Bangkok--May 16--TQPR Thailand
VOLKSWAGEN LEASING THAILAND LAUNCHES OPERATIONS SUPPORTS VOLKSWAGEN GROUP'S EXPANDING THAI OPERATIONS
Volkswagen Leasing Thailand Ltd. has officially launched its operations, extending the range of services available to buyers of Volkswagen Group vehicles in Thailand.
A joint venture between Volkswagen Financial Services AG (49.9%) and Thai Commercial Auto, TCA, (40.1%), a unit of TISCO Group, along with the Yontrakit Group (10%), Volkswagen Leasing Thailand began full on 1 April 2000. Volkswagen Leasing Thailand's services will be available to car buyers interested in purchasing Volkswagen Group brands now available in Thailand. These brands include Volkswagen, Audi, Seat and Skoda.
"We are very pleased to see the start of operations here in Thailand" stated Mr. Norbert Massfeller, Chairman of Volkswagen Financial Services AG. "As the Thai market continues to grow we look very much forward to offering our full range of services to Thais seeking to purchase a Volkswagen brand vehicle, some of the best made cars in the world. The opening of Volkswagen Leasing Thailand is a natural progression as Volkswagen's scope of operations expands here. Volkswagen Leasing Thailand brings Volkswagen Financial Services AG's expertise together with TISCO Group's local strengths and market knowledge to fully support the Group's operations."
Volkswagen, with its longtime partner, the Yontrakit Group, recently began assembling the Volkswagen Passat Highline and the Audi A6. In addition the two organizations recently announced the formation of Yontrakit Volkswagen Marketing Company Ltd., which will oversee al marketing and sales activities for Volkswagen and Audi brands in Thailand.
Volkswagen Financial Services is a wholly owned subsidiary of the Volkswagen Group, with over 50 years of providing the Group's customers worldwide with a range of financial products and services. TCA is a JV among TISCO Group, Yontrakit Group and Itochu Corporation, and has provided financial services to Volkswagen drivers in Thailand for many years.
Mr. Andreas Kutzner
Managing Director Volkswagen Leasing Thailand Ltd.
Mr. Andreas Kutzner was born on January 28, 1960, in Germany. He received his diploma in 1979 in the import and export business and in 1989 he received his Master Degree in Industrial Organization Management. He has also studied Project Management and IS-Technology.
He began his professional career in 1982 with Volkswagen Leasing Germany, a wholly owned subsidiary of Volkswagen Group, with responsibility for the retail, corporate and fleet business. He served as Head of Fleet Customers South Germany and as the Head of the Dealer Communication and Distribution Planning Department nationwide. From 1992 to 1994 he joined Euro Marketing System GmbH, a mutual joint venture of all European Volkswagen importers where he worked as an advisor for international leasing systems. Upon his return to Volkswagen Leasing he was involved in several strategic projects and responsible for International Market Development and Strategies.
In April of this year Mr. Kutzner was appointed Managing Director and a Member of the Board of Volkswagen Leasing Thailand Ltd.
Mr. Kutzner is married and has two children.
Speech of Mr. Andreas Kutzner Managing Director, Volkswagen Leasing Thailand Ltd.
11 May 2000
Dear Ladies and Gentlemen,
I would like to start by expressing my appreciation to our joint venture partner for their warm welcome to us here in Thailand and for all of their extensive support.
As we at Volkswagen Leasing Thailand look forward to a strong business future I think the key words we have heard today that will insure that success are these: - tailor make the services for the customer and offer them one-stop shopping, all built around the car. These are the preconditions that need to be in place to truly meet our customers' expectations.
Owing to the rapidly developing competitive environment throughout the world, and of course, here in Thailand, the wishes of customers are becoming increasingly strong. With this in mind the financial services business of Volkswagen aims to develop not only pure financial products but also to work to make customer loyalty an integral part of our Volkswagen importers' strategy.
Consumers today, when purchasing a car, are increasingly expecting integrated product packages which guarantee mobility at reasonable fixed prices. Naturally, they would like to drive a high quality, low-cost car, but they also want matching solid financial service and insurance coverage.
