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January 1, 2009updated 12 Apr 2017 12:00pm

Siemens Motor Contracts closes to new business

Fleet management and leasing company Siemens Motor Contracts (SMC) has closed to new business as of mid-December.

By MF Editorial

Fleet management and leasing company Siemens Motor Contracts (SMC) has closed to new business as of mid-December.

The lessor, a division of Siemens Financial Services (SFS), also provided finance for the fleet customers of manufacturers SsangYong and Kia before the decision was made to stop accepting new business.

A spokesperson for Kia said that ALD Automotive has temporarily filled SMC’s role until the end of January, while the manufacturer is considering bids from “four or five” lessors to take over the fleet finance relationship, with a decision to be announced at the end of the month.

A SsangYong spokesman said: “It’s frustrating that Siemens has stopped providing this business.

“Meanwhile, the contract hire programme that SsangYong put together for dealers in 2008 is not dependent on Siemens, so other partners are being used. Koelliker UK [SsangYong’s UK distributor] is reviewing the situation and will probably make an announcement about the future in due course.”

A spokesman for Siemens said: “We’re in a volatile financial situation, with significant recessionary pressures existing, and we are always reviewing how our structure is placed to handle challenges. SMC was not at the core of our organisation.”

He added that SFS “is not selling the [SMC] portfolio”, which will be “managed and run to a conclusion as and when agreements finish”.

Nor was the decision prompted by an edict from the finance company’s ultimate parent Siemens to focus on financing its own products, the Siemens spokesman emphasised. “Point-of-sale vendor finance, broker business and public sector business are at the core of SFS’s operations,” he said.

In addition to halting new business at SMC, a funfair equipment leasing business, Siemens Bellevue Finance Ltd, is to close its book. Both businesses were originally acquired by SFS when it bought financial services provider Broadcastle in 2005.

Staff redundancies as a result of the decision have not been ruled out, although employees are “in consultation negotiations and we will initially look to place them in SFS or within Siemens where appropriate,” said the spokesman.

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