Mercedes 1998 Annual Report Download - page 42

COMMERCIAL VEHICLES
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EARNINGS SIGNIFICANTLY IMPROVED. The positive trend in
earnings achieved in1997 was strengthened considerably in
1998. Operating profit from commercial vehicles rose from
€ 342 million in 1997 to € 946 million. The new, more cost-
effectively manufactured products, continued process optimiza-
tion in production and constructive relations with the suppliers
were particularly important factors.
MERCEDES-BENZ VANS LEAD MARKET IN WESTERN EUROPE.
With the successful Vito (2.6 tons), Sprinter (2.5 to 4.6 tons)
and Vario (4.8 to 7.5 tons) van models and the V-Class minivan,
the Vans Europe unit again grew more strongly than the market
in 1998. It was able to reinforce the leading position it achieved
for the first time in the previous year in the segment from
2 to 6 tons in Western Europe. Market share in this segment
highest safety standards. In 1998, the product drive was
continued in Europe with the new Atego delivery truck.
This series is produced in Wörth, Germany, and has impressed
drivers and fleet operators.
The Atego was awarded the distinction of “Truck of the Year
1999” by the international automotive press after the heavy-
duty Actros truck took the title in 1997. The business unit’s
sales rose 13% to a total of 87,300 vehicles. In the sector
for trucks over 6 tons, we reinforced our market leadership
in Western Europe and achieved a market share of 23%.
The Trucks Europe production network, which includes
the facilities in Wörth, Germany, Aksaray, Turkey, Arbon,
Switzerland, and Molsheim, France, assembled a total of
88,700 trucks in 1998 (1997: 78,800 units).
In 1998, the Unimog business was focused even more strongly
on the tool carriers segment and was integrated into the Trucks
Europe Unit. A total of approximately 2,900 Unimogs were sold
in 1998.
POWERTRAIN UNIT AS A COMPETITIVE SYSTEM SUPPLIER.
As a competitive component manufacturer with special system
expertise, the Powertrain unit produces and markets engines,
transmission units, axles, and steering systems. The unit’s
most important customers are the assembly plants for
Mercedes-Benz commercial vehicles in Western Europe.
Since 1998, it has also been producing engines for Freightliner
Corporation in North America. The unit delivered products
worth € 2.9 billion to customers inside DaimlerChrysler.
Revenues from external customers amounted to approximately
of € 0.3 billion. As a result of the business unit’s independent
presence at the International Commercial Vehicle Show in
Hannover, more customers from outside of DaimlerChrysler
have been reached. In the current fiscal year, the business unit
plans to continue to expand its sales organization and after-
sales activities. In addition, more attention will be focused
on improving its competitive position and taking advantage
of the opportunities offered by the global production network.
EVOBUS CONTINUES TO EXPAND LEADING MARKET POSITION.
The Buses Europe unit, whose corporate name is EvoBus
GmbH, increased its sales in 1998 by 4% to a total of nearly
8,300 Mercedes-Benz and Setra units (5,700 complete buses
and bus chassis and 2,600 vehicles respectively). The unit also
strengthened its leading market position in Western Europe
(including Turkey) with 20% for Mercedes-Benz (1997: 18%) and
9% for Setra (1997: 9%). Among the most important product
launches at Mercedes-Benz in 1998 were the CITARO, which
was awarded the title of “Commercial Vehicle of the Year,”
in the city bus category, the 15-meter version of the INTEGRO
as well as the innovative CITO midibus. In addition, the
15-meter Setra 319 GT-HD tour bus was introduced to the
market in 1998.
STRONGEST GROWTH IN NORTH AMERICA. Freightliner Corpora-
tion continued its growth course in 1998 and participated at an
above-average rate in the positive market development in North
rose to 18.7% (1997: 18.3%). In Germany, market share was also
higher at 27.1% (1997: 26.4%). Total sales for the business unit
increased to 199,500 vehicles exceeding the previous year
record by a further 10%. Germany remains the most important
market for the Vans Europe business unit at 66,100 vehicles
(up 8%). A total of 123,800 vehicles were sold in Europe out-
side of Germany (up 7%), and 8,600 vehicles were sold over-
seas (up 66%).
The “1998 Commercial Vehicle of the Year” awards illustrate
the outstanding customer acceptance of Mercedes-Benz vans:
The Sprinter and Vito won first place and the Vario third place
in the light trucks category of under 7.5 tons.
SUBSTANTIAL GROWTH IN REVENUES FOR TRUCKS EUROPE.
The Mercedes-Benz truck product program includes vehicles
tailored to market demands for nearly every application and
they all offer the highest possible customer benefit. It also
includes special vehicles such as the Econic, manufactured in
Arbon, Switzerland, that was launched in 1998. The success
factors of the truck product range are high efficiency, customer-
friendly maintenance intervals, an environmentally compatible
product concept, ergonomically designed interior space and
First market appearance of the Powertrain unit at the IAA
commercial vehicle show in Hannover.