Renault and Daimler have revealed their finance houses grew in 2015 as part of their annual results.
Renault Group’s Sales Financing unit made 824m (£643m) profit in 2015, compared to 751m in 2014. Renault said the increase was due in particular to the rising contribution of services.
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The cost of risk improved to 0.33% of the average performing loans outstanding, compared to 0.43% in 2014.
This was a substantial contribution to the Group’s overall operating profit growth, which grew 44.2% year-on-year to 2,320m.
French manufacturer Renault Group’s revenue broke 45bn (£33bn) in 2015, up 10% year-on-year. This meant profits represented 5.1% of total revenue in 2015, compared to 3.9% in 2014.
Although it did not give precise figures, the company said it would be looking to increase revenues, improve operating margins and generate a positive automotive operational cash flow in 2016.
Daimler
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By GlobalDataIn 2015, Daimler Financial Services concluded 1.5m financing and leasing contracts worth 57.9bn, 21% higher than the value of new contracts in 2014.
As a result of this growth, Daimler said its finance division supported approximately half of all new vehicles sales in 2015.
Over 3.7m financed or leased vehicles were on the books at the end of 2015, an increase of 18%.
The division’s total earnings before interest and tax stood at 1,619n, up 17% year-on-year.
This growth came in the context of strong Daimler sales. 2.9m vehicles were sold in 2-15, 12% more than the number sold in 2014.
Group revenue increased 15% to 149.5bn, and EBIT hit 13.5bn, up from 10.8bn in 2014. Net profit was 8.9bn in 2015.
