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Annual Report 2008

A vital and trusted partner.

Volvo Financial Services offers financing to both dealers and end-customers and contributes to strengthen the relationship with customers.

Volvo Financial Services supports the Volvo Group’s product range with vital financing solutions and related offerings to help customers acquire the products that they need. The expanded range of services and customer financing operations intensify cooperation, build retention and add value to Volvo Group’s customers.

2008 was a very challenging year with the financial markets overall experiencing extremely restricted liquidity in the last quarter of 2008. Volvo Financial Services (VFS) continued to provide vital financial services to Volvo Group customers and dealers throughout the world, focusing on strong credit discipline and a close working relationship with dealers, customers and the other business areas in the Volvo Group.

During 2008, VFS continued its strategy of geographical expansion as it commenced retail financing in Chile and Hungary. The organic growth continued with a new financing volume of SEK 44.5 billion (41.4) and a penetration level of 25% (24) for the full year.

Volvo Financial Services reached a portfolio milestone during 2008 of more than SEK 100 billion in managed assets. VFS has been successful in a number of markets, which is reflected in good volumes and favorable penetration, while at the same time maintaining strict underwriting policies. In recent years VFS has focused very much on improving the credit mix of the portfolio, the diversity of the products financed and the geographical distribution of assets under management.

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