DaimlerChrysler Financial Services

THE SCOOP

New name

In October 2007, DaimlerChrysler Financial Services, the financial services department for the Daimler Group, announced it would begin operations under the new name Daimler Financial Services AG which includes Mercedes-Benz Financial, Daimler Truck Financial, Mercedes Benz Financial Services Canada and Daimler Financial Services Mexico.  The name change followed DaimlerChrysler's sale of its Chrysler division to American private equity firm Cerberus for about $7.4 billion in May 2007.  Chrysler had been losing money due largely to costs associated with rising pension and health costs.  Outside of North America, Daimler Financial Services will remain the exclusive financial services partner for the brands Chrysler, Dodge and Jeep.

Financial driver

A worldwide financial services provider, Daimler Financial Services AG represents one of the world's largest financial services providers outside the banking and insurance industries.  Headquartered in Berlin, Germany, it offers flexible financial solutions customized to suit the requirements of individual customers of all vehicle brands within the Daimler Group, as well as cross-brand fleet management.  Globally, the company manages a portfolio of approximately â'¬65 billion through its operations in more than 40 countries; every third Daimler vehicle sold is financed or leased by Daimler Financial Services.  In addition, the company has about 68,000 employees worldwide.

In the United States, Mercedes-Benz Financial offers a range of financing plans to customers looking to buy Mercedes-Benz vehicles.  More than 400,000 U.S. drivers enjoy the benefits of leasing or financing their Mercedes-Benz vehicles through Mercedes-Benz financial.  Daimler Truck Financial serves as a captive financial services provider for the Freightliner LLC family of commercial vehicle products, including Freightliner, Sterling, Western Star, SelecTrucks, Springer, Thomas Built Buses, Unimog, Setra and others.  The division serves more than 10,000 commercial vehicles in the United States.

Late 1980s discovery

The tale of Daimler Financial Services began in 1989 when the board of then Daimler-Benz AG decided to establish a financial arm, initially called Debis.  In 1990, Debis became official and divided into five business units: Systemhaus, Financial Services, Insurance Brokerage, Trading and Marketing Services.  In 1991, together with Metro trading company and NYNEX, Debis founded Debitel, a network-independent telecommunications provider.  In 1993, Debis started an aircraft fund for private investors for the financing of A340 airbuses.  By January 2005, Debis generated 50 percent of its revenue with customers outside of Daimler-Benz.  Debis' focus became more centered in 1998 when Daimler-Benz AG and Chrysler Corp. merged, creating Daimler Chrysler.  The next year, DaimlerChrysler announced it would fuse its worldwide financial services under the umbrella of Debis.  In 2001, the division became known as Daimler Chrysler Services and found presence in the German banking market by changing the Mercedes-Benz Lease Finanz Group's name to DaimlerChysler Bank.

Slight fall

For the second quarter of 2008, Daimler Financial upped its contract volume by 4 percent versus the same period a year earlier to â'¬60.4 billion.  However, earnings dipped to â'¬183 million for the quarter from â'¬220 million in the second quarter of 2007.  The higher cost of risk during the year was cited as a factor in the lower numbers.  An overall bigger contract volume, however, helped to counteract the fallout slightly.  For the second quarter of 2009, the firm posted a â'¬79 million operating income which is more than twice lower as compared to the income of the same period of the previous year.


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DaimlerChrysler Financial Services


Eichhornstrasse 3
Berlin 10875
Phone: +49-30-2554-0
www.daimler-financialservices.com

STATS


  • Employer Type: Private
  • Chairman: Jurgen H. Walker
  • 2008 Employees: 7,214

Key Financials

  • 2008 Revenue: $2,877 million

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