With the end of its financial year
approaching, Deutsche Leasing looks to have achieved a highly
successful year in its international vendor programme with Austrian
injection moulding giant Engel.
Despite Engel’s connection with the
battered automotive sector, Deutsche Leasing’s (DL) penetration of
the manufacturer’s sales has increased enough to roughly double
finance volumes year-on-year.
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Engel previously ran vendor programmes with SG
Equipment Finance and Siemens Financial Services, before settling
on DL as a partner in November 2007. DL had provided finance for
Engel’s customers for many years beforehand, however.
Initially the programme applied only to
Engel’s German sales (which still make up around 50 percent of
total volumes), but it was subsequently rolled out to a number of
Deutsche Leasing’s other national markets, beginning with several
western European territories in Autumn 2008.
The launch coincided with the launch of
Engel’s E-motion product – a smaller electric injection moulder
valued at around €100,000.
And the rollout is still ongoing. This summer,
DL extended the partnership to cover Engel’s home territory of
Austria.
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By GlobalDataWhereas the programme as a whole is
coordinated by Burkhard Busch at DL’s German headquarters, national
level operations are handled by Engel and DL’s respective local
subsidiaries.
As such, there are regional variations –
Engel’s UK subsidiary, for example, sources its own finance through
a finance introducer.
Deutsche has been keen to instil a leasing
sales mentality among Engel’s frontline staff, said Busch.
“Every salesperson knows that, along with
technical details of the product, customers need to be aware of the
financial solutions options on offer,” he added.
Finance is sold under the corporate identity
of Engel Financial Solutions, although this is not a legal entity –
the underwriting and processing of finance is undertaken entirely
by DL.
In addition to its partnership with Deutsche
Leasing, at the end of 2008 Engel began offering customers
banking-style loans from its own books, processed by an internal
department at its Austrian headquarters. To date, some €20 million
has been loaned in this fashion.
• Engel, based in
Austria, is the world’s largest manufacturer of injection
moulding machines, as well as producing a large variety of other
plastics processing equipment.
The company has 3,777
employees and an annual global turnover of €622 million. Founded by
Ludwig Engel in 1945, the firm is still 100 percent family owned,
and headed by CEO Peter Neumann. Engel has eight production plants
– four in Europe, two in China and one each in the US and South
Korea. It has subsidiaries in 17 European countries, as well as
four in the Americas and five in Asia. Overall, it sells to 85
national markets worldwide.
