Automotive Financial Services in Northern and Central Europe

TABLE OF CONTENTS

Finaccord's report titled Automotive Financial Services in Northern and Central Europe is an updated and expanded research report investigating the market for automotive financial services, defined in broad terms, linked to sales of new and used passenger cars in Northern and Central Europe. In addition to analysing the € 82.5 billion market for finance and leasing services, the study also offers detailed coverage of ancillary automotive financial services markets including motor insurance, creditor insurance, extended warranties, GAP / shortfall protection insurance and road assistance. In the light of the increasing maturity of finance and leasing markets, the revenues generated from high margin ancillary products are crucial to enhancing the profits of a variety of market participants including dealers, manufacturers and independent finance providers.

The report draws on the results of a survey of 520 leading car dealerships in ten countries in Northern and Central Europe - Austria, the Czech Republic, Denmark, Germany, Hungary, Norway, Poland, Slovakia, Sweden and Switzerland - as well as an analysis of the approach to automotive financial services of 20 leading manufacturer groups, representing up to 37 automotive brands, in the same countries. The PartnerBASE™ database that accompanies the report details each of the marketing initiatives for automotive financial services traced by Finaccord for both dealer groups and manufacturers. Together, the report and database will provide you with the definitive guide to current and future opportunities in automotive financial services in Northern and Central Europe.

0.0 EXECUTIVE SUMMARY

• Finance and leasing: a market worth € 82.5 billion in gross advances and assets leased in 2006...
• ... with point-of-sale finance claiming a share of around 56.3% of the total market value
• Average point-of-sale take-up rates for new cars are highest in Hungary and weakest in Denmark
• In several markets, dealers are expanding the number of providers with which they work....
• ... although weak sales in the Czech Republic and Slovakia have produced the opposite effect
• Motor insurance: dealer-intermediated pols. make up around 8.0% of the total consumer market
• ... although the effectiveness of dealerships in this arena varies greatly from country to country
• Creditor insurance: Hungary and Poland are currently experiencing strong development
• Extended warranties: specialist providers are developing a significant non-captive market
• GAP ins.: awareness of GAP insurance is highest in the Czech Republic, Poland and Slovakia
• Road assistance: local companies continue to compete against international providers
• In many ways, consolidation among dealers improves the prospects for auto. financial services
• The sale of a 51% stake in GMAC by GM alters the landscape for captive financial services
• Entities dependent upon point-of-sale automotive financial services can defend their position....
• ... through pursuing a number of action points that will help them to realise their common vision

1.0 INTRODUCTION

• What is this report about?
• The focus of the report is on financial services related to the sale of passenger cars to individuals
• Rationale
• Financial services provision is crucial to the profitability of automotive entities....
• ... and extends to a range of insurance, warranty and assistance concepts...
• ... although published information on these markets remains at a premium
• Changes in the structure of the dealer channel have implications for automotive financial services
• Methodology
• Dealer survey
• Manufacturer survey
• Market data
• Computation of market data is based on a complex set of assumptions and variables....
• ... which Finaccord has compared against secondary information sources wherever possible
• Definitions
• Finaccord
• PartnerBASE™
• Other studies focused on automotive financial services in Europe

2.0 REGIONAL OVERVIEW

• Introduction
• Passenger vehicle data
• Germany's car parc accounts for over 55% of the total for Northern and Central Europe
• Denmark and Norway belie their status as mature mkts. to deliver rapid growth in new car sales
• The boom in nearly new and used car imports into Poland bolsters growth in sales of used cars
• Local preferences for passenger cars vary significantly from country to country
• Motor dealer data
• The number of franchised dealers. sales outlets falls in seven out of the ten countries reviewed
• Sales volume per outlet remains very low in Switzerland in spite of a reduction in dealer numbers
• Finance / leasing
• Survey results
• Dealer penetration rates for finance and leasing dip below 100% only in Denmark and Switz
• Hungarian and Polish dealerships maintain the most relationships for finance and leasing...
• ... although the average number has fallen back in both the Czech Republic and Slovakia
• Almost a half of dealers interviewed collaborate with both captive and non-captive providers
• Average customer take-up rates at the point of sale exceed 50% for new cars in six countries
• ... although the effectiveness of dealers. as distributors appears to be declining in most cases
• Over one third of the market for private car finance is attributable to leasing-based contracts
• Finance and leasing is offered by most manufacturers across Northern and Central Europe
• Market size and growth
• Germany accounts for 58.9% of the region's volume of new and used cars subject to financing....
• ... although as much as 68.1% at the point of sale if direct lenders are omitted from the equat....
• ... with a value well in excess of € 30 billion in gross advances and assets leased in 2006.
• Private car finance in the region adds up to a market growing at an average annual rate of 3.2%.
• The key factor is a declining market for used cars financed at the point of sale in Germany
• Total point-of-sale finance and leasing possessed a value of over € 80 billion in 2006
• In aggregate terms, dealerships lose ground in themarket for finance and leasing for new cars...
• ... with direct lenders achieving over double their average annual rate of growth in new business
• The share of dealerships in finance provided for used car sales falls below a quarter in 2006....
• ...with direct lenders likely to provide a higher aggregate value of used car finance by 2008.
• Motor insurance
• Dealer penetration rates for motor insurance reach 100% in three of the ten countries reviewed
• Many dealerships in Switzerland act as multi-tied agents or brokers for motor insurance
• Denmark and Sweden are characterised by the high penetration of captive-only propositions
• Average customer take-up rates vary considerably from country to country across the region....
• ... with the overall take-up rates for new cars lying above 50% in six of the territories reviewed
• Manufacturer enthusiasm for branded motor insurance is highest in Poland and Germany
• Dealer-intermediated motor ins.: Germany accounts for just over 50% of the market value....
• ... with Volkswagen Versicherungsdienst alone holding a portfolio of around 1.1 million policies
• Volvia accounts for a substantial proportion of dealer-intermediated motor insurance in Sweden
• Creditor insurance.
• Over 50% of dealers offer creditor insurance in only four out of the ten countries considered...
• ... although re-solicitation programs can improve cross-sell rates in many instances
• In a majority of cases, average customer take-up rates fall below the 10.0% threshold...
• ... which indicates that there is plenty of scope to develop overall cross-selling rates further
• Manufacturer-branded creditor insurance progs. are most widespread in Germany and Poland
• Direct lenders account for the majority of creditor insurance sold in conjunction with car finance....
• ... with Germany accounting for almost two thirds of the market value for the region as a whole
• Extended warranties
• Dealerships in the Nordic region and Slovakia are the least likely to promote ext. warranties
• Dealerships in Germany and Norway are most likely to work with multiple warranty providers
• Non-captive warranty prov. is evolving as a result of the activity of a range of specialist firms...
• ... some of which operate internationally and some of which also run branded schemes
• Average take-up rates for ext. warranties are highest for both new and used cars in Germany
• For the whole region, an overall take-up rate of just below 20% is rec. for buyers of used cars
• Enthusiasm for manufacturer-branded warranty extensions is weakest in Scandinavia
• The market for used car warranty exts. is over double the size of its equivalent for new cars
• Germany accounts for almost three quarters of the mkt. value for Northern and Central Europe
• GAP insurance
• The Czech Republic, Poland and Slovakia register the highest dealer participation rates
• GAP insurance can be promoted through dealers. by a variety of non-captive market players
• Independent provs. of GAP insurance at the point of sale prosper in markets other than Poland
• Where offered by dealers, ave. take-up rates for GAP insurance often run at significant levels
• For purchasers of new cars, overall take-up rates are strongest in the Czech Rep. and Poland
• Manufacturer-branded schemes for GAP insurance are most in evidence in the Czech Republic
• Notwithstanding low customer take-up rates, Germany is the largest market in value terms
• Road assistance
• Breakdown recovery ins. is offered on a branded basis by the vast majority of manufacturers
• Both international and local assistance companies compete for deals with manufacturers
• Manufacturers' captive finance operations
• Financial services constitute a crucial source of profitability to major automotive groups....
• ... although the sale of a 51% stake in GMAC by General Motors is a significant development

