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Mercedes-Benz Bank successful in challenging market environment in 2020

Mercedes-Benz Bank AG has successfully concluded 2020 - a challenging year mainly because of the COVID-19 pandemic

Mercedes-Benz Bank AG has successfully concluded 2020 – a challenging year mainly because of the COVID-19 pandemic. The total volume of leasing and financing contracts for Daimler Group passenger cars and commercial vehicles of 25.9 billion euros at the end of 2020 was at the level of the previous year. Thanks to the long contract terms in the existing portfolio, the Stuttgart-based company was able to compensate for a vehicle market that declined during the pandemic-affected year as a whole and for the consequently weakened new leasing and financing business. In addition, the automotive bank set a record in the used vehicle business in 2020 with a volume of 2.1 billion euros and reached a new high for vans with a contract volume of 5.7 billion euros.

“With our financial services, we provided the best possible support in 2020 for sales of Daimler Group vehicles in Germany in a challenging market environment. For this year, we see opportunities resulting from the recently presented new Mercedes-Benz C-Class, our volume model in the passenger car market, as well as resulting from the constantly growing customer demand for hybrid and electric vehicles. The percentage of leasing contracts in this segment is disproportionally high,” says Benedikt Schell, CEO of Mercedes-Benz Bank.

In the commercial vehicle business, Mercedes-Benz Bank launched leasing and financing offers for the all-electric Fuso eCanter light-duty truck last year. All in all, the contract volume for trucks and buses of the Mercedes-Benz, Fuso and Setra brands was 3.9 billion euros at the end of 2020.

Success with used vehicles and in online banking

Used vehicles have been recording double-digit growth rates for many years. New business has nearly doubled for Mercedes-Benz Bank since 2013 as a result. In the banking business, customers’ deposited funds grew to about 13 billion euros by the end of 2020 and thus reached a new record high. Mercedes-Benz Bank uses the deposit volume as a refinancing basis for its leasing and financing offers. In 2020, Mercedes-Benz Bank made an important contribution to the already published Daimler Mobility AG profit of 1.4 billion euros.

2021 outlook

Depending on the further development of the COVID-19 pandemic, Mercedes-Benz Bank sees growing opportunities this year as a result of the market launch of the new C-Class and of additional hybrid and electric vehicles such as the EQA, EQS and EQE. Hybrid vehicles are very successful as company cars. Furthermore, electric vehicles are also being primarily leased by private customers. The bank believes in additional growth through the launch of further subscription models for electric vehicles such as for the EQC or the EQV van last year.

In order to make the switch to electric mobility as easy as possible and to provide predictable monthly installments for customers, Mercedes-Benz Bank also offers comprehensive insurance coverage specifically for hybrid and electric vehicles, for example, on batteries, the charging infrastructure and services. In cooperation with Mercedes-Benz and Daimler Mobility, there are further services and hardware related to electric mobility which include, among other things, mobility packages via Mercedes-Benz Rent for longer trips, the financing of Wallbox chargers as well as billing systems for commercial customers.

SOURCE: Daimler

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