Allianz X, the venture capital division of Allianz, Europe’s largest insurer, has sold its remaining 6.9% stake in Germany-based digital auto retailer HeyCar to car manufacturer Volkswagen, increasing the latter’s stake in the company. Financial terms were not disclosed.

Allianz X invested in HeyCar in 2021, with Allianz becoming HeyCar’s insurance partner for five years.

It has been a rough couple of years for HeyCar, as the pandemic-driven surge in demand for auto ecommerce has faded: It has gone through several rounds of layoffs and exited the Spanish market. Car manufacturer Mercedes-Benz has also exited the company. Like Allianz X, it sold its shares to Volkswagen.

Meanwhile, Volkswagen and Audi dealers snubbed HeyCar, opting for Germany-based auto marketplace AutoScout24 instead. Since Volkswagen Financial Services — Volkswagen’s financing subsidiary — uses HeyCar to sell used vehicles, the dealers perceived it as a competitive threat and decided to take their business elsewhere.

Founded in 2017, is owned by Mobility Trader Holding GmbH, whose largest shareholder is Volkswagen Financial Services.

 

 

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