Mercedes 2015 Annual Report Download - page 69

76 B | COMBINED MANAGEMENT REPORT | CORPORATE PROFILE
Daimler is also active in the global automotive industry
and related sectors through a broad network of subsidiaries,
associated companies, joint ventures and cooperations.
The statement of investments of Daimler AG in accordance with
Section 313 of the German Commercial Code (HGB) can
be found in E Note 39 of the Notes to the Consolidated
Financial Statements.
Portfolio changes and strategic partnerships
By means of targeted investments and future-oriented partner-
ships, we strengthened our core business and utilized addi-
tional growth potential in 2015. At the same time, we focused
on the continuous further development of our existing busi-
ness portfolio, as well as on improving our competitiveness in
our core business areas.
Entry into the digital map business
In August 2015, Audi, BMW and Daimler reached an agreement
with the Nokia Corporation on the acquisition of its HERE
subsidiary, which provides digital mapping and location-based
services. This move will ensure the availability of HERE products
and services as a permanently open, independent and value-
added platform for cloud-based map and mobility services.
Digital maps from HERE will serve as the foundation for the next
generation of mobility and location-based services, which in
turn will form the basis for new assistance systems and even-
tually fully automated vehicles. Such systems link highly
precise digital map data with real-time vehicle data in a manner
that enhances road safety and enables the introduction
of innovative products and services. The three partners have
acquired equal numbers of shares in HERE. The purchase
price of €2.6 billion was financed by capital contributions from
Audi, BMW and Daimler and partially by borrowing. Daimler’s
capital contribution amounted to €0.7 billion. After receiving the
approval of the antitrust authorities, the transaction was
completed in December 2015.
Audi, BMW and Daimler plan for other investors to acquire
shares in HERE and to reduce their own stakes in HERE from
the current level of 33.3%.
Expansion of the partnership with BAIC
Daimler and the Chinese automobile manufacturer BAIC Motor
Corporation plan to intensify their cooperation in the area
of financial services. To this end, Daimler AG and BAIC Motor
Corporation signed an agreement in March 2015. In line with
that agreement, BAIC Motor, which is the passenger car
division of the BAIC Group, has acquired 35% of Mercedes-Benz
Leasing Co., Ltd (MBLC) within the framework of a capital
increase. Daimler will retain its majority interest with 65% of
MBLC’s shares. The transaction was completed at the beginning
of September 2015 after being approved by the relevant
authorities. The expansion of financial services is an important
factor for achieving growth in China in the future.
We once again expanded production capacities at Beijing
Benz Automotive Co., Ltd. (BBAC) in 2015. Another SUV
model for the Chinese market went into production there
in October – the GLC – about six months after the start
of production of the compact GLA. In 2015, we produced
more than 200,000 vehicles locally at BBAC for the first
time in one year.
Production joint venture with Nissan launched in Mexico
Daimler and the Renault-Nissan Alliance have intensified
their cooperation five years after the launch of their strategic
partnership. In September, the two companies laid the corner-
stone for a new joint-venture production plant in Aguascalientes,
Mexico, known as COMPAS (Cooperation Manufacturing Plant
Aguascalientes), whose establishment had been agreed upon
back in June 2014. The new plant is being constructed at a site
in the direct vicinity of an existing Nissan facility. After the start
of production, the new plant will be ramped up to an annual
capacity of 300,000 units, which is expected to be achieved
by 2021. Production is scheduled to begin with Infiniti models
in 2017. The plant will start producing Mercedes-Benz brand
vehicles in 2018. The partners will invest a total of $1 billion
in the joint venture. Daimler and Renault-Nissan will also coop-
erate on the development of the next generation of premium
compact cars for the Mercedes-Benz and Infiniti brands.
Daimler acquires an interest in Zonar Systems
In June 2015, Daimler Trucks North America (DTNA) acquired
a minority interest in Zonar Systems Inc., which is one of
the leading developers and suppliers of logistics, telematics and
connectivity solutions. The investment is a key milestone
along the way to completely connected vehicles and value-added
services for truck fleet operators and drivers. DTNA and
Zonar will work together to launch tailored applications for
North American customers.
Reorganization of the sales system
Mercedes-Benz is restructuring its own sales organization
in Germany for the requirements of the future. The objective
is to ensure optimal customer care, to operate profitably
on a sustainable basis, and thus to protect jobs. In this context,
63 of the total 158 Daimler-owned sales locations were sold
in 2015. For 26 of the operations sold, the transfer of ownership
took place on January 1, 2016. The other transactions will
be concluded in 2016.
In addition, Daimler’s own sales-and-service centers, which had
been organized in early 2015 as regional sales centers, eleven
for cars and eleven for trucks, have now been transitioned into
the planned target structure of seven regional sales centers
for cars and seven for trucks as of January 1, 2016. We are thus
consistently pursuing our strategy of a divisional orientation;
by focusing on the respective business we are ensuring optimal
customer care, the basis for secure jobs and adequate
profitability.
We are continually optimizing our sales structures also
in other markets.
Sale of Atlantis Foundries (Pty.) Ltd.
Daimler Trucks also continually works to improve its competi-
tiveness. Within the framework of this strategy, a decision was
made at the end of February to sell the division’s Atlantis
Foundries business in South Africa. The new owner is an estab-
lished supplier company that will continue to deliver cylinder
crankcases to Daimler. The transaction was completed at the
end of June 2015 after approval by the relevant authorities.