Mercedes 2003 Annual Report Download - page 65
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Please find page 65 of the 2003 Mercedes annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.In 2003, North America remained DaimlerChrysler Services’
most important market with a contract volume of €70.5 billion
(2002: €83.1 billion) and 72% of Services’ total portfolio. Measured
in US dollars, the portfolio in the NAFTA region grew from $87.1
billion to $89.1 billion. Within Europe, the biggest increase was in
Germany, where contract volume rose by €1 billion to €13.2 billion.
In most other European countries we achieved modest growth,
total contracts rose by 1% to €10.0 billion. The leasing and sales-
financing companies in the Asia/Pacific region were again able to
substantially increase their portfolio; at €3.1 billion, this was
7% higher than in the previous year. The growth of business was
particularly strong in Australia. Within the Latin America/Africa/
Middle East region there were difficult economic conditions in
some countries, but business developments were generally positive.
Our close relationship with the automotive business is a tremen-
dous advantage when developing new services.
New sales structure in the United States. Incentives continued
to play a major role in the US auto market in 2003. Our leasing and
financing company, DaimlerChrysler Services North America,
responded by creating special financing packages for each of the
brands. At the same time, we restructured the sales organization
of DaimlerChrysler Services North America. The newly created
sales regions are now able to fulfill customers’ wishes even faster
and more flexibly, and can offer tailored financing solutions in
conjunction with the automotive brands’ own sales departments.
Through these structural changes, customer and dealer satisfaction
was further improved, particularly in the field of commercial-vehicle
financing. In this way, we increased unit sales and improved our
market position in the United States.
Fleet management enjoys above-average growth. The fleet
management business again experienced strong growth. By the end
of 2003, we managed a total of 335,000 vehicles worldwide, 12%
higher than at the end of 2002. In close cooperation with fleet sales
departments of the automotive divisions, DaimlerChrysler Services
Fleet Management signed new contracts in Germany, France, Italy
and the United Kingdom for 120,000 vehicles, thus further extending
our business in the European market.
Stronger market position in Asia and Eastern Europe. Asia/
Pacific is of great importance to DaimlerChrysler Services; the
division supports the Group’s sales activities in eight of the
region’s markets. With a portfolio of €1.4 billion Japan is the most
important market in this region, where DaimlerChrysler Services
has been successful with an own financial services company for
more than ten years. In China DaimlerChrysler Services is preparing
to start providing financial services in collaboration with its liaison
office in Beijing and in close cooperation with the Group’s auto-
motive brands.
We also see the potential for further growth in Central, Eastern
and South Eastern Europe. For many years, DaimlerChrysler
Services has operated leasing and sales-financing companies in
five of the ten new EU member countries: Poland, the Czech
Republic, Slovakia, Hungary and Slovenia.
Response to new banking products exceeds expectations.
DaimlerChrysler Bank exceeded all expectations with its additional
banking products introduced in the middle of 2002. By the end of
2003, approximately 186,000 customers had deposited €3.1 billion
with DaimlerChrysler Bank in money-market accounts and fixed-
interest-rate accounts and savings plans. The bank also success-
fully entered the mutual fund business in May 2003.
The deposit business attracts new customers to the bank who
we intend to win for a lasting relationship with the Group’s brands
and financial services products. With its core activity of leasing
and financing, DaimlerChrysler Bank’s new business grew by 10%
to €7.5 billion. In the field of automobile financing alone, Daimler-
Chrysler Bank looked after a total of 462,000 retail and business
customers. Total contract volume increased by 8% to €13.2 billion
and covered 655,000 vehicles.
Delayed introduction of toll system for trucks. After the toll
system for trucks in Germany was unable to start as orginally
planned on August 31, 2003, the partners in the Toll Collect con-
sortium presented a plan for a start of the system on December
31, 2005 at the latest. However, according to the consortium’s
offer, the system will be able to start in a mode with restricted
functionality on December 31, 2004. If this proposed project plan
is not fulfilled, the consortium is prepared to accept higher
contractual penalties. DaimlerChrysler Services has a 45% share
of the Toll Collect consortium (see page 15).
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The Chrysler dealer, “Love Chrysler”, in Corpus Christi, Texas