ROCKLEIGH, N.J. (February 5, 2012) – Volvo Cars of North America took a significant stride in its growth strategy by announcing the establishment of Volvo Car Financial Services (VCFS). This new entity is set to revolutionize the financing landscape for Volvo retailers and customers across all 50 states, offering a suite of tailored financial products and services later this year.
The inception of VCFS fulfills Volvo’s commitment to its U.S. dealer network, marking a pivotal component in the company’s ambitious growth trajectory within the American market. This strategic move complements Volvo’s recent successes, including the launch of award-winning models like the XC60 crossover and S60 sports sedan, reinforcing the brand’s dedication to innovation and customer satisfaction.
“The launch of our captive finance arm represents a monumental step forward in our commitment to both our dealers and valued customers,” stated John Maloney, then President and CEO of Volvo Cars of North America. “Volvo Car Financial Services is a cornerstone of our long-term growth plan in the U.S. We anticipate rolling out commercial loan products within the next six months, followed by consumer loan and lease options before the year concludes, providing a comprehensive financial ecosystem for the Volvo community.”
As a wholly-owned subsidiary of Volvo Car Corp., Volvo Car Financial Services is strategically headquartered in Rockleigh, New Jersey. VCFS is building a dedicated team of financial services professionals who will work directly with retailers. This direct support aims to ensure Volvo customers receive a premium, seamless financing experience that aligns with the luxury and sophistication of the Volvo brand. The product portfolio will encompass retail financing and leasing solutions for both new and certified pre-owned Volvo vehicles. These programs will feature both competitive standard market rate financing and attractive promotional offers, backed by Volvo Cars of North America, designed to enhance affordability and customer value.
A cornerstone of Volvo Car Financial Services’ operational model is its strategic long-term partnership with Bank of America. This collaboration makes VCFS unique as the only U.S. automotive luxury captive finance arm to utilize a bank-sourced funding model. Volvo Car Financial Services and Bank of America have established a framework agreement, with final contracts expected to be formalized in the coming weeks. Furthermore, BofA Merrill Lynch is set to become the exclusive provider for specific Volvo Car Financial Services automotive loan and lease securitizations in the United States, solidifying a robust and reliable financial foundation.
Beyond funding, Volvo Car Financial Services will leverage Bank of America’s cutting-edge proprietary underwriting and risk-based pricing technology. This access to advanced technology will streamline and enhance the credit process, ensuring efficient and fair evaluations. It’s important to note that while utilizing Bank of America’s technology, Volvo Car Financial Services will maintain its own distinct credit policy and dedicated credit staff, ensuring decisions are tailored to the Volvo customer profile and market dynamics.
“Bank of America is excited to support Volvo in launching a competitively priced captive financing solution for their customers. We are ready to bring our extensive experience and financial expertise to this partnership,” commented John Hyatt, then President of Bank of America Dealer Financial Services. “At Bank of America, we understand that a one-size-fits-all approach doesn’t work. We are proud to play a role in helping Volvo achieve this significant milestone through our customized and adaptable funding model.”
While Volvo Car Financial Services will handle the origination and direct funding of retailers for contracted retail and leasing products, the critical aspect of contract servicing will be entrusted to CenterOne Financial Services LLC. CenterOne is recognized as an industry-leading servicing provider in the automotive finance sector, consistently earning a STRONG rating from Standard & Poor’s as a consumer finance, automobile loan, and lease servicer since 2004. This partnership ensures operational excellence and a focus on customer satisfaction throughout the loan and lease lifecycle.
“Instead of building our loan and lease servicing infrastructure from scratch, we made the strategic decision to leverage CenterOne’s world-class servicing platform,” explained Tony Nicolosi, then President of Volvo Car Financial Services. “This allows us to ensure a superior, Volvo-branded customer experience from application to contract fulfillment, without compromising on service quality or efficiency.”
CenterOne, a division of World Omni Financial Corp., brings over three decades of automotive industry experience to this collaboration. As one of the largest third-party automobile lease and loan servicing organizations in the nation, CenterOne’s expertise is invaluable.
Brent Sergot, then Vice President and General Manager of CenterOne, expressed enthusiasm for the partnership: “We are eager to bring our deep experience in captive finance and deliver premier third-party servicing to Volvo Car Financial Services. Our companies share a mutual commitment to upholding the highest standards and connecting exceptional customers with outstanding customer service.”
“I truly believe this is a ‘win-win-win’ scenario,” Nicolosi concluded. “Volvo Car Financial Services is a win for Volvo customers because it is dedicated to delivering a best-in-class ownership experience. It’s a win for our retailers who can now offer their customers a complete captive solution for their financing needs directly at the point of sale. And it’s a win for Volvo as a brand, as it will undoubtedly lead to greater customer satisfaction and increased sales volume, driving sustainable growth.”
Beyond consumer financing solutions, Volvo Car Financial Services, in collaboration with Bank of America, will also provide Volvo retailers with co-branded commercial financing products. These offerings include essential tools for dealership operations such as inventory floor plan financing, working capital loans, and real estate loans. This comprehensive suite of financial products is designed to support the entire Volvo ecosystem, from manufacturer to dealer to consumer.
“Bank of America is already a trusted and leading provider of commercial products for Volvo retailers,” Nicolosi noted. “By enhancing our captive product offerings, we anticipate becoming the primary provider of floor plan loans to the majority of our U.S. Volvo dealers, further strengthening our partnerships and supporting their business growth.”
About Volvo
Volvo Cars of North America, LLC, (www.volvocars.com/us) is the North American arm of Volvo Car Corp., headquartered in Gothenburg, Sweden. VCNA is responsible for marketing, sales, parts, service, technology, and training support for Volvo automobile retailers throughout the United States and also oversees Volvo operations in Canada. For deeper insights, please visit the VCNA media website at: http://www.volvocars-pr.com/, and explore Volvo’s perspectives and stories at the Volvo blog: http://www.volvoblog.us/.
About Bank of America
Bank of America stands as one of the world’s foremost financial institutions, providing a comprehensive spectrum of banking, investment, asset management, and risk management solutions. Serving a vast clientele from individual consumers to multinational corporations, Bank of America’s extensive U.S. network includes approximately 5,700 retail banking locations and around 17,750 ATMs, complemented by award-winning online banking platforms with over 30 million active users. A global leader in wealth management, corporate and investment banking, and trading, Bank of America’s stock (NYSE: BAC) is a component of the Dow Jones Industrial Average and listed on the New York Stock Exchange. For more information, visit the Bank of America newsroom.
About CenterOne Financial Services LLC
CenterOne Financial Services LLC leverages over three decades of specialized experience to deliver premier third-party services within the automotive industry. CenterOne’s suite of business solutions encompasses loan and lease servicing, lease-end remarketing, collections, repossession and remarketing, and back-up servicing. Holding the highest Standard & Poor’s rating of STRONG since 2004, CenterOne is a division of World Omni Financial Corp., and a subsidiary of JM Family Enterprises, Inc., ranked among “America’s Largest Private Companies” by Forbes and recognized by FORTUNE® as one of the “100 Best Companies to Work For.” For further details, please visit http://www.centeronefinancial.com/.
Contacts:
Volvo Cars of North America
Laura DiStefano, 201-767-4834, [email protected]
Bank of America
Jefferson George, 980-683-4798, [email protected]
CenterOne Financial Services
Christie Caliendo, 954-363-6285, [email protected]
