Mercedes-Benz provides auto finance in UAE

Mercedes-Benz began a new era in auto finance in the UAE today with the signing today of a joint venture between Daimler Financial Services, one of the world’s leading provider of automotive financial services, the Al Fahim Group, owners of Emirates Motor Company, the authorised distributor of Mercedes-Benz vehicles in Abu Dhabi, and Gargash Enterprises, the official Mercedes-Benz distributor in Dubai, Sharjah and the Northern Emirates.

The signing of the new joint venture sees the formation of two companies, Mercedes-Benz Finance Middle East and Mercedes-Benz Leasing Middle East, which for the first time in the UAE, will provide private and business customers new options to buy or lease new or pre-owned Mercedes-Benz passenger cars or commercial vehicles.

The new companies will offer customers a complete range of financial services products, including shari’a compliant financing, from a single source.

“Our presence in the United Arab Emirates is of high strategic importance for Daimler Financial Services,” said Mr. Juergen Walker, Chairman of the Board, Daimler Financial Services, Berlin, at a press conference in Abu Dhabi. “Once we have successfully established our operations here, in the mid-term we will decide about offering auto finance services in other GCC countries.”

The United Arab Emirates represents the most important automotive market in the GCC for Mercedes-Benz. In 2008, the company delivered 7,800 Mercedes-Benz passenger cars and 3,100 commercial vehicles in Abu Dhabi, Dubai, Sharjah and the Northern Emirates.

Mr. Andreas Ernst, Managing Director of Mercedes-Benz Finance and Mercedes-Benz Leasing said that the medium-term goal of the new companies was to achieve a contract volume of more than AED 2bn in the United Arab Emirates.

“To meet this target, we will be offering a broad range of new financial products to meet the needs of private or business customers from a single source and will support our dealerships with an electronic point-of-sale system that will result in faster loan decisions and a customer-friendly process.”

Mr. Ernst added that the companies would be bringing new to the market and exclusive financial services offerings, such as “Choices”. “Choices” would give Mercedes-Benz customers the option to combine low monthly payments with highest flexibility at term-end. Here, the customer can decide to pay-off the loan, trade in the vehicle for a new Mercedes-Benz, extend the loan or simply return the vehicle at the Mercedes-Benz dealership.

Business customers could also take advantage of full-service fleet leasing plans with tailor-made add-on products such as telematics, driver training or fleet consultancy.

Mr. Rashed A.J. Al Fahim, Chairman of the Al Fahim Group, welcomed the formation of the joint venture and looked forward to a positive future.

“We are confident and expect stronger Mercedes-Benz sales. The start of our jointly owned financial companies will further boost the attractiveness of the Mercedes-Benz brand in Abu Dhabi.”

Mr. Abdul Jabbar Gargash, Executive Director of Gargash Enterprises looked forward to the start of the new businesses.

“For the first time, we can now provide our Mercedes-Benz customers in Dubai, Sharjah and the Northern Emirates with a broad range of financial services products that makes owning a new or used Mercedes-Benz the easiest it has ever been.”

With its new financial services arms in the United Arab Emirates, Daimler Financial Services has further expanded its global presence. The Daimler Group’s international provider of financial services employs about 6,800 people and is represented in more than 40 countries. The company currently finances of leases one third of all vehicles produced by Daimler worldwide and manages a contract volume of Euro 60bn.