DaimlerChrysler still expects a strong rise in profits at its financial services business this year, the unit’s chief said late on Monday, according to the Reuters news agency.
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“We expect a very positive profit development this year,” Klaus Mangold told Reuters in comments embargoed until Tuesday, adding that the unit of DaimlerChrysler, which in turn is struggling to return its US Chrysler unit to profit, would post a record profit this year if one-off gains from selling stakes in previous years were stripped out.
The news agency said that, last year, the business, which provides financing for customers buying and leasing cars and which recently set up a bank, posted an operating profit excluding extraordinary effects of €964 million ($US1.14 billion), compared with a €5.8 billion adjusted operating profit for the group.
Reuters noted that financial services have been accounting for an increasing chunk of earnings at US car makers this year and even at some European rivals, including Volkswagen.
However, Mangold noted that the strong euro was having a negative effect on profits, Reuters said.
According to the news agency, Mangold also said DaimlerChrysler was not considering selling its 45% stake in Toll Collect, the consortium that is building and operating a truck toll system which has run into technical problems and delays. “That would go against the long term strategic orientation of the company,” Mangold reportedly said.
Mangold told Reuters he aimed to start a financing business in China, the world’s fastest growing car market, as soon as possible, probably with a local partner, and also reportedly said Daimler had no plans to sell its services arm.
