Daimler Financial Services business impacted by Chrysler separation in the third quarter

The business development of Daimler Financial Services in the third quarter was impacted by the separation from the operations of the Chrysler financial services business in North America, which had become necessary due to the transfer of a majority interest in Chrysler.

EBIT of €87 million reported by the Daimler Financial Services division was significantly below the prior year level (Q3 2006: €221 million). As a result of the transfer of a majority interest in the Chrysler activities, expenses for the set-up of a separated financial services organization in the NAFTA region are included in the division's EBIT.

Worldwide contract volume rose by 3% to €57.6 billion; adjusted for exchange-rate effects, the increase was 8%. New business of €6.4 billion was 6% lower than in the third quarter of the prior year; adjusted for exchange-rate effects, the decrease amounted to 4%.

Contract volume in the region Europe, Africa & Asia/Pacific increased by 5% to €33.4 billion. In Germany, the most important market in this region, DaimlerChrysler Bank increased its contract volume by 4% to €16.2 billion. In the Americas region, contract volume amounted to €20.3 billion (Q3 2006: €19.8 billion). Adjusted for exchange-rate effects, the portfolio expanded by 13%.

The separation from Chrysler Financial in the NAFTA region is developing according to plan. The legal separation of Truck Financial and Mercedes-Benz Financial from Chrysler's financial services business has now been completed.