Mercedes 2008 Annual Report Download - page 94

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Market developments negatively impact unit sales and earn-
ings. Mercedes-Benz Cars, comprising the brands Mercedes-
Benz, Maybach, smart and AMG, sold 1,273,000 vehicles in 2008
(2007: 1,293,200). Conditions on international markets deterio-
rated throughout the year, particularly in the second half, and
Mercedes-Benz Cars reacted to the situation by adjusting pro-
duction output as of the third quarter. The negative market devel-
opment and the upcoming E-Class model changeover caused
revenue at the division to decrease by 9% to €47.8 billion.
Despite further efficiency improvements, EBIT of €2,117 million
was significantly lower than in the prior year (see page 54).
Mercedes-Benz unit sales impacted by difficult market envi-
ronment. The Mercedes-Benz brand delivered 1,125,900 vehi-
cles in the year under review (2007: 1,180,100), thus defending
its worldwide position in the premium-car segment. The gradual
deterioration of economic conditions in 2008 had a major impact
on the development of unit sales throughout the year. While
the brand was still able to post high growth rates in the first two
quarters, some volume markets shrank significantly in the middle
of 2008. In the second half of the year, the further intensification
of the financial crisis and its impact on the real economy led to
massive decreases in unit sales in all major economic regions.
Worldwide sales in the luxury segment (S-, CL-, SL-Class, SLR and
Maybach) totaled 92,900 units (2007: 107,000), putting us well
ahead of our major competitors. Sales of upper-range models
(E- and CLS-Class) fell to 172,900 units (2007: 230,900) due
to the E-Class model changeover scheduled for the spring of
2009. In the C-Class segment (C-, SLK-, CLK-Class), we increased
our unit sales by 16% to 448,400 vehicles and gained additional
market share. This positive development was largely due to the
great popularity of the new C-Class and the new CLC sports coupe.
The C-Class sedan also successfully defended its leading market
position in its segment in 2008. The Mercedes-Benz brand
delivered 250,300 A- and B-Class vehicles to customers in the
year under review (2007: 275,400) and sold 161,300 units of
the M-, R-, GL-, GLK- and G-Class in the all-terrain/SUV segment
(2007: 180,200).
Due to extremely difficult market conditions in the second half of
2008, unit sales of Mercedes-Benz passenger cars in the United
States declined by 11% from the record level of 2007 to 223,600
vehicles in the year under review. Sales of 629,300 units in
Western Europe were 8% lower than in the prior year, while deliv-
eries of 300,900 cars in Germany were close to the prior-year
number (309,900). Mercedes-Benz unit sales in Japan in 2008
were also significantly lower than the figure recorded in the
prior year due to negative developments in that market. However,
business developments in numerous emerging markets were
very positive, with particularly strong growth in China (+59%) and
the Middle East (+36%).
Fuel-efficient model variants. Mercedes-Benz seeks to inspire
its customers with economical and environmentally compatible
premium automobiles that sacrifice nothing in the way of the typ-
ical brand attributes of safety, comfort, and superior driving
pleasure. Our “Road to the Future” program launched in Septem-
ber 2007 demonstrates how we intend to achieve that goal.
An important step in this respect was taken during the year under
review with the introduction of numerous BlueEFFICIENCY
models. BlueEFFICIENCY comprises a package of fuel-economy
enhancement measures that are being applied in all Mercedes-
Benz model series. These measures involve the optimization of
weight, aerodynamics, roll resistance, energy management,
and drive systems. A- and B-Class models equipped with start-
stop technology are already available, as is a natural-gas version
of the B-Class. The hot-selling C 180 KOMPRESSOR and C 200 CDI
models can now also be purchased as BlueEFFICIENCY versions.
The new C 250 CDI BlueEFFICIENCY, which was launched in the
fall of 2008 and is equipped with a new four-cylinder diesel
engine, combines driving pleasure with outstanding efficiency.
With fuel consumption of only 5.2 liters of diesel per 100 kilo-
meters and carbon-dioxide emissions of 138 grams per kilometer,
the model offers the performance of a conventional six-cylinder
engine but with much lower fuel consumption. And in October
2008, Mercedes-Benz launched the fuel-efficient C350 CGI
BlueEFFICIENCY with the world’s first gasoline engine with direct
fuel injection. This new technology makes the car 14% more
fuel efficient than the C 350 with conventional fuel injection. In
December 2008, Mercedes-Benz then launched the first-ever
Mercedes-Benz Cars. Unit sales only slightly below prior-year level
despite difficult markets. Significant upgrade of model portfolio.
Successful launch of smart in the United States. EBIT significantly
below prior-year level at €2.1 billion (2007: €4.8 billion).
2,117
47,772
4.4%
2,246
2,944
1,060
1,338,245
1,273,013
97,303
% change
-55
-9
.
+18
+10
+50
+3
-2
-0
08/07
4,753
52,430
9.1%
1,910
2,733
705
1,300,089
1,293,184
97,526
Amounts in millions of €
20072008
EBIT
Revenue
Return on sales
Investment in property,
plant and equipment
Research and development
expenditure
of which capitalized
Production
Unit sales
Employees (December 31)