Search

Car trade

"We are the market leader in Finland and our objective is to increase our market share. We develop the multi-channel customer experience and expand our service business."

Johan Friman, EVP, President of the car trade division (as of 1 January 2017)

VV-Auto is a company specialising in importing, retailing and providing after-sales service for vehicles manufactured by Volkswagen Group, which also develops advanced service concepts for the automotive sector. VV-Auto is the market leader in Finland.

In addition to its traditional business, VV-Auto develops various service concepts and multi-channel services for the car trade.

VV-Auto imports and markets Volkswagen, Audi, SEAT and Porsche passenger cars, and Volkswagen commercial vehicles in Finland. It also imports and markets SEAT vehicles in Estonia and Latvia. VV-Auto also imports MAN lorries and MAN and Neoplan buses into Finland. In addition to importing, VV-Auto is also a major vehicle retailer, offering after-sales service at its own outlets in Greater Helsinki and Turku. VV-Auto's passenger car, commercial vehicle and lorry customers are served by a comprehensive dealer and servicing network throughout Finland. In addition to its traditional business, VV-Auto develops various service concepts and multi-channel services for the car trade. Examples of this include online stores, mobile apps and online systems for booking servicing, as well as Caara.fi – an entirely new online store for used cars, which operates solely online.

In 2016, the Volkswagen, Audi and SEAT ranges were updated and diversified. New models introduced to the market included the Volkswagen Tiguan, the Audi A4 allroad, A5 Coupé and Sportback, Q2, Q5, Q7 e-tron, SQ7 and TT RS Coupé and Roadster, and the SEAT Ateca. An updated version of the Volkswagen Amarok, a commercial vehicle with a new V6 engine, was introduced to the market. Volkswagen commercial vehicles also introduced a completely redesigned Volkswagen Crafter, which will hit the Finnish market in 2017. Volkswagen had another record-breaking year – in 2016, it was Finland's most popular car brand in terms of sales for the sixth consecutive year. For the 13th consecutive year, more Audis were registered in Finland than any other premium German car brand.

In 2016, the Volkswagen, Audi and SEAT ranges were updated and diversified.

Volkswagen's recall and repairs of type EA 189 diesel cars progressed in 2016 at the planned rate. By the end of the year, a software update was available for approximately 50,000 cars and 25% of these were repaired in 2016. The required updates to the controller device were available for all 2.0, 1.6 and 1.2 litre diesel engines. Due to the large number of different engine controller devices, updates were not made on all models at the same time. All of the corrective measures were approved by the German authority (KBA) before they were implemented. After the corrective measures, the cars meet all of the requirements of the EU5 emissions standard. The corrective measures do not affect the car's fuel consumption, engine power, CO2 emissions, driving behaviour or acoustics.

The Porsche acquisition brings one of the world's most highly regarded car brands to K Group.

At the end of 2016, VV-Auto acquired the entire share capital of Oy Autocarrera Ab, a company engaged in importing and retailing Porsche. The price of the acquisition, structured as a share purchase, was approximately €27 million. The transaction will lead to an expansion of VV-Auto's collaboration with Volkswagen AG. Adding Porsche to the selection will increase sales and improve the profitability of the car trade. The Porsche acquisition brings one of the world's most highly regarded car brands to K Group, and the selection expands to encompass new models and new customer groups. Porsche is also making major investments in its hybrid and electric car range.

in Action:
Caara – an entirely new online store for used cars

We want to make it as easy as possible to buy a car. Caara.fi is a convenient and reliable way for consumers to buy used cars, and the best thing is that everything can be handled without getting up from the sofa. The service has especially attracted the attention of busy consumers and families who are not always able to visit car dealership showrooms.

In 2016, VV-Auto's retail trade opened Caara, an entirely new online store for used cars. Caara.fi is an online-only car store that has no traditional showrooms.

We aim to make it as easy as possible to buy a car. We also want to be involved in developing digital services for the car sector. Caara will enable us to change the customer experience with a fresh lifestyle approach where the customer's digital purchasing transactions are constantly improved. For consumers, Caara is an easy, hassle-free and reliable way to buy a used car online. Customers value the service's ease of use. The service has especially attracted the attention of busy consumers and families who are not always able to visit car dealership showrooms.

