Mercedes 1998 Annual Report Download - page 35

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31
CHRYSLER, PLYMOUTH, JEEP, DODGE
The Chrysler, Plymouth, Jeep and Dodge brands
recorded their best year ever in 1998, setting several
sales records, including all-time highs in trucks and
sport-utility vehicles. This helped the brands
increase revenues to € 56.3 billion in 1998, compared
to € 51.9 billion in 1997. The operating profit of the
Division increased to € 4.2 billion, compared to
€ 3.4 billion in 1997. In the past few years, all-new
and redesigned products have helped the brands
to expand their market position. Symbolizing the
success of recent quality improvement initiatives are
the Chrysler Cirrus and Concorde. Both were
recognized by J.D. Power and Associates for having
the best quality in their respective categories in the
Initial Quality Rankings for 1998.
4,942
66,101
4,599
1,989
4,212
56,340
3,920
1,695
2,982,644
3,093,716
123,180
3,368
51,942
4,501
1,512
2,773,264
2,886,981
118,639
Operating Profit
Revenues
Investm. in Property,
Plant, Equipment
R&D
Production (Units)
Sales (Units)
Employees (12/31)
98
US $
98
€
97
€
Amounts in Millions
FAVORABLE MARKET SITUATION IN NORTH AMERICA.
Strong economic growth, falling car prices and low interest
rates resulted in an overall rise in sales of passenger cars and
light trucks in North America in 1998. In particular, sales of
sport-utility vehicles and pickups benefitted the most from the
strong market, while sales of passenger cars fell slightly.
DaimlerChrysler is well positioned in the highest growth
segments with its Chrysler, Plymouth, Jeep and Dodge brands.
We are therefore able to take part at a higher level in the
favorable market development in North America. In contrast,
international business was negatively impacted by the
economic and financial crisis in Asia.
NEW RECORDS IN REVENUE AND PRODUCTION. The Chrysler,
Plymouth, Jeep and Dodge brands have their strongest
presence in the North American markets of the United States,
Canada and Mexico. Revenues of the Division totalled a new
record of € 56.3 billion ( 1997: € 51.9 billion). Of total revenues
93% were generated in North America, 3% in Europe and 4% in
the rest of the world.
Worldwide production in 1998 totaled 2,982,600 vehicles
(1997: 2,773,300). Car production in 1998 was 865,300 (1997:
778,200); truck production totaled 2,117,300 (1997: 1,995,100).
FURTHER IMPROVEMENT IN EARNINGS SITUATION. The
operating profit of the Division increased from € 3,368 million
in 1997 to € 4,212 million in 1998. Higher sales volume and
lower warranty costs were the primary positive contributors.
In contrast to this were higher costs for purchase incentives,
which are attributed in particular to strengthened competitive
conditions in North America.