Mercedes 1998 Annual Report Download - page 39

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CHRYSLER FINANCIAL SERVICES
35
PROVIDING A WIDE RANGE OF AUTOMOTIVE SERVICES.
Chrysler Financial Services (CFS) provides retail and lease
financing for vehicles, dealer inventory and other financing
needs, dealer property and casualty insurance, and dealership
facility development and management, primarily for
DaimlerChrysler dealers and their customers. Headquartered in
Southfield, Michigan, CFS is one of the largest automotive
financial services companies in North America. CFS also ex-
panded during the last two years into international markets,
opening offices in Belgium, France, Italy, Japan, Venezuela,
Taiwan, Puerto Rico, Austria, Germany and the Netherlands.
GROWTH IN AUTOMOTIVE FINANCING VOLUME. CFS’s auto-
motive volume increased to € 80.1 billion in 1998 compared to
€ 73.7 billion in 1997. The increase in automotive volume re-
flects higher retail and lease penetration due to the impact of
marketing programs to customers and dealers initiated during
1997. Nearly 2.5 million new Chrysler, Plymouth, Jeep and
Dodge vehicles have been financed by CFS in the United States
in 1998, 250,000 vehicles more than in 1997.
Chrysler Credit Canada Ltd., which provides automotive finan-
cial products and services to Canadian automotive dealers and
customers, financed 310,000 new vehicles in 1998 compared to
277,000 vehicles in 1997.
OHTER BUSINESSES ALSO SUCCESSFUL. Chrysler Insurance
Company (CIC), a subsidiary, had a very favorable business
development. Premium volume rose to € 200 million in 1998.
Chrysler Insurance was named to Ward’s 50 Benchmark Group
Chrysler Financial Services (CFS) achieved a
record operating profit of € 652 million for 1998,
up from € 586 million in 1997. Earnings benefited
during 1998 from lower credit losses and growth
in the company’s managed portfolio of receivables
and leases. Revenues increased to € 2,9 billion
compared to € 2,4 billion in 1997. In addition to
setting a new record for earnings in 1998, CFS
acquired a record € 74.2 billion in loans and
leases and managed a record € 42.5 billion
portfolio of receivables and leases at year-end.
Chrysler Financial
Services
for the eighth consecutive year. This award recognized CIC as
one of the top performing property and casualty companies in
the industry.
Chrysler Capital Company L.L.C. worked closely with
DaimlerChrysler on tax-related investments, managing approxi-
mately € 2.5 billion in leveraged leases and other commercial
loans and leases.
Chrysler Realty Corporation (CRC) engages in the ownership,
development and management of DaimlerChrysler automotive
dealership properties in the United States. CRC purchases or
leases dealership facilities and then leases or subleases these
facilities to dealers. At the end of 1998, CRC controlled 723
sites, of which 189 were owned.
FINANCIAL SERVICES COMBINED WITHIN DAIMLERCHRYSLER
SERVICES. CFS will be combined with debis in 1999. The com-
bined financial services unit of DaimlerChrysler Services will
have a portfolio of € 70 billion. It will be the fourth-largest pro-
vider of financial services in the world outside the banking and
insurance sector and will compete directly with the some of the
strongest competitors in the financial services market. The
new DaimlerChrysler Financial Services North America L.L.C.
(DCFSNA) will continue to serve dealers and customers in the
United States, Canada and Mexico and will be headquartered in
Southfield, Michigan. Chrysler Capital’s operations are being
combined with the existing capital services operations of debis
Financial Services to form a new international business unit,
which will focus on global Capital Services. It will tap the enor-
mous potential of the non-automotive financial services busi-
ness, with worldwide headquarters based in Norwalk, Connecti-
cut.
Operating Profit
Revenues
Employees (12/31)
765
3,376
98
US $
98
€
97
€
652
2,877
3,513
586
2,407
3,405
Amounts in Millions