Daimler Financial Services has claimed to have
turned a corner this year, reversing its slow performance in
2009.
Earnings before interest and tax are expected
to reach €900m for the year to 31 December 2010. Daimler’s finance
and insurance arm achieved profit of just better than breakeven at
€9m in 2009, due to increased expenses related to higher credit
risk.
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Klaus Entenmann, Daimler Financial Services
(DFS) chairman, said: “We have emerged from the financial and
economic crisis stronger than before, and we are benefiting from
the decrease in risk-related costs and favourable interest margins.
We are also on a growth path with our new business and contract
volume.”
New leasing and sales finance business rose by
16 percent to €21.3bn for the nine months to 31 September 2010.
Contract volume was up by 4 percent to €61.1bn.
DFS has indentified Asian markets,
particularly in China and India, as targets for growth next year.
Entenmann said: “We expect to see continued rapid growth in China,
and we also appreciate the fact that Chinese customers are very
reliable when it comes to making payments.”In China, the contract
volume rose by 93 percent to €916m in the first nine months of
2010.
DFS will launch next year an Indian subsidiary
offering financing, insurance and fleet management for
Mercedes-Benz cars. In 2012, it will start offering the same
services for commercial vehicles.
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By GlobalDataThe latest announcement comes on the back of a
restructuring process to improve coordination of DFS’ operations in
40 countries worldwide, with headquarters moving from Berlin to
Stuttgart – in the same building as Mercedes-Benz Bank – and
consolidation of Mercedes-Benz Bank activities from nine current
locations to three in 2012.
