Mercedes 1999 Annual Report Download

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Table of contents

  • Page 1

  • Page 2
    ... â,¬ 99:98 change in % DaimlerChrysler Group in millions of US $1) Revenues European Union of which Germany NAFTA of which USA Other markets Employees (at Year-End) Research and Development Costs Investments in Property, Plant and Equipment Cash Provided by Operating Activities Operating Profit...

  • Page 3

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  • Page 8
    ... market shares, technological innovations, and major advances in the way we design and build our vehicles, serve our customers and manage our business portfolio. All of our major automotive brands - Mercedes-Benz, Chrysler, Jeep, Dodge, Freightliner, Sterling, Setra - as well as our services company...

  • Page 9
    ... our day-to-day business, kept our eye on the ball, and simultaneously set in motion a process of profound change. It is to everyone's credit that we accomplished so much - the best year ever in our combined history. Today, integrated functional departments, and shared ideas and technologies, are...

  • Page 10
    ... business is no longer just about moving metal. It's about moving customers - in both senses of the word. Today's customers assume quality and reliability as given. What they demand now are styling, power, status, lifestyle and personalized service. They want their dream car, or truck. They...

  • Page 11
    ...developments into our passenger and commercial vehicles. What's more, of the 500 projects currently under way in our Research & Technology division, more than half will in the near future find their way into two or more of our business stock-in-trade, and a powerful part of our competitive advantage...

  • Page 12
    ... on-line vehicle financing decision within 15 minutes. And our supplier program has been driven through a dedicated Internet market place for seven years. In fact, last year, 81% of our suppliers voted DaimlerChrysler the best company for communication in supply management. In short, e-business has...

  • Page 13
    ... business is to build the world's best cars and trucks, to support the people who buy them with the world's best automotive services, and to build the best internal processes in the industry. In the final analysis, technology remains a means to an end, not an end in itself. We drove and will drive...

  • Page 14
    ... & Industrial Non-Automotive Appointed until 2003 Corporate Development & IT-Management Appointed until 2003 Human Resources & Labor Relations Director Appointed until 2004 8 THOMAS C. GALE MANFRED GENTZ JAMES P. HOLDEN Product Development, Design Chrysler Group & Passenger Cars Operations...

  • Page 15
    ...W. SIDLIK Mercedes-Benz Passenger Cars & smart Appointed until 2003 Services (debis) Appointed until 2003 Procurement & Supply Chrysler Group & Jeep Operations Appointed until 2003 GARY C. VALADE KLAUS-DIETER VÃ-HRINGER DIETER ZETSCHE Global Procurement & Supply Appointed until 2003 Research...

  • Page 16
    ..., who drives the business program of DaimlerChrysler's development of fuel-cell technology, sits down at a table in the main cafeteria at the corporation's Stuttgart headquarters - and reinvents his world. How engines will work. Which technology factors will differentiate the way cars perform and...

  • Page 17
    ... The Eurostar/SFT assembly lines in Graz, Austria, which run five different car manufacturing platforms that consume 300 truckloads of parts a day. Last May, the Graz team successfully integrated production of the Mercedes-Benz M-Class into a line formerly devoted to the Jeep Grand Cherokee - with...

  • Page 18
    ...rentals, financing, leasing, fleet management, telematics, servicing, insurance, legal support for new and used vehicles. All this is part of the growing business of debis, the services company of DaimlerChrysler, which provides its provides their customers worldwide with sophisticated, value-adding...

  • Page 19
    ... the vehicle, and emits pure water vapor. In an era of global warming, atmospheric pollution and long-term fossil-fuel scarcity, DaimlerChrysler fuel-cell technology is a guarantor of sustainable mobility in the future, and the company is moving rapidly towards mass production for small cars and...

  • Page 20
    ... of a new or used vehicle sale, leasing, financing, insurance, partexchange etc.) and also includes customer-relations elements. Moreover, says Torok, the company can now pursue the value chain and apply its cutting-edge automotive technologies to much greater effect because development costs can be...

  • Page 21
    ...Chelsea test track, testing the soon-to-be-unveiled new Chrysler coupe, another in the long line of "concept cars" that Board of Management member Tom Gale calls "icons". Says Gale: "These are cars and projects that, from the company's earliest days, have dazzled the industry. When Chrysler was down...

