JIM HENRY

Volvo hunts for new lender

Jim Henry is a special correspondent for Automotive News

Some U.S. Volvo dealers are pushing the automaker to find a new preferred lender.

Volvo switched to U.S. Bank from Ford Credit last year before parent Ford Motor sold Volvo to China's Geely.

Since then, Volvo's lease penetration has fallen way below other premium brands, down late last year to under 10 percent.

Last week at the Geneva auto show, Volvo Car Corp. CEO Stefan Jacoby confirmed the company is looking into other arrangements. He said Volvo could create its own captive, sign up with a bank, or hook up with another captive.

Volvo dealer Ray Ciccolo, owner of Village Automotive Group in the Boston area, told me last month that the drop in leasing hurts. "They really, really need a lender," he said.

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