Mercedes 1998 Annual Report Download - page 32

MERCEDES-BENZ AND SMART
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Western Europe outside Germany. In the United States sales of
Mercedes-Benz passenger cars reached 170,200 vehicles (up
39%). In terms of revenues, we were the most successful
luxury brand in the United States with a 7.6% market share.
Despite the unfavorable market situation in Japan, we managed
to sell more than 40,000 vehicles and achieved a share of the
luxury class market of 12.8%. Mercedes-Benz was the most
successful import brand in Japan.
SUCCESSFUL YEAR FOR THE A-CLASS. The A-Class, equipped
with the most state-of-the-art standard safety package of all
compact and mid-size cars, has been enjoying extremely strong
demand. The innovative concept and design, combined with a
favorable price/performance ratio, enabled sales to soar to
136,100 units, earning the A-Class a strong position in the
market within one year. In Japan, it was awarded the prize for
the best import car of the year. In 1999, we expect to see
additional sales growth due to new engine versions and
equipment options.
NEW S-CLASS SETS STANDARDS. The new S-Class features more
than 30 technical innovations and is a trendsetter in passenger
car technology. Peak values in aerodynamics and a reduction in
weight of approximately 660 pounds excluding options offer
fuel savings of up to 17% compared with its predecessor model
while at the same time its performance rating is significantly
higher. Thanks to an automatic cylinder cut-off system in the
S 500, fuel consumption can be reduced by a further 7% on
average. The air suspension system combined with the
adaptive shock absorber system (AIRmatic), ventilated luxury
seats, a chip card in place of a door and ignition key (Keyless
Go) and the distance control system (Distronic) offer our
customers the option of extra comfort. In addition to safety and
comfort, the classic characteristics of every Mercedes-Benz,
the new model also provides more driving pleasure than ever
before in this series. The new S-Class has not only been
enthusiastically received by traditional customers, but, as the
first market statistics demonstrate, it is also capable of
attracting customers previously attached to other luxury
brands.
M-CLASS EXTRAORDINARILY SUCCESSFUL. The overwhelming
success of the M-Class in North America following its market
introduction in September 1997 continued in Europe in the
spring of 1998. Around the world, customers appreciate the
excellent price/value ratio of the M-Class. The exceptional
image enjoyed by the M-Class results from its exemplary safety
characteristics, future-oriented design, and the combination of
pronounced all-terrain maneuverability with sedan-like on-road
qualities. Due to high demand, M-Class capacity at our U.S.
production facility in Tuscaloosa, Alabama, was boosted from
65,000 units to more than 80,000 units in 1999. Moreover,
beginning in mid-1999, up to 30,000 additional vehicles
per year will be manufactured for the European market at
Steyr-Daimler-Puch in Graz, Austria.
A-CLASS PRODUCTION STARTED IN BRAZIL. The new A-Class
production facility in Juiz de Fora, Brazil, started regular
production in February 1999. The new plant is an important step
toward developing the South American market for the
Mercedes-Benz brand. After the final expansion phase, it will
have a capacity to produce up to 70,000 vehicles each year.
Completion of the project in only two years was possible due to
the joint efforts of an international team from the United States,
Europe and Brazil. To ensure that the high quality standards of
Mercedes-Benz are also maintained in Brazil, training
employees for that location was started well in advance. More
than 150 specialized employees from Brazil were trained in our
German assembly plants in Rastatt, Sindelfingen and Bremen,
and 160 trainers from Germany will be working in Brazil during
the startup phase.
INVESTMENTS BOOST INNOVATIVE STRENGTH. We are investing
€ 0.7 billion in a new technology center in Sindelfingen to be
completed in the year 2000 for the development of Mercedes-
Benz passenger cars. The entire passenger car development
will thus be concentrated at the two locations of Sindelfingen
and Untertürkheim instead of the previous 18. Consolidating our
development capacities and using state-of-the-art technologies
will open up additional opportunities for boosting our
development output. We will also achieve synergies by working
together with the technology center in Auburn Hills.
The 1,500 acre Mercedes-Benz testing facility in Papenburg,
Germany, which was opened on October 8, 1998, offers product
developers entirely new possibilities. For example, a number of
different processes can now be carried out simultaneously
instead of sequentially, which significantly shortens develop-
ment times.
Optimum safety, superb comfort, exemplary
solidity and – last but not least – unspoiled
driving enjoyment. The new Mercedes-Benz CL
meets such exacting standards thanks to its
ploneering technology.