  • Page 22
    ... projects under way. In that time, 70 of those projects were completed and their results transferred to the company's internal "customers" for application in products and services; 85 new developments were unveiled for passenger car and commercial vehicle manufacturing; and almost 2,000 patents...

  • Page 23
    ... (the 153-day world exposition opening in Hanover on June 1), on a pre-visit to Barcelona last year as part of a tour of six European cities. The project LAB.01, an undertaking by the company's communication division, offers young people an interactive experience with future technologies, that is...

  • Page 24
    ...people say, 'This is real value for money.' Quality, cost and innovation at the right time are all critical, but at the heart is pace-making innovation. After all, we have a 6-8 year life cycle in the automotive industry, while in the electronics industry it's only 12 months. The question we have to...

  • Page 25
    ... Auburn Hills can transfer its processes to Stuttgart." The rate of exchange is moving like a high-speed train. The willingness to share, says Schöpf, has been fantastic. KEEP ON TRUCKING. Between Freightliner in North America, and Mercedes-Benz in Europe, the Commercial Vehicles division headed by...

  • Page 26
    ...line, Mercedes-Benz trucks are now offering new services to their operators. In 1999 FleetBoard, a new fleet management system, was introduced. Seen here in the popular Actros (above and right), FleetBoard represents a major advance in truckoperator business-to-business communications. This Internet...

  • Page 27
    ...'s developing value-chain product and service template. Meanwhile, the company is busy leveraging its technological capacity from the passenger car side of the house, over to commercial vehicles. "Beyond mere scale," says Dieter Zetsche, "we have the advantage of being part of a big automotive group...

  • Page 28
    ...â,¬ DaimlerChrysler Group Mercedes-Benz Passenger Cars & smart Chrysler Group (Chrysler, Jeep®, Dodge, Plymouth) 11,089 2,722 11,012 2,703 8,593 1,993 5,086 1,075 5,051 1,067 4,255 946 Commercial Vehicles (Mercedes-Benz, Freightliner, Sterling, Setra, Thomas Built Buses) Services Aerospace...

  • Page 29
    ...) and the Financial Services (+ 29% to â,¬10.1 billion) business units. We were particularly successful in North America, where the division's revenues rose 35% to â,¬6.3 billion. (see pp. 44-45) Sales of Mercedes-Benz passenger cars achieved double-digit growth rates in nearly all key markets. The...

  • Page 30
    ... millions 99 â,¬ Purchasing General Integration/ Finance /Services Research and Development Sales Organization/ Additional Sales Total 520 370 80 420 1,390 Mercedes-Benz Passenger Cars & smart Chrysler Group Commercial Vehicles Services Aerospace Other 24 % 46 % 19 % 2% 5% 4% BUSINESS REVIEW 24...

  • Page 31
    ... automotive business. Among the most important investment projects at the Mercedes-Benz Passenger Cars & smart division were the new Technology Center in Sindelfingen and the preparations for producing the new C-Class. Investment in the Chrysler Group division focused on the new Jeep assembly plant...

  • Page 32
    ... international indexes Share price does not reflect positive business developments at DaimlerChrysler Highest dividend yield in the automotive industry â- THE DAIMLERCHRYSLER SHARES â- â- 26 UPWARD TREND ON INTERNATIONAL MARKETS. The year 1999 saw stock markets in North America and Europe...

  • Page 33
    ... DCX Investor Relations homepage with great success. Here, investors can find not only information on the company and its stock, but also all annual and interim reports, SEC filings, corporate presentations and videos of these presentations. Currently we have more than 10,000 page-visits a day and...

  • Page 34
    ...world market, the Commercial Vehicles division will take greater advantage of the benefits offered by international networks. We also want to maintain our technical leadership and to extend the range of services we offer in connection with commercial vehicles. Our new small van, the Vaneo, will open...

  • Page 35
    ... & smart Chrysler Group (Chrysler, Jeep®, Dodge, Plymouth) Commercial Vehicles (Mercedes-Benz, Freightliner, Sterling, Setra, Thomas Built Buses) 5.9 1.9 17.5 5.5 2.0 6.0 DaimlerChrysler is a company whose unique potential ensures it an excellent global competitive position. At the same time...

