Volkswagen Financial Services has formed a joint venture with LM FROTAS in Brazil, aiming to capitalize on the growing fleet market by combining their resources and expertise.

Target Information

Volkswagen Financial Services has established a joint venture in Brazil with fleet and mobility provider LM FROTAS. This partnership aims to expand their fleet business to become a leading player in the Brazilian market. Volkswagen Financial Services will hold a 60% stake while LM FROTAS will retain 40%. Jörg Pape, Managing Director of Volkswagen Financial Services in Brazil, emphasized the significant growth potential in the Brazilian fleet market, projecting substantial market volume increases by 2026. He stated, 'We see a great opportunity in the Brazilian fleet market and we want to leverage this momentum. Our goal is to become the largest fleet provider globally.'

The joint venture will integrate Volkswagen Financial Services' existing fleet provider, Fleetzil Fleet Solutions, which was established in Brazil in 2017. The merger will result in a combined fleet of approximately 40,000 vehicles, positioning the new entity as the fourth-largest provider in Brazil. Pape noted, 'The merging of the two companies presents considerable synergy potentials. We will benefit from LM's multi-brand capabilities and market expertise, while we will leverage our strong refinancing options and the strategic expertise of the Volkswagen Group.'

Industry Overview in Brazil

The Brazilian fleet market is witnessing rapid growth, driven by increasing demand for vehicle rentals and leasing services. Businesses are increasingly relying on fleet solutions to optimize operational efficienc