[Sponsored Report] ECB approves Hyundai Capital Bank EuropeHyundai Capital Services, the auto financing arm of Hyundai Motor Group, announced on Oct. 17 that the company has received the European Central Bank’s approval in September to establish Hyundai Capital Bank Europe (HCBE), a major booster for Hyundai and Kia car sales in Europe.
HCBE will be headquartered in Frankfurt and commence operations in December, gradually offering wholesale and retail financing solutions linked to the sales of Hyundai and Kia brand cars as well as full-service fleet management. It will also act as an intermediary for insurance and warranty products of insurance companies in Europe and offer deposit-taking for private customers and dealers.
With initial capital of 67.1 million euros ($75.1 million), HCBE is 80 percent financed by Hyundai Capital Services and the rest by Kia Motors.
HCBE received a license from the European Central Bank on Sept. 23 after a thorough review by the German financial authority BaFin.
With the green light, Hyundai Capital Services Deutschland GmbH, which has functioned as a consulting firm providing financing solutions to Hyundai and Kia brands since 2010, will change its name to Hyundai Capital Bank Europe and provide direct auto financing services - dealer financing, installment financing, leases, insurance brokerage and others - to consumers.
The European Central Bank authorization is expected to provide leeway for Hyundai Capital when seeking business expansion within European Union states.
“Hyundai Capital Bank Europe will compete with global powerhouses in Frankfurt, the heart of European finance. This is very different from other Korean financial institutions that have been targeting Korean consumers or businesses overseas,” a Hyundai Capital official said.
“According to market data, about 75 percent of car buyers in Germany use auto financing programs. That ratio of import car brands, including Hyundai and Kia cars, is 73 percent, and we expect to bring this figure to above average,” he added. “HCBE will support Hyundai Motor Group sales.”
Hyundai and Kia are expected to sell 94,000 and 58,000 cars each by the end of the year in Germany, becoming the third-largest seller among foreign brands in the country.
BY YANG SE-YOUNG [firstname.lastname@example.org]
with the Korea JoongAng Daily
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