  • Page 36
    ... year ever for MERCEDES-BENZ & SMART Mercedes-Benz Passenger Cars & smart Mercedes-Benz The new Mercedes-Benz CL is a unique synthesis of high performance and luxury. Advanced technology that is unavailable in any other car and innovative design are additional features of this exclusive Mercedes...

  • Page 37
    ... of passenger cars in Western Europe were higher than in 1998. Mercedes-Benz and smart market segments profited from this development. In North America, sales in the premium market segments again surpassed the previous year's high levels, primarily as a result of generally favorable economic...

  • Page 38
    ... important markets. Revenues set a new record, climbing to â,¬38.1 billion (1998: â,¬32.6 billion). 1999 was also the first year in which more than one million Mercedes-Benz and smart passenger cars, station wagons, SUVs and City coupes were sold throughout the world, an increase of 157,500 vehicles...

  • Page 39
    ... Mercedes-Benz CLKs. MIKA HÄKKINEN WORLD CHAMPION AGAIN. 33 Passenger Car Sales 1999 1,000 Units 99:98 (in %) From its market launch until the end of January 2000, more than 100,000 smart City coupes left the assembly line for service on Europe's roads. Weekly sales figures for the smart rose...

  • Page 40
    ...E P Chrysler Group ® , D O D G E , P L Y M O U T H Combining versatility and efficiency in an all-new, distinctively American CHRYSLER GROUP design, the Chrysler PT Cruiser breaks the mold of a traditional small car to create a new flexible-activity vehicle with an innovative interior package...

  • Page 41
    ..., 1999 was an all-time record year in terms of revenues. And with several all-new vehicles joining the lineup, continued strong performance is expected. The division's strongest presence is in North America. The Chrysler Group's US market share in 1999 for cars and light trucks was 15%. amounts in...

  • Page 42
    ... of the Plymouth brand at the close of the 2001 model year is part of a strategy for sharpening the focus of the division's brands and expanding the Chrysler brand globally. JEEP UNIT SALES CONTINUED TO GROW. Jeep sales reached an all-time high in 1999, totaling 680,700 units, up 20%. Leading...

  • Page 43
    .... SUCCESS ON THE TRACK. 37 Vehicle Sales 1999 1,000 Units 99:98 (in %) Total of which: Passenger cars Trucks Minivans SUVs United States Canada Mexico Rest of the world 3,229 906 741 682 900 2,693 268 91 177 +4 -3 +3 -1 +20 +6 +3 -5 -6 The company sharpened its focus on customer service in...

  • Page 44
    ...COMMERCIAL VEHICLES Growth continues I N G S E T R A , Freightliner, the No.1 supplier of heavy duty trucks in North America, offers the most modern family of trucks and the largest selection of cabs, sleepers, and component options in the industry. Sterling was founded by Freightliner Corporation...

  • Page 45
    ... of commercial vehicles. It is also an internationally-recognized manufacturer of top-quality components. Our global production and development spans locations in Europe and North and South America. In 1999 our success continued. Thanks to a fresh and innovative product line, sales and revenues rose...

  • Page 46
    ... production process. This engine center sets the standard for other Powertrain centers. COMMERCIAL VEHICLES 40 excellent safety and high environmental standards. In 1999 the Atego was voted Truck of the Year, as was the Actros in 1997. In 1999 new registrations of Mercedes-Benz trucks throughout...

  • Page 47
    ... in South America, which will be equipped with the cab used for the European Atego. The new business structure will give additional impetus to this process of integration. Commercial Vehicles Sales 1999 1,000 Units 99:98 (in %) World of which: Vans (including V-Class) Trucks Buses Unimogs Europe...

  • Page 48
    ... cars of the Mercedes-Benz and smart brands, passenger cars and trucks of the Chrysler, Jeep and Dodge brands and the various trucks, vans and buses of the Commercial Vehicles division. The goal of the AUTOMOTIVE COUNCIL (AC) and its members from each of the three automotive divisions is to guide...

  • Page 49
    ... Cars & smart Dieter Zetsche Global Sales and Marketing Chrysler Group Günter Egle Mercedes-Benz Passenger Cars & smart Sales and Marketing Harald Schuff Commercial Vehicles Global Parts Center Mercedes-Benz Benito de Filippis Operations and Planning Sales Organization Europe/Rest of World...

