Mercedes 2004 Annual Report Download - page 72

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Successful expansion of sales-financing activities in North
America. DaimlerChrysler Services further expanded its financial-
services activities for all vehicle segments in what was a very
competitive North American automotive market in 2004. When
adjusted for exchange-rate effects, new business in the region
increased by 16% to €37.8 billion. In order to increase new business
and profitability, we implemented reward programs and also
expanded activities that strengthen customer loyalty. The portfolio
in North America totaled €72.2 billion in 2004, and contract
volume was up 10% after adjusting for exchange-rate effects. North
America also remained the division’s most important market
worldwide, accounting for 70% of the total portfolio. As part of
a series of national events, we worked together with North
American dealers in 2004 to develop a common strategy for further
exploiting earnings potential. For example, DaimlerChrysler
Services Truck Finance introduced a full-service leasing program
for the Freightliner brand that allows customers to supplement
their financing and leasing contracts with an additional mainte-
nance contract. According to the latest survey conducted by
the American Automobile Association, DaimlerChrysler Services’
financial-services products achieved their best results ever
among Chrysler Group dealers with regard to customer and
dealer satisfaction.
Positive business developments at DaimlerChrysler Services.
The Services division continued to develop positively in 2004.
Close cooperation with the automotive divisions played a key role
in the 7% increase in new business to €50.9 billion. In particular,
reward programs met with a highly favorable response from cus-
tomers. We also introduced new financial-services products in
many countries in 2004. Contract volume rose by 4% to €102.4
billion; adjusted for exchange-rate effects the increase was 9%.
At the end of the year, our portfolio consisted of more than 6.6
million leased or financed vehicles in 39 countries.
Despite additional charges of €472 million from Toll Collect,
operating profit of €1,250 million (2003: €1,240 million) was at
the prior year’s high level. At the end of 2004, DaimlerChrysler
Services employed 11,224 people, an increase of 2% compared
with the prior year (see page 24).
Positive business developments in all regions |North America remains most important
market for financial services |Toll Collect successfully launches toll system for trucks
in Germany on January 1, 2005 |Operating profit at prior year’s high level
Services
1,250
13,939
102,399
91
11,224
1,692
18,871
138,628
123
Amounts in millions US $
2004
€€
1,240
14,037
98,199
76
11,035
20032004
Operating profit
Revenues
Contract volume
Investments in property,
plant and equipment
Employees (Dec. 31)
68