Daimler Financial Services Finances Three Million Vehicles for the First Time
STUTTGART, Germany, November 26, 2013 /PRNewswire/ --
New business and contract volume records broken
EBIT of about 1.25 billion euros expected in 2013
Further growth expected in 2014 as a result of Daimler's aggressive model strategy and innovative mobility services
For the first time ever, Daimler Financial Services is financing more than three million vehicles. "In October 2013, we exceeded the three million mark," said Klaus Entenmann, Chairman of the Board of Management of Daimler Financial Services AG, on Tuesday in Stuttgart. Daimler's financial arm is now financing about half a million more vehicles than it was three years ago. Around the world, Daimler Financial Services finances four out of every ten Daimler vehicles delivered. In the first three quarters of 2013, the company's earnings before taxes and interest (EBIT) amounted to 955 million euros. Entenmann: "For the year as a whole, we aim to achieve an EBIT of about 1.25 billion euros. This would exceed our expected return on equity of at least 17 percent. We have achieved good results - especially considering that we are investing in digital sales channels and innovative mobility services at the moment."
New business and contract volume records broken
When it comes to new business and contract volumes, the company broke records in the first ten months of 2013. New business, which is understood as the equivalent of all newly concluded financing and leasing contracts, grew six percent in the first ten months of the year, to 33 billion euros. At the end of October, DFS had reached a contract volume of 82 billion euros, a three percent increase over the end of 2012.
Growth across regions
Daimler Financial Services was able to attract new customers around the world: in the UK, the number of newly financed vehicles increased 22 percent over the previous year. In Turkey, the company saw 17 percent growth. In Germany, the second biggest market after the United States, the DFS subsidiary Mercedes-Benz Bank AG recorded three percent growth. Demand remained strong in the United States, where the number of financed vehicles increased 15 percent over the previous year. In India, where Daimler Financial Services also provides financing for the new BharatBenz commercial vehicle brand, the number of newly financed vehicles more than doubled.
Further growth expected in 2014
Daimler Financial Services expects to see further growth in the coming year. "Our financing and leasing businesses are likely to benefit from the aggressive Mercedes product strategy and our highly attractive commercial vehicle models," said Entenmann. The market launches of the new C-Class and GLA SUV as well as the full availability of the new S-Class will give rise to additional opportunities. The company also sees further market potential in the area of used car financing. The expansion of online sales channels has also driven growth, as these are providing customers with an improved overview of automotive financing services.
car2go: available in a greater number of cities in 2014
The innovative mobility services offered by Daimler Mobility Services GmbH, a DFS subsidiary, are expected to give rise to additional opportunities in 2014. Over the course of the year, the flexible car2go car-sharing concept will be launched in a number of new cities. At the end of October, the service was available in 25 cities around the world.
Contact: Andreas Spannbauer, Telephone: +49-(0)711-2574-4078
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