Mercedes 2006 Annual Report Download - page 110

1,468
15,439
48,152
117,724
45
11,129
1,714
17,154
52,981
113,297
29
10,718
Operating profit
Revenues
New business
Contract volume
Investments in property, plant
and equipment
Employees (Dec. 31)
94
Financial Services
Positive business development in 2006 | Focus on improving market position and customer
satisfaction | Efficiency-improving programs implemented worldwide | Significant increase in
operating profit
94
Positivebusiness development at DaimlerChrysler Financial
Services. The Financial Services division once again developed
positivelyand further improved its market position in 2006. New
business increased by 10% to €53.0 billion, while contract vol-
ume of €113.3 billion was 4% lower than in the prior year. Adjusted
for exchange-rate effects, contract volume rose by 5%. At the
end of 2006, the Financial Services portfolio comprised 6.5 million
leased and financed vehicles. Operating profit for the year rose
by 17% to €1.7 billion (see page 45).
The Financial Services division developed positively in all regions.
Our worldwide activities in the year under review focused on
further boosting our efficiency and enhancing customer and dealer
satisfaction. We also improved our market position by coop-
erating withthe vehicle divisions and dealers to develop financial
services products that meet our customers’ individual mobility
needs. These products incorporate features such as servicing and
vehicle insurance as part of the monthly financing installment or
leasing rate.
Expanded range of products and improved customer satisfac-
tion in North and South America. The Americas region (North
and South America) managed a total contract volume of €80.4
billion at the end of 2006 (end of 2005: €85.9 billion). This was
once again the highest volume recorded by any Financial Services
region, accounting for 71% of the total portfolio. Adjusted for
exchange-rate effects, the portfolio in the region expanded by 4%.
Newbusiness rose by 12% to €35.7 billion. This was due in
part to the high level of acceptance of our financial services prod-
ucts and our expansion into new market segments.
BothMercedes-Benz Financial and Chrysler Financial once again
significantlyimproved their ratings in the annual dealer satisfac-
tion survey conducted in the United States by J.D. Power. In addi-
tion, DaimlerChrysler Financial Services Americas introduced
newproducts in 2006 that generated a very positive market re-
sponse. With “Business Vehicle Finance”, we expanded the range
of financing for commercial vehicles and passenger carsin busi-
ness fleets. Wealso launched the CompleteLease full-service
leasing product for Dodge and Sterling commercial vehicles in the
United States.
Continual improvement of loan-approval and contract-processing
procedures has played a major role in accelerating and simplify-
ing the financing and leasing process. In line with this approach,
we introduced “eContracting” in the United States in 2006 –
the first electronic system for the completely paperless process-
ing of leasing and financing applications.
Positive development in the Europe, Africa & Asia/Pacific
region. The Europe, Africa & Asia/Pacific region also developed
positively in 2006. Contract volume of €32.9 billion was 3% higher
than the prior year’s level. The strongest portfolio increases in Asia
were recorded in China, Japan and South Korea.
% change
+17
+11
+10
-4
-36
-4
06/05
Amounts in millions of €
2005
2006