Daimler Signs Deal With Banks for 9 Billion Euro Credit Line image

Daimler has recently reached a deal with several banks for a credit line of 9 billion euro for the following five years.

The 9 billion-euro credit line will offer Daimler, the third-largest automaker of luxury vehicles in the world, financial flexibility. This new credit line will replace the current one which would have expired in 2015 according to the automaker which has the possibility to extend the new credit length until 2020.

CEO Dieter Zetsche has set a target to make Mercedes the first one in luxury-car sales by the end of this decade, after the company dropped on the third place in 2011. Mercedes plans to surpass Audi and BMW by making investments in new models, including the GLA compact SUV.

“We are delighted with the great interest in this credit line,” Chief Financial Officer Bodo Uebber said in the statement. “We decided to renew the existing credit line at this early stage primarily due to the favorable market conditions, and have thus gained a sound liquidity cushion for the longer term.”

On another matter, earlier this month, the German automaker named the head of the AMG high-performance business, Ola Kaellenius, to oversee sales as the company reorganizes how it deals with customers. Daimler also said that sales, including at its banking unit, will be organized more strictly according to business lines, while country-based functions will be “streamlined.”

Source: Bloomberg