Mercedes-Benz Bank enters 2017 with record figures
Mercedes-Benz Bank will celebrate its 30th anniversary this year following a fiscal year that saw the finance business achieve record figures
Mercedes-Benz Bank is celebrating its 30th anniversary having achieved record figures in the previous fiscal year, which witnessed the growth in new business by 11% to $12.6bn and 368,000 vehicles.
The overall portfolio of contracts also grew by 10% to $23.1bn, with leasing and finance up by 9% for commercial vehicles. Today, over half of all Daimler cars, trucks, vans and buses on German roads are on a contract from Mercedes-Benz Bank.
The business of parent company Daimler Financial Services is also booming: as at the end of 2016, over 4.3 million financed or leased vehicles worth $141bn were on the books – corresponding to a 14% year-on-year increase in the volume of contracts.
Earnings before interest and taxes (EBIT) for the whole business rose by 7% in fiscal 2016 to a record $1.8bn – and to which Mercedes-Benz Bank made a significant contribution.
Daimler Financial Services is meanwhile maintaining its growth strategy in 2017 with digital financing though its recent investment in AutoGravity, a California-based startup that has developed a smartphone app for vehicle financing.
AutoGravity features multiple vehicle brands and models, andenables various financial services providers and automotive manufacturers the opportunity to offer vehicle financing and leasing via smartphone.
The customer-focused comparison app for buying and financing vehicles provides users with up to four tailored, binding offers within a few minutes.
“With our investment in AutoGravity, we are now taking the strategic step of preparing the conventional financing and leasing business for digital sales channels,” said Bodo Uebber, Daimler board member and head of financing and controls at Daimler Financial Services.
“We believe AutoGravity and its technology have the potential to revolutionize the sector for online financing while, at the same time, offering a digital platform for other financial services providers and automotive manufacturers.”
AutoGravity piloted its digital financing platform in California in mid-2016 in conjunction with Mercedes-Benz Financial Services US, and there have been over 150,000 downloads since launch.