Daimler Financial eyes $545 mln UAE financing to 2014
ABU DHABI Oct 7 (Reuters) - Daimler Financial Services [DAIM.UL] said on Wednesday it plans to build up a financing portfolio of at least 2 billion dirhams ($544.5 million) within five years through a new joint venture in the UAE.
The new company is being set up together with local distributors Al Fahim and Gargash Enterprises.
"It is part of our strategy to provide all services including finance for which we see demand here. We are confident this venture will further boost sales of our vehicles," said Andreas Ernst, managing director of the new venture, Mercedes-Benz Finance Middle East.
"Because of the economic situation, sales have come down. But we expect to have a finance/lease portfolio of at least 2 billion dirhams within four to five years," he told reporters.
The firm will also offer Islamic financing, he said, adding that they are aiming to finance every third Mercedes-Benz car sold in the UAE. Funding will come from local banks.
Sales in the UAE have totalled 4,554 Mercedes-Benz (DAIGn.DE) cars this year compared to 7,800 in all of 2008.
The initial capital of the new venture is 50 million dirhams but equity will grow with the business going forward, Ernst said.
(Reporting by Stanley Carvalho; editing by Firouz Sedarat)
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($1=3.673 UAE dirhams) Keywords: DAIMLER FINANCING/EMIRATES
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