Mercedes 1999 Annual Report Download - page 29

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BUSINESS REVIEW
23
25
50
75
100
98 999796
Consolidated Revenues
in billions of €
125
150
Other Markets
USA
Europe
REVENUES INCREASE BY 14% TO €150.0 BILLION. Despite
the slow growth of the world economy, DaimlerChrysler
boosted revenues by 14% to €150.0 billion in 1999. Growth
was particularly strong in the US (up 20% to €78.1 billion).
In Germany, we were able to increase our revenues by 14%
to €28.4 billion, while revenues from the European Union
excluding Germany were up 7% to €21.6 billion. In the
remaining markets revenues rose 2% to €21.9 billion,
despite the difficult economic situation in South America.
STRONG GROWTH IN THE AUTOMOTIVE BUSINESS.
Positive
sales trends in Western Europe and North America contri-
buted significantly to total revenues of €127.3 billion in our
automotive business, an increase of 14% from 1998. Sales of
DaimlerChrysler passenger cars and commercial vehicles
increased to almost 4.9 million units (1998: 4.5 million) in the
year under review. Of these, some 3.2 million (1998: 3.1
million) were Chrysler, Plymouth, Jeep and Dodge brand
passenger cars and light trucks, while 1,080,000 (1998:
923,000) were Mercedes-Benz and smart brand vehicles.
Sales of Mercedes-Benz, Freightliner, Sterling, Setra and Tho-
mas Built Buses commercial vehicles totaled 555,000 units
(1998: 490,000).
Sales of Mercedes-Benz passenger cars achieved double-digit
growth rates in nearly all key markets. The new S-Class,
which enabled us to substantially expand our lead in the
premium segment, was particularly successful in 1999.
The A-Class, M-Class and the CLK coupe also contributed
significantly to increased sales of the Mercedes-Benz brand.
The smart city coupe became one of the leaders in the
Western European compact segment during the year under
review. (see pp. 30-33)
Sales of Chrysler, Jeep, Dodge and Plymouth brand vehicles in
the US increased by 6% to 2.7 million units in 1999. In the
sport-utility vehicle segment sales were especially strong
due to the great success of the Jeep Grand Cherokee. Our
range of pickups was augmented by the Dodge Dakota Quad
Cab in 1999. The Chrysler PT Cruiser, a multi-purpose
passenger car of unique design in the industry, was
presented at the Detroit Auto Show in January 1999 and
will be arriving at dealerships in the spring of 2000.
(see pp. 34-37)
An attractive range of products spearheaded profitable
growth at the Commercial Vehicles division in 1999. Sales
increased significantly in North America, where the
Freightliner and Sterling brands helped to further
strengthen our market position. Sales of trucks, vans and
buses of the Mercedes-Benz and Setra brands in Western
Europe also grew. However, the economic crisis in South
America depressed sales there. (see pp. 38-41)
GROWTH AT OTHER DIVISIONS. The Services division posted a
substantial increase in revenues for the 10th consecutive year.
Strong growth continued at both the IT Services (+ 31% to
€2.9 billion) and the Financial Services (+ 29% to €10.1
billion) business units. We were particularly successful in
North America, where the division’s revenues rose 35% to
€6.3 billion. (see pp. 44-45)
Revenues at the Aerospace division increased by 5% to
€9.2 billion. The Civil Aircraft business unit again enjoyed
particular success, with Airbus posting the highest volume
of incoming orders in the international civil aircraft
industry for the first time ever. Incoming orders at Dasa as
a whole again exceeded revenues but, as expected, did not
reach the extraordinarily high level of 1998. (see pp. 46-47)
Adtranz contributed €3.6 billion (+7%) to the total revenues
of €5.9 billion from other DaimlerChrysler businesses. Auto-
motive Electronics accounted for €0.9 billion (+18%) and
Diesel Engines €1.0 billion (+4%). (see pp. 48-49)
SYNERGY TARGETS OVERACHIEVED.....
Integration at
DaimlerChrysler proceeded much more rapidly than
planned. By the end of 1999, we had completed virtually all
individual projects or transferred them to the line
organizations. Important synergy initiatives that turned
DaimlerChrysler Group
Mercedes-Benz Passenger Cars
& smart
Chrysler Group
(Chrysler, Jeep®, Dodge, Plymouth)
Commercial Vehicles
(Mercedes-Benz, Freightliner, Sterling,
Setra, Thomas Built Buses)
Services
Aerospace
Others
Revenues
in millions US $
99 98
151,035 149,985 131,782
38,367 38,100 32,587
64,534 64,085 56,412
26,882 26,695 23,162
13,023 12,932 11,410
9,255 9,191 8,770
5,893 5,852 3,526
99
€€