3.0 AUSTRIA

• Introduction
• Passenger vehicle data
• New car sales advance at an annual average of 2.6% between 2002 and 2006
• Brands within the Volkswagen grouping continue to account for well over a quarter of sales
• Motor dealer data
• Franchised sales outlets increase following the trough reached at the beginning of 2004....
• ... but average sales per sales outlet in Austria remain well below the regional average.
• Finance and leasing - market size and growth
• Direct lenders and cash buyers put the squeeze of point-of-sale finance in Austria...
• ... causing the value of used car finance intermediated by dealers to decline
• Dealer survey - top level results
• Dealer penetration rates exceed 50% for all types of financial service other than GAP ins.....
• ... with average take-up below the regional averages for finance / leasing and motor ins.....
• ... but above or close to the averages for the other ancillary financial services considered
• Austrian consumers display a preference for leasing-based contracts, including long-term rental
• Austrian dealerships are increasingly likely to use non-captive finance and leasing propositions
• Competitor dynamics
• Finance / leasing: over 40% of dealers continue to intermediate captive finance only
• ... although a group of four main, non-captive competitors is becoming increasingly strong
• Motor insurance: over 70% of dealerships focus exclusively on manufacturer-branded policies
• Extended warranties: Car Garantie dominates non-captive warranty prov. at the point of sale
• ... although several other providers have begun to emerge in the dealer distribution channel
• GAP insurance: a minority of dealerships promote GAP cover on a stand-alone basis
• Manufacturer relationships
• Finance / leasing: a number of banks are competing for manufacturer-branded mandates
• Motor ins.: a majority of manufacturer brands collaborate with a single, external underwriter
• Creditor insurance: Cardif, Swiss Life and Winterthur emerge as the main protagonists
• Extended warranties: longer automatic guarantees dull appetite for ext. warranty programs
• GAP insurance: a minority of brands only have introduced stand-alone GAP insurance
• Road assistance: the OAMTC continues to handle the key Ford, Opel and Volkswagen accs
• Data bank

4.0 CZECH REPUBLIC

• Introduction
• Passenger vehicle data
• Rapid growth in sales of used cars help to offset the continuing decline in sales of new vehicles
• The aggregate share of sales of brands within the Volkswagen grouping remains above 50%
• Motor dealer data
• The number of franchised dealer outlets recovers from the low point reached in 2003...
• ... although dealers are likely to become increasingly reliant upon sales of used vehicles
• Finance and leasing - market size and growth
• A robust mkt. for used car finance outweighs the unpropitious env. for new car finance...
• ... helping the value of gross advs. and assets leased to exceed CzKr 30 billion barrier in 2006
• Dealer survey - top level results
• Dealer provision of ext. warranties and GAP insurance has advanced strongly in recent years
• Around two thirds of buyers of new cars take out finance or leasing at the point of sale...
• ... while the average take-up rate for motor insurance is boosted by automatic bundling
• Czech dealerships have reduced slightly the number of partners used for finance and leasing
• Around three out of every four consumers opt for a leasing-based car finance contract
• Competitor dynamics
• Finance / leasing: captive finance providers appear to have strengthened their hand...
• ... although they face tough competition from a variety of non-captive entitities....
• ... including the recently re-named Credium as well as CAC, CSOB and GE Money Bank
• Motor insurance: a small number of entities dominate point-of-sale provision of motor insurance
• Extended warranties: a significant market for non-captive warranties has grown in recent years
• GAP insurance: provisionby dealerships is dominated primarily by non-captive providers...
• ... with Carlife having grown rapidly in both extended warranties and GAP ins. since 1999...
• ... and with Maxima Pojišt'ovna having re-focused on these types of policy from 2002 onwards
• Manufacturer relationships
• Finance / leasing: CAC Leasing ties up exclusive, shared or joint venture links with 11 brands
• Motor ins.: the majority of brands collaborate with a panel of between three and five insurers
• Creditor insurance: Cardif Pro Vita exercises a virtual monopoly on directly organised partners
• Extended warranties: a majority of brands organise warranty schemes on an internal basis
• GAP insurance: Carlife usurps the competition as the leading supplier of branded GAP ins
• Road assistance: local assist. companies continue to sshut out the international competitors...
• ... although Coris claims the Fiat Group account and AXA Assistance works with Renault
• Data bank

