Volkswagen Financial Services acquires Fleet Logistics
Volkswagen Financial Services has acquired a 60% share in Fleet Logistics as it looks to create a brand-neutral global fleet and mobility management specialist.
The deal, made for an undisclosed amount and subject to regulatory approval, will see fleet management services from both companies merge to create an international platform combining travel and fleet management; Fleet Logistics already operates in more than 70 countries, serving both national and international fleet customers and has a portfolio of around 200,000 vehicles.
Importantly, the merged service offering will be brand-neutral. Former sole shareholder TÜV SÜD Auto Service GmbH will retain 40% of Fleet Logistics.
“Together with our strategic partner TÜV SÜD, we will bundle and further develop our mobility offers for fleet customers. The strong international focus of Fleet Logistics, in particular, excellently complements our own global financial services activities,” said Lars Henner Santelmann, chairman of the Management Board of Volkswagen Financial Services AG.
“This strategic partnership enables us to deliver significant added value to our fleet customers. We have resolved to transfer the existing business model to intermodal mobility. To this end, we will be able to offer additional services from the joint venture in the future. We have also agreed to retain the brand neutrality of the vehicle portfolio and the independence of leasing companies,” added Patrick Fruth, CEO Mobility Division TÜV SÜD.
Volkswagen Financial Services AG’s CarMobility fleet management subsidiary will transfer to Fleet Logistics. Founded in 2006, the business around 40,000 contracts on its books at the end of 2018.
“CarMobility has developed very positively in Germany over recent years, has built up a large customer base and has established many new products in the market,” said Santelmann, adding: “But in order to continue this trend, we need economies of scale that can only be effectively achieved by expanding our business internationally. That is exactly what is now feasible by bundling activities at Fleet Logistics.”