced the results of this year’s research into the employee conditions of significant employers in China.Volkswagen Finance (China) Co., Ltd. (VWFC) is one of the select organizations to achieve the Top Employers China 2016 certification and this is the fourth consecutive time for Volkswagen Finance China to receive the honor.

“I am very proud that VWFC once again received this award. Thanks for the high recognition from industry. This award will also provide further impetus to VWFC’s further development.” said Reinhard Fleger, Chairman of the China/India & ASEAN Region of Volkswagen Financial Services AG and Chairman of the Board of Volkswagen Finance China. Harald Mueller, General Manager of Volkswagen Finance China said, “Employee is always the foundation of VWFC’s sustainable development. Receiving this award for four consecutive years fully demonstrates the success of our HR strategy. VWFC has been kept investing in employees since its establishment. VWFC so values employees’ hard work and innovation that every single employee will be recognized and appreciated. As a Top Employer, VWFC will continue to optimize our HR development and management to realize our ROUTE 2025 strategy.”

The Top Employers Institute assessed Volkswagen Finance China’s employee offerings on the following criteria:

• Talent Strategy  
• Workforce Planning
• On-boarding
• Learning & Development
• Performance Management
• Leadership Development
• Career & Succession Management
• Compensation & Benefits
• Culture

Ms. Nicole Jin, Country Manager China for the Top Employers Institute: “Optimal employee conditions ensure that people can develop themselves personally and professionally. Our comprehensive research concluded that Volkswagen Finance China provides an outstanding employment environment and offers a wide range of creative initiatives, from secondary benefits and working conditions, to performance-management programs that are well thought out and truly aligned with the culture of their company.”

As a Top Employer, Volkswagen Finance China invests in every employee and prepares them for further career development. Besides the comprehensive training scheme which covers all employees, special development programs are designed for leaders and talents. As an important part of HR Strategy, people development is the important engine for the overall achievement of ROUTE2025 strategy.

Volkswagen Financial Services expand ABS programme in China

•Automobile financial services increasingly in demand in China

•Around 31,000 automobile credit contracts securitised

•Successful issue;under the new filing scheme.

Braunschweig/Beijing, 8 July 2015. Volkswagen Financial Services have expanded their ABS programme in China and have securitised Chinese automobile credits and sold them to investors for the second time. The securitisation transaction Driver China two has a volume of around 1,900 million renminbi (RMB), or around 283 million euros. Driver China two is the first transaction by Volkswagen Finance China, a wholy owned subsidiary of Volkswagen Financial Services AG, which is under China Banking Regulatory Commission registration scheme and People's Bank of China filing scheme. Volkswagen Finance China is one of the first three auto finance companies in China who have been approved by People’s Bank of China under the new filing scheme. Auto ABS are therefore making an increasing contribution towards the local refinancing of Volkswagen Financial Services in China. During the last financial year, 406,000 vehicles (previous year: 228,000) were financed by Volkswagen Financial Services in China – a record figure for the company.

"China is becoming more and more important for Volkswagen Financial Services. Our portfolio is growing steadily, with the result that we now have around 580,000 financing contracts on our books," says Frank Fiedler, CFO of Volkswagen Financial Services AG. He continues: "It is therefore important that we also implement our global refinancing strategy locally in China. The expansion of our ABS programme is a significant step in this direction. At the same time we are also examining additional capital market options, such as the issue of a bond."

Auto ABS make up a substantial proportion of the diversified refinancing structure of Volkswagen Financial Services. As at 31.12.2014, the refinanced volume of the Volkswagen Financial Services business division of Volkswagen AG generated by Auto ABS transactions amounted to approximately 21 billion euros, or around 15 % of the company's total assets.

In the book buildingprocess, the Class A notes were placed with a fixed interest rate of 3.8%, and the Class B notes with a fixed interest rate of 5.2%. With this transaction, the company marketed a diversified pool of receivables from around 31,000 financing contracts. The average financed value per vehicle amounts to approximately 62,000 RMB, or around 9,000 euros. In addition to local ratings, the transaction has also been given international ratings and bears the quality label "Certified by TSI – deutscher Verbriefungsstandard" from True Sale International GmbH.

The following tranches were placed:

•RMB 1,660 million Class A notes;

Local rating:[AAA]/[AA+] (CCXI /China Rating)

International rating:[AA(sf)]/[Aa3(sf)] (Fitch/Moody's)

•RMB 104 million Class B notes

Local rating:[A+]/[A] (CCXI/China Rating)

International rating:[A-(sf)]/[Baa1(sf))] (Fitch/Moody's)

The marketing of the transaction was carried out by the lead underwriter CITIC Securities Co., Ltd;and the co-lead underwriter China Merchants Securities Co., Ltd. The Hongkong and Shanghai Banking Corporation Limited (HSBC) acted as financial advisor.