Today's car buyer expects low monthly installments as a basic requirement. We at Volkswagen aim to combine this desire with a flexible agreement which gives the customer various choices depending on his personal planning and requirements. These can vary from returning the car to the dealer, to paying a final installment or continuing the finance contract with a favorable monthly payment.
The Thai customer of today wants all this from a single service provider at a calculable fixed price and at a single location. Volkswagen, through Volkswagen Leasing Thailand, and our strong alliance with the importer, and the dealer network, now offers this one stop shop to the Thai customer.
For this alliance we are designing special support for our dealers. In particular, we are putting in place a focused training program for the sales staff. At the same time we are advising on e-commerce strategies and depending on the technical infrastructure available we will assist with software solutions that deliver information for the customer in a timely manner.
Working in close collaboration with the dealers and our importer and with the valuable contributions of all the participating parties, the traditional auto showroom sales office will be changed to a modern service center. This will ensure optimum conditions for the sales of financial products by the dealers. This is the what the customer now demands and this is what we at Volkswagen Leasing Thailand will be giving to them.
Thank you very much for your attention.
Mr. Norbert M. Massfeller Chairman of the Board of Management Volkswagen Financial Services AG,
Chairman of the Board of Directors, Volkswagen Leasing Thailand Ltd.
Mr. Norbert Massfeller was born on 16 August 1946 in Trier, Germany. Following his military service he served in Deutsche Bank's apprenticeship program before attending the University of Cologne where he received a degree in business administration and business economics in 1974.
Following his graduation Mr. Massfeller joined Deutsche Bank's trainee program and in 1976 became a personal assistant to a member of the bank's board of managing directors. From 1980 to 1986 he served on the Board of Management of Eurocard International, followed by terms on the boards of German banking and financial institutions. In 1989 he joined Volkswagen AG as Corporate Executive Director Financial Services.
In 1994 Mr. Massfeller was appointed Chairman of the Board of Managing Directors of Volkswagen Financial Services AG and since 1999 has concurrently held the same title for Volkswagen Bank GmbH.
Mr. Massfeller is married with two children.
Speech Of Mr. Norbert M. Massfeller Chairman Of The Board Of Management
Volkswagen Financial Services AG, Chairman Of The Board Of Directors, Volkswagen Leasing Thailand Ltd.
11 May 2000
Good afternoon ladies and gentlemen,
I would like to extend a warm welcome to you at this press conference on the occasion of the official start of business by Volkswagen Leasing Thailand Ltd., which is based here in Bangkok.
General points on VW FS AG
A few short words about Volkswagen Financial Services AG for those of you here not yet familiar with the topic "automotive financial services":
Volkswagen Financial Services AG - with its headquarters in Braunschweig, Germany - is, as a wholly owned subsidiary of Volkswagen AG, directly responsible for all business relating to the Volkswagen Group's financial services in Europe and Asia. We are furthermore linked through cooperation agreements to the Volkswagen Group financing companies in North and South America.
Last year, Volkswagen Financial Services celebrated its 50th anniversary. To suit this event, 1999 was the best ever year in the history of the company. Volumes and returns climbed up to record levels. In figures that meant: over 2 million credit and leasing contracts in the portfolio and a balance total of 41.3 billion Deutsche marks, which is an increase of nearly 20 percent compared to 1998. This makes Volkswagen Financial Services AG Europe's largest automotive financial services provider.
The individual financial services companies that make up Volkswagen Financial Services AG all have the same goals: To promote the sale of Volkswagen Group products and to support our sales partners, but also to strengthen customer ties to the brands within the Volkswagen Group.
With the increasing demand for financial services from dealers and retail customers, the central mission of Volkswagen Financial Services AG has also changed in time - no, let me put that differently: It has "continued to evolve". The Volkswagen Group's increased sales figures abroad are not only based on the quality of the products, but also on the fact that Volkswagen Financial Services AG actively helps to achieve such sales by becoming active parallel to the market entry of the car manufacturer according to the principle "Financial Services joins automotive".
The proof that this strategy is successful can be seen not only in increased sales figures of the brands within the Group, but also in the increased demand for our appropriate financial services.
In 1999, one in three Volkswagen Group cars was either financed or leased through Volkswagen Financial Services.
