Mercedes 2002 Annual Report Download - page 153

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In five meetings during the 2002 financial year, the Super-
visory Board dealt in detail with the business situation of
DaimlerChrysler, the future strategic development of the
Group and its business units, and various other issues, and
also discussed these matters with the Board of Management.
The Presidential Committee met three times in 2002,
primarily to deal with Board of Management issues, but also
with questions of corporate governance, and to prepare the
plenary meetings. The Audit Committee convened three times
with the external auditors to discuss the financial statements
for 2001, the financial statements for the first half of 2002,
and, for the first time, the interim report on the third quarter.
After receiving the approval of the Annual Shareholders’ Meet-
ing, the Audit Committee engaged KPMG Deutsche Treuhand-
Gesellschaft AG, Wirtschaftsprüfungsgesellschaft (KPMG),
a company of auditors, to conduct the annual audit, and also
determined the audit emphasis for 2002. The Mediation
Committee, a body formed in accordance with the stipulations
of the German Law of Industrial Codetermination, was not
required to convene last year.
In its meetings the Supervisory Board was regularly and
fully informed by the Board of Management regarding the
situation of the company, particularly its business and financial
status, the personnel situation, business developments,
investment plans and questions of fundamental business policy.
In addition, there was regular monthly reporting in which the
Board of Management presented the company’s key perfor-
mance figures, and written reports were submitted on special
matters. The Chairman of the Supervisory Board was also
kept regularly informed of all important developments and deci-
sions through separate discussions with the Board of Manage-
ment. No conflicts of interest of any of the members of the
Supervisory Board occurred during 2002.
Report of the Supervisory Board
The focus of the Supervisory Board’s discussions was on the
current situation of the company and the development of
the individual business units against the backdrop of a difficult
global economy. In this context, questions concerning the
Group’s automotive product portfolio were also dealt with. In
connection with the commercial vehicles business, the main
issue was the Asian strategy and cooperation with Mitsubishi
Motors Corporation (MMC) and Hyundai Motor Company
(HMC). Another topic was the further development of corpo-
rate governance at DaimlerChrysler, in view of new legislation
in the United States and Germany.
In the meeting in February 2002, particular attention was
paid to the annual financial statements of DaimlerChrysler AG
and the consolidated financial statements. After detailed dis-
cussions, the medium-term planning for 2002 through 2004
(including investment, human-resources and earnings targets)
and financing requirements for 2002 were approved.
The Supervisory Board also received a detailed report on the
situation and strategy of the Mercedes Car Group division.
Furthermore, the Supervisory Board consented to the sale
of the Austrian Eurostar plant to Magna Steyr, with the pro-
duction of the minivans and the Cherokee remaining in Graz.
Preparations for the Annual Shareholders’ Meeting were also
dealt with in detail.
In April 2002, the Supervisory Board approved the financing
of capital expenditure for the construction of a new engine
plant in Kölleda, Thuringia. In this plant, which will employ 500
persons, gasoline engines for Mitsubishi and smart vehicles
are to be produced as a joint venture between Daimler-
Chrysler AG and MMC. The Board of Management provided
the Supervisory Board with detailed information on the situa-
tion at EADS and the general state of the aerospace industry.
The Supervisory Board passed resolutions concerning the
financing of equipment for the production of the CLK convert-
ible and the Crossfire at the Karmann company. In addition,
a capital increase at Freightliner LLC was also approved.
Report of the Supervisory Board |147