What’s the long and short that lending will see a steep decline with the implementation of tariffs? Auto Finance recently entered into an exclusive originations deal with Volkswagen in addition to maintaining a presence as a lending resource across our dealer network. We stopped doing refinances a couple of years ago, and seem to be servicing a dwindling portfolio of legacy accounts. Additionally, a large number of our frontline (phone agents) and back office (risk functions and call monitoring) are now based in Manila, with only a skeleton crew stateside to maintain appearances. Since we no longer play a long game, and can really only function in an environment quarter by quarter, how much longer can they keep up the façade that we’re actually contributing something to Wells Fargo’s long term revenue strategy? Tariffs ultimately will decimate the auto industry at the dealership level (no new inventory no new business/ stagnant wage growth, no one can even afford used vehicles). When does this house of cards finally collapse?
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There is a blurb in the earnings/strategy report that specifically calls out Auto Finance. I believe there is a link in the earnings release email. Or I bet it's in Teamworks
During earnings call they were talking about the new? Volkswagen account. RESTON, Va. and SAN FRANCISCO, Sept. 16, 2024 /PRNewswire/ -- Volkswagen Financial Services (VWFS), the captive financial services arm of Volkswagen Group of America, and Wells Fargo (NYSE: WFC) today announced a multi-year co-branded agreement under which Wells Fargo will be the preferred purchase financing provider for the Volkswagen (VW), Audi, and Ducati brands in the U.S. market. This new relationship is intended to begin for Audi and VW dealers and consumers beginning in April 2025, with Ducati to follow. VWFS will continue to service existing customer contracts. https://www.prnewswire.com/news-releases/volkswagen-financial-services-us-and-wells-fargo-announce-cooperation-agreement-for-vehicle-purchase-financing-of-volkswagen-audi-and-ducati-brands-in-the-united-states-302249222.html
Appears that volkswagen Volkswagen is making a pointed statement in response to Donald Trump's latest tariff hike—by passing the cost straight onto consumers. From 7 April 2025, the German carmaker will add a clearly labelled "import fee" to the price tags of vehicles bound for the United States, directly reflecting the impact of the newly imposed 25% levy on imported cars and parts.