This, ladies and gentlemen, in a nutshell, describes our mission and our strategy.
Commitment of Volkswagen Financial Services AG to the Thai market
The first obvious question is "Why are we investing in Thailand?" The answer is very simple: Volkswagen Financial Services AG has faith in the long-term stabilisation and positive development of Thailand and the Thai market.
This is a country which three years ago was still in the worst economic crisis in its history. A country which has impressed the international community and in just 3 years is the first in its region to have successfully managed a turnaround. This achievement is, on the one hand, due to the stronger currency and the renewed trust of the domestic industry and consumers and, on the other hand, to the reforms of the financial system and structures.
Our investment should, therefore, strongly emphasise the trust that the Volkswagen Group has in the Thai market.
Volkswagen Leasing Thailand and the reasons for the Joint Venture
Ladies and Gentlemen, during the last few weeks and months you have reported that the Volkswagen Group started with the production of cars in Thailand, and furthermore also set up a marketing joint venture with the Yontrakit Group.
Volkswagen Leasing Thailand Ltd, whose official start we are celebrating today, was founded as a logical progression according to the principle mentioned earlier: "Financial Services joins automotive".
Volkswagen Leasing Thailand Ltd. is a joint venture of Volkswagen Financial Services AG with Thai Commercial Auto Ltd. as well as the Yontrakit Group. These are two companies and partners which stand for a high level of competence in their fields.
Thai Commercial Auto is part of the TISCO Group, one of the oldest and most important financial services companies in Thailand. We are impressed by the level of professionalism with which the TISCO Group has established itself and their operations on the Thai market. In other words: We see the TISCO Group as an ideal partner for Volkswagen Financial Services AG within the scope of supporting the automobile business with professional financial services for our customers.
The Yontrakit Group is the expert responsible for the "hardware", and by that I mean the automobiles themselves. It has been the importer of the Group brands
Volkswagen, Audi, Seat and Skoda for many years and has been very successful in this role. It is currently orienting its dealer network towards the challenges of the new millennium with enormous financial investment. This is an investment, which will also be important for the success of Volkswagen Leasing Thailand.
We are convinced that we will be able to achieve top levels of customer satisfaction and retention with these partners. Especially in the premium segment with the Volkswagen Passat and Audi A6, which are produced here, we have a very quality-aware customer segment, which will also place very high quality demands on the financial services offered to them.
Vision/Mission of the company
The vision of Volkswagen Leasing Thailand is to support the sales of Volkswagen Group vehicles in Thailand by offering financing for retail customers and to achieve an appropriate profit accordingly.
In order to reach these goals, our main emphasis will be to build up a long-term partnership with our dealers who have the direct contact to the customers. Mr Kutzner will give you further details on this partnership.
Sooner or later, this partnership will mean that both our dealers and customers will benefit from a whole range of advantages. Our dealers will be able to extend their product range for their customers with tailor-made and competitive financial services and thus not only increase their sales, but also guarantee it for the long term.
In the future, Volkswagen Leasing Thailand's objective is to introduce the so-called "one-stop-shopping" for its customers. One-stop-shopping makes it possible for the customers to receive everything they want concerning the automobile directly from the dealership with a high level of service-quality.
This system is very comfortable for our customers, as they do not have to deal with anybody outside the dealership to describe their very personal financing requirements and have them carried out.
Furthermore, we see an advantage for Volkswagen Leasing Thailand in its function as a captive, and therefore exclusively committed to and as the exclusive representative for the Volkswagen Group brands in Thailand. This means that Volkswagen Leasing Thailand will be in a better position than any other competitor to provide, in cooperation with the importer Yontrakit, tailor-made financial services.
It is against this background that the joint venture partners have agreed on a strategy which will follow exactly this path on into the future: Taking all partners' experience into account, we will gradually develop concepts together which will result in offers which in addition to pure financing aspects will not only support the sales of the Group products, but will, above all, lastingly increase customer loyalty and customer retention.
Thank you very much.
Speech of Mr. Sakchai Peechapat Managing Director, Thai Commercial Auto Co., Ltd.
Executive Director, Volkswagen Leasing Thailand Ltd.
