Daimler Mobility

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Daimler Mobility AG and Geely Technology Group have started StarRides, a premium ride-hailing service, in the Chinese metropolis Hangzhou.

The number of cars and commercial vehicles financed or leased by Daimler Mobility reached a new all-time high of more than 5.4 million at the end of financial year 2019. New business and contract volume developed positively, while EBIT amounted to €2,140 million. The latter figure includes effects from the consolidation of the mobility services of the Daimler Group and the BMW Group. Since they were established, the mobility joint ventures have developed a strong customer base and had more than 90 million customers at the end of 2019. Daimler Mobility expects the combination of sales financing with brokered automotive insurance policies to continue gaining importance. In addition, we aim to utilize new market potential as a result of our greater efficiency in traditional sales channels and the digitization of customer contact systems and fleet management operations.

Half of all Daimler vehicles delivered to customers are financed or leased

Daimler Mobility concluded 2.0 million new financing and leasing contracts worth a total of €74.4 billion in 2019. The total value of all new contracts was thus slightly above the prior-year level (+3 %). About half of all new-vehicle sales by our automotive divisions in 2019 were supported by sales financing from Daimler Mobility. In total, more than 5.4 million financed or leased vehicles were on the books at the end of 2019 with a total contract volume of €162.8 billion; this represents a 6 % increase compared with the end of 2018. Adjusted for exchange-rate effects, contract volume increased by 4 %. EBIT amounted to €2,140 million (2018: €1,384 million). The division’s return on equity was 15.3 % (2018: 11.1 %). (See table C.09)

C.09 Daimler Mobility

  2019 2018 19/18
€ amounts in millions     % change
       
Revenue 28,646 26,269 +9
EBIT 2,140 1,384 +55
Return on equity (in %) 15.3 11.1 .
New business 74,377 71,927 +3
Contract volume 162,843 154,072 +6
Investment in property, plant and equipment 87 64 +36
Employees (December 31) 12,680 14,070 -10

Europe region: new business slightly higher than in 2018

Daimler Mobility concluded 978,000 new financing and leasing contracts worth €32.5 billion in the Europe region (+2 %). New business developed especially well in Switzerland (+27 %) and Spain (+8 %). In Turkey, new business decreased sharply (-50 %) due to the ongoing difficult economic situation in that country. In Germany, Mercedes-Benz Bank’s new business remained stable at €13.3 billion (+1 %). Daimler Mobility’s total contract volume in Europe rose by 5 % to €67.2 billion. A total of 425,000 contracts were on the books at Athlon and Daimler Fleet Management in Europe at the end of 2019. This corresponds to a contract volume of €7.0 billion.

Significant growth in the Americas region

Daimler Mobility brokered 492,000 new financing and leasing contracts worth €24.4 billion in the Americas region in 2019 (+9 %). The volume of new business developed very positively in the United States (+9 %). Contract volume in the Americas of €59.6 billion at December 31, 2019 was 6 % higher than at the end of 2018.

Africa & Asia-Pacific region and China: new business at prior-year level

With a volume of €8.3 billion, new business in the Africa & Asia-Pacific region (excluding China) remained more or less at the prior-year level (+2 %). Business growth was especially strong in South Africa (+21 %) and Japan (+10 %). New business decreased significantly in Australia (-9 %). At the end of 2019, contract volume in the Africa & Asia-Pacific region (excluding China) amounted to €19.5 billion, representing a slight increase of 7 % over the previous year. New business decreased moderately in China, however, where we concluded 310,000 new leasing and financing contracts and financing contracts worth €9.2 billion in 2019 (-4 %). At the end of 2019, contract volume in China amounted to €16.5 billion - an increase of 7 % compared with the end of 2018.

Further growth in the insurance business

Daimler Mobility brokered approximately 2.4 million insurance policies in 2019 - an increase of 5 % compared to the prior year. Business developments were particularly positive in China (+23 %), Germany (+2 %) and Russia (+13 %). The focus of the insurance sales is on the digitization of the dealer and customer interfaces and of the operational processes for further growth.

Daimler Financial Services AG renamed Daimler Mobility AG

On July 23, 2019, Daimler Financial Services AG began operating under the name Daimler Mobility AG, acting as the provider of services in the fields of financing, leasing, insurance and fleet management for the entire Daimler Group. In addition, the Daimler Mobility division is a strategic investor in the mobility services of the YOUR NOW joint venture network such as ride hailing, multimodal platforms, car sharing, parking and charging. The mobility ecosystem is rounded out by flexible-use services from Daimler Mobility such as Mercedes-Benz Rent (rental vehicles) and Mercedes me Flexperience (a car-on-demand solution).

We move you! Daimler Mobility AG Corporate Video

Mobility “from years to minutes”

With its three core activities of financial services, fleet management systems and digital mobility solutions, Daimler Mobility is able to meet a broad range of customer requirements for everything from multi-year financing, leasing, and insurance contracts to flexible fleet management services and mobility on demand solutions such as car sharing. Daimler Mobility offers its customers mobility solutions for a period of several years or just for a few minutes - “from years to minutes” as we put it.

