BERLIN, November 10 /PRNewswire/ --
- Daimler's Financial Services Unit Expects Positive Results Also in the
Fourth Quarter 2009
- Increased Market Share in the Leasing and Financing Business Through
Steady Market Presence and Lending Practice
- Additional Potential Lies in Growth Markets and Expansion of the
Insurance Business
Daimler Financial Services AG expects to post positive results also in
the fourth quarter, after achieving earnings of EUR101 million in the third
quarter 2009. "We've achieved the turnaround, and we expect to once again
make a contribution to the Group's earnings even though we had the toughest
year in our company's history," said Jurgen Walker, Chairman of Daimler
Financial Services AG, at a press conference at the company's headquarters in
Berlin.
While many banks tightened their criteria for approving auto loans or
withdrew from the business altogether, Daimler Financial Services expanded
its market share by maintaining a steady market presence and lending practice
in a market that contracted as a whole. As a result, the share of new
Daimler-built vehicles financed or leased by the company rose to more than 40
percent. Despite the increased penetration rates, the drop in vehicle sales
could not be fully offset. Contract volume declined by seven percent to
EUR58.7 billion between the end of 2008 and the end of the third quarter 2009.
Successful refinancing plays a crucial role even in times of crisis when
it comes to strengthening the market position of Daimler Financial Services
against its competitors. "We had sufficient liquidity to maintain a strong
market presence throughout the whole year and provide our customers with
affordable loans," said Walker. An example he mentioned was the expansion of
the deposit banking at Mercedes-Benz Bank in Germany, which has more than
doubled in volume since the beginning of the year, to over EUR12 billion.
This money not only funds the financial-services business in the key sales
market of Germany but also helps fund the dealer-financing business in the UK
and Spain through the branches in these countries.
At the end of September 2009, Daimler Financial Services successfully
sold the financial markets around $1 billion in asset-backed securities (ABS)
from Mercedes-Benz Financial. This ABS transaction met with a great response
from investors and is playing an important role in refinancing the
financial-services business in North America.
Daimler Financial Services is confident that it will be able to
compensate for part of the credit losses through cost savings. A global
efficiency program has reduced costs by around 20 percent since the beginning
of 2008. Despite these savings, the company is still making crucial
investÂÂments in the future, including the modernization and standardization
of IT systems and processes and expansion into growth markets. In October
2009, for example, Daimler Financial Services became the first captive
financial-services provider to launch operations in the United Arab Emirates.
This has given it access to the Middle East, a growth region of considerable
importance. In spite of the economic crisis, Daimler Financial Services also
experienced dynamic growth in other expanding markets such as China and
Brazil.
In the insurance business, Daimler Financial Services is forming
strategic alliances with large insurance companies in order to offer its
customers a high level of quality and service. "By performing accident
repairs at our own workshops, we are ensuring that our customers get the
promised quality and also generating additional earnings for our services
business through the use of genuine spare parts, for example," said Walker.
Products that combine vehicle insurance with leasing or financing at an
attractive monthly rate are enabling the company to further expand the volume
of its insurance business in nearly 40 markets worldwide even in a time of
crisis. In addition, the company is promoting the purchase of passenger cars
and commercial vehicles featuring advanced safety technologies by offering
discounted insurance premiums for such products.
About Daimler Financial Services
Daimler Financial Services is a leading provider in the financial-
services industry offering tailor-made leasing and financing solutions to
promote the vehicle sales of the Daimler Group's brands worldwide. With a
comprehensive product portfolio including financing, leasing, insurance
concepts and fleet-management services, Daimler Financial Services is
responsible for a contract volume of EUR58,7 billion, a decrease of 7 percent
compared to year-end of 2009. New business decreased by 17 percent to EUR18.4
billion in the first three quarters of 2009 compared to the previous year.
Worldwide more than every second new passenger car and every fourth
commercial vehicle is financed or leased by Daimler Financial Services.
Working in close cooperation with the Daimler vehicle brands, Daimler
Financial Services strengthens customer loyalty to the group's brands and
generates new earnings potential for the group. Operating in more than 40
countries, the Berlin-based company has a workforce of more than 6,800
employees worldwide.
Further information is available on the Internet at:
http://www.daimler-financialservices.com
Daimler Financial Services Contact: Harald Bertsch, Phone +49-711-2574-
4010
SOURCE Daimler Financial Services AG
Daimler Financial Services Contact: Harald Bertsch, Phone +49-711-2574-4010
