BMW 2010 Annual Report Download - page 27

25 GROUP MANAGEMENT REPORT
BMW Group new vehicles financed by
Financial Services segment
in %
50
40
30
20
10
06 07 08 09 10
Financing 17.2 17.4 20.9 24.7 24.1
Leasing 25.2 27.2 27.6 24.3 24.1
Successful financial year for Financial Services segment
With its range of attractive products, the Financial Services
segment also benefited from the worldwide economic
recovery and grew profitably in 2010. The business vol-
ume in balance sheet terms stood at euro 66,233 million
at the end of the reporting period, 8.2% higher than one
year earlier. 3,190,353 credit financing and lease con-
tracts were in place with dealers and retail customers at
31 December 2010 (+ 3.4%).
The Financial Services segment is represented in more
than 50 countries, serves as a strong, reliable partner for
the dealer organisation and offers customers a coordi-
nated range of products. The segment comprises the fol-
lowing six lines of business: lease and credit financing
ofBMW Group vehicles for retail customers, multi-brand
financing, dealer financing, lease and credit financing for
fleet customers, insurance and banking.
Credit financing and the lease of BMW, MINI and Rolls-
Royce brand cars and motorcycles to retail customers is
the largest line of business. The multi-brand financing
line of business involves the financing of other brands
alongside BMW Group brands. The Financial Services
segment also supports the
dealer organisation by provid-
ing financing for dealership
vehicle inventories, real
estate and equipment. Fleet business involves managing
vehicle fleets, comprising BMW, MINI and Rolls-Royce
brand cars as well as other brands, for major customers.
Operating under the brand name “Alphabet”, vehicle
financing and a range of other services are also provided
to customers, including full fleet
management. As a sup-
plement to lease and financing contracts, the segment
also offers its customers selected
insurance and banking
services.
New retail customer business performing strongly
Finance and lease business with retail customers was
further expanded in 2010. The number of new
contracts
signed rose sharply (+6.6%) to 1,083,154 units. Lease
busi-
ness grew by 3.2% and credit financing increased by
8.1%
compared to the previous year. Leasing accounted
for
28.8% of new business, credit financing for 71.2%. The
proportion of new BMW Group vehicles leased or financed
by the Financial Services segment was 48.2%, marginally
lower (0.8 percentage points) than one year earlier.
In the used car financing line of business, a total of
317,742 contracts were signed during the year under
report. The number of new contracts for BMW and MINI
was therefore 1.5% up on the previous year.
The total volume of all new credit and leasing contracts
concluded with retail customers amounted to euro
28,045 million, an increase of 13.5%.
The growth in new retail customer business also had an
impact on the overall portfolio. In total, 2,935,541 con-
tracts were in place with retail customers at 31 December
2010 (+ 3.3%). As in the past, this growth was achieved
across all regions. For example, the contract portfolio
forthe European markets increased by 2.2% while that
for the Asia /Oceania /Africa region grew by 3.0%. The
sharpest increase was again recorded in the Americas re-
gion (+5.2%).
Top places won for quality of service
The BMW Group’s Financial Services segment again won
numerous international awards in 2010. In the annual
survey on quality of service (Dealer Financing Satisfac-
tion StudySM) carried out by the well-known market re-
search institute, J. D. Power and Associates, our financial
services operations in the USA came first for the seventh
time in succession in the category “Retail Customer Leas-
ing”. First places were also won in the categories “Dealer
Financing” as well as “Retail Customer Credit Business –
Multi-brand Financing”. In Canada, the Financial Services
segment took first place amongst manufacturer-related
Contract portfolio of Financial Services segment
in 1,000 units
3,200
3,000
2,800
2,600
2,400
2,200
2,000
06 07 08 09 10
2,271 2,630 3,032 3,086 3,190