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. If currency effects were not considered, the contract volume would have been worth an additional three billion euros at the end of October. The company aims to achieve strong growth in the fourth quarter as well. “We are currently in the midst of the race to the finish line,” said Entenmann.
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.
One million vehicle-related insurance policies sold
The company also achieved an all-time record in the area of vehicle-related insurance policies. Between January and October, more than one million policies were sold, which represents a 20 percent year-on-year growth. Thanks to cooperation with insurance industry partners, Mercedes customers benefit from attractive contract conditions and can rest assured that their vehicles will be repaired at an authorized workshop in the event of damages.
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. In the first ten months of 2013, Daimler Financial Services concluded twelve percent more financing contracts for used vehicles than in the same period of the previous year. The expansion of online sales channels has also driven growth, as these are providing customers with an improved overview of automotive financing services.
MB Rent vehicle rental service successfully launched
In 2013, Mercedes-Benz cooperated closely with the brand’s dealers to launch Mercedes-Benz Rent, an innovative vehicle rental service that is set to be expanded further. By enabling customers to rent Mercedes vehicles directly from selected dealerships, Mercedes-Benz Rent covers a broad range of mobility needs. More than 100,000 vehicles have been rented since the service was launched, with a total of 30 million kilometers driven. The service is set to be expanded to other European countries in 2014.
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. At the end of September, the number of people taking part in the car-sharing initiative exceeded 500,000 for the first time. This marked a more than twofold increase since the end of 2012, which made car2go the fastest-growing car-sharing company. The number of rentals per month recently exceeded one million.
Online platform for parking spot rentals: pilot project launched
In November, Daimler Mobility Services also launched the new Park2gether pilot project in Berlin and Hamburg. The www.park2gether.com platform gives owners of parking spaces the opportunity to rent their spots to other drivers whenever they do not need them. This allows parking spot owners to generate additional income. Fees and time slots can be determined on an individual basis. Those interested in renting parking spots can book and pay for them in advance via apps or a mobile website. Daimler receives a commission for bookings made through the platform.
Source: Daimler AG