Mercedes 1999 Annual Report Download - page 38

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MERCEDES-BENZ & SMART
32
RECORD SALES, REVENUES AND OPERATING PROFIT. The
Mercedes-Benz Passenger Cars & smart division continued
growing profitably in 1999. Unit sales and revenues increased
significantly and market share improved in nearly all
important markets. Revenues set a new record, climbing to
€38.1 billion (1998: €32.6 billion). 1999 was also the first
year in which more than one million Mercedes-Benz and
smart passenger cars, station wagons, SUVs and City
coupes were sold throughout the world, an increase of
157,500 vehicles over last year’s record. This positive sales
development was accompanied by an increase in operating
profit of 36% to €2.7 billion, a new record.
MERCEDES-BENZ ENJOYED MOST SUCCESSFUL YEAR. Sales
of Mercedes-Benz passenger cars increased by 10% to a
record of 1,000,400 units in 1999.
The A-Class was particularly successful. With safety standards
unique in its class, a wide range of innovations—including its
special design—and an attractive engine program, extended by
the new 1.9-liter gasoline engine, the A-Class has established
itself in a fiercely competitive market segment. The new
S-Class received numerous awards and top ratings in a variety
of tests. Our top model is setting standards competitors
will have to match. It was therefore no surprise that new
registrations of S-Class vehicles in both Germany and Japan
were almost twice as high as those for the predecessor
model. Overall, the vehicle’s global market share of the
luxury segment reached 50%. The M-Class and the CLK also
had a very successful year. The E-Class, which underwent a
significant model update in both engineering and design in
July, fell slightly short of last year’s sales volume. However,
in the second half of the year, the model update led to a
strong increase in sales. As expected, sales of the C-Class
sedan, which will be replaced by a new model in June 2000,
were lower.
SALES RECORDS IN IMPORTANT MARKETS. Unit sales
growth in Western Europe in general (+8%) and Germany in
particular (+9%) was strong in 1999 and Mercedes-Benz was
able to retake the lead in the high-priced V-8 segment with the
new S-Class. Mercedes-Benz also became the leading brand
in the convertible segment for the first time. This was primarily a
result of the success of the CLK convertible. In the US, we
were able to surpass the previous year’s sales volume for the
sixth consecutive year. Our market share in the comparable
segments reached 7.4%. In Japan, Mercedes-Benz was again
the most successful import brand in 1999. Once again, our
performance in Japan was significantly better than that of our
direct competitors. In addition to the S-Class—which has met
with a tremendous response in Japan—the M- and A-Class
also contributed greatly to our success. Our share of the
comparable market segments increased to 14.2% in Japan
(1998: 12.2%).
M-CLASS SUCCESS STORY CONTINUES. The M-Class has
received numerous awards since its introduction in 1997. In
July 1999, it was selected by the Insurance Institute for High-
way Safety as “Best Pick” following frontal crash tests on
15 sport utility vehicles. The 2000 model, which features a
comprehensive package of improvements and attractive new
diesel engines, will ensure that the popular SUV remains in
great demand. Production capacity for the M-Class in the
Tuscaloosa, Alabama, plant was increased from 65,000 to
80,000 units in 1999. To meet growing demand in Europe, we
also launched production of the M-Class at the SFT (Steyr-
Daimler-Puch Fahrzeugtechnik) company in Graz, Austria,
in May 1999. Production is scheduled to increase to around
20,000 units in 2000.
THE NEW MERCEDES-BENZ CL—A UNIQUE SYNTHESIS OF
DRIVING PERFORMANCE AND COMFORT. The new Mercedes-
Benz CL coupe had its world premiere at the 69th Geneva
Auto Show in the spring of 1999. The CL 500 and CL 600
versions have been available to customers since the fall. The
Mercedes coupe is distinguished by state-of-the-art technology
not available in any other automobile in the world and a
design which is at once both innovative and elegant. The most
important new feature is Active Body Control (ABC) as
standard—a milestone in driving dynamics and comfort. Within
seconds, a high-pressure hydraulic system and two powerful
computers adjust the suspension and damping to driving
conditions, thereby compensating almost completely for body
movements while accelerating, taking curves or braking.
The convertible version of the smart City coupe
features an innovative, multi-stage roof design. The
smart City convertible is equipped with the same
SUPREX turbo engine as the smart City coupe, and
reaches an electronically limited top speed of 135 kph.