Business · 5 hours ago

Car Finance Scandal Drives VW's UK Lender to a £353m Loss

Wikimedia Commons

Volkswagen's UK finance arm has slumped to a £352.9m loss for 2025 after setting aside £725m for the Financial Conduct Authority's car finance compensation scheme, new accounts show. Without the provision, profits would have grown as revenue rose to £3.41bn. Volkswagen Financial Services UK is challenging the redress scheme in court alongside Mercedes-Benz's finance arm and CA Auto Finance, arguing it unfairly assumes customer losses.

By BriefTea Editorial · 7 October 2026 at 9:25

Reported by City AM · How we write briefs

Get the app

More briefs

BusinessApollo joins the race to buy Germany's rescued gas giant Uniper BusinessPorsche bets on fewer, pricier cars as 9,000 jobs go BusinessŠefčovič flies to Beijing as Brussels demands curbs on cheap Chinese goods BusinessBrent tops $101 as Houthi strikes and French debt fears drag the euro BusinessIreland's €8.5bn giveaway budget draws a sharp warning from its watchdog BusinessDiesel Goldmine: Shell's Refining Profit Per Barrel Set to Nearly Double More business stories → Browse all stories →