Daimler Financial Grew Portfolio 6% in 2017 Amid Mobility Push

Courtesy of Mercedes-Benz

Daimler Financial Services grew its portfolio 6% year over year to $174.6 billion USD (139.9 billion Euro) in 2017, amid the company’s strong push into mobility services, according to the company’s fourth-quarter earnings released today.

The captive originated 1.9 million new financing and leasing contracts in 2017, a 14% year-over-year increase from the year prior. About half of all new-vehicle sales by the automotive divisions in 2017 were supported by sales financing from Daimler Financial Services, according to the report.

Additionally, more than 4.8 million financed or leased vehicles were on the books at the end of 2017, with a total contract volume of $174 billion USD, representing a 6% increase as compared with the year prior.

Daimler Financial Services expanded its mobility services in 2017 as Car2Go increased the number of customers of its car-sharing service to around three million in 2017, having reached two million users in October 2016.

Meanwhile, after MyTaxi merged with ride-hail company Hailo in 2016, MyTaxi acquired Taxibeat in February of last year and Clever Taxi in June. The number of registered users for MyTaxi increased by 85% to 11.1 million, according to the report. A total of 17.8 million customers are registered for Daimler Mobility Services, which are offered in more than 100 cities in Europe, North America, and China.

“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,” Bodo Uebber, head of finance and controlling at Daimler Financial Services, said in the earnings release.

In 2018, DFS expects further growth in contract volume, primarily driven by the “strong development of new business in 2017, which should continue at the same high level this year,” the release stated. Daimler Financial Services is prioritizing China using new and digital possibilities for customer contacts — in particular through the development of online sales channels.

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