Why Is Daimler AG Set To Have A Drop in Revenue Of $3 Billion In the Financial Services Division

by Trefis Team
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Daimler AG (OTCMKTS: DDAIF) has its headquarters in Stuttgart, Germany. The main business of the company is the development, production, and distribution of cars, trucks, and vans across the globe. The company also has a financial services division whose product portfolio primarily consists of tailored financing and leasing packages for customers and dealers.

In this analysis we will take a look at how Daimler AG’s Financial Services Revenue has fluctuated over the years and what is its forecast for 2019. You can look at our interactive dashboard analysis ~ How has Daimler AG’s Revenue from Financial Services trended and what is its forecast? ~ for more details. In addition, here is more Consumer Discretionary data.

 

Daimler’s Financial Services division has seen a lot of fluctuations in Revenue over the years:

 

  • Financial Services Division had a huge increase in 2017 primarily due to a high increase in business in Europe (Russia, Italy, and Spain saw the highest growth) and a strong growth in the Asia-Pacific region. Amid the global auto market slowdown, the production level of companies has decreased (y-o-y) across the first few quarters of 2019 and is expected to continue. This is having a trickle down effect on Lear’s business, and thus Trefis estimates in 2019 the revenue to be around $26.9 billion, down by 10% y-o-y.
  • Financing Segment Assets have seen a good growth over the years as the assets under Daimler increased from $137.5 billion to $188.4 billion from 2015 to 2018. Trefis estimates Financing segment assets under Daimler to reach around $192.2 billion in 2019.
  • Interest rate earned has been a bit fluctuating for the first 3 years of the analysis. Overall it moved from 15.3% in 2015 to 15.9% in 2018. Trefis estimates interest rate earned on vehicle loans to fall to around 14% in 2019 amid the global auto slowdown.

 

 

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