5.0 DENMARK

• Introduction
• Passenger vehicle data
• Sales of both new and used passenger cars have developed strongly in recent years
• Suzuki and Toyota push General Motors and Renault Nissan out of the top five groupings
• Motor dealer data
• The rate of decline in the number of franchised dealerships levels out in 2004 and 2005...
• ... although modest sales efficiency suggests that a further downsizing remains on the cards
• Finance and leasing - market size and growth
• Dealerships intermediate only a small proportion of private car finance in Denmark...
• ... with vehicles financed through direct lenders and cash growing at a faster rate
• An important driver of car finance in Denmark is the very high average price of new vehicles
• Dealer survey - top level results
• Finance and leasing constitutes the main focus of Danish dealers in auto. financial services
• Automotive financial services are characterised by weak take-up rates at the point of sale
• Less than one in five individual car buyers in Denmark opt for leasing-based contracts
• On average, Danish dealerships use slightly more than two providers for finance and leasing
• Competitor dynamics
• Finance / leasing: a fragmented market suggests that the sector may be ripe for consolidation
• Motor insurance: there is little or no scope for independent insurers to sell through dealerships
• Extended warranties: independent warranty providers have yet to make serious progress
• Manufacturer relationships
• Finance / leasing: Semler Bilfinans provides captive finance for the four Volkswagen brands
• Nordania Leasing is the most prominent external partner for branded finance and leasing
• Motor insurance: Codan, If and Topdanmark dominate partnerships for branded insurance
• Creditor insurance: only Fiat Finansiering has introduced a lanesikring policy into the market
• Extended warranties: few manufacturer brands have developed extended warranty schemes
• Road assistance: Dansk Autohjalp and Falck dominate manufacturer brand relationships
• Falck, in particular, is keen to expand its business in Scandinavia and elsewhere in Europe
• Data bank

6.0 GERMANY

• Introduction
• Passenger vehicle data
• New car sales stage a recovery in 2006 but the market for used cars continues to decline gently
• Volkswagen Group claims nearly one in three new car registrations in 2006
• Motor dealer data
• The long-standing decline in franchised dealership numbers stabilises by the beginning of 2006
• Average sales per sales contract and sales outlet have risen significantly in recent years.
• Finance and leasing - market size and growth
• In terms of the total number of car finance contracts, the market remains stagnant...
• ... with direct lenders accounting for most of the growth that has occurred in value terms
• Data issued by both the Bankenfachverband and AKA underlines the tough conditions .
• Dealer survey - top level results
• GAP insurance is rarely marketed on a stand-alone basis by car dealerships in Germany
• Point-of-sale take-up rates for finance / leasing and extended warranties are particularly high
• Dealerships are increasingly inclined to work with a higher number of finance and leasing firms
• Lending-based products make up almost two thirds of total consumer finance agreements
• Competitor dynamics .
• Finance / leasing: well over a half of German dealerships now work with non-captive providers
• ... with Santander Consumer Finance approaching an annual volume of one million contracts
• BDK was created in 2000 with the national association of car dealers as a main shareholder...
• ... and is seeking to innovate both in the spheres of both finance / leasing and insurance...
• ... although it remains small, in terms of business vols., when compared to the market leader
• Motor insurance: several underwriters are cultivating the car dealership distribution channel
• Extended warranties: over a third of dealerships utilise non-captive warranty providers
• Car Garantie is the clear leader in Germany's extended warranty market....
• ... with premiums moving up at an annual average rate in excess of 10% in recent years
• GAP ins.: attempts to introduce stand-alone policies appear to have met with limited success
• Manufacturer relationships
• Finance / leasing: Fiat Bank also provides fin. and leasing for Ferrari and Maserati in Germany
• Motor insurance: captive brokers play a prominent role in manufacturer-branded insurance
• Volkswagen Versicherungsdienst made significant progress during the course of 2006...
• ... as a consequence of making several key changes to its strategic partnership with Allianz
• ... with Allianz / Frankfurter and Garanta / Nurnberger prominent in non-captive arrangements
• Creditor insurance: Schweizerische and DBV Winterthur dominate auto. creditor insurance
• Extended warranties: Car Garantie accounts for a majority of manufacturer partnerships
• GAP insurance: only a handful of manufacturer brands offer stand-alone GAP insurance
• Road assistance: the indigenous manufacturer groups operate their own assistance services....
• ... although other competitors include ADAC, AvD, Europ Assistance and Mondial Assistance.
• Data bank

7.0 HUNGARY

• Introduction
• Passenger vehicle data
• An increase in registration taxes causes a fall in passenger car sales in both 2005 and 2006
• Suzuki punches above its weight as a result of its local manufacturing presence
• Motor dealer data
• Dealership sales outlets grow overall in spite of falls in two years between 2002 and 2006
• ... resulting in a vehicle distribution channel whose efficiency is bettered only by Germany
• Finance and leasing - market size and growth
• The impressive growth of previous years goes into reverse from 2005 onwards...
• ... with the market value, in terms of gross advances and assets leased, having peaked in 2004
• A very significant proportion of car loans are made in a foreign currency, often Swiss Francs
• Dealer survey - top level results
• Provision rates for creditor insurance and ext. warranties have risen sharply in recent years...
• ... with dealerships achieving healthy ave. take-up rates where these are offered to consumers
• Dealerships are less inclined than ever to remain loyal to finance providers, including captives
• Only around one in every five finance packages can be defined as leasing-based contracts
• Competitor dynamics
• Finance / leasing: captives struggle for breathing space in a crowded point-of-sale market...
• ... in which a multitude of foreign-owned institutions battle for business
• Motor insurance: Allianz Hungaria, Generali Providencia and Uniqa are the dominant suppliers
• Extended warranties: independent warranty suppliers have begun to make progress in Hungary
• Manufacturer relationships
• Finance / leasing: a number of external partners have secured mandates from major brands
• Motor insurance: Allianz Hungaria and Generali also operate several branded schemes...
• ... although a broker, Eurorisk, holds the relationship with seven manufacturer brands
• Creditor insurance: only one captive finance entity operates a creditor insurance scheme
• Extended warranties: only a minority of brands have introduced their own warranty programs
• Road assistance: Magyar Autoklub accounts for a half of manufacturer partnerships
• Data bank