  • Page 50
    Dynamic growth SERVICES SERVICES Services In its tenth financial year, DaimlerChrysler Services (debis) AG continued its success story, achieving new record figures for revenues, earnings and work force in the future-oriented areas of financial services and IT services. For debis, 1999 was ...

  • Page 51
    .... Our IT Services customers benefit from our high-grade services, ranging from consulting (Plan) to the development of software solutions and system integration (Build) to applications, data centers, networks and desktops (Run). We offer industry-specific, complete solutions, an advantage which has...

  • Page 52
    ... GmbH is responsible for our Airbus activities. Dasa holds a 37.9% stake in the European Airbus consortium, which in 1999 was AEROSPACE the world's number two for passenger aircraft sales, and for the first time, number one for incoming orders. The Airbus family, which is constantly being expanded...

  • Page 53
    ... state holding company, taking a 5.6% stake. Current plans call for a public offering of the remaining 34.4% of the equity. Annual revenues of â,¬21 billion and a workforce of more than 96,000 employees will make EADS the world's third-largest aerospace company. With a 80% stake in Airbus Industrie...

  • Page 54
    Other Industrial Businesses OTHER INDUSTRIAL BUSINESSES Rail Systems Automotive Electronics MTU/Diesel Engines 48

  • Page 55
    ...Automotive Electronics business unit (TEMIC) is a leading supplier of electronic systems for engines, safety systems and applications that enhance driving comfort. TEMIC has development, production and sales locations in strategic markets in Europe, North America and Asia. Our customer base includes...

  • Page 56
    ... 2,944 Services Aerospace Others South America Mercedes-Benz Passenger Cars & smart Chrysler Group (Chrysler, Jeep®, Dodge, Plymouth) Revenues Sales Production Organization in millions â,¬ Locations Locations Personnel 1 466 350 1,330 4 23 780 1,254 Commercial Vehicles (Mercedes-Benz...

  • Page 57
    ... 51 Services Aerospace Others Africa Mercedes-Benz Passenger Cars & smart Chrysler Group (Chrysler, Jeep®, Dodge, Plymouth) Revenues Sales Production Organization in millions â,¬ Locations Locations Personnel 2 259 677 3,503 1 7 156 13 Commercial Vehicles (Mercedes-Benz, Freightliner...

  • Page 58
    ...AND TECHNOLOGY RESEARCH AND TECHNOLOGY Research and Technology The variable ergonomics test bench gives answers to important questions concerning the dimensions and ergonomics of future models. The state-ofthe-art, computer-controlled equipment helps to considerably shorten the development time of...

  • Page 59
    ... research departments. LONGER-RANGE BATTERY-DRIVEN VEHICLES. 53 Automotive electronics software is becoming increasingly important. At the same time, sales and marketing software systems tailored to the needs of customers and dealers are providing our company with a distinct competitive advantage...

  • Page 60
    ... AND THE ENVIRONMENT Commitment to environmental protection At the Sindelfingen factory, in addition to the legally required measurements of emissions in the ambient air, plants are also used as solvent detectors. In this greenhouse, air quality is examined using tomatoes, nasturtiums and bush...

  • Page 61
    ...their potential for enhancing our environmental performance, promoting environmental standards and cutting costs, as well as their chances of success. As our initial analysis shows, there are great opportunities for mutual learning since different parts of our company provide benchmarks in different...

  • Page 62
    ... PROCUREMENT & SUPPLY Creating the world's most effective supply chain Teamwork with suppliers is a key source of innovation. DaimlerChrysler employee Richard Soyka (left) and Decoma employees Christina Hernandez and Chris Keyes are involved with a new plastics technology that could help make cars...

  • Page 63
    ... the Chrysler Extended Enterprise® program promoted shared benefits between the automaker and its suppliers. As part of the creation of the new DaimlerChrysler Global Procurement & Supply organization, the best elements of the Daimler-Benz and Chrysler Corporation purchasing programs were blended...

  • Page 64
    ...Human Resources A three-week trip abroad offering a view into another culture is the centerpiece of a new DaimlerChrysler exchange program for young people aged 15 to 17. The program is intended as a way to develop close relationships between the new company's employees in North America and Germany...

