Mercedes 2006 Annual Report Download - page 92

DaimlerChrysler Buses expects to maintain its globally leading
position for buses above 8 tons with innovative and high-quality
new products. Its main growth opportunities will be in Asia,
whereas scope for further growth in the core markets of Western
Europe, the NAFTA region and Latin America is very limited.
Financial Services looks forward to a continuation of its stable
business development in 2007 with a slight increase in contract
volume. The division has initiated various programs and actions
worldwide in order to achieve further advances in efficiency,
improve risk management and enhance customer and dealer
satisfaction. In this way, Financial Services will meet the challenge
of intensified competition from international banks and in the
automotive markets. We will further expand our comprehensive
range of products in the fields of financing, leasing, insurance
and fleet management. One of the division’s key sources of growth
will be the dynamic regions of Asia, Eastern Europe and Latin
America.
In the years of 2007 through 2008, EADS expects the global
market for civil aircraft to continue its generally stable develop-
ment with a high level of demand. In the fields of defense and
space, EADS looks forward to ongoing positive developments
despite tight public-sector budgets. EADS’ revenues are likely
to continue rising in the coming years as a result of increased
deliveries, particularly by Airbus and Eurocopter.
On the basis of the divisions’ planning, we expect the Daimler-
Chrysler Group’s total unit sales to increase slightly in the
year 2007. We anticipate further growth in unit sales in the years
2008 and 2009.
Excellent new products will drive this generally positive develop-
ment during the planning period. Our product offensive in the
period of 2007 through 2009 will be continued with more
than 35 new vehicles. We intend to distinguish ourselves from
the competition through pioneering innovations, and we aim
to lead the market in those technologies that are important for
our customers.
Revenues and earnings
Group revenues in 2007 should be in the magnitude of the
prior year. In the following years, we expect revenues to increase
significantly, in line with rising unit sales. In regional terms,
the dynamic markets of Asia will be a key source of growth.
A crucial contribution to improving profitability will be made by
the programs designed to boost efficiency, which we have
initiated in all divisions and headquarters departments and are
steadily pushing forward. We also plan to use our production
equipment for longer periods in the future.
Overall, our goal is to deliver top performance all along the value
chain. The implementation of the new management model will
create lean and stable processes, allowing us to become faster,
more flexible, more cost-effective and thus also more com-
petitive and profitable in all areas in the future. In particular, the
increasing networking of our worldwide activities, the use
of standardized modules, excellent processes, and the intensive
knowledge transfer within the Group should have a positive
impact on the divisions’ earnings in the coming years.
The Mercedes Car Group anticipates a return on sales of at
least 7% in 2007, despite a weaker first quarter. As a result of the
CORE efficiency-improving program and excellent products
such as the new C-Class, the Mercedes Car Group’s profitability
is to be continuously further improved during the planning
period of 2007 through 2009.
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