- New business up by 6%
- Contract volume grows to €142 billion
- Daimler and BMW Group agree to merge mobility services
- EBIT slightly above prior-year level at €548 million (Q1 2017: €524 million)
New business up by 6% worldwide
Daimler Financial Services increased its new business once again in the first quarter of 2018. Worldwide, 494,000 new leasing and financing contracts were concluded with a total volume of €17.9 billion, which is 6% more than in the prior-year period. Contract volume reached €141.7 billion at the end of March and was thus at the level of year-end 2017. Adjusted for exchange-rate effects, contract volume grew by 2%. Firstquarter EBIT amounted to €548 million, which is slightly higher than in the previous year (Q1 2017: €524 million).
Europe region: strong growth in new business
In the whole of Europe, 233,000 new leasing and financing contracts were signed in the first quarter (+7%). New business increased by 11% to €7.5 billion. Contract volume of €60.8 billion in Europe was slightly higher than at the end of 2017.
The Americas: slight decrease in new business due to exchange-rate effects
In the Americas region, leasing and financing contracts with a total value of €5.3 billion were concluded in the period of January through March 2018, which is slightly lower than in the first quarter of last year as a result of exchange-rate effects. Contract volume in the Americas region of €49.4 billion at the end of March was slightly lower than at year-end 2017 due to exchange-rate effects.
Strong growth in Africa & Asia-Pacific and China
New business in the Africa & Asia-Pacific region (excluding China) amounted to €2.1 billion in the first quarter, which is of the same magnitude as in the prior-year period. In Japan, the value of newly concluded financing and leasing contracts increased by 7%. Contract volume in the region amounted to €17.4 billion at the end of March, and was thus at the level of year-end 2017.
New business continued its strong growth in China. In the first quarter, 91,000 new leasing and financing contracts were concluded worth €2.9 billion (+15%). Contract volume amounted to €13.9 billion at the end of March, which is 14% higher than at the end of 2017.
Ongoing positive development of insurance business
In the insurance business, Daimler Financial Services brokered 523,000 contracts, and thus 12% more than in the first quarter of 2017. The development was especially positive in Russia (+80%), China (+11%) and Germany (+3%).
Strong alliance for a unique mobility offering
Daimler and the BMW Group are joining forces to offer customers a single source for sustainable urban mobility services in the areas of car sharing, ride hailing and multimodal solutions, as well as parking and charging. On March 28, 2018, the two companies signed an agreement on the merger of their business units for mobility services.
The partners intend to offer their customers a holistic ecosystem of intelligent, seamlessly connected mobility services, available at the tip of a finger. The mobility services of Daimler Financial Services alone – with car2go, moovel and mytaxi - had 21.4 million customers and 37.5 million transactions in more than 100 cities in the first quarter of this year. The joint project is subject to review and approval by the responsible competition authorities.