Mercedes 2004 Annual Report Download - page 10

6
Chrysler Group has undergone an all-encompassing transformation over the past five years. It has
raised productivity by 20 percent while increasing quality considerably. It has also launched an
extensive product offensive. As a result, Chrysler Group is now marketing the youngest model range
of all North American automakers.
We are presently reaping the fruits of our hard work as well as a comprehensive implementation of
our strategy. Chrysler Group posted a sound operating profit of €1.4 billion in 2004. The increase in
operating profit was €1.9 billion.
In addition to this Chrysler Group was the only US automaker to increase its market share last year.
This feat was due in no small measure to top-sellers such as the Chrysler 300, the most honored
American vehicle of all time – and the innovative Stow’n Go™ concept for our minivans, which allows
second and third-row seats to fold flat into the floor.
Our Commercial Vehicles Division is also performing very well and achieved a record operating profit
of €1.3 billion last year. Significantly, it did so in spite of costs associated with quality problems at
Fuso that predate our involvement with that company. Our truck business in Europe and Latin America
is operating outstandingly. So are our van and bus enterprises – and Freightliner.
Because quality problems at Fuso were caused prior to our own involvement we were successful
in our claim against Mitsubishi Motors, the former majority shareholder. As a result, in addition to
a compensatory payment, we will acquire for no charge a further 20 percent stake in Fuso.
Our financial services business also had a very good year. Margins were maintained at their already-
high levels, and internal processes were further improved. In spite of charges attached to Toll Collect,
DaimlerChrysler Services posted an operating profit of €1.25 billion, equaling 2003’s success. Without
the startup difficulties at Toll Collect, profits would have been considerably higher.
I would like to use the opportunity afforded by this year’s launch of the Airbus A380 to remark on our
involvement in the aerospace industry. EADS is a resounding success. Airbus has surpassed Boeing,
and its contribution to DaimlerChrysler profits is significantly higher than in 2003.
Who, in the early 1990s, would have predicted such a success story? At that time, Dasa was on the
ropes. But we placed it back on track through a rigorous restructuring program. And we followed this
up by working energetically to create a European aerospace group. Without DaimlerChrysler, neither
EADS nor the A380 would exist today. If we sum up the results of all our business activities in the
aerospace sector – with all their vicissitudes – it is clear that we have created value in an amount of
over €1 billion.