Mercedes 1998 Annual Report Download - page 69

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ANALYSIS OF THE FINANCIAL SITUATION
65
Status of Compliance Planned Target Date for
as of December 31, 1998 100% Compliance
Critical business computer systems 99% December 1998
Critical plant floor equipment 65% September 1999
Production and critical 67% June 1999
non-production suppliers
Vehicle components 100% September 1999
End-user computing 33% September 1999
Dealers 65% September 1999
CHANGEOVER TO THE YEAR 2000. We have made an inventory
of the measures which are necessary for the adaptation of our
information processing and communications systems to the
year 2000. This study of year 2000 compliance did not only
concentrate on the data processing systems but also on the
technical equipment and machines in our production facilities
and spare parts warehouses, as well as the research and devel-
opment facilities, and it also included our suppliers and the
dealer organizations. In the main, the necessary conformance
measures will be implemented decentrally within the opera-
tional business units. A global project organization will manage
the exchange of know-how throughout the Group and coordi-
nate the implementation process. Using a reporting system
called into being specifically for this purpose, the Board
of Management will be informed at regular intervals of the
progress of the project and the critical areas of action.
In order to allow a smooth transition to the year 2000, all criti-
cal systems not yet adjusted to the date change are targeted to
be modified or replaced by the third quarter of the current
year. Together with the other automobile manufacturers in Ger-
many and the United States we are also working with our
suppliers so that they can make the necessary preparations for
the year 2000 changeover. We anticipate that our key suppliers
who have not yet completed the conversion process will
undertake the appropriate adjustment measures in time.
The following timetable shows DaimlerChrysler’s internal
target dates for compliance and the estimated compliance
status as of December 31, 1998, by area:
The costs for the whole changeover process are expected to
amount to approximately € 240 million.
EVENTS AFTER THE END OF THE 1998 FISCAL YEAR. Beyond
the developments already described, no events occurred after
December 31, 1998 which are of major significance for
DaimlerChrysler and would lead to a change in the assessment
of the Group. The course of business in the first months of
1999 confirms the statements in the chapter Outlook.
This Annual Report contains forward-looking statements based on beliefs of DaimlerChrysler management. When used in this
document, the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan” and “project” are intended to identify forward-looking
statements. Such statements reflect the current views of DaimlerChrysler with respect to future events and are subject to risks and
uncertainties. Many factors could cause the actual results to be materially different, including, among others, changes in general
economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products, lack of
acceptance of new products or services and changes in business strategy. Actual results may vary materially from those projected here.
DaimlerChrysler does not intend or assume any obligation to update these forward-looking statements.