Mercedes-Benz could be about to sell off its vehicle leasing subsidiary to France’s BNP Paribas as a way of gaining a cash injection in challenging economic times for European automakers.
The German auto group is in advanced talks to sell its Athlon business, which is currently valued at €1 billion ($1.17 billion), sources tell Bloomberg News.
As with other domestic automakers, Mercedes-Benz is being squeezed between the challenges it is facing from U.S. vehicle import taxes together with the increasing competition in Europe from cheaper Chinese products.
Athlon, with outlets in 20 countries in wider Europe and North America, had been acquired by Daimler from Holland’s Rabobank in 2016 for $1.1 billion.
BNP already owns the vehicle leasing company Arval, which is currently more focused on private individual lease arrangements so the acquisition of Athlon could greatly bolster its offerings in the fleet sector.
However, sources also tell the wire service that other parties are interested in buying the Europe-wide leasing company, that specializes in leasing to fleets in the public and corporate sectors.
A Mercedes-Benz spokesperson is reported as commenting that the company is continuously reviewing strategic options for its business.
