Mercedes 2009 Annual Report Download - page 95

Management Report |Liquidity and Capital Resources |91
Net debt at Group level, which is primarily related to the refi-
nancing of the leasing and sales-financing business, decreased
by €7.5 billion compared to December 31, 2008. In addition to
the development of the industrial business, this was mainly due
to the positive free cash flow in the financial services business,
which was primarily caused by the lower volume of new business
resulting from lower vehicle sales. These factors were partially
offset by the effects of currency translation.
Capital expenditure
Focus of investment on important projects. Daimler invested
€2.4 billion in property, plant and equipment in 2009 (2008: €3.6
billion). The focus was on investments in new vehicle models and
new drive systems. €1.8 billion (2008: €2.5 billion) of the total vol-
ume of capital expenditure was in Germany. The lower volume of
investment was primarily due to the policy of strict liquidity man-
agement that we pursued as a consequence of the difficult sit-
uation on financial markets during the year under review. We con-
centrated as far as possible on projects of particular importance
for the success of our vehicles and the future of the Group. These
projects were then pushed forward vigorously.
in millions of € Change
Net debt of the Daimler Group
2,888
5,251
8,139
343
(938)
(595)
7,54 4
6,912
1,091
8,003
(58,637)
1,931
(56,706)
(48,703)
9,800
6,342
16,142
(58,294)
993
(57,301)
(41,159)
2009 09/08
Cash
Marketable securities and
term deposits
Liquidity
Financing liabilities
Market valuation and currency
hedges for financing liabilities
Financing liabilities
(nominal)
Net debt
2008
At Mercedes-Benz Cars, investment in property, plant and equip-
ment decreased by 28% to €1.6 million in 2009. The division’s
main capital expenditure was for versions of the new E-Class and
engine projects for the reduction of fuel consumption and emis-
sions. In order to create additional capacities for new models in
the A/B-Class segment, we started construction of a new plant
in Kecskemét, Hungary. We also invested in the expansion of our
car production facilities in the growth markets of China and India.
Daimler Trucks invested primarily in projects for the global harmo-
nization and standardization of engines and major components
and for the fulfillment of stricter emission regulations. The division
also invested in successor generations for its truck models. We
established a new assembly plant in Saltillo, Mexico and started
work on a new press plant in Gaggenau. In total, Daimler Trucks’
investment in property, plant and equipment amounted to €0.6
billion (2008: €1.0 billion). At the Mercedes-Benz Vans division,
the focus of investment was on the model upgrade for the Vito/
Viano, the launch of particularly economical BlueEFFICIENCY
models. At Daimler Buses, substantial amounts were invested in
2009 in successor generations to our city buses and coaches
and in alternative drive systems. Daimler Buses also invested in
the expansion of its production facilities in Turkey.
in billions of €
Capital expenditure
4
3
2
1
0
20062005 2007 20092008
in millions of € % change
Investment in property, plant and equipment
-32
-28
-40
-25
-33
-66
3,559
2,246
991
150
117
41
2,423
1,618
597
113
78
14
2009 09/082008
Daimler Group
Mercedes-Benz Cars
Daimler Trucks
Mercedes-Benz Vans
Daimler Buses
Daimler Financial Services