Mercedes 2001 Annual Report Download - page 34

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30 Chrysler Group
Earnings goal achieved. Despite the difficult market
conditions in North America, Chrysler Group’s operat-
ing loss excluding one-time effects of €2,183 million
(2000: operating profit of €531 million) was lower than
the target range set at the beginning of the year (oper-
ating loss of €2.2–2.6 billion). The implementation of
the turnaround plan achieved cost savings and effi-
ciency improvements that were substantially greater
than originally planned, offsetting the negative impact
of declining unit sales and revenues. Due to the
intensely competitive market situation with further
increases in sales incentives, unit sales in the United
States fell by 11% to 2,196,000 vehicles, and market
share slipped to 13.0% from 14.2% in the prior year.
Worldwide, Chrysler Group sold 2.76 million cars,
minivans, SUVs and light trucks in 2001 (2000: 3.05
million). These figures reflect Chrysler Group’s short
term strategy of improving profits rather than protect-
ing market share at any price. New and additional
products will provide for market share growth in the
medium to long term. Revenues declined by 7% to
€63.5 billion.
Turnaround plan meets expectations
■Operating loss excluding one-time effects of €2,183 million is lower
than previously announced
■Better cost reductions and efficiency improvements offset decline in unit sales and revenues
■Successful launch of new Jeep Liberty and Dodge Ram
Efficiency and creativity in product development. New
and attractive products offered at competitive prices
are the foundation of the future success of Chrysler
Group. Established in 1989, Chrysler Group’s Platform
Team concept revolutionized the product-creation pro-
cess for high-volume manufacturers. Building on that
experience we have now formed Product Innovation
Teams to more closely link the entire organization. This
new approach aims for “disciplined pizzazz” at all lev-
els of the product-creation process in order to achieve
reduced vehicle development times, improved quality
and sustained profitability. At the same time, we will
maintain the attractive design and ability to discover
new market niches that Chrysler has become known
for, and which is the basis for the success of our
brands.
The Chrysler Crossfire: from concept to reality. The
Chrysler Crossfire concept vehicle continues Chrysler
Group’s strategy of developing breakthrough vehicle
concepts and turning them into reality. Following in the
footsteps of the Dodge Viper, Chrysler Prowler and
Operating profit (loss)
Operating profit (loss) adjusted
Revenues
Investment in property,
plant and equipment
Research and development
Production (units)
Unit sales
Employees (Dec. 31)
Amounts in millions 2000
€
2001
€
2001
US $
501
531
68,372
6,339
2,456
2,963,822
3,045,233
121,027
(5,281)
(2,183)
63,483
5,083
2,201
2,679,411
2,755,919
104,057
(4,701)
(1,943)
56,506
4,524
1,959