Mercedes 2009 Annual Report Download - page 73

Management Report |Business and General Conditions |69
Exchange rates featured substantial fluctuations once again in 2009.
For example, the euro at first fell against the US dollar by 10% to
US $1.26 in the first quarter, but then climbed again until autumn.
For a while, the euro was worth US $1.50. At the end of 2009,
the euro was 3.5% higher against the US dollar than a year earlier.
The development of the euro against the yen was similar, with the
euro actually rising by 5.6% over the whole year. The value of the
euro also fluctuated compared with the British pound, and lost
6.8% over the year as a whole.
Automotive markets. The severe economic crisis in 2009 had
substantial effects on global automotive markets.
After the worldwide market for cars had already shrunk signifi-
cantly in the second half of 2008, the lowest point of global
demand was reached in the first quarter of 2009 with a decrease
of just
over 20%. Subsequently, the national incentive programs
for car
buyers gradually began to take effect in many volume mar-
kets.
As a result, the drop in demand became less pronounced
and in
the second half of the year worldwide figures for new car
registra
tions actually increased. Only thanks to the massive state
support
programs was it possible to restrict the drop in global car
sales in full-year 2009 to approximately 5%. Because the state
incentive programs mainly benefited the market segment of small
cars, the decreases in unit sales in the markets for premium
cars, which
are of course more important to Daimler, were in some
cases much
more severe. But demand for cars developed very
variedly in 2009 not only in terms of market segments, but also
regionally.
In the United States, sales of cars and so-called light
trucks fell
by a further 21% or nearly 3 million units, after the mar-
ket had already shrunk to a similar extent in 2008. The Western
European market profited substantially from generous scrappage
schemes in all volume markets and many medium-sized and
smaller
markets. After a double-digit drop in sales had been expect-
ed
at the beginning of the year, demand then rose significantly
thanks
to state incentives, so that the prior-year level was actual-
ly rea
ched in full-year 2009. In Germany, the biggest individual
market
in Europe, new registrations increased by 23% due to an
“envi
ronmental bonus”, and unit sales in France increased by a
good
10%. The Italian market approached the prior-year level, and
the
slumps in demand in the United Kingdom and Spain were
offset
to a substantial extent by government incentives. In Japan,
unit sales of cars fell by approximately 7%.
While the Russian market collapsed by nearly 50% and the mar-
kets of the Eastern European EU countries shrank by more than
25%, demand in South America nearly equaled the prior-year level
due to the strong Brazilian market (+13%). However, the emerging
markets of Asia recorded aggregate double-digit expansion due
to strong growth in China (+47%) and India (+17%), which was
boosted by substantial tax relief.
The weakening of worldwide demand for commercial vehicles
that had already been expected was made much more severe by
the financial and economic crisis. The drastic drop in demand
for transport services and the consequential difficult situation of
shipping companies resulted in drops in orders for new trucks
in
many major markets, in some cases of dramatic proportions.
With the exception of China, total worldwide new registrations
of commercial vehicles also fell significantly. However, markets
developed very disparately by segment and region. In the three
major markets of the United States, Western Europe and Japan,
all segments recorded severe sales declines. The situation
was
the worst in the segment of medium and heavy-duty trucks,
with
declines of more than 30% in the United States, more than
40% in
Western Europe and actually more than 45% in Japan. In the
larg
er emerging markets, however, the development of demand
for trucks was very varied. The Russian market lost more than
two
thirds of its volume compared with the prior year. Demand in
Brazil
and India fell by less drastic rates of 10% and 15% respec-
tively. In
China, the world’s biggest truck market by a large
margin, total
sales were significantly higher than in the prior year,
so in the
year 2009, nearly 50% of the world’s medium and
heavy-duty
commercial vehicles were sold in China.
Unit sales growth rate 2009/2008 (in %)
Global automotive markets
Passenger cars
Commercial vehicles
1 Segment passenger vehicles including light trucks
2 Medium and heavy-duty trucks
Source: German Association of the
Automotive Industry (VDA), various institutions
30
20
10
0
-10
-20
-30
Total Western
Europe Japan ChinaUSA1, 2 South
America
2