Mercedes 2001 Annual Report Download - page 122

118 Report of the Supervisory Board
The Supervisory Board and the Board of Manage-
ment met in five meetings during the 2001 financial
year to discuss intensively the business situation of
DaimlerChrysler, the future strategic development of
the Group and its divisions, and various other issues.
The Presidential Committee met four times
in 2001, primarily to deal with Board of Management
issues, and to prepare the meetings of the Supervisory
Board. The Financial Audit Committee convened twice
with the independent auditors to discuss the financial
statements for 2000 and the financial statements for
the first half of 2001. The Committee engaged KPMG
Deutsche Treuhand-Gesellschaft Aktiengesellschaft
Wirtschaftsprüfungsgesellschaft, an auditing firm,
for the annual audit, and also determined the audit
emphasis for 2001. The Mediation Committee, a body
stipulated by the German Law of Industrial
Codetermination, was not required to convene in 2001.
In each of its meetings the Supervisory Board was
fully informed by the Board of Management regarding
the situation of the company, particularly its business
and financial status, the personnel situation, business
developments at the company and its holdings,
investment plans and basic business-policy questions.
In addition, there was regular monthly reporting in
which the company’s key performance figures were
presented, and written reports were submitted on
special matters. The Chairman of the Supervisory
Board was also regularly kept informed through
separate discussions with the Board of Management.
In 2001, the agendas of the Supervisory Board
were dominated by the further implementation of the
strategy pursued since 1995 of concentration on the
automotive business and related services. The course
was set for the company’s future also in terms of per-
sonnel with the reappointment of Jürgen E. Schrempp
and Jürgen Hubbert, and the continuity and stability of
top management were secured. Another major topic
was the implementation of restructuring measures in
various business units. After the terrorist attacks of
September 11, their consequences for DaimlerChrysler
were discussed in detail. Some of the other matters that
were dealt with were personnel questions and the
planned successors to important positions, as well as
corporate governance at the DaimlerChrysler Group.
Report of the Supervisory Board
The meeting in February 2001 dealt with the 2000
consolidated and individual financial statements, prepa-
rations for the Annual Meeting, and medium-term
planning including the extent of refinancing for 2001.
Particular attention was paid to Chrysler Group’s
turnaround plan, and the Supervisory Board received
detailed reports on the situation at Mitsubishi Motors
Corporation (MMC). The current stage of plans to build
a small car with MMC was also discussed in this
context. Furthermore, the Supervisory Board consented
to the sale of a majority interest in the TEMIC Group
to Continental AG.
In April 2001, the strategy of the Mercedes-Benz
Passenger Cars & smart division was discussed inten-
sively. There was also a detailed report on the imple-
mentation of the turnaround plan at Chrysler Group. In
addition, the Supervisory Board consented to the acqui-
sition of a 3.3% equity interest in MMC from Volvo and
the continuation of existing contracts between Volvo
and MMC. This made it possible to extend the strategi-
cally important cooperation with MMC from passenger
cars to commercial vehicles.
In the July meeting, the Supervisory Board dis-
cussed the future strategy of the Commercial Vehicles
division, with a focus on the cooperation in Asia with
MMC and the South Korean Hyundai Motor Company,
particularly in the engine business. The interim report
on the first half of 2001 was presented, and information
was given on the appointment of KPMG as independent
auditors for the 2001 financial year and on the main
areas of this audit. At the end of the meeting the Super-
visory Board consented to the restructuring of the
fuel-cell alliance with Ford and Ballard Power Systems
in order to simplify future cooperation in this field.
The meeting at the end of September was domi-
nated by discussion of the consequences of the terrorist
attacks in the United States. The Supervisory Board
expressed its deep shock and sadness, and emphasized
its feelings of solidarity with the victims of the attacks.
Future political and economic developments and their
significance for the company were intensively dis-
cussed with the Board of Management. The situation of
the aerospace activities were also on the agenda. In ad-
dition, the Supervisory Board was informed of manage-
ment developments within the Group. In this meeting