Opel Vauxhall Finance (OVF) the captive finance company for Opel in Europe and Vauxhall in the UK has said it intends to finance every third Opel vehicle sold by 2020, as part of its strategic plan.
This would represent a 50% increase in penetration compared to 2017, as it looks to complement Opel/Vauxhall’s plan PACE!
OVF was acquired by Banque PSA Finance and BNP Paribas Personal Finance last year, following the sale of General Motor’s European operations to PSA. Once the deal was completed, the senior management team said they would produce a strategic report outlining the finance companies future in 100 days.
Key to reaching its targets will be an expansion of product portfolio in existing markets as well as entering new markets.
One new market OVF said it plans to enter is Spain. Overall, OVF said it plans to expand its geographical footprint to 90% of Opel/Vauxhall’s European markets.
New products will include full-service leasing for fleet customers in Germany in 2018 through Opel Bank. Other markets including the UK will also receive new B2B products, though these were not specified.
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The company noted that Opel/Vauxhall has the clear goal to increase its sales by 25% by 2020 against 2017, and attractive finance products for commercial customers will be key to accomplishing this target.
It will also be looking to launch mobility packages the combine leasing, insurance and service products. It said these products help increase customer loyalty for both the finance company and the automotive brand. OVF said: “While these product bundles are already available in some countries, the objective is to launch them in all OVF markets, boosting Opel and Vauxhall sales through joint marketing campaigns.”
OVF said it also intended to improve the operational efficiency and strengthen the collaboration framework with Opel/Vauxhall to increase the volume of financed/leased vehicles while at the same time raising retail margins across Europe.
OVF will receive its funding through BNP Paribas, while also leveraging the systems and experience of both BNP and Banque PSA Finance as it looks to achieve its growth targets.
“Our plan provides a clear roadmap to increase efficiency and to contribute to Opel/Vauxhall performance across all channels”, said Alexandre Sorel, chief executive officer of Opel Vauxhall Finance. “Our agile and ambitious team is fully committed to meeting the mobility needs of its customers across Europe, while sustaining and developing the Opel and Vauxhall brands through competitive automotive finance solutions.”
“Having a strong and customer-oriented captive organisation like Opel Vauxhall Finance is an important element for our sustainable future. The initiatives presented today will be a valuable performance booster for our brands,” added Michael Lohscheller, chief executive officer of Opel Automobile.