Capital Equipment News December 2017

FINANCING

VFS South Africa will provide financial services to customers of the Volvo Group’s truck and bus brands operating as part of Volvo Group Southern Africa.

CLOSING THE FINANCING GAP

As part of the Volvo Group’s plan to become a one-stop shop for all its local customers’ needs, Volvo Financial Services, the global captive finance arm of the group, has established Volvo Financial Services South Africa to help close the financing gap for Volvo Group Southern Africa truck and bus customers in the country, writes Munesu Shoko .

F or commercial vehicle owners, just like any other capital equipment op- erator, reliable trucks are assets they should have in their businesses, and are of- ten the difference between stagnation and growth. However, in a difficult economic environment where conventional financing institutions often have their appetite for risk at its lowest, funding such big-ticket purchases can be a real headache, more so for upcoming, small businesses. To close the financing gap, Volvo Financial Services (VFS), the global captive finance arm of the Volvo Group, has announced the launch of its operation in

South Africa through the newly established Volvo Financial Services South Africa (Pty) Ltd. This is VFS’s first subsidiary in Africa. Officially launched locally on November 7 2017, VFS South Africa will provide financial services to customers of the Volvo Group’s truck and bus brands operating as part of Volvo Group Southern Africa, including UD Trucks, Volvo Bus, Volvo Trucks and Volvo Construction Equipment. However, Jens Winkelmann, newly appointed country manager of VFS South Africa, says the local arm of VFS will initially cater for Volvo Trucks, Volvo Bus and UD Trucks in South Africa and services

may be extended to other Volvo Group Southern Africa brands at a later stage, when need arises. Torbjörn Christensson, president of Volvo Group Southern Africa, says the group has a very good product that is well-trusted in the local market, but financing remains a crucial element of the business. “We have the right product and support structures, but financing is such a headache for our customers,” says Christensson. “The launch of VFS in the country will provide customers with a total Volvo Group offering that includes product, service, parts and financial services.”

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