When Opportunity Calls
In 2018, I was in Tel Aviv at our Innovation Center when I got a call from my boss, Norbert Dorn. “Can you come to Germany tomorrow?” he asked.
I didn’t think twice before saying yes, but as I boarded the flight, my mind raced with questions: Was this about a new project? Something urgent? I landed in Germany, still clueless about what awaited me.
“You’re being handed the CEO responsibility for Volkswagen Financial Services India,” Norbert said when I walked into his office.
It was a moment I’ll never forget. There was pride, of course—leading a company is a privilege. But there was also the weight of what lay ahead. VWFS India was struggling. Sales were down, dealer defaults were up, and profitability was at an all-time low. This wasn’t just a challenge; it was the kind of situation that demands a complete reset.
We celebrated the moment with a quick toast In Wolfsburg, but I knew there was no time to lose. On the plane ride back to India, my thoughts shifted from excitement to action. How do we rebuild confidence? What steps would make the biggest difference? I didn’t have all the answers, but I knew where I needed to start—with the people.
Listening First: Conversations Over Coffee
One of the most important lessons I’ve learned is that solutions often lie within the team. Twice a week, I started inviting small groups of employees to informal coffee chats. No hierarchy, no presentations—just candid conversations.
We talked about everything from work challenges to ideas for improvement, and sometimes, even soccer or movies to break the ice. What started as a simple initiative became a cornerstone of our turnaround strategy.
These sessions gave me:
• Unfiltered Ground-Level Insights: There’s no substitute for hearing directly from the people closest to the work. I learned more in those conversations than from any report.
• A Chance to Build Trust: When employees understood the “why” behind tough decisions, they became part of the solution.
• A Sense of Belonging Across the Team: People felt heard and valued, and that energy started reflecting in their work.
It was a simple practice, but it shaped the culture we needed to navigate the challenges ahead.
Making Tough Calls: Balancing Risk and Relationships
One of the hardest challenges we faced was managing dealer defaults. Our global model relied solely on vehicles as collateral, but the local market dynamics in India were different. To reduce risk, we had to ask dealers for additional collateral—a move that went against our long-standing promise of “no collateral.”
This wasn’t just a financial decision; it was about trust. Dealers had chosen us because of that promise, and now we had to renegotiate those terms. I knew this would be tough, so I took a hands-on approach.
I met personally with our largest dealers to explain why this change was necessary—not just for us but for the long-term stability of their own businesses. Some conversations were emotional, some were transactional, but each one required patience and a commitment to finding common ground.
When my team saw me turning some of the most difficult negotiations in our favor, they felt empowered to take action themselves. Even our back-office teams—like the credit analysts and the controlling team—came up with valuable suggestions on how to bring some of these dealers on board. Everyone understood the bigger picture and played their part, thus turning a potential crisis into an opportunity for long-term success.
Expanding Horizons: Breaking New Ground
Another challenge we faced was our limited market share. As a captive financial services company, our scope was tied to the VW Group’s performance, which accounted for less than 5% of the Indian market.
Instead of seeing this as a limitation, I saw it as an opportunity. Why not expand beyond the group?
We partnered with other OEMs to offer white-label financing solutions, starting with Tata Motors—a global first for Volkswagen Financial Services. We also began funding dealers for their business with other brands.
As a AAA-rated NBFI, our cost of funds was among the lowest. I saw an opportunity in arbitrage. I explored partnerships with micro-NBFIs to leverage our cost advantage and made some margins on this.
These initiatives required me to convince the board in Germany and give them confidence. But all these opened up entirely new revenue streams, helping us diversify and de-risk our business.
Small Wins: Creative Solutions
I negotiated a $105m funding line from the largest public sector bank in India, at 50BPS lower than the lending rate. It was a tough negotiation, i offered to move the salary bank accounts of all our employees to this bank as a barter - not just VWFS but the entire VW group of over 3000 employees. This was a win which helped us with liquidity.
The Results: A Team Effort
Looking back, the numbers tell a remarkable story. Retail margins improved by 300%, wholesale margins by 200%, and we added $20 million to the bottom line. But more importantly, we built a culture of trust, collaboration, and innovation that will sustain the company for years to come.
This wasn’t my achievement alone—it was a collective effort. Every member of the team played a part, from brainstorming ideas to executing tough decisions.
For me, this journey reinforced what I’ve always believed: Leadership isn’t about having all the answers. It’s about listening, empowering others, and being willing to make the hard calls when it counts.
That’s the mindset I bring to every challenge—whether it’s turning around a company or building something new.