Mercedes 2008 Annual Report Download - page 216

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There are refund claims against third parties with respect to a
significant portion of the balance of payables.
Major other goods and services supplied by the Group relate to
McLaren Group Ltd., an associated company. Within the context
of the Group’s Formula 1 activities, Daimler provides the McLaren
Group with Mercedes-Benz Formula 1 engines for use and supports
their research and development activities. Furthermore, Daimler
has an agreement with McLaren Automotive Ltd., a wholly owned
subsidiary of McLaren Group Ltd., for the production of the high
performance Mercedes McLaren SLR sports car.
Balances and transactions with respect to our equity investee
Tognum (see Note 2), are included in the line “Associated compa-
nies” in the table above.
The transactions with joint ventures predominantly comprise
the business relationship with Beijing Benz-DaimlerChrysler Auto-
motive Co., Ltd. (BBDC). BBDC assembles and distributes Mer-
cedes-Benz vehicles for the Group in China.
In 2008, Daimler recognized additional charges of €293 million
and paid €186 million to BBDC in connection with the transfer
of the majority in Chrysler. Provisions recognized in this regard
amounted to €210 million as of December 31, 2008 (see Note 2
for further information). These recognized charges and pro-
visions are included in the table above under “Joint ventures.”
Furthermore, the Group collected license fees from Toll Collect
GmbH, which are also included in the table above under joint
venture transactions. In connection with the Group’s 45% equity
interest in Toll Collect, Daimler has provided a number of guar-
antees for Toll Collect, which are not included in the table above
(see Note 28 for further information).
During the first quarter of 2008, the transaction under which
Daimler, Ford Motor Company (Ford) and Ballard Power Systems,
Inc. (Ballard) reorganized their automotive fuel cell activities
was closed. As a result of this transaction, Ballard repurchased all
of its shares held by Daimler or Ford and the representatives
of Daimler and Ford resigned from Ballard’s board of directors.
As consideration, Daimler received a 50.1% interest in Auto-
motive Fuel Cell Cooperation Corporation (AFCC), a newly formed
company that comprises Ballard’s automotive fuel cell business.
Furthermore the Group received rights and know-how related to
fuel cell technology and cash of €24 million; Ford and Ballard
hold the remaining interest in AFCC. Daimler realized a gain before
income taxes of €30 million from the sale of its interest in
Ballard, which is included in “share of profit (loss) from companies
accounted for using the equity method, net,” in the 2008 consoli-
dated statement of income. As Daimler and Ford jointly manage
the operations of AFCC, Daimler accounts for its investment in
AFCC using the equity method. Balances and transactions with
respect to AFCC are included in the line “Joint ventures” in the
table above.
Board members. The Group purchases goods and services from
numerous suppliers throughout the world in the ordinary course
of business. These suppliers include companies that have a con-
nection with some of the members of the Supervisory Board
or of the Board of Management of Daimler AG or its subsidiaries.
From time to time, companies of the Daimler Group purchase
goods and services (primarily advertising) from and sell or
lease vehicles or provide financial services to companies of the
Lagardère Group in the ordinary course of business. Arnaud
Lagardère, who became a member of the Supervisory Board
in April 2005, is the general partner and Chief Executive
Officer of Lagardère SCA, a publicly traded company and the
ultimate parent company of the Lagardère Group.