Daimler Financial Services concluded 1.9 million new financing and leasing contracts worth a total of €70.7 billion in 2017. The total value of all new contracts rose by 14% compared to the prior year. About half of all new-vehicle sales by the automotive divisions in 2017 were supported by sales financing from Daimler Financial Services.
4.8 million units: portfolio increased by 12%
More than 4.8 million financed or leased vehicles were on the books at the end of 2017, with a total contract volume of €139.9 billion — this represents a 6% increase compared with the end of 2016. Adjusted for exchange-rate effects, contract volume increased by 12%. The division posted EBIT of €1,970 million in 2017, thus significantly surpassing its prior-year earnings of €1,739 million. The return on equity was 17.6% (2016: 17.4%).
This positive development was the result of increased contract volume and a further improvement in the cost-of-risk situation. On the other hand, there were negative effects from a higher interest-rate level, increased expenses for the expansion of mobility services and the digitization of the business system.
Mobility services once again expanding
Daimler Financial Services once again expanded its range of innovative mobility services in 2017. car2go increased the number of customers its car-sharing service to around 3.0 million, thus maintaining its position as the world’s leading company for flexible car sharing. The moovel app also underwent further development in 2017. moovel enables customers in Germany to compare various mobility and transport-system options and then choose the best way to get from point A to point B. The app can also be used to book and directly pay for services provided by companies such as car2go, mytaxi and Deutsche Bahn. The number of registered users in Germany and the United States had risen to 3.7 million by the end of 2017 (2016: 2.2 million). In 2017, mytaxi further expanded and consolidated its position as Europe’s biggest taxi app through its successful merger with Hailo and its acquisition of Taxibeat and Clever Taxi. The number of registered users increased by 67% to 10.4 million. A total of 17.8 million customers are registered for Daimler mobility services, which are offered in more than 100 cities in North and South America, Europe, and China.
“With its mobility services, Daimler Financial Services is a pioneer in the future area of shared and services,” said Bodo Uebber, Member of the Board of Management of Daimler AG responsible for Finance & Controlling and Daimler Financial Services. “From a strategic perspective, we want to achieve four goals with our mobility services: First of all, we want to participate in a rapidly growing market that can reach a three-digit billion amount in the coming years. We want to offer our customers a broad ecosystem all around the connected car. In other words, we will make our service portfolio even more attractive and offer additional innovative services. The goal is to develop the required expertise and resources so that we are a leader in the future business with robot taxis.”
Further growth in 2018
Daimler Financial Services aims to achieve ongoing growth in the coming years. In 2018, the division expects further growth in contract volume. This will be primarily driven by the strong development of new business in 2017, which should continue at the same high level this year. Daimler Financial Services is utilizing new market potential above all in China, and by means of new and digital possibilities for customer contacts – in particular through the systematic further development of online sales channels. The division continues to see good growth opportunities in the field of innovative mobility services, where it is active with the brands car2go, moovel and mytaxi, as well as with equity interests in Blacklane and FlixBus and various startup companies.