Volvo Financial Services (VFS), the global finance arm of Volvo Group, has announced the launch of VFS Southern Africa.
VFS Southern Africa will provide financial services for customers of Volvo Group Southern Africa, which includes the UD Trucks, Volvo Bus, Volvo Trucks and Volvo Construction Equipment brands.
“This is what we need to sell trucks – we need finance,” says Volvo Group Southern Africa president Torbjörn Christensson.
He regards the formation of VFS Southern Africa as a “milestone” in Volvo Group Southern Africa’s existence.
Captive FinanaceThe launch of Volvo’s own captive finance company in South Africa will set dealers up as “one-stop shops” where customers can arrange a number of financial services, such as instalment sales agreements, finance leases and operating leases.
“Although VFS will only initially be present in South Africa, we will aim to make it available to our customers across Southern and Eastern Africa, as these respective product markets continue to develop,” notes Christensson.
VFS South Africa country manager Jens Winkelmann says Volvo Group regards South Africa as a “top strategic market” and “the gateway to south-east Africa”, with the region providing a number of growth opportunities for the Sweden-based group.
He says South Africa was also selected as a VFS market, as Volvo trucks and UD trucks have a combined truck market share of 25%.
In 2016, Volvo Group achieved sales of R7.2-billion in South Africa.
“The South African truck market is an extremely competitive environment and we, therefore, see a great opportunity for VFS, as a captive financial solutions provider, to present our customers with a customisable transport solution,” notes Winkelmann.
“While we are a global organisation, VFS leverages our local expertise to ensure our South African customers’ unique business requirements are addressed through a tailored, competitive solution,” adds VFS president Scott Rafkin.
“We deliver value to customers by being easy to do business with through our speed and industry knowledge, and by working hard to develop a long-term relationship with them throughout the business cycles.”
Credit PortfolioVFS was formed in 2001 and is headquartered in North Carolina, US.
The company manages a net credit portfolio of more than R213-billion, providing customer financing in over 45 countries.
One in three units sold in Volvo Group globally is financed by VFS.
Despite the formation of VFS Southern Africa, Volvo Group Southern Africa will continue its alliance with asset financier WesBank on selected product offerings.