MUNICH - German car manufacturer Volkswagen is looking to enter the bicycle leasing business, the company said on Monday ahead of the IAA Mobility trade show in Munich, reported dpa news agency.
The company's subsidiary Volkswagen Financial Services is planning to acquire a stake in the Dutch provider Bike Mobility Services (BMS).
VW already cooperates with BMS parent company Pon on the car rental company Europcar.
"We are systematically driving forward the transformation and consistently developing further attractive sources of income in the area of sustainable mobility," VW chief executive Oliver Blume said of the plan.
By acquiring a stake in BMS, the German carmaker expects to enter a new, lucrative business segment in Europe and the US, the VW chief said.
BMS is represented in bicycle leasing with brands such as Business Bike, Lease A Bike, and B2Bike.
The goal is to become the second largest bicycle leasing provider in Europe, Blume said.
In light of the IAA auto show, Blume took positive stock of his first year at the helm of the group, saying: "We are making good progress. Faster than planned."
"We have reached numerous milestones, set important strategic courses," Blume said, who is also the head of Porsche, which is owned by Volkswagen.
Blume took over the post of Volkswagen chief executive from Herbert Diess on September 1, 2022. - BERNAMA-DPA