Mercedes 2009 Annual Report Download - page 68

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Target system. Our overriding corporate goal is to achieve sus-
tainable profitable growth and thus to increase the value of the
Group. We intend to be among the world’s leading automotive com-
panies. As shown in the diagram on page 65, the Daimler target
system consists of six strategic dimensions. It provides a strate-
gic framework and defines in which dimensions we want to play
a leading role. We aim to inspire our customers with our brands,
products and services. And we strive to occupy the leading posi-
tion in each market segment. With pioneering technologies, we
want to be the world leader for sustainable drive systems and
safety. Outstanding implementation and efficiency as well as moti-
vated and top-performing employees are the key to our future
corporate success. Our employees’ actions are oriented towards
the corporate values of passion, respect, integrity and discipline.
This is the main prerequisite for operational excellence.
Four strategic focus areas for action. In order to achieve our
strategic targets, we have laid down four strategic focus areas for
action in the coming years within the framework of the Daimler
target system. The global financial and economic crisis has not
changed our fundamental strategic focus, but has confirmed its
validity:
–Operational excellence and a culture of high performance.
Difficult phases such as the current sales crisis in the automo-
tive industry result in special requirements in terms of compa-
nies’ flexibility and efficiency. Daimler reacted fast and consis-
tently to adjust its liquidity and cost situation in line with the
drastically changed market situation. Through the regulation
of vehicle stocks, short-time working arrangements and reduced
working times, we have optimized our cash flows and reduced
costs rapidly and significantly. In addition, the efficiency pro-
grams already in place have been intensified in all of our busi-
ness operations, and wherever it makes sense they have been
supplemented with structural actions. For example, the
Mercedes-Benz GoFor10 efficiency program has been expand-
ed
with structural elements. At Daimler Trucks, efficiency and
restructuring programs are being carried out in all the important
regions of the world. Trucks NAFTA already started its com-
pre
hensive repositioning in October 2008. Trucks Asia also start-
ed
a realignment in May 2009, ranging from the streamlining
of its
product offering to the optimization of its dealer and ser-
vice
network. At Trucks Europe/Latin America, more short-
term
measures have been initiated: production and capacities
have
been adjusted and the cost position has been optimized.
At
Mercedes-Benz Vans and Daimler Buses, the existing effi-
ciency programs have been further intensified. The Captive#1
program at Daimler Financial Services, which we started at the
beginning of 2008, is intended not only to improve efficiency,
but also to
create a worldwide uniform process and system
landscape. In
total, these actions have had a positive impact
on earnings of
€5.3 billion.
Clear structures, efficient processes and a culture of excellence
are essential to stay competitive in the future and to remain
among the leading vehicle manufacturers. Only successful
companies are able to strengthen their competitive position
and make the required investments in the vehicles and markets
of the future. This is why operational excellence will continue
to be one of our strategic focuses.
–Expansion of core business in traditional market segments
and utilization of new opportunities on a regional basis.
Unique products and customer services are crucial prerequi-
sites for profitable growth. Notwithstanding the current difficult
development of our important markets and market segments, we
are on the right track with our strategies for products, services
and markets. In the medium to long term, we will significantly
increase unit sales at Mercedes-Benz Cars on the basis of new,
attractive products. The new-generation S-Class has extended
its leadership in the world market for large premium cars.
With the new E-Class, Mercedes-Benz has once again set the
stan
dards in terms of safety, comfort and fuel consumption,
and has
further strengthened its market position in its catego-
ry. And
with compact cars (A/B-Class), we will expand our
offering from
two to four highly attractive models in the future.
Our new
plant in Kecskemét, Hungary will add to our capacity
in combination with the existing plant in Rastatt. This will allow
us to
significantly improve our cost position in the price-
sensitive
segment of compact cars.