Mercedes 1998 Annual Report Download - page 29

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OUTLOOK
25
Our other operational business units are also planning for
significant growth by the year 2001. Following the
complete acqusition by DaimlerChrysler, we expect to be
able to guide Adtranz towards profitable growth with a new
management structure and a leaner organization. The Auto-
motive Electronics unit will continue to benefit in coming
years from the increasing use of electronic components in
automobiles. The MTU/Diesel Engines unit will continue to
pursue the growth strategy already begun - the
development from a niche vendor to a full-line supplier.
INTEGRATION PROJECTS TO BE LARGELY COMPLETED BY
2001. Integration within DaimlerChrysler is being
coordinated by a Post-Merger Integration Team. We had
already identified the major areas of integration before the
merger. The integration projects are expected to be largely
completed by the end of 2001. In the current year we are
already realizing synergies with a value of € 1.3 billion
and in the medium term we are expecting synergy gains of
more than € 3 billion per year.
STRATEGIC POSITIONING IN ASIA. Despite a difficult market
situation, our activities to enhance our market presence in
Asia continue.
Because of the long-term significance of the Asian region
for DaimlerChrysler and to secure market closeness, we
established five regional centers in 1998 (North East Asia,
South East Asia I and II, Japan, and Australia/Pacific).
Together with the individual divisions they are responsible
for the success of DaimlerChrysler in those areas.
153
39
60
25
15
10
8
137
37
54
23
11
9
6
Revenues
in Billions
23.7
5.9
11. 0
3.3
0.8
1.4
1.3
DaimlerChrysler
Passenger Cars
(Mercedes-Benz, smart)
Passenger Cars & Trucks
(Chrysler, Plymouth, Jeep®, Dodge)
Commercial Vehicles
(Mercedes-Benz, Freightliner,
Sterling, Setra)
Services1)
Aerospace
Others2)
9.0
2.2
4.3
1.1
0.3
0.5
0.6
Investments in Property,
Plant and Equipment
in Billions
1999 E
€
1999-2001
€
16.6
5.5
5.2
2.2
1.6
2.1
DaimlerChrysler
Passenger Cars
(Mercedes-Benz, smart)
Passenger Cars & Trucks
(Chrysler, Plymouth, Jeep®, Dodge)
Commercial Vehicles
(Mercedes-Benz, Freightliner,
Sterling, Setra)
Aerospace
Others2)
5.5
1.9
1.6
0.8
0.5
0.7
Research and
Development 1
in Billions
1) Excluding third party contracts.
2) Including Headquarters, Adtranz 100%.
1) Including Chrysler Financial Services, excluding debitel.
2) Including Potsdamer Platz, Headquarters, Adtranz 100%.
EXPENDITURES TO SECURE THE FUTURE. In the 1999 to 2001
planning period, DaimlerChrysler expects to spend around € 40
billion (including third party contracts € 46 billion), or around
€ 13 billion annually, for research and development and invest-
ment in fixed assets. The focus of the investments will be on
product launches and facelifts in passenger cars and commercial
vehicles, and enlarging production capacities in the vehicle
business and for commercial aircraft. Important projects in
research and development are work on the successors to the
C- and E-Class of Mercedes-Benz, the Dakota truck and the
Chrysler minivan. In addition, the Maybach luxury sedan is
being developed. Heavy expenditures are also planned in the
Aerospace Division, especially for the development of new
Airbus models.
DaimlerChrysler
Passenger Cars
(Mercedes-Benz, smart)
Passenger Cars & Trucks
(Chrysler, Plymouth, Jeep®, Dodge)
Commercial Vehicles
(Mercedes-Benz, Freightliner,
Sterling, Setra)
Services1)
Aerospace
Others2)
1999 E
€
2001 E
€
1999 E
€
1999-2001
€