DaimlerChrysler to set up auto leasing, financing subsidiary in Taiwan

Taipei, Nov. 3, 2003 (CENS)--DaimlerChrysler Taiwan (DCT), the local subsidiary of the big international automobile conglomerate, recently announced that it would set up the DaimlerChrysler Services Taiwan (DCST) to provide auto financing, leasing and insurance services in December.

DCT said that DCST would integrate the relevant resources of three existing affiliates and offer a more comprehensive range of services to customers of DaimlerChrysler family auto brands including Maybach, Mercedes-Benz, Chrysler, Jeep and Smart.

Eyeing Taiwan's lucrative market, many international automobile conglomerates have set up auto financing subsidiaries in Taiwan, including Volkswagen (VW), General Motors (GM) and Toyota. They set up auto financing subsidiaries by themselves or through local agents or partners.

Industry sources said that most of the foreign auto financing firms in Taiwan would first tap the market for their own group auto brands, and then radually extend services to other brands.

Compared with Europe and the U.S., in which about 80% of the new car buyers prefer installment payment, Taiwan's auto financing market, currently with a 50% installment payment ratio, still has big room for future development, according to a local auto financing firm. It said the increasing number of foreign automakers setting up local auto financing and leasing subsidiaries has more or less to do with their preparation for tapping the huge mainland Chinese market.

DaimlerChrysler AG, the world's fifth-largest automobile conglomerate, established the DCT in Taiwan early last year with Capital Motors, the former Taiwan sales agent for Mercedes-Benz sedans and holding a 51% stake in the venture. After a series of brand sales integration, the company is trying to further expand its auto leasing and financing businesses on the island.

From Dec. 1, DCT said, all the businesses of the said three auto leasing and financing affiliates would be transferred to DCST, which is expected to utilize the previous abundant experiences and resources in serving Mercedes-Benz buyers to further expand the services for other DaimlerChrysler family car brands in Taiwan.