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US market: BMW and Daimler cut back leasing business

Hans-Dieter Seufert
US market
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S o Daimler reduced the share of leasing-financed vehicles from 70 to 50 percent, BMW from 60 to less than 50 percent.

Leasing and financing had lost billions

The absolute one The decline is even higher because both manufacturers had to cope with a significant drop in sales in 2009. The business with leasing and credit-financed vehicles has cost both manufacturers billions in recent years. BMW , according to the report, lost almost two billion euros in 2008 in the US market because customers could no longer service their car loans or the residual value of leased cars was overstated. Daimler lost almost 500 million euros in the same period.

Unlike in Europe, it is not the dealers in the USA but the manufacturers who bear such marketing risks. According to Robertson and Daimler sales manager Joachim Schmidt the used car market in the USA has stabilized in recent months. The new car business is also improving again after the sharp drop in sales. 'We are going into 2010 much more confidently and with some optimism,' said Robertson.
Daimler manager Schmidt said: 'We are confident that we will improve this year.' Both have announced that they will massively expand production in the USA.

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