 

2014-2015 China Auto Finance Consumer Behavior Report application/pdf 1.6 MB

2014

Ten Years in China, Volkswagen Finance China shows impressive results in 2014

Beijing, December 17, 2014, since received “The Best Auto Finance Company” award from the CBN Financial Value Ranking organized by China Business News, Volkswagen Finance China recently once again is recognized as, “2014 China Best Auto Finance Company” at the Golden Engine Awards Ceremony organized by Moneyweek. Meanwhile, Mr. Joern Kurzrock, CEO and General Manager of Volkswagen Finance China, is awarded as “2014 China Auto Finance Outstanding Promoter” for his role of promoting innovation and significant contribution to the China auto finance market.

Through 10 years of careful operation in China market, Volkswagen Finance China has been growing rapidly while experiencing and also promoting the development of the China Auto Finance Market as a whole. Starting with 17 dealers in one city, Volkswagen Finance China has established close cooperation with 2,000 dealers in nearly 300 cities. Compared to the outstanding result of year 2013 with 230,000 new retail contracts, the growth of the Volkswagen Finance China in year 2014 is even stronger. The new retail contracts are expected to reach a new historical record of 400,000. 

Relying on the successful experience of the parent company, Volkswagen Financial Services AG, Volkswagen Finance China has brought the advanced products to China and successfully established a leading position in China auto finance market. More importantly, Volkswagen Finance China never stops. Looking back to the past decade in China, Volkswagen Finance China has introduced many innovative finance products exclusively for the Chinese customers. Using Upgrade Finance as an example, applicant only needs to provide identification card and application form and will be replied within 2 hours. Another product is Structure Loan, allowing customer to choose payment options of increasing and decreasing based on his income structure.

Mr. Joern Kurzrock, CEO and General Manager of Volkswagen Finance China claimed: “We appreciate Moneyweek awarding Volkswagen Finance China as “2014 China Best Auto Finance Company” and my personal “2014 China Auto Finance Outstanding Promoter” award. We are very encouraged and will continue make persistent efforts to develop more innovative products supporting the sales and dealer partners of Volkswagen Group brands and better serve our customers.

Since August 2014, the fifth Golden Engine Awards officially launched. As one of the most influential awards in China auto sector, Golden Engine Awards is well recognized in auto finance market for its authority and objectivity. The selecting process of the awards takes more than four months. The offline selections and online voting launch at the same time, through the strict selections to ensure the most suitable candidates to be elected.

The Third Time Volkswagen Finance China Is Recognized as “Best Auto Finance Company”

Beijing, December 15, 2014, at the recent Financial Value Rankings (CFV) Award Ceremony, Volkswagen Finance China is recognized as “Best Auto Finance Company” award relying on its rapid and steady trend of development, innovative service concept and good reputation within auto finance industry. This is also the third time Volkswagen Finance China winning this award. On the occasion of the 10th anniversary of VWFC, receiving such honor represents a meaningful milestone for VWFC. 

Mr. Joern Kurzrock, CEO and General Manager of Volkswagen Finance China claimed “We are honored to receive such award again, 2014 is the tenth year since the foundation of Volkswagen Finance China. At this special moment, this award appears to be particularly important and significant. At present, Volkswagen Finance China has established close cooperation with more than 2,000 dealers in 300 cities across the country. We appreciate for the joint efforts of our cooperative partners and the employees of the company. Our new retail finance contracts this year compared to the year 2013 are going to have significant increase and are expected to reach a historical record of 400,000.

Rooted in China, as a wholly owned subsidiary of Volkswagen Financial Services AG, Volkswagen Finance China based on the successful experience in the global market of its parent company, combining with China’s national and local conditions, adjusting and developing more suitable products for the Chinese customers in order to better serve them. Reinhard Fleger, Regional Manager China, India and ASEAN for Volkswagen Financial Services AG explained, “Currently, every 100 cars of Volkswagen Group brands are sold in China, over 11 of them are financed through Volkswagen Finance China. In the near future, Volkswagen Finance China will adhere the enthusiasm and professionalism, continuously introduce more innovative and exclusive finance products and services to satisfy all levels of customers of Volkswagen Group brands.

