Jens Winkelmann, the country manager for Volvo Financial Services (VFS) South Africa, said he was excited to announce the establishment of Volvo’s own captive finance company in the country.
He was speaking at a press conference to announce the opening of VFS in South Africa in Johannesburg today (7 November).
VFS South Africa is the first Volvo captive finance company to be formed in Africa and is one of 45 located around the world. Roughly one out of every three Volvo vehicles in these 45 countries is financed by VFS.
“Being part of the Volvo Group gives us the unique opportunity to provide a full range of finance and insurance solutions through the dealer network to our customers, in an easy and convenient way,” he explained.
He said VFS South Africa will deliver a one-stop shopping experience and personalised financing solutions. “We are offering more than just financing. We are facilitating the total offer, combining the vehicle purchase, finance, service and insurance.”
VFS was established in 2001 as a business area within the Volvo Group and is headquartered in Greensboro, North Carolina. There are two other regional head offices, one in Singapore, which looks after the Asia-Pacific region and another in Sweden, which takes care of Europe, Middle-East and Africa (MEA). South Africa will report into the MEA structure.
“We are convinced that our dedication is a competitive advantage. We provide first-class service, not only to our dealers but more importantly to our customers. We are the experts in this industry and know the Volvo Group and its products better than anyone,” motivated Winkelmann.
“VFS South Africa will offer tailored solutions.”
South Africa is a very important market for Volvo Financial Services: Volvo Trucks and UD Trucks have a combined market share of 25% in the country.
“This market in 2016 represented around R7.2 billion worth of sales to the Volvo Group,” he continued.
He said the heavy trucks market in South Africa was forecast to be twice as big as it was in 2012 come 2027, driven by agricultural exports, mining and infrastructure investments.
“The vital road freight industry in South Africa contributes in excess of 46% to the country’s GDP. And we see South Africa as the gateway to grow our business in South-East Africa.”
Volvo Financial Services South Africa will provide financial leases, operating lease agreements or instalment sale agreements, through its existing alliance with WesBank.
“VFS and WesBank will complement each other and further strengthen the range of solutions, bundling hard and soft products,” he said. VFS offers are available on Volvo Trucks and buses and on UD Trucks in South Africa, through the dealer network.
The local presence is fully operational, staffed and licensed and is a registered National Credit Provider, based in Boksburg, Johannesburg.