Volkswagen Bank and D'leteren to Launch AutoCredit in Belgium
13 January 1998
AutoCredit to be Launched in Belgium/Volkswagen Bank and D'leteren Starting Off 1998 with Auto Financing Products
BRUSSELS, Belgium, Jan. 13 -- Volkswagen Bank GmbH (Brussels)
and D'leteren, the Belgian distributor for Volkswagen, Audi, Seat, Skoda and
Porsche cars, will be collaborating in the Belgian market as of 1998.
Thus, the leading European automobile financer and Belgium's largest auto
importer with a share of roughly 20% of the market will be joining forces to
supplement the D'leteren Lease subsidiary's range of leasing products by
adding innovative auto financing products.
The aim of the joint activities is for D'leteren to market Volkswagen
Bank's auto financing products for private customers. The products will be
distributed via D'leteren's network of 488 Volkswagen, Audi, Seat and Skoda
dealers.
Established in October 1997, Volkswagen Bank's Brussels branch will be
providing back-office and marketing expertise. The online-scoring system,
which has already proven itself in Germany, will allow credit inquiries to be
approved by computer within the space of a few minutes during the sales
negotiations in the dealer's showroom.
Volkswagen Bank's first foreign branch will initially start business with
the AutoCredit product, a form of auto financing with variable final
installments, which was introduced in Germany in 1996.
Belgium a Challenging Market
Roughly 60% of all cars bought by private individuals in Belgium are
financed or leased. Even so, captive auto financers such as Volkswagen Bank
have played only a secondary role to date.
"Belgium is one of the most competitive markets in Europe, both in the
automobile and financial services sector," explains Rainer Blank, managing
director of Volkswagen Bank GmbH.
"This developed and very regionalized market is a challenge for us. We
think that with D'leteren's strong market position and our financial expertise
we are very well poised to tap the market potential. This is not least of all
due to the innovative AutoCredit product," Rainer Blank is convinced.
With AutoCredit, a monthly installment for the vehicle is fixed in line
with the customer's budget. In order to ensure low monthly installments, a
higher final installment is agreed upon. At the end of the lease, the
customer in Belgium can either pay the final installment and gain full
ownership of the car or he can exercise his guaranteed right to return the
vehicle.
AutoCredit has been very successful in Germany. At the end of 1997,
Volkswagen Bank had just under 68,000 AutoCredit contracts in its portfolio in
Germany. In December 1997 alone, one in six of all financing customers opted
for AutoCredit. AutoCredit is being offered not only in Germany but also in
other European countries, Asia and South America through various Volkswagen
financial services subsidiaries with great success.
D'leteren: Looking Back on 50 Years of Volkswagen Imports
Founded in 1805, D'leteren has two core activities. The company imports
and distributes Volkswagen, Audi, Seat, Skoda and Porsche vehicles as well as
Yamaha two-wheelers for the Belgian market. For over two decades, it has been
the unrivaled No. 1 automobile importer. Vehicles are sold via four different
dealership networks for the individual marques.
D'leteren is also the international market leader in the short-term
automobile rental segment via its subsidiary Avis Europe. Avis Europe holds
the Avis System license for Europe, the Middle East, Africa and Asia. The
company's network handles five million customers per year.
In 1998, D'leteren will be celebrating an anniversary: precisely 50 years
ago, it started importing Volkswagen automobiles to Belgium.
Volkswagen Bank GmbH
One of the first automobile banks to be established in Germany, Volkswagen
Bank GmbH was incorporated in 1949. It provides sales financing for
Volkswagen, Audi, Seat and Skoda automobiles as well as dealer sales
financing. Its "Volkswagen Bank direct" unit is one of the leading German
direct banks.
With total assets of DM 13 billion in 1997 and a portfolio of over
864,000 financing contracts, Volkswagen Bank GmbH is the top European
automobile bank. As at December 1997, it employed 819 people at its
Braunschweig offices.
Volkswagen Bank is a wholly owned subsidiary of Volkswagen Financial
Services AG, the Volkswagen Group's holding company for financial services.
Volkswagen Bank GmbH (Brussels) was registered in Brussels on
October 21st, 1997 and is the bank's first foreign branch.
For more information, please contact:
D'leteren
rue du Mail, 50
B-1050 Brussels
Communication financiere
Catherine Vandepopeliere
Tel.: 02-536-54-39
Fax: 02-539-04-42
E-Mail: catherine.vandepopeliere@dleteren.be
VOLKSWAGENBANK
Kommunikation
Heike Loffler
38093 Braunschweig
Tel.: 0531-212-2689
Fax: 0531-212-2772
E-Mail: h.loeffler@vwfsag.de
SOURCE Volkswagen Bank GmbH