Hyundai Capital Services, the financing arm of Hyundai Motor Group, has received approval from the European Central Bank to establish Hyundai Capital Bank Europe (HCBE).
The new automotive captive bank, which received approval on 23 September, will be headquartered in Frankfurt and will launch in December.
It will offer wholesale and retail financing solutions linked to the sales of Hyundai and Kia cars, as well as full service fleet management, acting as an intermediary for insurance and warranty products of insurance companies in Europe.
Starting with €67.1 million in capital, HCBE is 80 percent financed by Hyundai Capital Services and 20 percent financed by Kia Motors.
As part of the launch, Hyundai Capital Services Deutschland will be renamed Hyundai Capital Bank Europe.
A Hyundai Capital official said: “This is very different from other Korean financial institutions that have been targeting Korean consumers or businesses overseas.”
“According to market data, about 75 percent of car buyers in Germany use auto financing programmes. That ratio of import car brands including Hyundai and Kia cars is 73 percent and we expect to bring this figure to be above average. HCBE will support Hyundai Motor Group sales.”