8.0 NORWAY

• Introduction
• Passenger vehicle data
• The share of total new passenger car sales attributable to fleet buyers has risen in recent years
• The Toyota grouping challenges the Ford grouping for second position in the new car market
• Motor dealer data
• The sharp fall in the number of franchised outlets reaches its lowest point in 2003...
• ... although apparently low sales efficiency is caused in part by Norway's peculiar geography
• Finance and leasing - market size and growth
• The volume of car sales subject to some form of finance peaked at around 279,000 in 2004....
• ... with the value of the market having retreated slightly to around NKr 29.50 billion by 2006
• Dealer survey - top level results
• Relatively few dealerships in Norway intermediate either creditor insurance or ext. warranties
• Take-up rates for motor insurance are comfortably higher than the regional average
• Lending-based products account for the majority of private car finance contracts in Norway
• Where dealers offer warranties, they commonly source policies from more than one provider
• Competitor dynamics
• Branded finance and leasing propositions face tough competition from non-captive providers
• Grupo Santander's ELCON commands a market share of vehicle finance of approaching 30%
• Motor insurance: If and Gjensidige are easily the most prominent non-captive underwriters
• Extended warranties: Fragus Warranty Group strengthens its position by linking with ELCON
• Manufacturer relationships
• Finance / leasing: SEB and Storebrand Bank are active through joint ventures with importers
• Motor insurance: Tennant Forsikring picks up a valuable relationship in the shape of Toyota
• Creditor insurance: the majority of brands are active only through indirect relationships
• Road assistance: Viking Redningstjeneste possesses by far the highest number of partnerships
• Data bank

9.0 POLAND

• Introduction
• Passenger vehicle data
• 2005 and 2006 see a continuation of the trend for huge volumes of used car imports in Poland
• Consequently, the vast majority of consumers acquiring a car elect to purchase a used vehicle
• Volkswagen commands a group market share in excess of 20.0% of the passenger car market
• Motor dealer data
• The number of franchised dealer outlets has stabilised but remains low in per capita terms
• As in the Czech Republic, the emphasis for dealers will fall increasingly on the sale of used cars
• Finance and leasing - market size and growth
• The flood of cheap imports brings about rapid growth in the volume of vehicles financed....
• ... albeit around 410,000 cars are likely to have been paid for in cash during 2006
• Excluding fleets, the total market for passenger car finance is worth over PlZ 10 billion...
• ... although the overall market for consumer credit is growing at roughly twice the speed.
• Dealer survey - top level results
• Dealer interest in intermediating ancillary financial services appears to be on the increase.
• Point-of-sale take-up rates for finance and leasing appear to have risen in recent years....
• ... with sales of GAP insurance to new car buyers also seemingly strong where offered
• Polish dealers. have expanded the number for finance and leasing firms with which they work
• Lending-based contracts dominate finance for individual customers
• Competitor dynamics
• Finance / leasing: numerous independent providers compete in the point-of-sale market....
• ... with Santander Consumer Bank, in particular, having asserted itself in recent years
• Motor insurance: PZU, ERGO Hestia and Allianz continue to dominate the dealer channel
• Extended warranties: Poland remains virgin territory for non-captive warranty propositions
• GAP insurance: As for extended warranties, GAP ins. is dominated by captive propositions
• Manufacturer relationships
• Finance / leasing: a significant prop. of brands continue to collaborate with multiple partners
• Motor insurance:Allianz, ERGO Hestia and PZU also dominate manufacturer partnerships
• Creditor insurance: albeit sometimes indirectly, promotion of creditor ins. is now widespread
• Extended warranties: schemes are now in place for over a half of manufacturer brands
• GAP insurance: Cardif dominates provision of stand-alone GAP insurance in Poland....
• ... although several brands have incorporated limited cover into their motor insurance policies
• Road assistance: AXA Assistance and Pol Assistance provide competition to a dominant trio
• Data bank

10.0 SLOVAKIA

• Introduction
• Passenger vehicle data
• A rapid expansion in imported vehicles causes sales of used cars to surge in 2005 and 2006
• The share of new car sales of the Volkswagen grouping declined rapidly between 2004 to 2006
• Motor dealer data
• Over 100 new franchised dealer outlets opened over a three year period to the start of 2006...
• ... although it is possible that this growth may be out of proportion relative to underlying demand
• Finance and leasing - market size and growth
• Virtually all of the growth in Slovakia's market is due to finance and leasing for used cars
• Used car finance now accounts for over a third of the value of total private car finance
• Slovakia's wider market for cons. credit is growing at more than twice the rate of car finance
• Dealer survey - top level results
• GAP ins. has overtaken creditor insurance and extended warranties as a priority for dealers
• The provision of automotive financial services for used cars generally lags that for new cars
• Dealerships have cut back substantially on the number of finance provs. with which they work
• Around three out of every four consumers opt for a leasing-based car finance contract
• Competitor dynamics
• Finance / leasing: over a half of dealers. now work exclusively with captive finance providers...
• ... although a further eight independent, foreign-owned entities are also active in this sector
• Motor insurance: Allianz and Kooperativa continue to dominate point-of-sale provision
• Extended warranties: Cargarant pioneers the provision of non-captive programs in Slovakia
• GAP insurance: new distribution deals seal Carlife's status as the leading independent supplier
• Manufacturer relationships
• Finance / leasing: most major brands have now introduced finance and leasing services
• Motor insurance: branded insurance is most commonly sourced from a panel of underwriters
• Creditor insurance: Cardif Pro Vita has created relations. with both GMAC and VWFS / Škofin
• Ext. warranties: Carlife ties up administration deals with Kia and Porsche Inter Auto Slovakia
• GAP insurance: only Maxima's links with Ford and Volvo disturb the status of Cardif Pro Vita
• Road assistance: Autoklub Slovakia Assistance claims a majority of the key relationships
• Data bank

