Volvo Car Financial Services UK has been launched as a joint venture between Volvo Cars and Santander Consumer UK.
The partnership follows a 10-year co-operation between the two businesses, where Santander has provided funding to Volvo’s UK retailers and customers on a ‘white label’ basis, trading as Volvo Car Financial Services.
The new company will be a 50:50 partnership, with Volvo Cars and Santander Consumer UK as equal shareholders.
Volvo Car Financial Services UK will provide wholesale funding to Volvo Cars’ UK retailer network and provide finance for customers purchasing new and used Volvos.
It will benefit from the expertise and back-office systems support from Santander, while establishing a dedicated team that will work closely with Volvo Car UK, to ensure even closer alignment to the brand’s aspirations for continued growth in the UK.
The new company will be led by David Baddeley (pictured) as managing director. He has “extensive” experience with Volvo Cars in the UK and Ireland, and was previously operations director for the brand.
The operation will share offices with Volvo Car UK in Maidenhead, Berkshire.
Baddeley said: “This is a great opportunity, leading a new team that brings together expertise from within SCUK and Volvo Cars, as well as other sector specialists, to create a financial services business that we believe will deliver a positive difference for our retail partners and customers.”
Subject to receiving the required regulatory approval from the Financial Conduct Authority (FCA), the new joint-venture company will commence operations in early 2021.
Kristian Elvefors, Volvo Car UK’s manging director, added: “Given the years of successful co-operation between our two companies, we can be confident that this new joint venture with SCUK will deliver benefits to both our brands and, most importantly, to our customers.
"We will be able to support our exceptional UK market growth with new, highly focused financial services products that will be robust, attractive and competitive.”