Mercedes 2006 Annual Report Download - page 91

In the world’s markets for commercial vehicles, a cyclical
decrease in sales is expected for 2007, accentuated by purchases
brought forward to the year 2006 due to upcoming stricter
emission regulations in the United States and Japan. There are
increasing indications that the drop in demand in the North
American market – particularly for heavy Class 8 trucks – will be
particularly sharp compared with the other regions, resulting
in unit sales up to 40% lower than in 2006. We also anticipate
significantly lower sales of commercial vehicles in Japan in 2007.
On the other hand, in Western Europe, we expect only a slight
decrease in demand. In the year 2008, global demand for
commercial vehicles is expected to return to normal levels.
Growth in global demand for passenger cars and commercial
vehicles in the coming years will continue to be primarily driven by
the emerging markets of Asia and South America, and increasingly
also Central and Eastern Europe, due to these regions’ dynamic
growth in purchasing power, improved infrastructures and the
general rise in the need for mobility.
Unit sales
The Mercedes Car Group assumes that its unit sales in the
year 2007 will at least equal its record result of the prior year.
In the first half of 2007, sales will be affected somewhat by the
model changeover for the high-volume Mercedes-Benz C-Class and
the smart fortwo, which will both be launched in spring 2007.
Higher unit sales than in the prior-year period are expected for the
second half of 2007. The full availability of the new C-Class
should then contribute to further growth in unit sales in the
following years, aided by the launch of a station wagon version
at the end of 2007 and a compact SUV version in 2008.
The Mercedes Car Group continues to expect 70% of its unit
sales to be generated in its five biggest core markets: Germany,
the United States, the United Kingdom, Italy and France.
But we also see opportunities in Asia, particularly in China,
where the E-Class went into production in September 2006 and
will be followed by the C-Class during 2007. In the medium
term, we plan to produce a total of 25,000 passenger cars per
annum in China.
The Chrysler Group is working hard on the comprehensive
renewal of its product range and on meeting the market’s
demand for more economical vehicles with lower fuel consumption.
Following the introduction of 10 new models in 2006, the pro-
duct offensive will continue with more than 20 all-new and 13
refreshed vehicles from 2007 to 2009. Already at the beginning
of 2007, the Chrysler Group had a fairly new model range
compared with its competitors. So the right conditions have now
been created on the supply side in order to increase unit
sales and further improve the division’s market position world-
wide. Growth in the following years should also be based
on rising sales in markets outside the NAFTA region, especially
in Western Europe and China, where the range of available
products is continually being expanded.
Following record unit sales in the year 2006, which were partially
a result of purchases brought forward because of upcoming
new emission regulations in the major markets of the United
States and Japan, the Truck Group anticipates a significant
drop in unit sales in North America and Japan. In Western Europe,
we strive to achieve unit sales in the magnitude of the previous
year. However, as part of its Global Excellence program, the Truck
Group has taken comprehensive measures with which it intends
to become more independent of cyclical market fluctuations in the
future, allowing it to achieve sustained profits also under difficult
market conditions. Above all, we intend to make better use of our
cost advantages as the world’s biggest manufacturer of commer-
cial vehicles. We will also strengthen the division’s competitive
position with new products, which are expected to generate
higher unit sales once again starting in the year 2008.
We anticipate a steady rise in unit sales for the Vans unit
during the planning period of 2007 through 2009. This will
be primarily due to the new Sprinter series, which will be
gradually extended with additional new variants.
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