11.0 SWEDEN

• Introduction
• Passenger vehicle data
• Moderate growth in the market for new cars helps to offset virtually static sales of used cars
• Volvo achieves more than double the sales volume of any other single brand in Sweden.
• Motor dealer data
• Following a period of decline, the no. of outlets rises by 6.9% in the year to the start of 2006....
• ... although measured by sales per sales outlet, dealers generate relatively low volumes
• Finance and leasing - market size and growth
• The number of credit agreements for purchase of new or used cars remains almost static....
• ... although both the point of sale and direct lenders experience growth in value terms
• Survey results
• Local anomalies influence provision rates of automotive financial services by Swedish dealers
• Car dealerships represent an important distribution channel for motor insurance in Sweden...
• ... although renewal rates for pols. sold by dealers are weaker than those for the whole market
• GAP insurance is never marketed on a stand-alone basis by car dealerships in Sweden
• Point-of-sale take-up rates are strong for finance / leasing and motor insurance in Sweden
• Swedish dealerships tend to work with a comparatively low number of financial svs. providers
• Virtually all car finance organised for consumers comes in the form of lending-based contracts
• Competitor dynamics
• Finance / leasing: Santander emerges among the leading trio of non-captive provs. in Sweden
• Motor insurance: most dealerships concentrate on intermediating captive insurance policies
• Ext. warranties: where offered, warranties are usually sourced from independent providers
• Manufacturer relationships
• Finance / leasing: FCE Bank provides fin. on behalf of Renault, as well as the five Ford brands
• Motor insurance: If, including Volvia, accounts for a majority of branded insurance programs
• Creditor insurance: Cardif Pinnacle and Genworth Financial claim a trio of key relationships
• Extended warranties: only three manufacturer brands operate their own warranty schemes
• Road assistance: Skade och Raddningslarm has been bought by SOS International
• Data bank

12.0 SWITZERLAND

• Introduction
• Passenger vehicle data
• Sales of used cars remained virtually static in Switzerland over the 2002-6 time frame
• Four manufacturer groups account for almost a half of sals of new passenger vehicles in 2006
• Motor dealer data
• dull market for sales of new and used cars causes dealer sales outlet numbers to contract...
• ... but sales per sales outlet in Switzerland remain chronically low relative to the regional ave.
• Finance and leasing - market size and growth
• The Swiss market for car finance and leasing shows little change from one year to the next...
• ... although it rose to more than CHFr 7.5 billion in new business for the first time in 2006
• Dealer survey - top level results
• Swiss dealers focus primarily on intermediating finance, leasing and extended warranties
• Take-up rates are best for finance / leasing for used cars and ext. warranties for used cars
• Around four out of five car finance contracts are classifiable as leasing-based products
• On average, Swiss dealerships use slightly more than two providers for finance and leasing
• Competitor dynamics
• Finance / leasing: the majority of dealers work exclusively with captive finance providers....
• ... with only GE Money Bank and Credit Suisse offering particularly serious competition
• Motor insurance: car dealerships in Switzerland utilise a variety of operating models
• Extended warranties: Car Garantie and eurotax Garantie have cultivated the mkt. since 1993
• Manufacturer relationships
• Finance / leasing: AMAG and Emil Frey control a significant vol. of car finance in Switzerland
• Motor insurance: only a minority of manufacturer brands offer policies under their own name
• Creditor insurance: payment protection policies are rarely offered by manufacturer brands
• Extended warranties: eurotax Garantie accounts for the majority of manufacturer relationships
• Road assistance: Touring Club Suisse has accumulated 1.45 million individual customers
• Data bank