CBN Financial Value Ranking (CFC) is initiated by China Business News, along with the forward steps of the China’s economy. This financial value ranking has been witnessing the rise and the development of the China’s finance industry. This award invites the cooperation with the Institute of Finance, Chinese Academy of Social Sciences, independently and objectively selecting the “Laurel of Honor” in banking, insurance, financial leasing, auto finance, internet finance and other fields, aiming at building the most influential and referential “Finance” benchmarking for the Chinese elites. Volkswagen Finance China relies on the rapid and steady development trend, innovative service concepts and good reputation within the industry, continuously receiving this honor for three consecutive years. 

Volkswagen Finance China celebrates 10th anniversary

Volkswagen Finance China, a wholly owned subsidiary of Volkswagen Financial Services AG, looks back on a period of rapid growth during the past decade. Starting in 2004 with 17 Volkswagen Group dealers in only one city, Volkswagen Finance China is currently partnering with more than 2,000 dealers in nearly 300 cities across the country. In 2013, the company has financed around 228,000 vehicles (2004: 210 vehicles). Volkswagen Finance China aims to promote the sales of Volkswagen Group brands by offering attractive tailor-made products. The company increased the current finance penetration rate of approximately 10 percent, a historic high in the traditional Chinese cash payers market.

Today Volkswagen Finance China celebrates its 10th anniversary. In attendance at the ceremony was Frank Witter, CEO of Volkswagen Financial Services AG: "Volkswagen Financial Services have been growing strongly internationally during the recent years. China is not only the largest and most important automotive market but is also becoming increasingly significant for us as financial service provider – in 2013 alone, we were able to increase the number of new contracts by very impressive 52 percent.

"Reinhard Fleger, Chief Representative of the Region China/India/ASEAN at Volkswagen Financial Services, added: "Since its establishment in 2004, Volkswagen Finance China has taken a leading role in the auto finance industry, with the mission of supporting the sales of Volkswagen Group brands and enhancing customer loyalty. Based on very close cooperation with the brands of the Volkswagen Group and dealer partners, and thanks to the hard work of its employees, Volkswagen Finance China has achieved outstanding results over the past 10 years.

"In this period, consumer behaviour in China has changed. Nowadays, auto finance is becoming more and more popular among Chinese consumers. Joern Kurzrock, CEO and General Manager of Volkswagen Finance China, claimed: "The development and achievements of Volkswagen Finance China in the past demonstrate that we are on the right path. As we are all witnessing, automobile financial services are becoming increasingly important in China. Volkswagen Finance China is a leading player within our industry by continuously offering innovative auto finance products and services. Furthermore, we are proud of having been awarded “Best Auto Finance Company” in 2012 and 2013 and “Top Employer” in 2013 and 2014.”

Volkswagen Financial Services carry out first Auto ABS transaction in China

•Volkswagen Financial Services support growth of the Volkswagen Group in China

•Around 14,000 automobile credit contracts securitised

•Chinese financial sector starts ABS pilot programme

Volkswagen Financial Services have securitised Chinese automobile credits and sold them to investors for the first time. The securitisation transaction Driver China One was placed on the market today with a volume of around 800 million renminbi (RMB), or around 96 million euros. The transaction is part of the ABS pilot programme that grants the wholly foreign-owned auto finance companies access to the local ABS market for the first time under the supervision of the China Banking Regulatory Commission and the People’s Bank of China. During the bidding process, the Class A notes were placed with a fixed interest rate of 4.80% and the Class B notes with a fixed interest rate of 8.08%. The order books were oversubscribed 1.2 times for the Class A notes and 1.5 times for the Class B notes at placement pricing levels. China is the largest sales market for the Volkswagen Group with around 3.3 million motor vehicles sold in 2013. Volkswagen Finance China Co., Ltd., a wholly owned subsidiary of Volkswagen Financial Services AG, financed around 228,000 of these vehicles during the course of the last financial year.

"In terms of vehicle sales, we are very successful in China. For 2014, we are again aiming at double-digit growth in China and intend to deliver more than 3.5 million vehicles to customers for the first time. Our financial services support the Group brands in attracting new customers and binding them over the long term," says Dr. Jörg Mull, Executive Vice President Finance of Volkswagen Group China.

"China is an important market for the Volkswagen Group – not only in terms of vehicles, but also in the field of financial services," explains Frank Fiedler, CFO of Volkswagen Financial Services AG. He continues: "We have been growing strongly in China during recent years and are now working together with around 1,747 car dealers. Alone in 2013 we increased the number of financing contracts by 52 %."

"With the transaction Driver China One, we have expanded our proven ABS programme into a new currency area and thus opened up a new source of refinancing for our strongly growing Chinese business," Fiedler points out.

