Mercedes 2001 Annual Report Download - page 6

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2 Chairman‘s Letter
No one will forget 2001. The shocking and deeply regrettable tragedies of September 11 have since
inspired a set of values and memories that will enshrine forever the lessons of that day.
The attacks unleashed an unprecedented and decisive global response to terrorism. It was an answer
strengthened by passionate solidarity and marked by the firm, unbreakable resolve of a united
international community.
DaimlerChrysler’s reaction during the immediate aftermath was characterized by spontaneous and
heartfelt support for all those affected by the attacks. We also expressed our grief and compassion through
substantial material aid. Our company remains profoundly and acutely connected to the grim realities of
that day.
Notwithstanding this, it was essential for us to meet our commitments for 2001.
Performance in 2001. It is now a matter of record that with an operating profit of €1.3 billion, we reached
our anticipated earnings range for 2001.
We are certainly not satisfied with this result, but it should be considered that it was achieved in an
extremely difficult environment, particularly in the later part of the year.
For Mercedes-Benz and smart, however, 2001 was an excellent year with new records in revenue, sales
and profit. With over 1.1 million vehicles sold, Mercedes-Benz is today the world’s leading luxury car
brand. The resounding success of the C-Class family and strong demand for the new SL were two of the
factors driving growth to unprecedented levels and further enhancing the brand’s position. The now
well established smart brand also overachieved its sales targets.
At Chrysler Group we implemented our ambitious turnaround program with real signs of success.
Despite highly competitive market conditions in 2001, Chrysler Group exceeded the objectives set for its
cost reduction program and surpassed slightly the upper end of its earnings’ predictions.
In a US market artificially fuelled by high cash discounts and zero percent financing we managed to
introduce a selective incentive program. New and extremely appealing products, exemplified by the Jeep
Liberty, the Chrysler PT Cruiser and the Dodge Ram, as well as many others in the pipeline, are good
reason for optimism at Chrysler Group.
The results of our Commercial Vehicles division, the world’s largest manufacturer of vans, trucks and
buses, mirrors the downturn in North America and the weakening markets of Europe.
At Freightliner, the new management announced an effective turnaround plan in October. By the end of
last year the changes had shown early results. Inventories on new and used trucks were brought back
considerably.
Other areas of our Commercial Vehicles division were able to continue their excellent performance.
Our van operation, for example, already market leader in Europe, extended its product range by introducing
the very successful Sprinter in North America.
At DaimlerChrysler Services, the increased pressure on margins in the US market had a negative impact.
Our Services division will continue adding value to the automotive business through even stronger support
of our operations. It will also pursue its policy of divesting non-core activities.