Mercedes 2004 Annual Report Download - page 54

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Business developments affected by model changeovers.
The Mercedes Car Group – comprising the brands Mercedes-Benz,
Maybach, smart, Mercedes-Benz AMG and Mercedes-Benz
McLaren – sold 1,226,800 vehicles in 2004 (2003: 1,216,900).
For model lifecycle reasons, unit sales of the Mercedes-Benz
brand were 2% lower than in the prior year, whereas smart’s unit
sales increased by 22% due to the launch of the smart forfour.
The division’s revenues decreased slightly to €49.6 billion (2003:
€51.4 billion). This development was due to exchange-rate effects
and the changed model mix of Mercedes-Benz passenger cars,
which was primarily caused by lifecycle-related factors. At €1.7
billion, operating profit was significantly lower than the €3.1 billion
posted in 2003. This was due partially to the changed model mix
and exchange-rate effects, but also to the high launch costs for
new products and the costs of the quality offensive at Mercedes-
Benz. In addition, the contribution from smart was significantly
negative as a result of higher marketing expenses, the launch
costs for the smart forfour and higher development expenditure
(see page 23).
Focus on quality, efficiency and productivity. In order to improve
the Mercedes Car Group’s profitability, we are highly focused on
the issues of quality, efficiency and productivity. Quality is one of
the most important attributes of the Mercedes-Benz brand and is
thus the key focus of all activities at the Mercedes Car Group. As
part of our comprehensive quality offensive, a range of measures
is being taken to ensure the highest quality at all levels of activity
– from vehicle development and production all the way to sales
Unit sales slightly above prior year’s level |Product offensive successfully continued |
High expenditures for new models and quality offensive |Program started to
increase efficiency and earnings
|
Sales offensive by smart
|
Operating profit significantly
lower than in 2003
Mercedes Car Group
€
3,126
51,446
2,939
2,687
1,211,981
1,216,938
104,151
2003
1,666
49,630
2,343
2,634
1,246,726
1,226,773
105,857
Amounts in millions
2004
€
Operating profit
Revenues
Investments in property,
plant and equipment
Research and development
expenditure
Production (units)
Unit sales
Employees (Dec. 31)
US $
2004
2,255
67,189
3,172
3,566
50