Mercedes 2006 Annual Report Download - page 11
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Commitment to Excellence |Chairman’s Letter | 7
Our comprehensive Recovery and Transformation Plan for the Chrysler Group,
which we presented on February 14, has two main components. The Recovery Plan
consists of a package of measures that will enable us to restructure our business
operations in the short term to restore profitability. The strategic Transformation
Process aims at redesigning the Chrysler Group’s business model in such a way
that it will remain profitable in the long term, even under difficult market conditions.
In order to optimize and accelerate the presented plan we are looking into further
strategic options with partners beyond business cooperation in specific areas.
At the Chrysler Group, we are continuing the product offensive we began in 2006.
The ten new models we launched last year, the majority of which did not arrive in
dealerships in volume until the latter half of the year, will be followed by eight
more in 2007. Many of these new models will satisfy the increased demand for more
fuel-efficient vehicles with lower emission levels.
The Mercedes Car Group is back on track. 2006 was an all-time record year for
sales. The newCL, GL and E-Class models are delighting our customers. Plus,
wehave two more exciting new models coming in the spring of 2007: the new C-Class
and smart fortwo. In addition, thanks to our CORE program, we significantly
improved quality and reduced costs as well as boosting productivity by 10 percent.
We’vealso sharpened the profile of the Mercedes-Benz brand. Inspired by our rich
heritage, we are putting a strong emphasis on the level of appreciation our Mercedes
customers experience every time they come into contact with our people or products.
The combination of all these measures – more efficient processes, first-class
products and an even stronger brand – ensured that 2006 improved on a difficult
2005. The Mercedes star is starting to shine brightly again!
To make this possible, we have had to work hard and, in some cases, experience
painful cutbacks. But our success demonstrates that our approach was the right
one. It also inspires us to become better still.