(PRWEB) October 03, 2012
The Allianz SE and the Volkswagen Financial Services Company have joined forces to create a Volkswagen car insurance service, representatives from both companies have announced. The new company, Volkswagen Autoversicherung AG, will offer car insurance to Volkswagen's car buyers along with financial services and auto service guarantees.
Allianz executive, Karsten Crede, sees a "clear jump in growth and profitability" from the venture. While focused initially on Europe, the joint venture hopes to sell car insurance to 40% of Volkswagen's car buyers in the global market. The company plans to market the car insurance throughout the world and has markets targeted outside Europe while continuing to work with the large, emerging Chinese market. Volkswagen car dealers throughout the world will be the place to buy Volkswagen car insurance in a modular package that includes financing for leases or loans.
Volkswagen Financial Services and VW Credit are know for streamlining the credit application process and enabling the car manufacturer to advance credit to car buyers in a process that is "as fast as their cars." Volkswagen Financial Services offers customers an on-line site for their account information, budget loans and lease terms, quick turnaround on loan applications, easy to find dealerships, handy payment estimators and special programs to put consumers behind the wheel of the Volkswagen car.
For Allianz, the venture represents an opportunity to regain part of the German car insurance market lost to mutual insurance company, HUK Coburg, one of Germany's largest car insurance policy issuers. The car insurance market in Germany is very competitive. The price and product that the venture with Volkswagen Financial will create will give Volkswagen Autoversicherung AG an edge, according to representatives.
With $520 million dollars to spend, the new company aims to insure just under half of Volkswagen's buyers in the next four years. That would double the number of cars sold today with insurance policies. Consumers visiting a Volkswagen dealership will have an insurance option to consider along with loan and financing packages. Allianz has set a start date of April 1 for the program, pending final contracts and supervisory sanction. Consumers will be able to buy quality car insurance products at Volkswagen dealerships. "We are happy to have the leading global multi-brand car manufacturer by our side," Crede said, referring to Volkswagen. Volkswagen Financial Services has recently begun selling property and casualty insurance policies.
Volkswagen and Allianz started working together in the late 1940s and the long history established a level of trust that allowed the two companies to embrace the project as equals. The new insurance company would employ three dozen associates, and their expressed goal is to more than double the number of business insurance policies to 350,000. They also intend to raise the number of car insurance policies from 690,000 to well over a million.
The venture is focused on making car insurance affordable. By joining an insurer with a major car manufacture and automobile financial service, the strengths of each company will be apparent, and it will allow the design of insurance policies that will benefit consumers, particularly in the pocketbook. The policies are intended to be "tailor-made and inexpensive," according to sources.
Volkswagen and Allianz have equally split the company ownership at 50% apiece. The 49%-51% split is swapped between voting and capital stocks.