Tuesday, August 14, 2007

DaimlerChrysler close to opening bank in Russia

DaimlerChrysler Financial Services AG plans to open a bank in Russia.

Anna Smolchenko
Automotive News Europe
August 14, 2007 -- 11:35 CET

MOSCOW -- DaimlerChrysler moved a step closer to opening its own bank in Russia by filing for registration with the Central Bank.

The new bank's charter capital would stand at 170 million rubles ($6.6 million), the Central Bank said on its Web site. DaimlerChrysler has not yet paid its charter capital to receive a license, it said.

Tatyana Mervitskaya, head of the financial services department at DaimlerChrysler's leasing division in Russia, said the company plans to open a financial division by year-end.

Mervitskaya said the bank would provide consumer loans as well as financing for its dealers.

In June, Toyota received a license, becoming the first foreign carmaker with a permit to establish its own financial operations in Russia. The Japanese carmaker received the license almost three months after it had been registered with the Central Bank.

Other major automakers such as BMW are also moving to set up their own financing arms in Russia in a bid to cash in on the country's booming car sales.

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