- VW Financial Services goes big on used cars: VW’s finance arm sold ~270,000 pre-owned vehicles across Europe in 2024 [1], and Volkswagen Group Mobility reported 444,000 used-car sales last year (up 16% from 2023) [2]. The company’s “Vehicle Lifetime” strategy aims to lease cars through multiple cycles, and VWFS CEO Christian Dahlheim says worldwide used-car contracts jumped 11% in 2024 [3].
- Profit and outlook: VW’s mobility division (which includes VW Financial Services) earned about €3.0 billion operating profit in 2024 [4]. Management now expects 2025 results to beat last year’s level, despite currency and macroeconomic headwinds [5]. Analysts at Jefferies noted after a recent earnings call that VW delivered a “reassuring message overall,” with third-quarter profitability likely within guidance (around a 4.3% operating margin) [6] [7].
- Stock performance: VW shares are hovering around €91 as of Oct. 28 (after a small rise on Oct. 27) [8]. The stock has been under pressure (trading near multi-year lows in the €90–95 range) [9], but some technical signals suggest a possible rebound: one analysis flagged a “double bottom” pattern, projecting a ~23% jump to about €113 by late December [10]. However, others warn that several indicators remain negative, and VW’s near-term trading range is seen roughly €90–92 [11]. Metzler analyst Pal Skirta commented that VW seemed “comfortable with current market expectations” and should benefit from solid core-brand sales [12].
- Used-EV market woes: Industry experts warn that falling resale values of electric cars are squeezing margins. VWFS chief Dahlheim bluntly noted: “If a vehicle loses 1% of its value, I get 1% less profit.” [13] His remark came amid a crash in used-EV prices: buyers have little confidence in second-hand battery cars, which is also hurting new-EV sales. Toyota Europe COO Matt Harrison agrees there’s “no demand” for used EVs, “really hurting the cost-of-ownership story” [14]. This dynamic has forced rental and fleet companies (e.g. Sixt) to curb EV purchases.
- EV competition intensifies: Chinese EV makers are storming the European market. BYD – the world’s biggest EV manufacturer – saw its EU sales explode: up ~280% in the first 8 months of 2025 vs. a year earlier [15], with nearly 311% growth in H1 2025 [16]. In September the UK became BYD’s largest overseas market, and in Germany its registrations jumped from 140 (Sept 2024) to over 3,200 [17]. BYD’s surge (it briefly outsold Tesla in Europe) is pressuring incumbents. As one analyst put it, only about 15 of 129 Chinese EV brands will survive by 2030 [18].
- Mobility services growth: All this comes as Europe shifts toward “cars-as-a-service.” VW’s partnership with Europcar reflects a push into rentals, subscriptions and car-sharing. Demand for mobility services is rising – Oliver Wyman predicts Europe’s mobility-as-a-service market will grow from ~$77 billion in 2023 to nearly $94 billion by 2035 [19], driven by young buyers who prefer access over ownership [20]. VW CEO Christian Dahlheim has said he expects most people “to use and not own” vehicles by 2030, a trend VW hopes to capitalize on [21].
- Chips and costs: At the same time, VW faces broader industry headwinds. A recent chip-export blockade by China’s Nexperia has raised supply risks. ACEA Director-General Sigrid de Vries warned of “potential significant disruption” to European assembly lines if chip flows aren’t restored [22]. VW’s CFO Arno Antlitz admitted the company is under cash pressure – “we give out more money than we take in,” he told staff [23] – so any production stoppage would be a fresh blow.
- Local news: In an unrelated incident in South Carolina on Oct. 28, Horry County firefighters rescued a driver from a vehicle submerged in a roadside pond. The crew hooked the car to a winch and pulled it out; miraculously, the person escaped without injury [24]. (Traffic lanes on Highway 17 Bypass were briefly blocked during the response.)
In summary, Volkswagen is doubling down on used-car and rental strategies to bolster revenues amid a tough market. Its finance arm is aggressively marketing pre-owned vehicles (a proven profit center) and expanding mobility offerings through partners like Europcar. At the same time, VW must navigate industry challenges – from chip shortages to collapsing used-EV values and fierce competition from Chinese automakers. Investors are watching closely: VW’s stock has been weak, but some technical charts hint at a bounce, and analysts remain cautiously optimistic that core sales and cost cuts will underpin a moderate profit rebound into 2025 [25] [26]. As VW’s Dahlheim put it, success will hinge on adapting to a future where “most people will still prefer individual mobility … but it will be more about using and less about owning vehicles.” [27]
Sources: Official VW Financial Services releases [28] [29]; Reuters and Bloomberg news [30] [31]; VWFS and industry data [32] [33]; TS2.tech analysis [34] [35] [36]; WMBF News local report [37]; mobility market research [38].
References
1. www.vwfsusedcars.de, 2. www.vwfs.com, 3. www.vwfs.com, 4. www.vwfs.com, 5. www.vwfs.com, 6. www.reuters.com, 7. www.reuters.com, 8. stockinvest.us, 9. ts2.tech, 10. stockinvest.us, 11. stockinvest.us, 12. www.reuters.com, 13. www.bloomberglinea.com, 14. www.bloomberglinea.com, 15. ts2.tech, 16. ts2.tech, 17. ts2.tech, 18. ts2.tech, 19. www.oliverwymanforum.com, 20. www.oliverwymanforum.com, 21. www.volkswagen-group.com, 22. ts2.tech, 23. ts2.tech, 24. www.wmbfnews.com, 25. www.reuters.com, 26. stockinvest.us, 27. www.volkswagen-group.com, 28. www.vwfs.com, 29. www.vwfs.com, 30. www.reuters.com, 31. www.bloomberglinea.com, 32. www.vwfsusedcars.de, 33. ts2.tech, 34. ts2.tech, 35. ts2.tech, 36. ts2.tech, 37. www.wmbfnews.com, 38. www.oliverwymanforum.com
