Daimler has reached a deal with a consortium of banks for a EUR9-billion ($12 billion) credit line for the next five years. The new credit facility will replace an existing credit line valued at EUR7 billion, which is due to expire in 2015, Daimler said in a statement. Daimler has options to extend the expiration of the new credit line to 2020.
Daimler chief executive Dieter Zetsche is aiming to regain its former crown as the best-selling premium carmaker in the world. Its premium carmaking unit Mercedes-Benz is currently lagging behind German rivals BMW and Audi. Daimler is focusing its efforts to surpass BMW and Audi by investing in new models, especially in the segment.
Daimler, however, remarked that it has no plans to use the new credit facility, which was "substantially oversubscribed." Chief Financial Officer Bodo Uebber said in the statement that they decided to renew the existing credit line at this early stage “primarily due to the favorable market conditions,” allowing Daimler to gain a “sound liquidity cushion for the longer term." According to Daimler, the consortium is made up of over 40 banks from Europe, America and Asia.