Mobility-Talks | Maximal Flexible Mobility

Our range of financial services includes financing, leasing, and insurance. Our goals are to increase demand for the Group’s brands and to strengthen customer loyalty. During the year under review, our financial services business focused on the digitization of the customer experience and the optimization of structures and processes. To this end, Daimler Mobility established four regional competence centers (Digital Solution Centers) in Stuttgart, Beijing, Farmington Hills (United States) and Singapore. These centers are responsible for meeting the various requirements of our customers and our automotive divisions, and for moving ahead with the systematic digitization of our financial services operations. More than 40 agile project teams developed approximately 50 new products in 2019. One project involved the development of a new scalable customer portal that has already been launched in 12 European markets. Numerous new digital self-service functions, such as automatic user registration, new contract overviews, and installment and term reductions have significantly increased both customer satisfaction and our own efficiency. Daimler Mobility also continues to consistently move ahead with the digitization of business processes in China. For example, the share of paperless processing of credit applications has now reached 92 % in the Chinese market. In addition, the integrated online self-service portal for WeChat is now being used by as many as 100,000 customers per month.

Mercedes pay: expansion of e-payment activities

During the year under review, Daimler Mobility’s global e-payment competence center developed additional solutions for payment processing and also integrated the Daimler Group’s Mercedes pay digital e-payment platform into numerous Group applications. Mercedes pay manages payments made via the MBUX multimedia system from Mercedes-Benz. The fee-based Mercedes me connect services that are integrated into the MBUX system, such as in-car office functions (including automatic dial-up into conference calls and updating of appointment calendars), can be purchased using Mercedes pay, which can also be utilized to renew expired services. Mercedes pay makes paying parking fees much more convenient as well. Drivers can launch the parking payment process via the in-car MBUX system or the Mercedes me app. After the driver leaves the parking space, the actual parking fee is shown on the MBUX display and payment is made to the parking garage operator via Mercedes pay. In addition, drivers can use the Mercedes-Benz parking card to digitally register their entry into and exit from selected parking garages throughout Germany by means of an RFID chip. This eliminates the frequent need to maneuver the vehicle around in order to grasp the parking ticket, as well as the need to walk to an automated pay station. Users of Daimler’s Bertha app can also compare fuel prices and pay for fuel at approximately 400 selected fuel stations in Germany via smartphone. Mercedes pay provides the integrated payment solution for the app.

CoverOn: new short-term insurance for greater mobility

Daimler Insurance Services has developed a new digital insurance solution that serves as a component of personal mobility. CoverOn allows policyholders to temporarily insure additional drivers of a vehicle for a short period in a fast and easy way. The period of cover can range from 30 minutes to 27 days. The package includes CoverOn roadside assistance, which offers customers assistance in the event of a breakdown. The insurance purchase and payment processes are completely digital - all it takes is a smartphone.

New app enables paperless purchase of vehicle insurance

Mercedes-Benz Bank also continues to move ahead with the digitization of the customer experience. A newly developed bank app makes it possible for dealerships and licensed Mercedes-Benz partners to issue insurance policies for Mercedes-Benz cars and vans in a completely paperless process. The app takes customers and dealership staff step by step through the application process, in which customers only have to provide basic information. The app quickly and conveniently generates a quote, which also contains a QR code that the dealership and the customer can use to access the policy information at a later time. If the customer chooses to purchase insurance, the subsequent transaction is also completely digital.

Dynamic Lease: a telematics-based financing option

Daimler Mobility has launched a new truck-leasing solution: Dynamic Lease makes it possible for the first time to use telematics systems to record the actual distance driven by a truck. This in turn enables leasing rates for customers to be precisely aligned with their actual use of the vehicle. In conventional truck leasing, customers need to estimate their total mileage over the leasing period before the contract is signed. If they exceed their estimate, they have to make an additional payment when the leasing period ends. With Dynamic Lease, customers are billed monthly for the kilometers they actually drive, along with a standard basic fee. The variable leasing rates (“pay-as-you-drive” principle) are ideal for companies with seasonal business fluctuations.

Expanded product portfolio for telematics services

Mercedes-Benz Connectivity Services GmbH has expanded its portfolio of products that allow its telematics services to be used by different brands. The company is offering a hardware retrofit solution that enables fleet managers to utilize telematics services with any make of car. Along with existing positioning services, this solution now includes for the first time new dynamic vehicle data such as fuel consumption and distance driven. Among other things, the provision of real-time odometer and diagnostic data can enable anticipatory maintenance scheduling and reduce vehicle downtimes. All of this translates into big savings potential for fleet operators.

ChangeMyCar: leasing app now with an e-bike option

The fleet management services provider Athlon, which is part of Daimler Mobility, has expanded its flexible ChangeMyCar leasing app to include an e-bike that can be rented along with each vehicle leased. The app’s mobility budget can be used to combine both modes of transport. The addition of e-bikes to the app reflects the changing preferences of customers, who are increasingly demanding more multimodal mobility solutions.

YOUR NOW: mobility joint ventures continue to grow

Daimler AG and the BMW Group have combined their mobility services in the YOUR NOW joint ventures. An agreement to this end was concluded on January 31, 2019. Since their establishment, the range of mobility services from BMW and Daimler has built up a strong customer base. At the end of 2019, more than 90 million customers were using the mobility services provided by the joint ventures for ride hailing, multimodal platforms, car sharing, parking and battery charging. As of January 1, 2020, the products and services of the joint ventures had been further systematically aligned with customer requirements and consolidated into three pillars: 1. FREE NOW & REACH NOW. 2. SHARE NOW. 3. PARK NOW & CHARGE NOW.

We are SHARE NOW

StarRides: joint venture established for premium ride-hailing services in China

Daimler Mobility AG and Geely Technology Group have established a 50:50 joint venture for a premium ride-hailing service in China. The new company, known as StarRides, has its headquarters in Hangzhou, where it started offering a ride-hailing service with premium automobiles in December 2019. The fleet consists of 100 vehicles, including Mercedes-Benz S-Class, E-Class and V-Class models, as well as premium models from the Geely electric fleet.

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