Mercedes 2003 Annual Report Download - page 8
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Please find page 8 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.Essentials |Chairman’s Letter | Board of Management | Business Review | Outlook | DaimlerChrysler Shares | DaimlerChrysler Worldwide
For the global economy and for our company the 2003 financial year was split into two very
different halves. The conflict in Iraq, the fear of the spread of terrorism and the lack of
positive sentiment in most markets meant that the downward trend of the two previous
years continued in the first half of 2003.
This led to competition becoming even tougher in our sales markets. Particularly in the
United States the price war escalated – the average customer incentive per vehicle
exceeded US $4,000 for the first time. Chrysler Group, naturally, also suffered from this
increase: in the second quarter it had to report an operating loss after five quarters
with positive results from ongoing business in succession.
A moderate recovery of the global economy commenced in the second half of the year.
Customer incentives in the US market stopped rising. Due to additional efficiency
increases and successful product launches, the Chrysler Group returned to profit in the
third and fourth quarters, and came very close to its full-year goal of breaking even
from ongoing business.
The other divisions achieved very good results in 2003:
– The Mercedes Car Group reported record earnings for the sixth time in a row.
Mercedes-Benz generally strengthened its market position and is still the world’s most
successful premium brand. It is very difficult to get to the top. But staying on top
for such a long time demonstrates that we have the ability and the will to achieve
continuous improvement in all areas.
– The Commercial Vehicles division made great progress last year, and again posted
substantial profits. It extended its position as the world’s market leader. This was the
result of thorough and effective work.
– DaimlerChrysler Services achieved its best earnings ever from ongoing business.
In addition, we moved forward with the implementation of our strategy:
– We strengthened our global presence: in Japan, with our stake in FUSO, the market
leader for commercial vehicles; and in China, through a far-reaching framework
agreement with our long-standing partner, BAIC.
– We transformed smart into a multi-product brand.
– We had successful market launches of tremendous products such as the Mercedes-Benz
CLK convertible, the Dodge Durango or the new Actros.