The following tranches were placed:

• RMB 699 million Class A notes, 

Local rating: [AAA]/[AAA]/[AA+] (CCXI/Lianhe/China Rating)

International rating:  [AA(sf)]/[Aa3(sf)] (Fitch/Moody`s)

• RMB 44 million Class B notes,

Local rating:  [A+]/[A+]/[A] (CCXI/Lianhe/China Rating)

International rating: [A-(sf)]/[Baa2(sf))] (Fitch/Moody`s)

China is the eleventh country in which Volkswagen Financial Services are active with ABS transactions. With the transaction, the company marketed a diversified pool of receivables from around 14,000 financing contracts. Around 99.8 % of these come from the financing of new vehicles. The average financed value per vehicle amounts to approximately 58,400 renminbi, or around 7,000 euros. In addition to local ratings, the transaction has also been given international ratings and bears the quality label "Certified by TSI – deutscher Verbriefungsstandard" from True Sale International GmbH.

Auto ABS represent an important refinancing instrument for the Volkswagen Financial services business division of Volkswagen AG. As at 31.12.2013, the refinanced volume amounted to approximately 16 billion euros, which corresponds to around 14 % of the total assets.

The marketing of the transaction was carried out by the Lead Underwriter China International Capital Corporation ("CICC"). The Hongkong and Shanghai Banking Corporation Limited ("HSBC") acted as Financial Advisor.

2013

2013 Volkswagen Finance China

focuses on children education

31st May, a volunteer team composed by VWFC colleagues went to Huiyao Primary School in Zhuolu Town, Hebei Province to celebrate Children’s Day with students there. We also brought many gifts, like stationery, books, clothes and toys. The 58 outstanding students who were awarded on that day got a special gift additionally.

This activity is just a warm-up of our long term CSR project. Currently, we have established a relationship with Huiyao Primary School, and we will help to improve the teaching facilities and enrich students’ life. This year, we will replace the desks and chairs, and build up a multifunction classroom which can be used as a small cinema, auditorium and dancing room. Later, we will invite students to Beijing, visiting those tourist destinations and our HQ office. What we plan to do is not only improving hardware, but also broadening students’ horizons.

2013 Volkswagen Finance China provides Lamborghini branded finance

firstly worldwide

Volkswagen Finance (China) Co., Ltd and Automobili Lamborghini announced that starting from June 2013, China is the first market to launch Lamborghini branded finance . Customers can enjoy the exclusively tailor-made products and services which can lead to higher customer satisfaction.; Launching Lamborghini finance firstly in China shows that VWFC and Lamborghini highly value China market and customers.

Lamborghini Retail Financing Service program, which is managed by Volkswagen Finance (China) Co., Ltd., offers customized financial packages to Lamborghini customers with an exclusive lifestyle to fulfill their requirements for Lamborghini products. The professionally trained network of service advisors provides individualized services to each customer throughout mainland China.

2013 Volkswagen Finance China

Continues Successful Partnership

with Scirocco R-Cup

It’s the second year for Volkswagen Finance (China) to be the exclusive financial sponsor of Volkswagen Scirocco R-Cup and its cooperation with Volkswagen Group Import (China) represents an excellent example of serving consumers together. Currently, Scirocco R-Cup has already successfully held in Zhuhai, Shanghai and Ordos, and will continue in South Korea and Malaysia. The final will come back to Shanghai.

The initiative of introducing financial services into the innovative marketing platform of Scirocco R-Cup can not only create a good opportunity for customers to experience the superior performance of automobile, but also make it possible for Volkswagen imported cars fans to own cars in a more advisable and easier way with the supportive and flexible financial products. Besides, Volkswagen Finance China will provide auto financial services for all Volkswagen Imported cars, information of which is accessible at the racetrack, city show and dealers’ exhibition room.

Volkswagen Finance China hosted a media conference with New CEO Mr. Joern Kurzrock

Volkswagen Finance China hosted a media conference with New CEO on Feb 26th in China World Trade Center Tower 3. Mr. Joern Kurzrock made a brief introduction and presented the company’s business overview and the Strategic plans in the future. After the presentation, Mr. Joern Kurzrock answered media questions on auto-finance industry in China, the company’s operation and projects in the pipeline.

2012

Volkswagen Finance China Awarded “Top Employer in China 2013”

Volkswagen Finance China is entitled as the Top Employer in China 2013 by CRF Institute, the international evaluation organization on Dec 12, 2012. 36 out of more than 400 companies cross China stand out, receiving this honor with their excellent achievement in human resource management in 2012.

The certification of Top Employer in China 2013 represents the full recognition of the HR management strategy implemented within VWFC and high appreciation of the high-quality service VWFC has been delivering during the past year. Facing various doubts and challenges in the booming auto finance industry, VWFC has built up a positive company image and revealed its core value of putting customer first.

