Mercedes 2008 Annual Report Download - page 73

Management Report |Liquidity and Capital Resources |69
Amounts in millions of € Change
Net debt of the Daimler Group
(8,719)
(333)
(9,052)
(3,670)
170
(3,500)
(12,552)
15,631
1,424
17,055
(54,967)
1,761
(53,206)
(36,151)
6,912
1,091
8,003
(58,637)
1,931
(56,706)
(48,703)
2008 08/07
Cash
Marketable securities and
term deposits
Liquidity
Financing liabilities
Market valuation and currency
hedges for financing liabilities
Financing liabilities
(nominal)
Net debt
2007
Amounts in millions of € % change
Investment in property, plant and equipment
+22
+18
+29
+41
+12
2,927
1,910
766
29
241
3,559
2,246
991
41
270
2008 08/072007
Daimler Group
Mercedes-Benz Cars
Daimler Trucks
Daimler Financial Services
Vans, Buses, Other
The net liquidity of the industrial business decreased by
€9.8 billion to €3.1 billion.
The decrease in net liquidity is primarily due to the share
buy-back (€4.2 billion), the negative free cash flow (€3.9 billion)
and the payment of the dividend for the year 2007 (€1.9 billion).
Net debt at Group level, which is mainly related to the refinancing
of the leasing and sales-financing business, increased by €12.6
billion compared with December 31, 2007. In addition to the effects
from the industrial business, the increase was also caused
by the expansion of the leasing and sales-financing business.
Capital expenditure
High levels of investment in new models and drive systems.
Daimler invested €3.6 billion in property, plant and equipment
in the year under review. The focus was on investments in new
vehicle models and new drive systems. €2.5 billion of the total
volume of capital expenditure was invested in Germany.
At Mercedes-Benz Cars, investment in property, plant and
equipment increased by 18% to €2.2 billion in 2008. The division’s
main capital expenditure was for the new E-Class, the new
sport-utility vehicle GLK, the new CLK coupe, and engine projects
for the reduction of fuel consumption and emissions. Daimler
Trucks invested primarily in projects for the global harmonization
and standardization of engines and major components and for
the fulfillment of stricter emission regulations. Substantial amounts
were also invested both in new truck models and platforms in
the heavy and medium categories and in our new truck plant in
Saltillo, Mexico. In total, Daimler Trucks’ investment in property,
plant and equipment amounted to €1.0 billion (2007: €0.8 billion).
At the Mercedes-Benz Vans unit, the focus of investment was
on the model upgrade for the Vito/Viano and the establishment
of a van plant in China. At Daimler Buses, higher amounts were
invested in 2008 in the development of future exhaust technologies.
Amounts in millions of € Change
Net liquidity of the industrial business
(10,230)
(317)
(10,547)
571
170
741
(9,806)
14,894
1,276
16,170
(5,019)
1,761
(3,258)
12,912
4,664
959
5,623
(4,448)
1,931
(2,517)
3,106
2008 08/07
Cash
Marketable securities and
term deposits
Liquidity
Financing liabilities
Market valuation and currency
hedges for financing liabilities
Financing liabilities
(nominal)
Net liquidity
2007