Mercedes 2002 Annual Report Download - page 32

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Earnings goal significantly exceeded
Despite the intense competition in North America and
the need for generous sales incentives, Chrysler Group
achieved an operating profit excluding one-time effects
of 11.3 billion (2001: operating loss of 12.2 billion). The
target set in the turnaround plan of February 2001 of
breaking even in 2002 was thus significantly exceeded.
Including one-time effects, which were primarily a result
of the restructuring expenditure planned in 2001, oper-
ating profit of 10.6 billion was still distinctly positive.
The reasons for this result were that the restructuring
measures led to greater cost savings and efficiency
improvements than originally targeted, but higher unit
sales also played a part (see page 69).
Worldwide, Chrysler Group sold 2.82 million pas-
senger cars, minivans, sport-utility vehicles and light
trucks (2001: 2.76 million). In the United States, Chrysler
Group achieved unit sales of 2,277,100 vehicles, 4%
higher than the prior year. This reflects growth in key
vehicle segments, particularly for the Dodge Ram
Pickup (+15%), the Jeep®Liberty (+93%) and the Neon
compact car (+18%). Retail sales in the US decreased
by 3% to 2,205,500 units, while market share was 12.9%
(13.0% in 2001).
2001
3
Chrysler Group
26 |Chrysler Group
Due to currency-translation effects, Chrysler Group’s
revenues of 160.2 billion (2001: 163.5 billion)
decreased by 5%. Measured in US dollars revenues
equaled the previous year’s level.
Substantial quality gains
In 2002, the quality of Chrysler, Jeep®and Dodge
vehicles improved considerably. Among other things,
this is indicated by the fact that warranty costs per vehicle
have fallen significantly in recent years. In the 2002
J.D. Power “Initial Quality Survey” (IQS), Chrysler Group
improved by 10% over 2001 and by 26% over 1998.
In Strategic Vision’s “Total Quality Index” (TQI), both the
Chrysler PT Cruiser and the Dodge Dakota received
top honors. In addition, “Consumer Reports” magazine
noted that among domestic manufacturers Chrysler
Group had the fewest problems per hundred vehicles
after three years in service.
Operating profit excluding one-time effects of 31.3 billion
(2001: operating loss of 32.2 billion) |Significantly
better earnings than originally anticipated due to lower
costs, increased efficiency and higher unit sales |
Successful launch of new products: Dodge Ram and Viper |
Substantially improved product quality
2002
3
2002
US $
Amounts in millions
639
1,381
63,100
3,308
2,162
609
1,317
60,181
3,155
2,062
2,749,903
2,822,659
95,835
(5,281)
(2,183)
63,483
5,083
2,201
2,679,411
2,755,919
104,057
1 To exclude one-time effects
Operating profit (loss)
Operating profit (loss) adjusted 1
Revenues
Investments in property,
plant and equipment
Research and development expenditure
Production (units)
Unit sales
Employees (Dec. 31)