Core Viewpoint - The Finance & Leasing Association (FLA) has expressed concerns regarding the UK Financial Conduct Authority's (FCA) proposed Section 404 motor finance redress scheme, emphasizing the need for adjustments to ensure fairness and targeted compensation for affected consumers [1][2][3]. Group 1: FLA's Response to FCA Proposal - The FLA supports a credible redress process but believes the current FCA proposal does not align with its own standards, calling for changes to ensure only those who have genuinely suffered loss are compensated [2][3]. - The association argues that the FCA's approach may lead to compensation for individuals who did not experience harm, potentially diverting resources from those truly entitled to redress [3][4]. - FLA CEO Shanika Amarasekara highlighted that their submission is based on extensive analysis by industry experts, aiming for a fair outcome for both borrowers and lenders [3][4]. Group 2: Proposed Adjustments and Industry Collaboration - The FLA suggests alternative methods for assessing liability and consumer loss, aiming to create a workable and credible scheme that protects consumers' future access to finance [5]. - The association emphasizes the importance of collaboration between the regulator and the industry to deliver swift redress to those in need while maintaining a fair process [5]. - Earlier data from the FLA indicated a 3% increase in new consumer car finance business in October 2025 compared to the same month in 2024, reflecting ongoing market activity [6].

Core Insights - Mercedes-Benz Group reported weaker results for Q3 2025, with a 7% decline in group revenue to €32.14 billion ($37.37 billion) and a 70% drop in EBIT to €750 million, impacted by reduced gross profitability and significant special charges [1][2] Financial Performance - Group revenue decreased by 7% to €32.14 billion ($37.37 billion) [1] - EBIT fell 70% to €750 million, while adjusted EBIT decreased 17% to €2.09 billion [1] - Net profit declined by 31% to €1.19 billion, resulting in earnings per share of €1.22, a 33% drop [1] Special Charges and Legal Proceedings - Legal proceedings and related measures amounted to €427 million, a significant increase from €20 million, primarily recognized at Mercedes-Benz Mobility [3] - The group increased other provisions related to the UK's motor finance redress scheme by a mid-three-digit million-euro amount in Q3 2025 [3] Segment Performance - Mercedes-Benz Cars revenue fell 7.3% to €23.74 billion, with adjusted EBIT at €1.13 billion, down from €1.20 billion [4] - The division sold 441,453 vehicles in the quarter, affected by market conditions in China and tariff policies in the US [4] - Mercedes-Benz Vans revenue decreased by 13.2% to €4.04 billion, with adjusted EBIT at €412 million; electric van sales increased by 96% [5] - Mercedes-Benz Mobility's revenue slipped 3.4% to €5.80 billion, but adjusted EBIT improved to €313 million from €285 million [5] Overall Trends - Over the first nine months of 2025, group revenue decreased by 8% to €98.52 billion [5] - EBIT dropped 59% to €4.31 billion, with adjusted EBIT falling 35% to €6.63 billion, and net profit halved to €3.87 billion [6]

Core Viewpoint - The FCA's proposed motor finance redress scheme is estimated to cost the industry around £11 billion, which includes £8.2 billion in compensation for customers and £2.8 billion in implementation costs [1] Group 1: Industry Concerns - The Finance & Leasing Association (FLA) expresses skepticism about the FCA's figures, suggesting they are "too high" and calling for transparency regarding the assumptions behind the estimates [2] - Firms are questioning the FCA's modeling, particularly regarding participation rates and assumed losses, especially for non-prime and smaller lenders [2] Group 2: Implementation Challenges - The FCA intends for lenders, rather than brokers, to administer the redress, which places a significant operational burden on lenders [3] - Firms will need to identify eligible customers, assess unfairness, and calculate payouts, often requiring data reconstruction dating back to 2007 [4] - Smaller firms may find the task overwhelming due to data gaps, system limitations, and resource constraints, which could hinder timely and accurate outcomes [5] Group 3: Balancing Fairness and Feasibility - The FCA claims its scheme balances fair compensation with market stability, but firms are concerned about whether the costs and operational demands are proportionate [6] - The consultation period runs until 18 November 2025, with final rules expected in early 2026, prompting the industry to focus on the realism of the FCA's numbers and the feasibility of its plan [7]