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.

ATTENTION COMMENTERS: Automotive News has monitored a significant increase in the number of personal attacks and abusive comments on our site. We encourage our readers to voice their opinions and argue their points. We expect disagreement. We do not expect our readers to turn on each other. We will be aggressively deleting all comments that personally attack another poster, or an article author, even if the comment is otherwise a well-argued observation. If we see repeated behavior, we will ban the commenter. Please help us maintain a civil level of discourse.

Email Newsletters
  • General newsletters
  • (Weekdays)
  • (Mondays)
  • (As needed)
  • Video newscasts
  • (Weekdays)
  • (Weekdays)
  • (Saturdays)
  • Special interest newsletters
  • (Thursdays)
  • (Tuesdays)
  • (Monthly)
  • (Monthly)
  • (Wednesdays)
  • (Bimonthly)
  • Special reports
  • (As needed)
  • (As needed)
  • Communication preferences
  • You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.