Mercedes 2003 Annual Report Download - page 19
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Please find page 19 of the 2003 Mercedes annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Further growth for Mercedes Car Group. In the next few years,
Mercedes Car Group’s second model offensive will not only renew
its product range, it will also broaden it substantially. The goal is to
significantly increase unit sales, revenues and operating profit by
2006, and to further strengthen the market position of the
Mercedes-Benz and smart brands. We intend to achieve this with
numerous new models to be launched in the years 2004 through
2006. The new Mercedes-Benz models include a new SLK roadster,
new A-Class models, a new four-door CLS coupe, a new M-Class,
the Grand Sports Tourer and the new S-Class. The smart product
range will be extended in April 2004 with the new four-seater
smart forfour, and in 2006 with the compact SUV smart formore to
be produced in Brazil. In addition, Mercedes Car Group will increase
its drive to leverage the market potential offered by Asia in the
future. We plan to selectively expand our activities in China and to
continue strengthening our sales organizations in Asian markets.
Chrysler Group to launch numerous new products. The
Chrysler Group expects that the US market for passenger cars and
light trucks will continue to be extremely competitive. In addition to
further efficiency improvements, the Chrysler Group’s strategic
focus will therefore increasingly be on achieving a sustained
improvement in competitiveness through attractive, innovative new
products with more appeal than their rivals. Nine new models will
be launched in 2004 and a total of 25 in 2004 through 2006. With
these new vehicles, the Chrysler Group intends to rank alongside
the best in the world in terms of product quality and the efficiency
of production processes, while setting itself apart from the
competition with its product designs and attractive value. This
strategy is expected to result in rising earnings contributions
starting in 2004, despite higher expenditures for the introduction
of new products.
Further earnings improvement for Commercial Vehicles. With
the reorganization of its worldwide truck business effective
January 1, 2004, the Commercial Vehicles division has created a
structural basis for the implementation of its “Global Spark”
strategic initiative. This initiative calls for the continuation of the
programs for efficiency improvements that are already running
successfully in all of the division’s business units. In addition, the
division intends to utilize more consistently than in the past the
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The Mercedes-Benz Actros in the Alps near Bozen
economies of scale arising from its position as the world’s largest
manufacturer of commercial vehicles, and thus achieve cost
advantages over the competition. Some concrete examples are the
standardization of components and system modules such as
engines and electronics. Another aim is to strengthen the division’s
market position in Asia in general and in China in particular, in
collaboration with our Asian partners (see page 56 f). In addition to
this strategic initiative, the division will push forward its product
offensive with new models, new components and pioneering
technologies to raise safety and environmental standards. Overall,
the division is therefore very well prepared to further strengthen its
market position worldwide in the coming years while continuously
improving its profitability.
Increasing sales support from financial services. The Services
division will continue to focus on automotive financial services. In
this way, unit sales of the Group’s brands will be promoted while
maintaining the high profitability of the financial services business.
In cooperation with the sales organizations of the automotive
brands, additional tailored financial services offers will be created
which will be adapted to each brand’s specific requirements and
markets. At the same time, the systems and processes in use will
be continuously improved, thus enhancing risk management in
particular, as well as other key processes. We see growth
opportunities in fleet management and in the markets of Eastern
Europe after EU enlargement. Furthermore, we are preparing to
further expand our services activities in Asia.
The Toll Collect consortium partners have presented a plan for
the full-scale start of the truck toll system in Germany by
December 31, 2005 at the latest. According to the consortium’s
offer, however, the system will also be able to start with restricted
functionality on December 31, 2004. DaimlerChrysler Services
has a 45% share of the Toll Collect consortium. At the time when
the DaimlerChrysler Group’s Management Report was finalized,
it was not yet possible to foresee whether and under which
conditions an agreement could be reached between the consor-
tium and the Federal Republic of Germany. The stage of negotia-
tions on February 17, 2004 did not exclude the possibility of the
contract being terminated.