The online store can be visited every day at any time, and customers can purchase cars in the comfort of their own homes. Caara's salespersons can provide help using a chat service if required. Customers can find suitable cars by searching by price, fuel or purpose of use. All of the cars have undergone vehicle inspections so the buyer receives the most detailed, diverse and reliable information available to support a purchase decision. We also offer our customers a Caara warranty (12 months or 20,000 kilometres) and a 14-day right of return, as well as flexible Caara financing solutions. The extent of the service is exemplified by the fact that every brand of car is available on Caara.

Purchased cars are either delivered to the customer's home or to an agreed handover location. In Greater Helsinki, customers can also take a test drive, and the part-exchange value of the customer's existing car can be assessed at the same time. Customers can also send pictures and details of their existing car's history to enable the car to be assessed.

Buying a car has never been so easy! Whatever you need a car for – www.caara.fi

Read more

Strategic focus areas

Strategic objective  

What we are doing

  • Developing VV-Auto's business in collaboration with Volkswagen Group
  • Integrating the MAN business into VV-Auto and developing the market share
  • Increasing the market share of SEAT
  • Strengthening the market position of Volkswagen
  • Acquiring Porsche representation by buying Oy Autocarrera Ab
  • Expanding the service business
  • Launching the Caara.fi online store for used cars and increasing sales
  • Launching innovative service businesses
  • Expanding the sales of after-sales service
  • Developing a multi-channel customer experience
  • Developing mobile apps, online services and online sales

 

Competitive advantages of the car trade

  • International brands and strong market position
  • Diverse multichannel services, professional personnel
  • Strong sales and after-sales service network, efficient logistics

Brands

 

Markets

In 2016, there were 118,991 first registrations of passenger cars,13,523 of vans and 3,330 of lorries in Finland. The passenger car market grew by 9.3%, the van market by 18.3% and the lorry market by 23.0% from the previous year.

According to statistics, Volkswagen was the most registered passenger car brand. The total number of registrations of vehicles imported by VV-Auto was 24,685 (excluding motorhomes and Porsches). A total of 131 Porsches and 139 MAN trucks were registered.

Market shares

Car trade, Finland
  • VV-Auto’s market share 18.8% (Volkswagen, Audi and SEAT passenger cars, total of Volkswagen commercial vehicles, excluding campers and motorhomes)
  • Volkswagen passenger cars 11.2%
  • Audi 5.2%
  • SEAT 2.0%
  • Porsche 0.1%
  • Volkswagen commercial vehicles 22.8%
  • MAN trucks 4.2%

Did you know?

  • The world's best Audi servicing is in Finland. The team of Audi Center Airport Finland won the world championship in the area of servicing focusing on customer service. This year, 71 teams from 36 countries made it into the Audi Twin Cup finals.
  • Volkswagen Tiguan was rated the safest car in its class in Europe in Euro NCAP's crash safety rating. Special acknowledgement was given to its first class safety features, for example, body structure optimised for safety, a very good combination of safety belts, seats and airbags, coupled with innovative systems to assist the driver.
  • The new Volkswagen Crafter was voted international Van of the Year 2017. The panel of judges consisted of journalists representing 24 European countries and specialising in commercial vehicles.
  • The new SEAT Ateca won the European AUTOBEST 2017 competition and was voted "the Best Car to buy in Europe in 2017". The Seat Ateca was also a candidate for Car of the Year in Finland 2017 and placed second.
Car trade in figures
Number Sales (VAT 0%),
€ million
Retail sales and number of stores 2016 2015 2016 2015
VV-Auto, retail outlets 10 9 428 373
VV-Auto, imports - - 436 397
AutoCarrera 3 - 4 -
Car trade, total 13 9 868 770
Car trade, key figures 2016 2015
Net sales € million 849 748
Operating profit € million 28.9 26.1
Comparable operating profit € million 29.5 26.1
Comparable operating profit as percentage of net sales % 3.5 3.5
Capital expenditure € million 41 16
Capital employed, average € million 124 104
Comparable return on capital employed % 23.8 25.2
Personnel average 780 780
Properties 2016 2015
Owned properties, capital € million 56 60
Owned properties, area 1,000 m2 47 47
Leased properties, lease liabilities € million 11 9
Leased properties, area 1,000 m2 23 20