Volkswagen Finance China Awarded the“ Best Auto Finance Enterprise ”

Volkswagen Finance China was awarded the Best Auto Finance Enterprise in China by CBN on November 22, 2012 at the 2012 CBN Evaluation of Elite Car awards ceremony. The award was given during the China Automobile Industry Forum held on the Guangzhou Auto Show media day. Each year the award is given to an enterprise which provides financial support to Chinese consumers by offering them innovative auto finance products and qualified services, which facilitates automakers’ sales.

As the first wholly foreign-owned auto finance company in China, VWFC has been providing products covering almost all Volkswagen brands sold in China since its foundation in China in September, 2004. VWFC has facilitated Volkswagen products sales in China effectively and will play an even more important role in the future as Chinese consumers present growing needs for auto finance products and service along with the rapid growing of auto market in China. Taking the award of Best Auto Finance Enterprise as an incentive, VWFC will continue dedicating itself to providing progressive auto finance products and more advanced service to Chinese customers.

SEAT Finance service was launched in 2012

Das WeltAuto financil service was launched in 2012

Bentlly financil service was launched in 2012

Porsche financil service was launched in 2012

2011

Volkswagen Finance (China) Co. Ltd. hosted a media workshop on December 30, 2011, with the attendance of journalists from 22 key print media and websitest.

Mr. Guy Broekmans, general manager of Volkswagen Finance (China) Co. Ltd. introduced the company's business overview and 2018 Strategy in China. After the presentation, Mr. Guy Broekmans answered media questions on auto-finance industry in China, as well as the company's operation and future plans.

After the workshop, the journalists visited the new office to further understand the paperless working process of Volkswagen Finance (China).

2010

Until December 2010, we had 671 cooperative dealers in more than 140 cities.

2007

Skoda finance was initiated in June 2007.

2006

Until December 2006, we had 150 cooperative dealers in 35 cities.

Wholesale business was initiated in Jan., 2006.

2004

Volkswagen Finance China Co., Ltd. was founded in Beijing in Sep., 2004 and registered brands of Volkswagen Finance and Audi Finance.

1998

Volkswagen Finance China Co., Ltd. established its office in Beijing in 1998.

Ten Years in China, Volkswagen Finance China shows impressive results in 2014Beijing, December 17, 2014, since received “The Best Auto Finance Company” award from the CBN Financial Value Ranking organized by China Business News, Volkswagen Finance China recently once again is recognized as, “2014 China Best Auto Finance Company” at the Golden Engine Awards Ceremony organized by Moneyweek. Meanwhile, Mr. Joern Kurzrock, CEO and General Manager of Volkswagen Finance China, is awarded as “2014 China Auto Finance Outstanding Promoter” for his role of promoting innovation and significant contribution to the China auto finance market. Through 10 years of careful operation in China market, Volkswagen Finance China has been growing rapidly while experiencing and also promoting the development of the China Auto Finance Market as a whole. Starting with 17 dealers in one city, Volkswagen Finance China has established close cooperation with 2,000 dealers in nearly 300 cities. Compared to the outstanding result of year 2013 with 230,000 new retail contracts, the growth of the Volkswagen Finance China in year 2014 is even stronger. The new retail contracts are expected to reach a new historical record of 400,000.  Relying on the successful experience of the parent company, Volkswagen Financial Services AG, Volkswagen Finance China has brought the advanced products to China and successfully established a leading position in China auto finance market. More importantly, Volkswagen Finance China never stops. Looking back to the past decade in China, Volkswagen Finance China has introduced many innovative finance products exclusively for the Chinese customers. Using Upgrade Finance as an example, applicant only needs to provide identification card and application form and will be replied within 2 hours. Another product is Structure Loan, allowing customer to choose payment options of increasing and decreasing based on his income structure. Mr. Joern Kurzrock, CEO and General Manager of Volkswagen Finance China claimed: “We appreciate Moneyweek awarding Volkswagen Finance China as “2014 China Best Auto Finance Company” and my personal “2014 China Auto Finance Outstanding Promoter” award. We are very encouraged and will continue make persistent efforts to develop more innovative products supporting the sales and dealer partners of Volkswagen Group brands and better serve our customers. Since August 2014, the fifth Golden Engine Awards officially launched. As one of the most influential awards in China auto sector, Golden Engine Awards is well recognized in auto finance market for its authority and objectivity. The selecting process of the awards takes more than four months. The offline selections and online voting launch at the same time, through the strict selections to ensure the most suitable candidates to be elected.