Mercedes 2002 Annual Report Download - page 48

42 |Executive Automotive Committee
Continuation of EAC’s successful work
In 2002, the Executive Automotive Committee (EAC) did
groundbreaking work as a platform for the discussion
and preparation of decisions affecting more than one
of our automotive divisions. The committee coordinates
all cross-divisional issues, protects the identity of the
Group’s brands, and accelerates the realization of
synergy potential. Last year, the EAC particularly focused
on evaluating and optimizing the Group’s portfolio of
products, powertrains and components.
Expanded multi-brand management
In recent years, multi-brand management has become
one of the main challenges facing the automotive indus-
try. Whereas in 1980, 28 independent manufacturers
had an average of only two brands each, the remaining
eleven independent car manufacturers now have an
average of more than six different brands each. Daimler-
Chrysler owns six passenger car brands, eight commercial
vehicles brands and one accessories brand, supplemented
by DaimlerChrysler Services’ comprehensive range of
financial services for DaimlerChrysler’s automotive
brands. The challenge now consists of managing the
interplay between brand differentiation and economies
of scale. One goal is to strengthen the identity of the
individual brands and increase their value. At the same
time, economies of scale must be achieved by means
of cross-divisional cooperation and the exchange and
common use of components, systems and platforms, in
order to improve the overall cost position and thus to
make the whole Group even more competitive. However,
none of the Mercedes-Benz platforms will be shared
with other brands.
Executive Automotive Committee
Our brand management is based on our “Brand Guide-
lines,” which describe the profile and differentiating
criteria of each individual brand. The guidelines are
being expanded to include regulations for sharing com-
ponents by business units and the importance of such
a strategy to the brands. Market success in the future
will increasingly depend on our ability to maintain each
brand’s own specific character. We are therefore work-
ing intensively on strengthening the brand-related
attributes that influence the design of the products and
the values associated with each particular brand.
DaimlerChrysler’s brand portfolio gives us the tremen-
dous ability to offer attractive products in all segments
and to all customer groups worldwide.
Cross-brand product planning (long range product
plan)
A detailed comparison of product planning has been
carried out with the goal of identifying product overlaps
and gaps in market coverage. One of the findings of
this analysis is that there is hardly any product overlap
within the DaimlerChrysler Group. However, there is a
gap in the small-car segment, which is to be closed in the
year 2004 with the launch of the smart four-seater
(smart forfour).
Furthermore, the committee identified possibilities for
the joint creation of vehicle architectures. A good exam-
ple is the rapidly growing sport-utility and sport-tourer
segment, in which we plan to utilize market potential by
implementing a coordinated, cross-brand strategy. Having
comprehensive information on all vehicle segments
worldwide, on their appeal, their future potential and the
degree of competition, provides a basis for developing
new, innovative products and opens up opportunities for
exploiting synergies across the individual business
units.
Basis established for successful brand management |
Coordination of all brands’ product planning |Numerous
projects decided on and now being implemented |
Strong focus on generating synergies