Mercedes 2006 Annual Report Download - page 95

During the period of 2007 through 2009, DaimlerChrysler will
invest a total of €16.2 billion in research and development
activities. R&D spending will thus continue at the high level of
more than 3% of total revenues despite the targeted efficiency
improvements. Research and development expenditure at the
Mercedes Car Group will be significantly higher than in recent
years. There are two main reasons for this: on the one hand, the
integration of Corporate Research into the Mercedes Car Group;
on the other hand, the high expenditure for the E-Class successor
model. The focus of R&D expenditure at the Chrysler Group
will be on the continuation of the product offensive. The Chrysler
Group intends to launch more than 20 new models by 2009.
Key projects at the Truck Group are the new truck platform and
new engines that fulfill the emission regulations for the years
2009/2010.
Significant expenditure is also planned for new technologies,
with which we intend to improve the safety, environmental
compatibility and fuel economy of road vehicles.
Workforce
As a result of the anticipated production volumes and productivity
advances, DaimlerChrysler assumes that compared with the
end of 2006, the size of its workforce will continue to decrease
during the planning period of 2007 through 2009.
Forward-looking statements in this Annual Report:
This annual report contains forward-looking statements that reflect our current views
about future events. The words “anticipate,” “assume,” “believe,” “estimate,” “expect,”
“intend,” “may,” “plan,” “project,” “should” and similar expressions are used to identify
forward looking statements. These statements are subject to many risks and uncertain-
ties, including an economic downturn or slow economic growth, especially in Europe or
North America; changes in currency exchange rates and interest rates; introduction of
competing products and possible lack of acceptance of our products or services; com-
petitive pressures which may limit our ability to reduce sales incentives and raise prices;
price increases in fuel, raw materials, and precious metals; disruption of production or
delivery of new vehicles due to shortages of materials, labor strikes, or supplier insol-
vencies; a decline in resale prices of used vehicles; the ability of the Chrysler Group to
implement successfully its Recovery and Transformation Plan; the business outlook for
our Truck Group, which may experience a significant decline in demand as a result of
accelerated purchases in 2006 made in advance of the effectiveness of new emission
regulations; effective implementation of cost reduction and efficiency optimization
programs, including our new management model; the business outlook of our equity
investee EADS, including the financial effects of delays in and potentially lower volume of
future aircraft deliveries; changes in laws, regulations and government policies, particu-
larly those relating to vehicle emissions, fuel economy and safety, the resolution of pend-
ing governmental investigations and the outcome of pending or threatened future legal
proceedings; and other risks and uncertainties, some of which we describe under the
heading “Risk Report” in this Annual Report and under the headings “Risk Factors” and
“Legal Proceedings” in the Annual Report on Form 20-F filed with the Securities and Ex-
change Commission. If any of these risks and uncertainties materialize, or if the assump-
tions underlying any of our forward looking statements prove incorrect, then our actual
results may be materially different from those we express or imply by such statements.
We do not intend or assume any obligation to update these forward looking statements.
Any forward looking statement speaks only as of the date on which it is made.
Management Report | Outlook | 79
In billions of € 1
Research and development expenditure
16.2
7.7
4.2
3.2
1.1
5.3
2.2
1.6
1.0
0.6
2006 2007–20092
DaimlerChrysler Group
Mercedes Car Group
Chrysler Group
Truck Group
Van, Bus, Other
1 Figures for 2006 according to US GAAP, as of 2007 according to IFRS
2 Includes both capitalized and expensed R&D spending