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Archive for the ‘Daimler’ Category

Mercedes-Benz Bank Changes Business Model

Moves by automakers toward mobility forces bank to rethink operations.

by on Mar.09, 2018

Mercedes-Benz Bank is changing the way it does things to keep pace with the changes in auto financing needs.

Daimler Financial Services subsidiary, the Mercedes-Benz Bank in Germany, is revising its business model to accommodate the changes in mobility, such as subscription services, with which carmakers have begun to experiment.

The Mercedes-Benz Bank now finances one of every two vehicles sold by the automaker in Germany and the bank’s portfolio now totals around 970,000 cars, trucks, vans and buses on the books and grew by 12% in 2017 to 26.9 billion euros.

Global News!

“In future, we will also integrate mobility services such as car sharing into our vehicle financing, in addition to making offers specifically for electrically powered vehicles,” One in every two Daimler vehicles in Germany is on the road with a contract from Mercedes-Benz Bank, he added. (more…)

German Court Ruling Could Mark Beginning of the End for Diesels

Major cities may immediately impact 12 million vehicles.

by on Feb.27, 2018

A new German court ruling legalizing bans on diesel-powered vehicles in city centers isn't likely to affect newer vehicles.

A German court issued a landmark ruling that gives several major cities permission to ban diesel vehicles from their urban centers, a move that could soon be copied by other communities across Europe.

The controversial decision is considered significant at several levels, even though it initially applies only to bans proposed by the heavily polluted cities of Dusseldorf and Stuttgart. The latter community is home to Daimler AG whose Mercedes-Benz subsidiary is heavily reliant on diesel technology for its vehicle line-up. The ruling also comes as an embarrassment for German Chancellor Angele Merkel, who had opposed such a ban.

Diesel News!

For now, the cities only plan to restrict older, more heavily polluting diesel models, but critics of the ban fear it could place a sudden strain on the mass transit systems in the two cities while also impacting the value of as many as 12 million diesel vehicles now in operation in Europe’s largest automotive market. (more…)

Geely Chairman Shufu Shaking Up Auto Industry

Daimler may have gained a new strategic partner.

by on Feb.26, 2018

Geely Chairman Li Shufu, left, and Volvo CEO Stefan Jacoby after Shufu signed the papers to take the majority interest in Volvo Cars.

Daimler AG and its principal Chinese partner, BAIC, plan to invest almost $2 billion in a state-of-the-art factory in China, even as Li Shufu, the ambitious entrepreneur, who has made Geely into an automotive power begins to digest his purchase of a 9.7% stake in the company.

Adding to the intrigue, Daimler and BAIC, the company built around Beijing Jeep and a key Geely competitor, plan to use the money to revamp a factory they jointly own to build both Mercedes-Benz luxury and electric vehicles from Mercedes new line of electric vehicles.

An Electrifying News Source!

The investment was clearly planned prior to Li Shufu’s dramatic disclosure he had quietly acquired 9.7% of Daimler AG’s shares. The Chinese entrepreneur, who has built his company into the largest privately owned auto company in China, also hinted that he was prepared to acquire more shares even as he prepared to visit Germany for a round of talks with Daimler executive in Stuttgart and officials from the German government in Berlin. (more…)

Geely Buys 9.7% of Daimler AG for $9.2 Billion

Chinese company now Daimler's largest shareholder.

by on Feb.23, 2018

Geely Chairman Li Khufu purchased 9.7% of Daimler AG for $9.2 billion.

Li Shufu, Geely’s chairman and majority owner, continues to sample different flavors from the automotive industry buffet, spending $9.2 billion for a 9.7% stake in Daimler AG.

The purchase, which was revealed in a regulatory filing, makes Shufu Daimler’s largest single shareholder ahead of the Kuwait Investment Authority, which holds 6.8%. Nearly 71% of Daimler shares are held by institutional holders, like Shufu.

The Last Word!

“We are delighted, with Li Shufu, to have won over another long-term investor who is convinced of Daimler’s innovative prowess, strategy and future potential,” a Daimler spokesperson told Reuters. “Daimler knows and respects Li Shufu as a Chinese entrepreneur of particular competence and forward thinking.” (more…)