  • Page 65
    ...All our employees participate in the creation of corporate value. DaimlerChrysler Mercedes-Benz Passenger Cars & smart Chrysler Group1) (Chrysler, Jeep®, Dodge, Plymouth) 466,938 441,502 99,459 95,158 129,395 126,816 90,082 89,711 Commercial Vehicles (Mercedes-Benz, Freightliner, Sterling, Setra...

  • Page 66
    ...result was mainly due to higher unit sales and improved product mix, with the market success of the Jeep Grand Cherokee, Dodge Durango and the full-size sedans being particularly important. Increases in vehicle pricing, partially offset by higher sales incentives for certain models, also contributed...

  • Page 67
    ... above last year's result. Operating Profit by Segments in millions 99 US $ 99 â,¬ 98 â,¬ Mercedes-Benz Passenger Cars & smart Chrysler Group (Chrysler, Jeep®, Dodge, Plymouth) 2,722 2,703 1,993 5,086 1,075 5,051 1,067 4,255 946 Commercial Vehicles (Mercedes-Benz, Freightliner, Sterling...

  • Page 68
    ... of changes in German tax law 1998: Merger costs, settlement of obligations relating to the Airbus program, goodwill impairment at Adtranz, gains on disposals of various businesses, early extinguishment of debt extinguishment of long-term, high-yielding debt had a negative impact on net income in...

  • Page 69
    .... In prior years we published the amounts of net assets and return on net assets (RONA) for the industrial business and the equity ratio for the DaimlerChrysler Group, assuming the leasing and sales financing activities of the financial services business were performed by an independent company. For...

  • Page 70
    ... billion. The main contributions came from the divisions Mercedes-Benz Passenger Cars & smart and Chrysler Group. Excluding Financial Services The organization of business procedures in the aerospace industry, under which a part of the capital employed is generally financed by advance payments...

  • Page 71
    ... dollar contributed â,¬5.2 billion to the increase in the total of equipment on operating leases and receivables from financial services. Property, plant and equipment rose by 23% to â,¬36.4 billion. In addition to substantially higher capital expenditures, the US dollar denominated fixed assets of...

  • Page 72
    ... billion related to receivables from financial services. To cover the capital needs of our growing financial services business, we entered into a considerable volume of both short-term and long-term financial liabilities. After taking into consideration the higher dividend payments made by the Group...

  • Page 73
    ...the financial services business. To achieve this funding, the treasury centers in Auburn Hills and Stuttgart used our world-wide group of regional holding and finance companies as issuing entities in the various capital markets. Among other bond issues, in 1999 the Group issued its first global bond...

  • Page 74
    ... management for banks, we have separated the trading areas from the administrative functions of processing, financial accounting and financial controlling in terms of organization, location and systems. EXCHANGE-RATE RISKS REDUCED BY HEDGING. The international orientation of our business activities...

  • Page 75
    ... Commission. Our financial services business is primarily involved in leasing and financing Group products, mainly vehicles, to our customers and for our dealerships. Refinancing is carried out to a considerable extent through external capital markets. This gives rise, not only to credit risks, but...

  • Page 76
    ...statements of income, cash flows and changes in stockholders' equity for each of the financial years, 1999, 1998 and 1997) were prepared in accordance with United States generally accepted accounting principles (US GAAP). In order to comply with Section 292 a of the HGB (German Commercial Code), the...

  • Page 77
    ... and the Standards of the International Accounting Standards Committee. In our opinion, United States generally accepted accounting principles required that such joint venture be accounted for using the equity method of accounting. The United States Securities and Exchange Commission stated that it...

  • Page 78
    ...and other expenses Research and development Other income Merger costs Income before financial income, income taxes and extraordinary items Financial income, net Income before income taxes and extraordinary items Effects of changes in 1999 German tax law Tax benefit relating to a special distribution...

  • Page 79
    ... 106 - 6,406 (5,067) 1,339 (708) - 79 - Revenues Cost of sales CONSOLIDATED OPER ATING ACTIVITIES STATEMENTS OF INCOME 73 Gross margin Selling, administrative and other expenses Research and development Other income Merger costs Income before financial income, income taxes and extraordinary items...

