Volvofinans Bank was founded in 1959, and at present 50 % of it is owned by the Swedish Volvo and Renault dealers via the holding company AB Volverkinvest and the other 50 % is owned by Volvo Car Corporation. In July 2008, the Swedish Financial Supervisory Authority granted Volvofinans Bank permission to conduct banking operations.
The primary task of the bank is to actively support sales of products marketed by Volvo and Renault dealers in the Swedish market by providing product and sales financing, all while reporting good profitability. The head office, where the majority of the bank’s 200 or so employees work, is located in Gothenburg. It also has an office in Stockholm. Volvofinans Bank currently has no operations outside of Sweden.
The sales financing takes place in the form of loans and leases to private individuals and companies via the Volvo dealer company, Volvohandeln. The contract stock currently totals 250,000 contracts. Operating under the name of Svensk Vagnparksfinans, the bank offers company car financing and administration to major companies and, to date, more than 350 companies have signed general agreements with Svensk Vagnparksfinans.
Volvofinans Bank also conducts credit card operations, and has managed and marketed Volvohandeln’s retail loyalty card – the Volvo Card – since 1979.
The bank’s financing requirements are partly satisfied using public marketing programmes and partly using public deposits. Where the marketing programmes are concerned, a Nordic Commercial Paper Portfolio worth SEK 8 billion and a Euro-Commercial Paper Portfolio worth SEK 500 million are used. For long-term loans, an MTN programme worth SEK 15 billion is used.