Daimler Truck Financial Services expands its global footprint and starts operations in Argentina, Belgium, Italy and the Netherlands. Further expansion is planned this year in Spain, Turkey and the UK. The financial services provider has started as a new company in December 2021 in seven countries. By the end of 2022 contract volume is expected to be almost 22 billion Euro. In 2023, the planned ramp-up of operations in Germany and France will contribute to further growth. Daimler Truck Financial Services will then be one of the world’s largest financial services providers in the commercial vehicle sector with approximately 1.900 employees in 16 countries.
“We built up Daimler Truck Financial Services in record time with the spirit of a start-up” said Stephan Unger, Member of the Board of Management of Daimler Truck AG for Financial Services, and CEO of Daimler Truck Financial Services. “With our start in Argentina, Belgium, Italy and the Netherlands we will boost the sales of vehicles and service solutions for all truck and bus brands of Daimler Truck.”
In addition to the expansion in new markets there are further growth opportunities for Daimler Truck Financial Services with new finance products and service solutions in addition to the existing financing, leasing and insurance business. This includes usage-based and flexible pay-as-you-drive services such as dynamic leasing or dynamic insurance. The product “Dynamic Lease” is already available in Japan and the USA. “Dynamic Insurance” will be launched with an initial pilot phase in USA this year. The shift in the transportation business to e-mobility offers additional growth potential with new service solutions for charging, e-infrastructure or battery leasing. Other future business opportunities will open up in fleet management or from the integration of connectivity services such as payment solutions.
Daimler Truck Financial Services is a segment of the Daimler Truck Group. In 2021, Daimler Truck Financial Services slightly increased new business to 5.8 billion Euro. (2020: 5.7 billion Euro). The contract volume increased by 6% to 16.9 billion Euro (2020: 15.9 billion Euro). Adjusted earnings before interest and taxes (EBIT) improved to 193 million Euro (2020: 2 million Euro) in particular due to an improvement of interest margins as well as significantly lower cost of risk. The adjusted return on equity was12.4% (2020: 0.1%).
At Daimler Truck Financial Services the organization, product development, sales systems and processes concentrate entirely on commercial vehicle customers and form an integral part of Daimler Truck Group. Daimler Truck Financial Services started business in December 2021 in Australia, Brazil, Japan, Canada, Mexico, South Africa and the USA.
SOURCE: Daimler Truck
