Dana Commercial Credit to Administer U.K. Lease Programs for Mitsubishi Electric's PC Division and Cable & Wireless Communications Services
Dec 9, 1997
TROY, Mich., Dec. 9 /PRNewswire/ -- Dana Commercial Credit Corporation (DCC), one of North America's leading commercial leasing companies and an indirect, wholly owned subsidiary of Dana Corporation (NYSE: DCN), is strengthening its presence in the United Kingdom by administering private-label, vendor lease programs for Mitsubishi Electric's PC Division and Cable & Wireless Communications Services Limited. U.K.-based Dana Commercial Credit Limited (DCC Limited) will manage the Mitsubishi Electric PC finance lease program and the Cable & Wireless Finance Solutions telecommunications lease program. The announcement was made today by J. Stephen Gagne, DCC's president and chief operating officer. Gagne also reported that DCC's U.K. operation posted 10 percent increases in both pre-tax profits and assets for the first nine months of 1997, compared to the same time period last year. "We have enjoyed a strong year and, with 1998 right around the corner, DCC Limited will continue to build momentum in the U.K. marketplace through the Mitsubishi Electric and Cable & Wireless programs administered by our dealer products group, as well as new product offerings from our capital markets, diversified capital and asset/technology management groups," Gagne said. "They all will play key roles in helping us meet our growth expectations next year and further strengthen our position in the U.K. leasing market over the next several months. "Key to winning the Mitsubishi and Cable & Wireless business was DCC's in-depth understanding of the microcomputer and telecommunications industries, respectively, and our consultive approach to identifying the business objectives of each company and the leasing needs of their customers, and then developing customized lease products that meet everyone's needs." According to Michael Sims, DCC Limited's managing director, Mitsubishi Electric PC Finance will target small- and medium-sized businesses in the U.K., offering two- and three-year residual lease financing on Mitsubishi personal computers (PCs), laptop computers, servers and monitors. The lease program will be marketed through DCC Limited's existing field- and inside-sales teams, as well as through advertising and Mitsubishi's Internet website. To date, more than 75 Mitsubishi resellers in the U.K. have agreed to participate in the program. Sims added that special promotions will be introduced every quarter, designed to keep Mitsubishi Electric PC Finance top-of-mind among resellers. Approximately 12 percent of the microcomputer equipment acquired by small- and medium-sized companies in the U.K. is leased and this percentage is growing rapidly, Sims said. Next year, DCC Limited plans to launch Mitsubishi Electric PC Finance in Germany and France. Lease programs also are being considered for Austria, Switzerland and North America. Mitsubishi Electric's PC Division, headquartered in the United Kingdom, is one of the world's leading suppliers of information technology products and services. It manufactures a range of personal computers and servers addressing the home, small business and corporate user markets under the Apricot brand. As a PC vendor and Internet access provider, Mitsubishi Electric's PC Division offers the most comprehensive Internet solution of any PC manufacturer. Mitsubishi Electric is part of Mitsubishi Electric Corporation, one of the world's largest companies, with 1996 revenues of $30 billion. Cable & Wireless Finance Solutions will offer lease financing products through 30 authorized telecommunications dealers, Sims said. Cable & Wireless Finance Solutions has limited the number of authorized dealers to better focus its leasing resources on the most profitable telecommunications dealers in the country, he added. The sales volume in the growing U.K. telecommunications market now exceeds 500 million pounds sterling annually. Sims attributed this growth to the introduction of integrated services digital network (ISDN) technology. Unlike analogue technology, ISDN technology enables companies to integrate microcomputer data lines with telephone lines. To launch the new program, Cable & Wireless Finance Solutions will provide customers with a 100 pounds sterling discount per telecommunications line connected into its network, to be credited against the cost of the equipment on lease over a five-year term. Cable & Wireless Communications plc is the U.K.'s leading provider of integrated telecommunications, information and entertainment services. The company is one of the largest carriers of wholesale telecommunications traffic in the U.K. and the 13th-largest carrier of international traffic in the world. Cable & Wireless Communications Services was formed earlier this year through the merger of Mercury Communications Limited and three cable companies, NYNEX CableComms, Bell Cablemedia and Videotron. DCC Limited previously managed the Mercury Assist lease financing program. Cable & Wireless Communications provides local, national, international and data telecommunications, together with multi-channel television and Internet services. In the United Kingdom, the company provides direct connections in approximately 138 cities and towns. Dana Commercial Credit provides leasing and financing services to a broad range of business customers in selected markets. Activities range from capital market transactions valued up to $250 million each to sales-aided vendor programs with an average ticket size of $25,000 for the microcomputer industry. DCC has an international network of offices throughout the United States, Canada, United Kingdom, France, Germany and Switzerland. In 1996, DCC received the Malcolm Baldrige National Quality Award from the U.S. Department of Commerce. DCC has assets owned and under management of more than $4 billion. Dana Corporation is a global leader in the engineering, manufacturing and distribution of products and systems for the vehicular, industrial and off-highway markets. Founded in 1904, Dana Corporation is based in Toledo, Ohio, and operates facilities in 30 countries with 50,000 people. In 1996, Dana Corporation reported sales of $7.7 billion.
SOURCE Dana Commercial Credit Corporation