DaimlerChrysler Services Americas President Outlines Challenges Facing Automotive Finance Companies

- Business structure and customer relationships drive success - Marketing strategy focuses on brands, dealers and consumers

NEW ORLEANS, Jan. 28 -- Speaking to the American Financial Services Association's (AFSA) 9th Annual Vehicle Finance Conference and Exposition here last night, DaimlerChrysler Services Americas President and CEO Klaus Entenmann outlined a unique set of challenges facing the automotive finance industry.

"With our sole focus on profitably assisting the vehicle manufacturer in the sale of new vehicles, those of us who are 'captive' finance companies have a unique set of challenges on top of those facing our non-captive competitors," Entenmann said.

Recognizing these challenges, Entenmann told the audience of several hundred finance executives and industry observers that DaimlerChrysler Services has enjoyed success in recent years by taking advantage of its organizational structure, leveraging internal synergies and best practices across brands and emphasizing a singular focus on customer relationships.

"Our organizational structure takes advantage of the various brands within the DaimlerChrysler AG worldwide enterprise, the geographical reach of the brands across the enterprise, and leveraging the best business practices that can be shared within the enterprise," he said.

"Although the bulk of our people and portfolio management is here in the Americas, DaimlerChrysler Services benefits by providing financing support to brands like Chrysler, Jeep and Dodge, Mercedes-Benz, smart, and various heavy duty truck and bus brands that are sold on a worldwide basis," Entenmann said. "In fact, we do business in 39 countries around the globe, and late in 2004, we received a license to begin setting up business operations in China. Also in 2004, the North American headquarters assumed operational responsibility for Puerto Rico, Argentina, Brazil and Venezuela."

DaimlerChrysler Services Americas has four operating units in its business structure: Mercedes-Benz Credit, supporting the Mercedes-Benz brand; Chrysler Financial, supporting the Chrysler Group brands of Chrysler, Jeep and Dodge; DaimlerChrysler Services Truck Finance, supporting Freightliner, Sterling and Western Star heavy duty trucks, Thomas Built buses and other trucks; and DaimlerChrysler Insurance Company, which primarily insures dealer inventories and properties.

Entenmann said the company's singular focus on the customer relationship drives the execution of the company's vision, mission and its newly-defined core values of: Respect, Openness and Integrity; Financial and Social Responsibility; Customer Focus; Commitment to Excellence; Inspired and Empowered Employees.

"We want the core values of this company to be so much more than words on paper," he said. "We want to live our core values every day."

Entenmann said the company's marketing strategy focuses on its three core customers: brand partners, dealer partners and retail customers.

"We align our goals and strategies with our automotive brand partners to maximize vehicle sales and profitability," Entenmann said. "With our dealer partners, we are constantly upgrading our technology -- for example ACE featuring RouteOne -- to improve point-of-sale systems and to build on our full line of products. For the dealers' retail customers, for whom we have the opportunity to provide financing, we have to ensure that the financing experience exceeds their expectations and that we provide best-in-class customer service throughout the period of ownership."

Entenmann said these efforts have yielded dividends from dealer customers based on the results of the 2004 Summer NADA (National Automobile Dealer Association) Survey which show Chrysler Financial scoring "Most Improved" or "Better Than Industry Average" in most categories of the survey.

"Our people, products and services are solely dedicated to helping dealerships sell and finance more vehicles -- today and in the future," Entenmann said. "We believe our strategies and commitment to the relationship with customers will help us continue on a successful path and we are confident that our business model is ready for the challenges of the future."

About DaimlerChrysler Services Americas

The company provides brand-specific financing for automotive dealers' inventories and their retail consumers and does business as Chrysler Financial and Mercedes-Benz Credit. As DaimlerChrysler Services Truck Finance it also finances commercial vehicles for affiliate products such as Freightliner, Sterling and Western Star. The company serves as the headquarters for the operations in the United States, Canada, Mexico, South America and Puerto Rico and has more than 5,800 employees who manage a portfolio of more than $85 billion with nearly five million contracts. DaimlerChrysler Services Americas is a member of the DaimlerChrysler Services Group, headquartered in Berlin, Germany, which operates in 39 countries with an employee base exceeding 10,800 and a global portfolio of $123 billion. DaimlerChrysler Services is one of the leading financial services companies worldwide.