Mercedes 2010 Annual Report Download - page 249

Consolidated Financial Statements | Notes to the Consolidated Financial Statements | 245
At the end of 2009, based on contractual arrangements, the Group
agreed with Kamaz OAO, another associated company, to
establish two joint ventures. The purpose of the joint ventures
is the distribution and, with respect to some truck lines, the
assembly of Mercedes-Benz and Fuso trucks and the sale of
Mercedes-Benz and Setra buses in Russia. These two joint
ventures started large parts of their business activities in 2010.
In addition, at the end of 2010, Daimler signed a memorandum
of understanding with Kamaz to produce axles in a joint venture
in Russia.
The transactions with joint ventures predominantly comprise
the business relationship with Beijing Benz Automotive Co.,
Ltd. (BBAC). BBAC assembles and distributes Mercedes-Benz
vehicles for the Group in China.
Further major parts of sales and purchases of goods and ser-
vices relate to joint ventures in Austria and Taiwan. These joint
ventures distribute cars and spare parts of the Group. Since
the middle of 2010 substantial business relations relate to the
Chinese joint venture Fujian Daimler Automotive Co. Ltd. (FJDA).
FJDA produces and distributes vans under the brand name
Mercedes-Benz in China.
Board members. Throughout the world, the Group has business
relationships with numerous entities that are customers and/
or suppliers of the Group. Those customers and/or suppliers
include companies that have a connection with some of the
members of the Supervisory Board or of the Board of Management
of Daimler AG or its subsidiaries.
Board of Management and Supervisory Board members may
also purchase goods and services from Daimler AG or its sub-
sidiaries as customers. When such business relationships
exist transactions are concluded on the basis of customary
market conditions.
From time to time, companies of the Daimler Group purchase
goods and services (primarily advertising) from and sell or lease
vehicles or provide financial services to companies of the
Lagardère Group in the ordinary course of business. Arnaud
Lagardère, who became a member of the Supervisory Board
of Daimler AG in April 2005 and left the board on April 14, 2010,
is the general partner and Chief Executive Officer of Lagardère
SCA, a publicly traded company and the ultimate parent company
of the Lagardère Group.
For information on the remuneration of board members, see
Note 36.
Shareholders. The Group distributes vehicles in Turkey through
a dealership which also holds a minority interest in one of the
Group’s subsidiaries. In addition, the Group has business rela-
tionships with vehicle importers in certain other countries that
also hold minority interests in Group companies. Revenue gen-
erated by these transactions amounted to €0.3 billion in 2010
(2009: €0.2 billion). Related to these transactions, the Group
incurred expenses of €22 million in 2010 (2009: €27 million),
resulting primarily from the depreciation of purchased vehicles.
Contributions to plan assets. In 2010 and 2009, the Group
made contributions of €345 million (2009: €602 million) to
its external funds to cover pension and other post employment
benefits. For further information, see Note 22.