Mercedes 1999 Annual Report Download - page 35

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OUTLOOK
29
We plan an early turnaround at Adtranz in 2000, breaking
even during 2000, to realize annual cost reductions of €300
million by 2002 and focusing activities on the core business of
rail vehicles. Our Automotive Electronics business unit will
continue to benefit from the growing number of electronic
components in automobiles. The MTU/Diesel Engines business
unit is expected to expand business volume, especially in
commercial applications. Prospects for growth look
particularly good in Asia after the economic recovery there.
€50 BILLION FOR THE FUTURE.
DaimlerChrysler plans to
invest €45 billion in plant and equipment, research and
development in the period 2000 – 2002. If third-party
research is included, this figure rises to around €50 billion.
A major part of the investment will be channeled into
development and production preparation for 60 new
passenger car and commercial vehicle models, which will be
introduced over the period ending in 2005. Important projects
include the successor models to the Mercedes-Benz C- and E-
Classes, the Dakota and Ram trucks, the Jeep Cherokee, and
the new Business Class truck from Freightliner. In addition to
expanding and modernizing vehicle production facilities, funds
will also be used to increase Airbus production capacity and
develop new Airbus models.
STRATEGIES FOR THE FUTURE. DaimlerChrysler is a company
whose unique potential ensures it an excellent global
competitive position. At the same time, we are faced with
challenges such as the continuing process of consolidation in
the automotive industry, the growing importance of environ-
mental considerations and the impact that Internet expansion
will have on our business processes. In view of these
challenges, we have developed six core strategies:
■Attain market leadership in every vehicle segment in
which we are active.
■Provide premium services throughout the entire
automotive value-added chain.
■Secure global growth and expand our global market
presence.
■Form strategic partnerships in our non-automotive
businesses.
■Attain worldwide leadership in human resources
development and management.
■ Introduce a value-added based performance measure
defined as operating profit after deduction of capital
costs, or net operating income after tax at Group level.
The implementation of these key strategies will create the
conditions necessary for DaimlerChrysler not only to further
strengthen its leading position in the international automotive
industry, but also to continue growing profitably despite
increasingly intense competition.
DaimlerChrysler Group
Mercedes-Benz Passenger Cars
& smart
Chrysler Group
(Chrysler, Jeep®, Dodge, Plymouth)
Commercial Vehicles
(Mercedes-Benz, Freightliner, Sterling,
Setra, Thomas Built Buses)
Services
Aerospace1)
Others2)
153 167
40 43
63 65
27 30
15 19
10 11
78
Revenues
in billions
2000 E 2002 E
1) Excluding any EADS effects.
2) Including Potsdamer Platz and Headquarters.
€€
10.9 27.9
2.2 5.7
5.6 14.5
1.3 3.4
0.4 1.0
0.5 1.5
0.9 1.8
Investments in Property
Plant and Equipment
in billions
2000 E 2000- 02 E
€€
DaimlerChrysler Group
Mercedes-Benz Passenger Cars
& smart
Chrysler Group
(Chrysler, Jeep®, Dodge, Plymouth)
Commercial Vehicles
(Mercedes-Benz, Freightliner, Sterling,
Setra, Thomas Built Buses)
Services
Aerospace1)
Others2)
1) Excluding third-party contracts of €1.7 billion per year.
2) Excluding any EADS effects.
3) Including Potsdamer Platz and Headquarters.
Research and
Development1) 2000 E 2000- 02 E
€€
5.9 17.5
1.9 5.5
2.0 6.0
0.9 2.4
0.4 1.3
0.7 2.3
DaimlerChrysler Group
Mercedes-Benz Passenger Cars
& smart
Chrysler Group
(Chrysler, Jeep®, Dodge, Plymouth)
Commercial Vehicles
(Mercedes-Benz, Freightliner, Sterling,
Setra, Thomas Built Buses)
Aerospace2)
Others3)
in billions