Mercedes 2008 Annual Report Download - page 90

Mercedes-Benz Cars 5.9
Daimler Group 9.4
Daimler Trucks 2.7
Daimler Financial Services 0.1
Vans, Buses, Other 0.7
Investment in property, plant and equipment 2009–2010
in billions of €
Mercedes-Benz Cars 6.4
Daimler Group 10.1
Daimler Trucks 2.6
Vans, Buses, Other 1.1
Research and development expenditure 2009–2010
in billions of €
Amounts in billions of €
Investment in property, plant and equipment
9.4
5.9
2.7
0.1
0.7
3.6
2.2
1.0
0.04
0.3
2009-2010
Daimler Group
Mercedes-Benz Cars
Daimler Trucks
Daimler Financial Services
Vans, Buses, Other
2008
86
expenditure for new vehicles such as the new models of the A- and
B-Class. Substantial investment is also planned for new families
of engines with low fuel consumption and emissions. The focus in
the coming years at Daimler Trucks is on capital expenditure
for new platforms for heavy and medium-duty trucks, new global
engine projects, and the modernization of production facilities.
At Mercedes-Benz Vans, the main areas of investment are for the
model upgrade of the Vito and Viano vans and for setting up a
van plant in China. Key projects at Daimler Buses include advance
expenditure for future emission technologies and alternative
drive systems, as well as for new products.
Research and development
With our research and development activities, our goal is to secure
Daimler’s competitive position against the backdrop of upcoming
technological challenges. We also want to develop solutions for
sustainable mobility and to bring them to market maturity. We
will apply our research and development spending more efficiently
in the coming years by further optimizing work processes and
focusing on those projects that create the most value added for
our customers.
In order to achieve our ambitious goals, we have significantly
increased our research and development budget for the planning
period. In 2009 and 2010, Daimler will spend a total of €10.1
billion on research and development activities. R&D spending at
Mercedes-Benz Cars will be significantly higher than in recent
years. This is primarily due to substantial expenditure for the con-
tinual renewal of our model range as well as new engines and
We want our shareholders to continue participating in the Group’s
success in appropriate form in the coming years. In this context,
we aim to pay out dividends equivalent to the benchmark distribu-
tion ratio.
Fundamental conditions for our assessments of the year 2009 and
the improvement in profitability expected in 2010 are generally
stable political conditions and the assumption that the low point
of global demand for automobiles will be reached and passed
during 2009. Additional opportunities and risks may arise from
the development of currency exchange rates and raw-material
prices and from our assessment of the market success of our pro-
ducts.
Opportunities will arise in the medium term, especially due to
the expansion of our presence in Asia and Eastern Europe. Some
important steps in this respect are our cooperation with Beiqi
Foton in China, our equity stake in Russian truck manufacturer
Kamaz, the decision to build a new car plant in Hungary, and
the joint venture founded in 2008 with the Hero Group in India.
We also intend to utilize the opportunities that could arise from
taking a pioneering role with innovative technologies for sustaina-
ble mobility. We will consistently forge ahead with our initiatives
“Road to the Future” in the area of passenger cars and “Shaping
Future Transportation” with commercial vehicles. In this context,
we will maintain most of our planned research and development
projects.
Capital expenditure
In light of the current economic situation, we are focusing our in-
vestment budget as far as possible on projects that are essential
for the market success of our products. However, due to the in-
creased demands placed on our products and the necessity to
develop sustainable solutions for future mobility, we will probably
invest a total of more than €9.4 billion in property, plant and
equipment in 2009 and 2010 combined. The planned expenditure
is significantly higher than in previous years, in particular at
Mercedes-Benz Cars but also at Daimler Trucks. At the Mercedes-
Benz Cars division, the focus of investment will be on advance