Mercedes 2008 Annual Report Download - page 54

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The Western European automobile markets also suffered conside-
rably from the financial crisis and the general economic slow-
down. The markets that were particularly hard hit were the volume
markets of Spain (-28.1%), Italy (-13.4%) and the United Kingdom
(-11.3%). Germany (-1.8%) and France (-0.7%) developed positively
in the first half of the year, but were unable to escape the down-
ward trend in the second half. In total, 8.4% fewer automobiles
were sold in Western Europe. The Japanese car market also
contracted, with a drop in sales of nearly 4% in 2008.
In the major emerging markets of Asia, Eastern Europe and Latin
America – especially the BRIC countries (Brazil, Russia, India
and China), demand for cars increased again in the year as a
whole, but growth rates slowed down also in those markets in the
second half of 2008. Towards the end of the year, the BRIC coun-
tries also recorded lower sales than in the same months of 2007.
There were varying developments in the major markets for com-
mercial vehicles during 2008. Due to the economic downturn,
demand in all vehicle categories was lower than in the prior year
in the United States. In Western Europe, sales of medium and
heavy-duty trucks almost reached the high level of 2007, but were
already declining significantly in the last few months of the year.
In the segment of light-duty trucks, unit sales decreased in Western
Europe in 2008. In Japan, demand fell again significantly in all
vehicle categories. Aggregate demand for commercial vehicles
expanded slightly in the emerging markets, although growth
rates also subsided in the second half and sales were falling in
some markets at the end of the year.
Business developments
Unit sales. Despite extremely difficult market conditions, espe-
cially in the second half of the year, Daimler sold a total of 2.1
million vehicles in 2008, thus nearly equaling the prior-year level.
The Mercedes-Benz Cars division sold 1,273,000 vehicles (2007:
1,293,200). We therefore defended our worldwide market position
in the premium-car segment. However, the development of
business was impacted by the rapid deterioration in economic
conditions during 2008, leading to massive drops in unit sales
in major markets in the second half of the year. Unit sales of the
Mercedes-Benz brand fell to 1,125,900 cars (2007: 1,180,100).
We were once again very successful in the C-Class segment
(C-, CLK- and SLK-Class), attaining a 16% increase to sales of
448,400 units (2007: 386,500) and gaining market share. This was
largely due to the C-Class sedan, which defended its market
leadership in its category. In the luxury segment (S-, CL-, SL-Class,
SLR and Maybach), we were well ahead of our main competitors
with sales of 92,900 automobiles (2007: 107,000). Due to the up-
coming model changeover for the E-Class, sales of the E- and
CLS-Class fell to 172,900 units (2007: 230,900). 250,300 units of
the A- and B-Class were sold (2007: 275,400) and in the SUV
segment we sold a total of 161,300 vehicles of the M-, R-, GL-, GLK-
and G-Class (2007: 180,200). The Mercedes-Benz brand re-
corded lower unit sales in each of its major markets: the United
States (-11% to 223,600 vehicles), Western Europe (-8% to
629,300) and Japan (-23% to 35,800). However, business develop-
ments in many emerging markets were generally positive once
again. Growth rates were particularly high in China (+59%) and
the Middle East (+36%). The smart brand increased its unit
sales significantly to 139,000 cars in the year under review (2007:
103,100 cars). This was partially due to the great success of
the smart fortwo in the United States, where 27,600 cars were
shipped in the first year of sales. The US is now the third
biggest market for smart, after Italy (34,600 units) and Germany
(31,500) (see page 90).
Unit sales structure of Mercedes-Benz Cars
A-/B-Class 20%
C-/CLK-/SLK-Class 35%
E-/CLS-Class 14%
S-/CL-/SL-Class/SLR/Maybach 7%
M-/R-/GL-/GLK-/G-Class 13%
smart 11%
Unit sales structure of Daimler Trucks
Trucks Europe/Latin America 36%
Trucks NAFTA 22%
Trucks Asia 42%