Volkswagen creates financial arm

Volkswagen has put its Financial Services AG unit in charge of coordinating all its financial services business around the world.

Volkswagen has put its Volkswagen Financial Services AG unit in charge of coordinating all its financial services business around the world, Europe's biggest carmaker said on Friday.

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Until now, the unit had managed the business in Europe and the Asia-Pacific region.

"While applying common steering principles worldwide, we aim to strengthen knowledge transfer and exploit new growth potential to improve our profit contribution," Chief Financial Officer Hans Dieter Poetsch said in a statement.

The division provides finance for dealers and customers, arranges leases and insurance and helps large clients manage their fleets of vehicles.

VW said it was still studying whether to change the corporate structure of financial services units in Argentina, Brazil and Mexico as part of the reorganisation. North American unit Volkswagen Credit Inc. will remain legally independent.