  • Page 80
    ...907 17 126 Equipment on operating leases, net Fixed assets Inventories Trade receivables Receivables from financial services Other receivables Securities Cash and cash equivalents Non-fixed assets Deferred taxes Prepaid expenses 74 Total assets (thereof short-term 1999: â,¬70,111; 1998: â,¬57,953...

  • Page 81
    ...comprehensive income Total comprehensive income Issuance of capital stock Purchase and retirement of capital stock Dividends Other Balance... integral part of these Consolidated Financial Statements. All 1998 and 1997 balances have been restated from Deutsche Marks into euros using the Official Fixed ...

  • Page 82
    ... Change in commercial paper borrowings and short-term financial liabilities Additions to long-term financial liabilities Repayment of financial liabilities Dividends paid (Financial Services: including profit transferred from subsidiaries) Proceeds from issuance of capital stock Purchase of treasury...

  • Page 83
    ... Change in commercial paper borrowings and short-term financial liabilities Additions to long-term financial liabilities Repayment of financial liabilities Dividends paid (Financial Services: including profit transferred from subsidiaries) Proceeds from issuance of capital stock Purchase of treasury...

  • Page 84
    ... Property, plant and equipment Investments in affiliated companies Loans to affiliated companies Investments in associated companies Investments in related companies Loans to associated and related companies Long-term securities Other loans Investments and long-term financial assets Equipment...

  • Page 85
    ... Property, plant and equipment Investments in affiliated companies Loans to affiliated companies Investments in associated companies Investments in related companies Loans to associated and related companies Long-term securities Other loans Investments and long-term financial assets Equipment...

  • Page 86
    ...support under special vehicle financing programs. The effects of transactions between the industrial and financial services businesses have been eliminated within the industrial business columns. 80 DaimlerChrysler AG ("DaimlerChrysler" or the "Group") was formed through the merger of Daimler-Benz...

  • Page 87
    ... when title passes or services are rendered net of discounts, sales incentives, customer bonuses and rebates granted. Sales under which the Group conditionally guarantees the minimum resale value of the product are accounted for as operating leases with the related revenues and costs deferred at the...

  • Page 88
    ... to the lessee are accounted for as capital leases. All other leases are accounted for as operating leases. Equipment on operating leases, where the Group is lessor, is valued at acquisition cost and depreciated over its estimated useful life, generally 3 to 14 years, using the straight-line method...

  • Page 89
    ...statements include 109 associated companies (1998: 110) accounted for at cost and recorded under investments in related companies as these companies are not material to the respective presentation of the financial position, results of operations or cash flows of the Group. Investment in Adtranz - In...

  • Page 90
    ... 109, "Accounting for Income Taxes." In addition, the 1997 earnings include the recognition of â,¬86 (â,¬53 after taxes) of previously deferred profits from the sale of vehicles from DaimlerChrysler to DTAG. In March 1998, the Group's semiconductor business was sold to an American company, Vishay...

  • Page 91
    ... D AT E D S TAT E M E N T S O F I N C O M E 5. FUNCTIONAL COSTS AND OTHER EXPENSES Number of employees (annual average): Year ended December 31, Year ended December 31, 1999 1998 1997 Hourly employees Salaried employees 279,124 170,539 13,898 463,561 268,764 152,415 12,760 433,939 261,426 147...

  • Page 92
    ... to a tax credit in the amount of federal income taxes previously paid by the corporation. For German companies, the deferred taxes for 1999 are calculated using effective corporate income tax rates of 42.2% (1998 and 1997: 47.475%) plus the after federal tax benefit rate for trade tax of 9.3% (1998...

  • Page 93
    ...232 (1998: â,¬1,724) and German trade tax NOLs amounting to â,¬1,352 (1998: â,¬2,156). In 1999, the corporate tax NOLs and credit carryforwards relate to losses of foreign and domestic nonOrganschaft companies and are partly limited in their use to the Group. The valuation allowances on deferred tax...

  • Page 94
    ...businesses occurs within two years subsequent to accounting for a business combination using the pooling-of-interests method of accounting...benefit) of extraordinary items Stockholders' equity for employee stock option expense in excess of amounts recognized for financial purposes Stockholders' equity...

  • Page 95
    ... expense on assets under capital lease arrangements was â,¬32 (1998: â,¬38; 1997: â,¬29). Work-in-process thereof relating to long-term contracts and programs in process â,¬2,000 (1998: â,¬919) Finished goods, parts and products held for resale Advance payments to suppliers 6,285 4,568 9,887 518...

