Car dealer Heycar has been shut down by VWFS.
Volkswagen Financial Services (VWFS) has announced its decision to close down Heycar, its marketplace division present in Germany, the UK, France, and Spain. The German subsidiary of Heycar is expected to close mid-May, with the British counterpart following a few weeks later.
Launched in 2017 with the backing of VWFS, Daimler Mobility, and Volkswagen, Heycar was a pioneer in the online used car marketplace. Initially, it operated as a classified marketplace, later introducing an e-commerce option to better serve its customers.
Heycar aimed to distinguish itself from other used car sites by focusing on younger stock, providing more backing for buyers compared to its competitors. VWFS has invested around €300 million in Heycar since its launch, with VWFS owning 78% of its shares and Volkswagen holding 13%.
Daimler Mobility was one of the initial backers of Heycar, but sold its shares in 2023. Renault now holds 9% of the company. As of 2023, Heycar employs 126 people across its markets.
While some employees may be taken on by VWFS, many are expected to be fired. The closure in France may take more time due to French labour laws. VWFS plans to roll the technology and expertise of Heycar into a new subsidiary, ensuring that the valuable insights and digital solutions developed by Heycar will play a crucial role in the future of VWFS.
Heycar expanded into France in 2021, marking a significant milestone in its growth. However, the search results did not provide information about which companies were involved in the founding of Heycar before Daimler sold its shares.
Heycar's closure marks a significant shift in the online used car marketplace, and its legacy will undoubtedly continue to influence the industry. As VWFS moves forward with its new subsidiary, it remains to be seen how the company will build upon the foundation laid by Heycar.