GRAPHICS / TABLES

• Dealers contacted for the research, segmented by country and manufacturer group affiliation
• Manufacturer groups and brands contacted for the research
• Overview of the passenger car parc in Northern and Central Europe, 2002-6
• Overview of new passenger car sales in Northern and Central Europe, 2002-6
• Overview of used passenger car sales in Northern and Central Europe, 2002-6
• New car registrations in Northern and Central Europe segmented by manufacturer group, 2005/6
• Number of franchised automotive dealership sales outlets in Northern and Central Europe, 2001-5
• Average sales volume per franchised automotive dealership sales outlet in N/C. Europe, 2005
• Comparison of % of dealers offering finance / leasing at the point of sale in N/C. Europe, 2007
• Comparison of average number of providers used by dealers offering finance / leasing in N/C. Europe, 2007
• Comp. of ave. number of provs. used by dealers offering fin. / leas. at the pos. in N/C. Europe, 2004-7 (data)
• Comp. of captive / non-captive op. mods. used by dealers offering fin. / leas. at the pos. in N/C. Europe, 2007
• Comp. of captive / non-cap. op. mods. used by dealers off. fin. / leas. at the pos. in N/C. Europe, 2007 (data)
• Comp. of ave. % of new and used car purchasers contracting fin. / leas. at the pos. in N/C. Europe, 2007
• Comp. of % of new and used car purchasers contracting fin. / leas. at the pos. in N/C. Europe, 2004-7 (data)
• of split of auto. finance at the pos. between lending-based and leasing-based conts. in N/C. Europe, 2007
• Comp. of % of manufacturers / importers with arrangements for branded fin. / leas. in N/C. Europe, 2007
• Comp. of volume of passenger cars financed in N/C. Europe seg. by new / used and by dist. channel, 2006
• Comp. of vol. of pass. cars financed in N/C. Europe seg. by new / used and by dist. channel, 2006 (data)
• Comp. of value of passenger cars financed in N/C. Europe seg. by new / used and by dist. channel, 2006
• Comp. of value of pass. cars financed in N/C. Europe seg. by new / used and by distr. channel, 2006 (data)
• Key data points for the pass. car fin. mkt. in N/C. Europe seg. by dist. channel: vols. and values, 2002-6
• Total passenger car finance market in N/C. Europe segmented by distribution channel: volumes, 2002-6
• Total passenger car finance market in N/C. Europe segmented by distribution channel: values, 2002-6
• New passenger car finance market in N/C. Europe segmented by distribution channel: volumes, 2002-6
• New passenger car finance market in N/C. Europe segmented by distribution channel: values, 2002-6
• Used passenger car finance market in N/C. Europe segmented by distribution channel: volumes, 2002-6
• Used passenger car finance market in N/C. Europe segmented by distribution channel: values, 2002-6
• Comparison of % of dealers offering motor insurance at the point of sale in N/C. Europe, 2007
• Comparison of average number of providers used by dealers offering motor insurance in N/C. Europe, 2007
• Comp. of captive / non-captive op. models used by dealers off. motor ins. at the pos. in N/C. Europe, 2007
• Comp. of captive / non-capt. op. mods. used by dealers off. motor ins. at the pos. in N/C. Europe, 2007 (data)
• Comp. of ave. % of new and used car purchasers contracting motor ins. at the pos. in N/C. Europe, 2007
• Comp. of overall % of new and used car purchasers contracting motor ins. at the pos. in N/C. Europe, 2007
• Comp. of ave. and overall % of new / used car purch. acq. motor ins. at the pos. in N/C. Europe, 2007 (data)
• Comp. of % of manufacturers / importers with arrangements for branded motor ins. in N/C. Europe, 2007
• Approximate size of the dealer-intermediated motor ins. market in Northern and Central Europe, 2006
• Comp. of % of dealers offering creditor insurance at the point of sale in N/C. Europe, 2007
• Comp. of ave. % of new and used car purchasers acq. creditor ins. services at the pos. in N/C. Europe, 2007
• Comp. of ove. % cross-sell rates at the pos. among new / used car purch. for cred. ins. in N/C. Europe, 2007
• Comp. ave. and ove. % crs.-sell rates at the pos. new / used car purch. for cred. ins. in N/C. Eu., 2007 (data)
• Comp. of % of manufacturers / importers with arrangements for branded creditor ins. in N/C. Europe, 2007
• Approximate size of the creditor ins. market linked to passenger car finance in N/C. Europe, 2006
• Comp. of % of dealers offering extended warranties at the point of sale in N/C. Europe, 2007
• Comp. of ave. number of providers used by dealers offering extended warranties in N/C. Europe, 2007
• Comp. of captive / non-captive op. models used by dealers offering ext. wts. at the pos. in N/C. Europe, 2007
• Comp. of captive / non-capt. op. mods. used by dealers off. ext. wts. at the pos. in N/C. Europe, 2007 (data)
• Comp. of ave. % of new and used car purch. contracting ext. wts. at the pos. in N/C. Europe, 2007
• Comp. of overall % of new and used car purchasers contracting ext. wts. at the pos. in N/C. Europe, 2007
• Comp. of ave. / overall % of new and used car purch. acq. ext. wts. at the pos. in N/C. Europe, 2007 (data)
• Comp. of % of manufacturers / imps. with arrangements for branded ext. warranties in N/C. Europe, 2007
• Approximate size of the market for extended warranties for new and used cars in N/C. Europe, 2006
• Comp. of % of dealers offering GAP insurance at the point of sale in N/C. Europe, 2007
• Comp. of ave. number of providers used by dealers offering GAP ins. in N/C. Europe, 2007
• Comp. of captive / non-captive op. mods. used by dealers offering GAP ins. at the pos. in N/C. Europe, 2007
• Comp. of captive / non-captive op. mods. used by dealers off. GAP ins. at the pos. in N/C. Eu., 2007 (data)
• Comp. of ave. % of new and used car purchasers contracting GAP ins. at the pos. in N/C. Europe, 2007
• Comp. of overall % of new and used car purchasers contract. GAP ins. at the pos. in N/C. Europe, 2007
• Comp. of ave. and ove. % of new and used car purch. contract. GAP ins. at the pos. in N/C. Europe, 2007
• Comp. of % of manufacturers / importers with arrangements for branded GAP ins. in N/C. Europe, 2007
• Approximate size of the market for GAP ins. for new and used cars in N/C. Europe, 2006
• Comp. of % of manufacturers / imps. with arrangements for branded road assistance in N/C. Europe, 2007
• Partner market shares for manufacturer-branded road assistance in Northern and Central Europe, 2007
• Partner market shares for manufacturer-branded road assistance in N/C. Europe, 2007 (data)
• Global financial services revenues and pre-tax profits of major automotive manufacturer groups, 2005-6
• Passenger car parc and new / used passenger car sales in Austria, 2002-6
• New car registrations in Austria segmented by manufacturer group, 2006
