In the rapidly evolving automotive sector, where electric vehicles (EVs) and software-driven innovations dominate discussions, a parallel shift is occurring within car manufacturers' financing divisions. These departments, traditionally known for their profitability, now face unprecedented challenges as consumer preferences transition from ownership to usership. This transformation is exemplified by Mercedes-Benz Mobility AG, which offers an array of financial and mobility services. Recently, I had the opportunity to speak with Franz Reiner, Chairman of this division, in Stuttgart, Germany. With over three decades of experience in automotive finance, Reiner provides valuable insights into how Mercedes-Benz plans to navigate this transformative era, focusing on flexible financing options, seamless digital payment systems, and advanced charging infrastructure.

Franz Reiner, originally from Texas, brings a unique perspective to his role at Mercedes-Benz Mobility AG. His extensive career in automotive finance has witnessed the industry's evolution from cash-only transactions to leasing and financing becoming predominant. Currently, approximately half of Mercedes-Benz's two million vehicles are leased or financed through its captive division, with EV numbers continuing to rise. Reiner envisions a future where Mercedes-Benz will offer highly adaptable financing products ranging from weeks to mere seconds, consolidating various options into a comprehensive one-stop shop. This approach emphasizes convenience and top-tier financial services, aligning with the growing demand for flexibility among consumers who prioritize mobility over ownership.

Reiner's vision extends beyond traditional financing methods. He anticipates closer collaborations with insurance companies rather than developing proprietary digital user-based insurance products. This strategy aims to enhance customer service, particularly appealing to younger generations accustomed to digital interactions. Additionally, Reiner foresees a significant impact from autonomous technology, which could create new risk profiles based on vehicle behavior and usage patterns, influencing insurance premiums. Payments represent another critical area of focus. The introduction of 'Mercedes pay,' a digital payment gateway integrated into vehicles, facilitates transactions such as fuel or charging payments, parking fees, and road tolls. Future iterations aim to encompass all payments within the Mercedes ecosystem, enhancing user convenience.

Moving forward, Mercedes-Benz intends to support EV financing and leasing throughout the vehicle's lifecycle. Given the extended lifespan of batteries compared to vehicles, there exists a compelling business case for manufacturers to retain ownership of vehicles. Reiner highlights existing products that repurpose leased vehicles into rental fleets, positioning them competitively in the market based on battery condition. Regarding charging infrastructure, Mercedes-Benz is committed to providing an unparalleled charging experience. Through initiatives like building Mercedes-Benz Charging Hubs accessible to all EV drivers and collaborating with other manufacturers via joint ventures, the company aims to establish around 45,000 fast-charging points globally by the end of the decade.

Mercedes-Benz's 'Ambition 2039' underscores its commitment to achieving a net carbon-neutral vehicle fleet across all value chain stages. Technological advancements, such as the new CLA model capable of gaining a 325-kilometer range in just ten minutes of charging, demonstrate the feasibility of reducing charging times to match refueling speeds. Innovations in autonomous driving, digital payment systems, and comprehensive service packages position Mercedes-Benz as a leader in sustainable, convenient, and technologically advanced mobility solutions. As we move towards a future dominated by EVs, Reiner's leadership and strategic vision promise to redefine how vehicles are bought, leased, used, and sold, ensuring Mercedes-Benz remains at the forefront of the automotive industry.