Mercedes 2001 Annual Report Download - page 17

Outlook 13
DaimlerChrysler Group
Mercedes-Benz
Passenger Cars & smart
Chrysler Group
Commercial Vehicles
Services
Other Activities
156
50
59
33
19
3
142
46
56
28
16
2
Target 2004
€
Plan 2002
€
In billions
Revenues
Revenues of €156 billion in the year 2004. On the basis
of the current order situation and market expectations,
we anticipate revenues of €142 billion in 2002 (2001:
€153 billion). The decline of 7% compared with the
prior year is mainly due to unfavorable market pros-
pects, which will particularly affect Chrysler Group and
the commercial vehicles business, but also to changes
in the consolidated Group and the projected exchange-
rate effects.
As a result of improving market conditions and
primarily due to the introduction of attractive new ve-
hicles, we expect revenues to increase to €156 billion
by 2004. This figure assumes a moderate increase in
the value of the euro against the US dollar, the British
pound and the Japanese yen. The most rapid growth in
revenues is likely to be achieved in Asia, South
America and Eastern Europe.
EAC: a strategy-implementation platform. The Execu-
tive Automotive Committee (EAC) is the platform for
the implementation of our strategy, with a focus on the
four key pillars of global presence, strong brands, wide
product range and technological leadership. Headed by
Jürgen E. Schrempp and Jürgen Hubbert, this commit-
tee has been used to coordinate the Group’s automotive
business since the beginning of 2001.
Its goal is the effective exchange of technologies,
innovations, components and processes between the
divisions. This should result in the continuous improve-
ment of the Group’s cost position, while strictly
maintaining the identity of individual brands.
Many important decisions were taken by the EAC
in 2001, two examples being a common platform for
the next-generation Chrysler Neon and Mitsubishi
Lancer, and the use of Mercedes-Benz components in
the Chrysler Crossfire.
The work of the EAC will continue to support the
implementation of our strategy in 2002.
(see pp. 16-17).
Further growth at Mercedes-Benz Passenger Cars &
smart. The Mercedes-Benz Passenger Cars & smart di-
vision plans to expand its product range in the coming
years and penetrate new market segments, in order
to ensure continued growth throughout the planning
period. New products in 2002 include the new
E-Class sedan and the CLK coupe. In addition, at the
end of 2002 we will launch a luxury sedan under
the Maybach brand, which will once more underscore
DaimlerChrysler’s leading position in the premium
segment. The smart model range will be extended in
2003 with a roadster and in 2004 with a four-seater
mini car.
Chrysler Group: return to profitability. Due to unfavor-
able economic conditions, the assumptions for 2002
underpinning Chrysler Group’s turnaround plan have
also been adjusted. In particular, expectations for the
US market have been revised from 16 million passen-
ger cars and light trucks to approximately 15 million
vehicles. In order to break even in 2002 in the face of
weaker market conditions, Chrysler Group has intensi-
fied and accelerated some aspects of the turnaround
plan that was announced on February 26, 2001.
Furthermore, various new, innovative models
such as the Dodge Viper, the Chrysler Crossfire, the
Chrysler Pacifica and the new Dodge Durango should
ensure that Chrysler Group’s competitive position
improves significantly in an extremely difficult market
environment. Closer cooperation both within the
DaimlerChrysler Group and with our partner
Mitsubishi Motors should also help improve our cost
position and margins, as well as the innovative
potential of Chrysler Group.
successful
With new concepts
future
for a