• Number of franchised automotive dealership sales outlets in Austria, 2001-5
• Key data points for the franchised automotive dealership distribution channel in Austria, 2005
• New / used passenger car finance market in Austria segmented by dist. channel: volumes, 2002-6
• New / used passenger car finance market in Austria segmented by dist. channel: values, 2002-6
• % of dealers offering various automotive financial services in Austria, 2007
• % of new and used car purchasers contracting auto. fin. services at the point of sale in Austria, 2007
• Average number of various automotive financial services providers used by dealers in Austria, 2007
• % of split of automotive finance at the point of sale in Austria between lending and leasing contracts, 2007
• Pen., op. mods. and non-captive part. mkt. shares for finance / leasing mktd. by dealers in Austria, 2007
• Pen., op. mods. and non-captive part. mkt. shares for motor insurance mktd. by dealers in Austria, 2007
• Pen., op. mods. and non-captive part. mkt. shares for extd. warranties mktd. by dealers in Austria, 2007
• Pen., op. mods. and non-captive part. mkt. shares for GAP insurance mktd. by dealers in Austria, 2007
• Pen., op. models and non-captive part. market shares for man.-branded finance / leasing in Austria, 2007
• Pen., op. models and partner market shares for man.-branded motor insurance in Austria, 2007
• Pen., op. models and direct partner market shares for man.-branded creditor ins. in Austria, 2007
• Pen., op. models and partner market shares for man.-branded extd. warranties in Austria, 2007
• Pen., op. models and partner market shares for man.-branded GAP insurance in Austria, 2007
• Pen., op. models and partner market shares for manufacturer-branded road assistance in Austria, 2007
• Key data points for automotive financial services in Austria, 2002-6
• Passenger car parc and new / used passenger car sales in the Czech Rep., 2002-6
• New car registrations in the Czech Rep. segmented by manufacturer group, 2006
• Number of franchised automotive dealership sales outlets in the Czech Rep., 2001-5
• Key data points for the franchised automotive dealership distribution channel in the Czech Rep., 2005
• New / used passenger car finance market in the Czech Rep. segmented by dist. channel: volumes, 2002-
• New / used passenger car finance market in the Czech Rep. segmented by dist. channel: values, 2002-6
• % of dealers offering various automotive financial services in the Czech Rep., 2007
• % of new and used car purchasers contracting auto. fin. services at the point of sale in the Czech Rep., 2007
• Average number of various automotive financial services providers used by dealers in the Czech Rep., 2007
• % of split of auto. finance at the point of sale in the Czech Rep. between lending and leasing contracts, 2007
• Pen., op. mods. and non-capt. part. mkt. shares for finance / leasing mktd. by dealers in Czech Rep., 2007
• Pen., op. mods. and non-capt. part. mkt. shares for motor insurance mktd. by dealers in Czech Rep., 2007
• Pen., op. mods. and non-capt. part. mkt. shares for extd. warranties mktd. by dealers in Czech Rep., 2007
• Pen., op. mods. and non-capt. part. mkt. shares for GAP insurance mktd. by dealers in Czech Rep., 2007
• Pen., op. models and non-capt. part. market shares for man.-branded finance / leasing in Czech Rep., 2007
• Pen., op. models and partner market shares for man.-branded motor insurance in the Czech Rep., 2007
• Pen., op. models and direct partner market shares for man.-branded creditor ins. in the Czech Rep., 2007
• Pen., op. models and partner market shares for man.-branded extd. warranties in the Czech Rep., 2007
• Pen., op. models and partner market shares for man.-branded GAP insurance in the Czech Rep., 2007
• Pen., op. models and partner market shares for man.-branded road assistance in the Czech Rep., 2007
• Key data points for automotive financial services in the Czech Rep., 2002-6
• Penetration and operating models for manufacturer-branded extended warranties in Hungary, 2007
• Pen., op. models and partner market shares for manufacturer-branded road assistance in Hungary, 2007
• Key data points for automotive financial services in Hungary, 2002-6
• Passenger car parc and new / used passenger car sales in Norway, 2002-6
• New car registrations in Norway segmented by manufacturer group, 2006
• Number of franchised automotive dealership sales outlets in Norway, 2001-5
• Key data points for the franchised automotive dealership distribution channel in Norway, 2005
• New / used passenger car finance market in Norway segmented by dist. channel: volumes, 2002-6
• New / used passenger car finance market in Norway segmented by dist. channel: values, 2002-6
• % of dealers offering various automotive financial services in Norway, 2007
• % of new and used car purchasers contracting auto. fin. services at the point of sale in Norway, 2007
• Average number of various automotive financial services providers used by dealers in Norway, 2007
• % of split of automotive finance at the point of sale in Norway between lending and leasing contracts, 2007
• Pen., op. mods. and non-captive part. mkt. shares for finance / leasing mktd. by dealers in Norway, 2007
• Pen., op. mods. and non-captive part. mkt. shares for motor insurance mktd. by dealers in Norway, 2007
• Pen., op. mods. and non-captive part. mkt. shares for extd. warranties mktd. by dealers in Norway, 2007
• Pen., op. models and non-captive part. market shares for man.-branded finance / leasing in Norway, 2007
• Pen., op. models and partner market shares for man.-branded motor insurance in Norway, 2007
• Pen., op. models and direct partner market shares for man.-branded creditor ins. in Norway, 2007
• Pen., op. models and partner market shares for manufacturer-branded road assistance in Norway, 2007
• Key data points for automotive financial services in Norway, 2002-6
• Passenger car parc and new / used passenger car sales in Poland, 2002-6
• New car registrations in Poland segmented by manufacturer group, 2006
• Number of franchised automotive dealership sales outlets in Poland, 2001-5
• Key data points for the franchised automotive dealership distribution channel in Poland, 2005
• New / used passenger car finance market in Poland segmented by dist. channel: volumes, 2002-6
• New / used passenger car finance market in Poland segmented by dist. channel: values, 2002-6
• % of dealers offering various automotive financial services in Poland, 2007
• % of new and used car purchasers contracting auto. fin. services at the point of sale in Poland, 2007
• Average number of various automotive financial services providers used by dealers in Poland, 2007
• % of split of automotive finance at the point of sale in Poland between lending and leasing contracts, 2007
