Mercedes financing arm to launch in July 2011

The German luxury car maker, Mercedes was recently heard to be working on its independent financing arm. And here we have the final results from the company. The name of this financing arm is decided to be Daimler Financial Services (DFS) and the launch of this arm is scheduled in the month of July 2011. The financing arm of Mercedes is speculated to come in full fledge operations by the last quarter of running year. DFS is a famous financing provider and is operational in more than 40 countries on globe.

Addressing the issue, Mr. Peter Honegg who is the Managing Director & CEO of Daimler Financial Services has commented that DFS is known for providing its customers with the best of finance and leasing, dealer financing, fleet management, insurance and banking. He also said that in the Indian auto market Daimler Financial Services will be limited to the finance and leasing facility along with insurance and dealer financing.

While addressing the government tax proposal on CKD (completely knocked-down) units, Peter Honegg said that this new tax proposals related to the completely knocked-down kit will lay a great impact on the luxury car segment. He said that the company will take related steps on the issue depending upon the intimation given by the government of India.

As per the new rules of Indian Govt, the definition of CKD is about to change and with this the policies of companies’ will also change. This will lead to a major change in the prices of luxury car models. To fit into the definition of CKD, the companies have to start the assembling of engine and gear box on Indian grounds only then the leverage for this segment can be enjoyed. An to start completely new operations Mercedes Benz will take some time.

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