Volkswagen Expects Difficult 2023 For Financial Services Unit

Highlights
Volkswagen expects a difficult 2023 for its financial services unit on the back of economic downturn, higher energy prices and rising interest rates.
"We see that people are more cautious due to recession expectations, and we are not selling so many cars," said Frank Fiedler, chief financial officer of Volkswagen Financial Services, in Braunschweig on Wednesday evening.
Rising interest rates may weigh on earnings in the coming year, he said, adding that the Volkswagen unit could not make a concrete forecast for its operating profit yet.
The financial unit is still benefiting from high prices for used cars and lower costs for credit and residual value risks in the current year. Operating profit should be in a range of between 5 billion and 5.5 billion euros, Fiedler said.
That compares with a previous forecast of about 5 billion euros, and operating profit of 5.7 billion euros in 2021.
(Reporting by Jan C. Schwartz; Writing by Linda Pasquini; Editing by Miranda Murray)
Great Deals on Used Cars
View All Used Cars









Upcoming Cars










Upcoming Bikes










Explore More
Latest News
Related Articles

-17734 second ago
The double cab pick-up comes with a payload capacity of up to 760kg and will be joined by a chassis-cab variant in 2024.

-17329 second ago
Customers can access these services through the KwikFix app

-14827 second ago
Launched last year with single-channel and dual-channel ABS options, the motorcycle will now be offered only in the latter variant, priced at Rs. 1.31 lakh

13 hours ago
The 70 Series from Toyota was first launched in 1984, and the latest iteration combines retro styling with modern technology.

13 hours ago
New-gen Duster now sits on the CMF-B platform and is offered with turbo-petrol, bi-fuel and hybrid powertrain options.

13 hours ago
The updated Tesla Model 3 gets the “Active Hood” feature to reduce pedestrian injuries in the event of a collision

14 hours ago
The selection committee comprising members of the FIM, IRTA and Dorna Sports announced the decision to drop CryptoDATA RNF over repeated infractions and breaches.

15 hours ago
Subcompact SUV to get refreshed looks and new tech.

15 hours ago
The news of Rossi's foray into the WEC arrives amid the release of the series' provisional 2024 entry list, featuring 19 cars in the Hypercar class and 18 in LMGT3

12 days ago
Volkswagen will deliver nearly 40 electric vehicles to the Vatican, from its ID. family that currently consists of the ID.3, ID.4 and ID.5, and will go on to replace the entire fleet to EVs by 2030

20 days ago
Volkswagen has lifted the wraps off the Nivus coupe SUV for the Latin American markets. The new offering will go on sale in Brazil later this year, but will make it to European markets at a later stage. The new Volkswagen Nivus coupe SUV is part of the brand's new line-up of SUVWs, as the company likes to call it, and is based on the MQB A0 platform that is a derivative of the MQB platform that underpins the larger offerings in the Volkswagen Group. The Nivus shares its underpinnings with the Brazilian-spec new-gen Polo and Virtus (Polo sedan). The new Nivus will be positioned below the Volkswagen T-Cross in the positioned below the T-Cross in the company's line-up.

22 days ago
All of these launches have happened in the last couple of years

28 days ago
The Taigun GT Edge Trail Edition was first unveiled earlier this year and featured a few cosmetic tweaks over the standard vehicle
