Mercedes 2008 Annual Report Download - page 102

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Positive business progress in a difficult environment. The
business of Daimler Financial Services developed positively during
the year under review. Worldwide contract volume of €63.4
billion was 7% above the level attained in the prior year. Several
companies were consolidated for the first time during 2008,
most of them in Asia and Eastern Europe. Without this effect and
adjusted for exchange rate effects, contract volume increased
by 5%. New business increased by 7% compared with 2007 to a
volume of €29.5 billion; the adjusted increase amounted to 6%.
EBIT of €677 million was at above the level achieved in the prior
year (see page 54).
Intensified risk management. With regard to the financial and
economic crisis, Daimler Financial Services took countermeasu-
res at an early stage to minimize the risks of potential credit
defaults. Collection management was intensified and our instru-
ments for controlling risks are regularly adapted to market con-
ditions. Daimler Financial Services measures the success of its
operations with the use of risk-adjusted return on equity.
Focused strategy for Daimler Financial Services. After the
sale of Chrysler Financial reduced economies of scale, the Daimler
Financial Services division started its “Captive #1” strategic
program in 2008 with the aim of achieving further profitable growth
and improving both efficiency and effectiveness. To these ends,
the division’s worldwide sales and marketing activities are being
optimized, business operations are being combined and the
efficiency of the functional departments is being enhanced.
Once again last year, Daimler Financial Services was awarded
leading positions in various independent studies of dealer and
customer satisfaction, for example in Germany, the United States
and the United Kingdom.
Stable development in the region Europe, Africa & Asia/
Pacific. There was a very stable development of business in the
region Europe, Africa & Asia/Pacific in the year 2008. Contract
volume increased by 9% to €37.7 billion; adjusted for exchange
rate and consolidation effects, the increase was 6%. New busin-
ess of €19.6 billion was 9% higher than in the prior year. Growth
was particularly strong in Russia and China.
Daimler Financial Services commenced business in Romania in
September, thus continuing our expansion in Central and
Eastern Europe, where we are already one of the leading captive
financial services providers. After Russia and Ukraine, Roma-
nia is the region’s most important vehicle market. With the new
financial services business in Romania, Daimler Financial Servi-
ces now promotes the sale of our vehicle brands locally. The com-
pany provides private and commercial customers with loans,
leasing, insurance and dealer financing.
In Germany, Mercedes-Benz Bank continued its successful busin-
ess development and expanded its contract volume by 4% to
€17.2 billion. Customers’ deposits invested with the bank rose
significantly by 47% to €6.0 billion. In April, Mercedes-Benz Bank
successfully launched the product “Privat-Leasing Plus,” a new
mobility package. By the end of the year, approximately 5,400
contracts had been concluded for the new product, which com-
prises a leasing agreement with an option to buy as well as auto
insurance and a service card for processing any damage claims.
During the year 2008, Mercedes-Benz Bank opened its first
European branch in Spain. Since then, Spanish dealers have been
able to profit from the bank’s favorable conditions for their
floorplan financing.
Daimler Financial Services further expanded its business volume
in the Asia/Pacific region last year. Financial services for
Mitsubishi Fuso vehicles, which the division has provided since
2006 under the brand FUSO Financial, developed very succes-
sfully, especially in Japan, Australia and Thailand. In these three
markets, contract volume for Mitsubishi Fuso vehicles amounted
to €402 million at the end of 2008, representing a dynamic growth
rate of 96%. Contract volume in China amounted to €329 million
at the end the year, representing an increase of 159% compared
with a year earlier.
Daimler Financial Services. Strategic focus on efficiency. New
organization for US business. Start of financial services business
in Romania. EBIT of €0.7 billion higher than prior-year level.
677
9,282
29,514
63,353
41
7,116
% change
+7
+7
+7
+7
+41
+6
08/07
630
8,711
27,611
59,143
29
6,743
Amounts in millions of €
20072008
EBIT
Revenue
New business
Contract volume
Investment in property,
plant and equipment
Employees (December 31)