Mercedes-Benz Bank achieved a five percent
increase in new business volumes in vehicle financing and leasing
during 2010.

The Daimler Financial Services subsidiary saw
new business in leasing and vehicle financing hit €8.5 billion in
the year to end December 2010, as well as a decrease in the cost of
risk.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

CEO Peter Zieringer said: “In addition to
improving our competitive position further regarding the financing
of Daimler vehicles, we have also substantially increased our
profitability.

“As a result, we were able to make a big
contribution to the earnings of Daimler Financial Services, which
amounted to €831m in 2010.”

The increase in new business in financing and
leasing also helped the bank to boost market share of Daimler
passenger car and commercial vehicle sales from 53 percent in 2009
to 55 percent in 2010. Total contract volume remained the same at
€16.1bn.

The bank also recently launched new leasing
solution “FlexibleStars”, aimed at allowing customers to get out of
contracts easily should they choose to change vehicles.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The new offering means Mercedes-Benz Bank is
the first automotive bank to allow customers to obtain or transfer
ongoing leasing contracts.

Deposit volume in the direct banking business
was cut back from €12.6bn in 2009 to €10.9bn at the end of
2010.

Zieringer said: “We cut back our deposit
volume somewhat last year in response to the substantial
improvement in business prospects and the continued favourable
refinancing conditions.”

Mercedes-Benz Bank also expanded its insurance
business in 2010, increasing the number of contracts by 11 percent,
to 397,000.

During the next year, Mercedes-Benz Bank will
open a new service centre in Berlin, employing up to 700
people.

The move is part of a bid to strengthen the
company’s competitiveness by extending service times, speeding up
processes, and reducing costs.

claire.hack@vrlfinancialnews.com