Volkswagen Mexico plans bank to boost car sales
German automaker Volkswagen plans to launch its own bank in Mexico in the next few months to increase financing for car sales and recover market share.
By Agencies |
MEXICOCITY: German automaker Volkswagen plans to launch its own bank in Mexico in thenext few months to increase financing for car sales and recover market share.Volkswagen Bank Mexico is still awaiting final approval from Mexico's bankingcommission and would be the company's 28th bank operationworldwide.
"We expect to have40,000 to 45,000 clients in the first year of operation," Reinhard Mathieu, whowould head the bank, told a news conference on Wednesday.
Volkswagen plans to investaround $70 million to launch the Mexican bank, which would work out ofVolkswagendealerships.
Burkhard Breiing,head of Volkswagen's worldwide financial services area, said the new banking armwould help boost sales inMexico.
Volkswagen has a plantin the central Mexican state of Puebla, its only facility in North America andits only plant worldwide that makes the popular NewBeetle.
The company sold 95,819Volkswagen-brand automobiles in Mexico between January and September, slightlybelow the 96,167 units sold in the same period of 2006, according to figuresfrom the Mexican Automotive Industry Association(AMIA).
Volkswagen has lostmarket share to cheap models from General Motors Corp and Nissan Motor Co Ltd<7201.T>, which were the No. 1 and 2 auto sellers in Mexico lastyear.
"We expect to have40,000 to 45,000 clients in the first year of operation," Reinhard Mathieu, whowould head the bank, told a news conference on Wednesday.
Volkswagen plans to investaround $70 million to launch the Mexican bank, which would work out ofVolkswagendealerships.
Burkhard Breiing,head of Volkswagen's worldwide financial services area, said the new banking armwould help boost sales inMexico.
Volkswagen has a plantin the central Mexican state of Puebla, its only facility in North America andits only plant worldwide that makes the popular NewBeetle.
The company sold 95,819Volkswagen-brand automobiles in Mexico between January and September, slightlybelow the 96,167 units sold in the same period of 2006, according to figuresfrom the Mexican Automotive Industry Association(AMIA).
ADVERTISEMENT
Volkswagen has lostmarket share to cheap models from General Motors Corp and Nissan Motor Co Ltd<7201.T>, which were the No. 1 and 2 auto sellers in Mexico lastyear.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
