Mercedes 1999 Annual Report Download - page 31

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BUSINESS REVIEW
25
12,000 NEW JOBS CREATED.
Adjusted for changes in the
consolidated group, DaimlerChrysler created 12,000 new
jobs in 1999 as a result of the success of our products and
services. Our total work force now numbers 466,938
employees. While the Services division accounted for about
3,600 of the new jobs, increased demand also necessitated
new hirings in our automotive divisions. (see pp. 58-59)
GLOBAL INTEGRATION OF PROCUREMENT AND SUPPLY.
In
1999, DaimlerChrysler purchased goods and services worth
€94.9 billion (1998: €79.6 billion).
Last year, our worldwide purchasing activities were
concentrated in the new corporate department, Global
Procurement & Supply, and we merged our two former
supplier programs, Tandem and SCORE. The result is a
platform which allows us to develop and strengthen long-term
partnerships with excellent suppliers all over the world.
Numerous projects which exploited the enhanced
procurement potential of our new, merged company led to
synergies totaling €520 million in the year under review.
(see pp. 56-57)
NEW BOARD OF MANAGEMENT STRUCTURE.
In September
1999, we reduced the DaimlerChrysler Board of Management
from 17 members to 14 and reorganized their responsibilities.
The new structure makes for a more efficient and effective
organization that can quickly and flexibly respond to market
challenges. We established the Automotive Council early
on as a means of promoting the transfer of automotive
business know how throughout the company. The Council is
responsible for the exchange of technology, product ideas and
strategy, while ensuring that the policy of strict separation of
vehicle brands is observed. We also set up a Sales and Market-
ing Council to coordinate global sales and marketing
activities. (see pp. 42-43)
€9.5 BILLION INVESTED IN 1999.
Investment in plant,
property and equipment at DaimlerChrysler increased to
€9.5 billion (1998: €8.2 billion). More than 86% was
channeled into our automotive business. Among the most
important investment projects at the Mercedes-Benz Passen-
ger Cars & smart division were the new Technology Center
in Sindelfingen and the preparations for producing the new
C-Class. Investment in the Chrysler Group division focused
on the new Jeep assembly plant in Toledo, Ohio, a new
production plant for six-cylinder engines in Detroit, and
preparations for producing the PT Cruiser and the new
generation of minivans. Investment at the Commercial
Vehicles division was targeted primarily at the
modernization of production facilities and the expansion
of capacity in North America.
We also invested €0.3 billion (1998: €0.3 billion) in
DaimlerChrysler Aerospace. Most was focused on expanding
capacity in the Airbus program. Investment in the Services
division totaled €0.3 billion, most of which went into the
IT Services business unit.
€7.6 BILLION FOR RESEARCH AND DEVELOPMENT.
In 1999,
there were more than 40,000 employees working in research
and development at DaimlerChrysler worldwide, underscoring
the importance of R&D within our value-based management
system. Our objective is to bring new, attractive products to
market as quickly and cost-effectively as possible, thereby
gaining key competitive advantages. R&D expenditures
increased from €6.7 billion in 1998 to €7.6 billion in the
year under review. Of this amount, €1.8 billion (1998: €1.7
billion) went toward projects commissioned by third parties,
most of them in the Aerospace division.
Almost 85% of R&D investment was directed towards securing
the future of our automotive business, while 8% was at
DaimlerChrysler Aerospace and 5% was at the other industrial
business units.
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
Investments in Plant, Property
an Equipment
in millions US $
99 98
9,536 9,470 8,155
2,244 2,228 1,995
5,261 5,224 3,920
775 770 832
326 324 285
338 336 326
592 588 797
99
€€
Research and
Development costs
in millions US $
99 98
7,628 7,575 6,693
2,057 2,043 1,930
2,014 2,000 1,695
833 827 714
2,019 2,005 2,047
705 700 307
99
€€
DaimlerChrysler Group
Mercedes-Benz Passenger Cars
& smart
Chrysler Group
(Chrysler, Jeep®, Dodge, Plymouth)
Commercial Vehicles
(Mercedes-Benz, Freightliner,
Sterling, Setra, Thomas Built Buses)
Aerospace
Others