• Pen., op. mods. and non-captive part. mkt. shares for finance / leasing mktd. by dealers in Poland, 2007
• Pen., op. mods. and non-captive part. mkt. shares for motor insurance mktd. by dealers in Poland, 2007
• Pen., op. mods. and non-captive part. mkt. shares for extd. warranties mktd. by dealers in Poland, 2007
• Pen., op. mods. and non-captive part. mkt. shares for GAP insurance mktd. by dealers in Poland, 2007
• Pen., op. models and non-captive part. market shares for man.-branded finance / leasing in Poland, 2007
• Pen., op. models and partner market shares for man.-branded motor insurance in Poland, 2007
• Pen., op. models and direct partner market shares for man.-branded creditor ins. in Poland, 2007
• Pen., op. models and partner market shares for man.-branded extd. warranties in Poland, 2007
• Pen., op. models and partner market shares for manufacturer-branded GAP insurance in Poland, 2007
• Pen., op. models and partner market shares for manufacturer-branded road assistance in Poland, 2007
• Key data points for automotive financial services in Poland, 2002-6
• Passenger car parc and new / used passenger car sales in Slovakia, 2002-6
• New car registrations in Slovakia segmented by manufacturer group, 2006
• Number of franchised automotive dealership sales outlets in Slovakia, 2001-5
• Key data points for the franchised automotive dealership distribution channel in Slovakia, 2005
• New / used passenger car finance market in Slovakia segmented by dist. channel: volumes, 2002-6
• New / used passenger car finance market in Slovakia segmented by dist. channel: values, 2002-6
• % of dealers offering various automotive financial services in Slovakia, 2007
• % of new and used car purchasers contracting auto. fin. services at the point of sale in Slovakia, 2007
• Average number of various automotive financial services providers used by dealers in Slovakia, 2007
• % of split of automotive finance at the point of sale in Slovakia between lending and leasing contracts, 2007
• Pen., op. mods. and non-captive part. mkt. shares for finance / leasing mktd. by dealers in Slovakia, 2007
• Pen., op. mods. and non-captive part. mkt. shares for motor insurance mktd. by dealers in Slovakia, 2007
• Pen., op. mods. and non-captive part. mkt. shares for extd. warranties mktd. by dealers in Slovakia, 2007
• Pen., op. mods. and non-captive part. mkt. shares for GAP insurance mktd. by dealers in Slovakia, 2007
• Pen., op. models and non-captive part. market shares for man.-branded finance / leasing in Slovakia, 2007
• Pen., op. models and partner market shares for man.-branded motor insurance in Slovakia, 2007
• Pen., op. models and direct partner market shares for man.-branded creditor ins. in Slovakia, 2007
• Pen., op. models and partner market shares for man.-branded extd. warranties in Slovakia, 2007
• Pen., op. models and partner market shares for manufacturer-branded GAP insurance in Slovakia, 2007
• Pen., op. models and partner market shares for manufacturer-branded road assistance in Slovakia, 2007
• Key data points for automotive financial services in Slovakia, 2002-6
• Passenger car parc and new / used passenger car sales in Sweden, 2002-6
• New car registrations in Sweden segmented by manufacturer group, 2006
• Number of franchised automotive dealership sales outlets in Sweden, 2001-5
• Key data points for the franchised automotive dealership distribution channel in Sweden, 2005
• New / used passenger car finance market in Sweden segmented by dist. channel: volumes, 2002-6
• New / used passenger car finance market in Sweden segmented by dist. channel: values, 2002-6
• % of dealers offering various automotive financial services in Sweden, 2007
• % of new and used car purchasers contracting auto. fin. services at the point of sale in Sweden, 2007
• Average number of various automotive financial services providers used by dealers in Sweden, 2007
• % of split of automotive finance at the point of sale in Sweden between lending and leasing contracts, 2007
• Pen., op. mods. and non-captive part. mkt. shares for finance / leasing mktd. by dealers in Sweden, 2007
• Pen., op. mods. and non-captive part. mkt. shares for motor insurance mktd. by dealers in Sweden, 2007
• Pen., op. mods. and non-captive part. mkt. shares for extd. warranties mktd. by dealers in Sweden, 2007
• Pen., op. models and non-captive part. market shares for man.-branded finance / leasing in Sweden, 2007
• Pen., op. models and partner market shares for man.-branded motor insurance in Sweden, 2007
• Pen., op. models and direct partner market shares for man.-branded creditor ins. in Sweden, 2007
• Pen., op. models and partner market shares for man.-branded extd. warranties in Sweden, 2007
• Pen., op. models and partner market shares for manufacturer-branded road assistance in Sweden, 2007
• Key data points for automotive financial services in Sweden, 2002-6
• Passenger car parc and new / used passenger car sales in Switzerland, 2002-6
• New car registrations in Switzerland segmented by manufacturer group, 2006
• Number of franchised automotive dealership sales outlets in Switzerland, 2001-5
• Key data points for the franchised automotive dealership distribution channel in Switzerland, 2005
• New / used passenger car finance market in Switzerland segmented by dist. channel: volumes, 2002-6
• New / used passenger car finance market in Switzerland segmented by dist. channel: values, 2002-6
• % of dealers offering various automotive financial services in Switzerland, 2007
• % of new and used car purchasers contracting auto. fin. services at the point of sale in Switzerland, 2007
• Average number of various automotive financial services providers used by dealers in Switzerland, 2007
• % of split of automotive finance at the point of sale in Switz. between lending and leasing contracts, 2007
• Pen., op. mods. and non-captive part. mkt. shares for finance / leasing mktd. by dealers in Switz., 2007
• Pen., op. mods. and non-captive part. mkt. shares for motor insurance mktd. by dealers in Switz., 2007
• Pen., op. mods. and non-captive part. mkt. shares for extd. warranties mktd. by dealers in Switz., 2007
• Pen., op. models and non-captive part. market shares for man.-branded finance / leasing in Switz., 2007
• Pen., op. models and partner market shares for man.-branded motor insurance in Switzerland, 2007
• Pen., op. models and direct partner market shares for man.-branded creditor ins. in Switzerland, 2007
• Pen., op. models and partner market shares for man.-branded extd. warranties in Switzerland, 2007
• Pen., op. models and partner market shares for manufacturer-branded road assistance in Switz., 2007
• Key data points for automotive financial services in Switzerland, 2002-6