Volkswagen Financial Services reported a drop in originations in North America, even though “the region didn’t experience the effects of the COVID-19 pandemic until much later” than Europe, according to first-quarter earnings statements released yesterday.
New consumer financing and lease contracts dropped to 1.9 million, a decrease of 1.4% compared with the prior quarter. Still, total number of contracts at the end of the reporting period came in at 21.6 million, a 6.5% increase in the same time period.
Globally, Volkswagen Group reported a net liquidity of $19.3 billion at the end of the first quarter, and a $4.8 billion decrease in spending, mostly due to a decline in demand following the spread of coronavirus, which minimizes the need for additional funding.
Its global captive, which lends in 48 countries, increased cash and cash equivalents by 1.7% to $8.7 billion compared with yearend 2019. Moreover, the captive’s sales revenue increased 12.7% year over year to $11.4 billion and operating profit was up slightly at $766 million.
The German automaker delivered 129,797 units in the U.S. during the quarter, a decline of 13.5% YoY.