Volkswagen Financial Services, LM Frotas establish JV in Brazil
Aimed at expanding its fleet business by developing one of the top players in the country, VFWS – which is to own 60% of the JV shares – will merge its current fleet provider Fleetzil Fleet Solutions into the business, resulting in a fleet of some 40,000 vehicles, according to a VWFS release.
"We see great growth potential in the Brazilian fleet market and expect the total market volume there to be much higher by 2026," said VWFS Brazil Managing Director Jörg Pape, explaining that VWFS wants to become the world's largest fleet provider.
The JV's scope for commercial customers will cover the entire vehicle life cycle, including the long-term rental of cars and trucks, maintenance services and insurance, as well as complete fleet management.
Plans also call for expanding its shorter-term subscription model to private customers, The finalization of the joint venture is subject to approval by the antitrust authorities. The parties have agreed not to disclose the amount of the investment.
"We have found a strong partner in LM, which has more than 40 years of experience and is firmly rooted locally," said Mr. Pape.
Photo: VWFS Brazil Managing Director Jörg Pape (source: VWFS)