THE global head of DaimlerChrysler has outlined ambitious plans to expand into vehicle-related services.

Jurgen Schrempp, chairman of DaimlerChrysler, said the manufacturer aims to open new revenue streams to secure more of the money spent on its vehicles. Currently the acquisition price of a Mercedes-Benz represents just 40% of the money spent on the vehicle during its life, and DaimlerChrysler receives very little of the remaining 60%.

'I visualise that in 10 years the revenue stream of DaimlerChrysler will be 50% hardware (manufacturing) and 50% services,' said Schrempp.

Today, services account for just 9% of the company's revenues.

DaimlerChrysler's services arm debis will be responsible for most of the expansion into non-manufacturing ventures, and it already provides fleet management services as well as finance for DaimlerChrysler and other manufacturers.

DaimlerChrysler also plans to move into car insurance, Schrempp told Forbes Global magazine.

He added: 'Increasing the services side has two aspects. Good margins and balancing risk - because the motor industry is a cyclical business.'

Moreover, debis plans to grow by expanding its multi-marque finance operation. It already owns United States online car finance site giggo.com, which it plans to grow as an independent venture before floating it on the stock exchange. (May 2000)