In an attempt to get more favourable access to capital from the
German central bank, luxury vehicle manufacturer BMW is looking to
secure a banking license for its financial arm, sources said.
The sources, close to the company, told German business daily
Handelsblatt that a partnership with the banking arm of
Daimler has already been rejected, adding that there were no
further plans for cooperation with other banks.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Securing a banking license would enable BMW to access funds at
favourable rates of around 1 percent.
It is understood that BMW and Daimler each have to refinance
over €20 billion per year on the capital markets in order to keep
their leasing businesses afloat.
In February, BMW Financial Services reported a pre-tax loss of
€292 million, attributing the result to a number of factors
including a risk provision expense of €1.1 billion to cover
residual value risks and bad debts.
Jason T Hesse
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