  • Page 96
    ... mature after more than one year (1998: â,¬14,733). Sales financing and finance lease receivables consist of retail installment sales contracts secured by automobiles and commercial vehicles. Contractual maturities applicable to receivables from sales financing and finance leases in each of the...

  • Page 97
    ... 5 Equity securities Debt securities issued by the German government and its agencies Municipal securities Debt securities issued by foreign governments Corporate debt securities Equity-based funds Debt-based funds Asset-backed securities Other marketable debt securities Available-for-sale Trading...

  • Page 98
    ... 20% discount to market value at which the Daimler-Benz Ordinary Shares and ADS were sold in the rights offering) per Ordinary Share/ADS. Rights Offering In June 1998, Daimler-Benz issued to holders of Daimler-Benz Ordinary Shares, ADS and convertible debt securities, rights to acquire up to...

  • Page 99
    ... established by Daimler-Benz in 1996 and has been converted to options for DaimlerChrysler Ordinary Shares. The Group also has a performance-based stock award plan. Prior to the Merger, Chrysler had both fixed stock option and performance-based stock compensation plans. These Chrysler plans were...

  • Page 100
    ...92 11.3 â,¬64.58 The Group grants performance-based stock awards to certain eligible employees with performance periods of up to three years and track the value of DaimlerChrysler Ordinary Shares. The amount ultimately earned in cash compensation at the end of a performance period is based on the...

  • Page 101
    ... since the options had conversion prices of not less than the market value of Chrysler's common stock at the date of grant. Chrysler Performance-Based Stock Compensation Plan Chrysler's stock-based compensation plans also provided for the awarding of Performance Shares, which rewarded attainment of...

  • Page 102
    ... of debt and equity securities, including 9.7 million shares of DaimlerChrysler Ordinary Shares with a market value of â,¬750 in a U.S. plan, which were contributed in connection with the Merger. Assets and income accruing on all pension trust and relief funds are used solely to pay pension benefits...

  • Page 103
    ... benefit obligations at end of year Funded status*) 12,599 16,010 11,378 15,905 German Plans 6,089 NonGerman Plans (6,245) German Plans 9,701 NonGerman Plans (3,414) Unrecognized acturarial net gains (losses) Unrecognized prior service cost Unrecognized net assets at date of initial application...

  • Page 104
    ...Upon retirement from DaimlerChrysler the employees may become eligible for continuation of these benefits. The benefits and eligibility rules may be modified periodically. At December 31, 1999, plan assets were invested in diversified portfolios that consisted primarily of debt and equity securities...

  • Page 105
    ... on plan assets Employer contributions Benefits paid Fair value of plan assets at end of year 1,574 273 241 773 (45) 2,816 91 The components of net periodic postretirement benefit cost were as follows: 1999 1998 1997 99 (24) 13 1,498 (4) 1,574 Service cost Interest cost Expected return on plan...

  • Page 106
    ... Total liabilities 933 (456) (82) 333 728 (352) (31) 290 635 (300) (24) 284 595 Notes/Bonds Commercial paper Liabilities to financial institutions Liabilities to affiliated companies Loans, other financial liabilities Liabilities from capital lease and residual value guarantees Short-term financial...

  • Page 107
    ... America Holding Corporation, a whollyowned subsidiary of DaimlerChrysler AG, to borrow up to $12 billion ($6 billion with a maturity of 5 years and $6 billion with a maturity of 1 year) at various interest rates. The $12 billion revolving credit facility serves as a back-up for certain commercial...

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    ... recall actions to address various customer satisfaction, safety and emissions issues related to vehicles it sells. DaimlerChrysler establishes reserves for product warranty, including the estimated cost of these service and recall actions, when the related sale is recognized. The estimated future...

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    ...settlements related. In connection with certain production programs the Group has committed to certain levels of outsourced manufactured parts and components over extended periods at market prices. The Group may be required to compensate suppliers in the event the committed volumes are not purchased...

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    ...between assets and liabilities. The Group may be exposed to credit-related losses in the event of non-performance by counterparties to financial instruments. Counterparties to the Group's financial instruments represent, in general, international financial institutions. DaimlerChrysler does not have...