11 May 2000
The Chairman of Volkswagen Financial Services, the Chairman of Yontrakit Group, honorable guests and members of the media, good afternoon.
As an executive director of Volkswagen Leasing Thailand Ltd., I am very pleased and proud that Thai Commercial Auto Co., Ltd., a company in the TISCO Group, has become a partner with Volkswagen Financial Services AG, one of Europe's leading financial services corporations, along with Yontrakit Group, an integrated Thai automobile operator.
The increase in foreign direct investment in Thailand in the past couple years can look at as indicator showing confidence and brighter prospect of Thai economy, especially for the automotive industry. Consequently this will be a cause for increased business activities, including financial services. There is a trend of many world class car manufacturers adding value to their services to their clients by providing the comprehensive services, especially for the high potential market, definitely in the Thai market as well.
The planning and development of the strategy for Volkswagen Leasing Thailand has been in an efficient and timely manner. In a time of 7 months the new company was registered and in April of this year we became operational, able to put forward our business in a manner superior than even we had hoped. The reason for this is both our shared vision and goals, ranging from the management philosophy to providing the best customer services. Apart from these, social responsibility is another area in which we share ideals. Earlier today, Volkswagen Leasing Thailand donated many needed and useful items to the Pattaya Orphanage and the Redemptorist Vocational School for the Disabled. In fact, TCA, as a part of TISCO Group, has continuously contributed to Thai society and the community we work in through the TISCO Foundation, which was founded in 1982. This Foundation has continuously provided funds annually for thousands of children to assist in the expenses for their education; funds to raise capital for those who might be capable of work but lack the needed start-up money; medical funding; and environmental protection under TISCO Earth Group commencement in 1989 of the campaign for reforestation.
The effective specialization in the hire purchase business of Thai Commercial Auto Co., Ltd. can be seen in the operating results which show it to be one of the best in Thailand, even with the economic crisis, proven by a net profit of 93 million baht in 1998 and 96 million baht in 1999, the excellent quality of assets, the efficiency of the operations, and increasing numbers of repeated clients by choosing to utilize our financial service again and again. It is these results that have made TCA a trusted partner and the comprehensive service provider for Volkswagen Leasing Thailand.
I am very sure of the success of Volkswagen Leasing Thailand. Not only because of the company's structure and the solid support from the shareholders, but also because of the high quality staff, good working systems, and most importantly the desire to provide the best service to our clients and share with the society around us.
To all of you, our honored guests here today, thank you very much.
Mr. Sakchai Peechapat
Managing Director, Thai Commercial Auto Co., Ltd.
Executive Director, Volkswagen Leasing Thailand Ltd.
Mr. Sakchai Peechapat was born on 18 December 1967 in Bangkok. He graduated with honors from Kasetsart University with a bachelor's degree in Civil Engineering. Upon graduation he worked for the CPAC unit of Siam Cement Group as a structural engineer to design several high rise buildings and later as a project engineer for LPN Development where he oversaw the execution of LPN Tower, an 18-storey building.
A winner of the prestigious Fujitsu Asian Scholarship he attended the University of Hawaii at Manao where he received his Executive MBA in International Business and Japan-focused Management Program Certificate with Highest Distinction at Japan-America Institute of Management Science (JAIMS).
Embarking on his new career in 1993, Mr. Sakchai joined TISCO as an Executive Trainee and rotated to TISCO affiliate, HI-WAY Co., Ltd. where he held several senior management positions. Since 1996 he has been Managing Director of Thai Commercial Auto Co., Ltd. (TCA), a joint venture between TISCO Group, Itochu Corporation of Japan and Yontrakit Group, providing hire purchase automotive financing to Yontrakit Group customers.
Mr. Sakchai serves Volkswagen Leasing Thailand Ltd. as both a member of the Board of Directors, where he is the Vice-Chairman, and the Board of Management as the Executive Director, while retaining his position at TCA.
For more information please contact:
Tom Van Blarcom/Chokechai Simakajornboon
TQPR Thailand
163 Sukhumvit 21 (Asoke)
Bangkok 10110
tel.: 260-5820/3; fax: 260-5847/8
e-mail:[email protected] End.