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    ... cash flows at current market rates. Financial Liabilities - The fair value of publicly traded debt was estimated using quoted market prices. The fair values of other longterm notes and bonds were estimated by discounting future cash flows using rates currently available for debt of similar terms...

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    ...as related parts and accessories. The products are sold mainly under the brand names Mercedes-Benz and Freightliner. Services. The activities in this segment extend to the marketing of services related to information technology, financial services (principally retail and lease financing for vehicles...

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    Mercedes-Benz Passenger Cars & smart Chrysler Commercial Group Vehicles Services Aerospace Other Eliminations Consolidated 1999 Revenues Intersegment sales Total revenues Operating Profit (Loss) Identifiable segment assets Capital expenditures Depreciation and amortization 35,592 2,508 38,100...

  • Page 114
    ... than the market price for DaimlerChrysler Ordinary Shares on December 31, 1997. For the same reason, convertible bonds issued in connection with the 1998 Stock Option Plan were not included in the computation at December 31, 1998. Unexercised employee stock options to purchase 0.2 million shares of...

  • Page 115
    ..., Inc., President and Managing General Partner of San Francisco Giants Gerd Rheude *) Wörth Chairman of the Works Council, Wörth Plant, DaimlerChrysler AG (since May 6, 1999) Herbert Schiller *) Frankfurt am Main Chairman of the Corporate Works Council, DaimlerChrysler Services (debis) AG Dr...

  • Page 116
    ... industry. The meeting focused on the promotion of international mergers as a 110 The Supervisory Board and the Board of Management met in four ordinary and two extraordinary meetings during the 1999 business year to discuss the state of the company, the progress of integration, the strategic...

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    ... appointed Head of the Chrysler Group division, and Dr. Dieter Zetsche was named Head of the Commercial Vehicles division. The new management structure reflects the global nature of DaimlerChrysler's vehicles business and ensures a stronger focus on customers and markets. The last Supervisory Board...

  • Page 118
    ...U P Employment at Year-End 98 99 98 Ownership 1) in % Stockholders' Equity in Millions 2) of â,¬ Revenues 3) in Millions of â,¬ 99 MAJOR SUBSIDIARIES OF THE DAIMLERCHRYSLER GROUP Mercedes-Benz Passenger Cars & smart Micro Compact Car smart GmbH, Renningen4) Mercedes-Benz U.S. International, Inc...

  • Page 119
    ... â,¬ Revenues 3) in Millions of â,¬ 99 98 Employment at Year-End 99 98 Services DaimlerChrysler Services (debis) AG, Berlin debis Systemhaus GmbH, Leinfelden-Echterdingen Mercedes-Benz Finanz GmbH, Stuttgart Mercedes-Benz Leasing GmbH, Stuttgart Mercedes-Benz Credit Corporation, Norwalk Chrysler...

  • Page 120
    ... one-time effects) (â,¬) Cash dividend Cash dividend per share (â,¬) Cash dividend including tax credit2) per share (â,¬) From the balance sheets: Property, plant and equipment Leased equipment Current assets of which: liquid assets Total assets Stockholders' equity of which: capital stock Accrued...

  • Page 121
    ...48 22 6977041 Fax: +48 22 6548633 Washington D.C. Phone: +1 202 414 6747 Fax: +1 202 414 6716 Windsor, Ontario Phone: +1 519 973 2101 Fax: +1 519 973 2226 Zagreb Phone: +38 5 1 48123 21 Fax: +38 5 1 48123 22 115 INTERN ATIONAL REPRESENTATION OFFICES Berlin Phone: +49 30 2594 1100 Fax: +49 30 2594...

  • Page 122
    ... from: DaimlerChrysler AG D-70546 Stuttgart The information can also be ordered by phone or fax under the following number: +49 711-1792287 The complete Annual Report, Form 20-F and the interim reports are available on the Internet. The most important financial charts can also be accessed. Our...

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    Investor Relations Stuttgart contact Phone (+49) 711-17 92286 17 92261 17 95277 Fax (+49) 711-17 94075 17 94109 Auburn Hills Phone Fax (+1) 248 512 2950 (+1) 248 512 2912 DaimlerChrysler Additional information on DaimlerChrysler is available on the Internet www.DaimlerChrysler.com online

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