Mercedes 2012 Annual Report Download - page 113

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With the goal of placing our growth strategy on a sound
financial foundation, we have initiated far-reaching programs
to improve our efficiency and competitiveness in all divisions.
Those programs include “Fit for Leadership” at Mercedes-Benz
Cars, “Trucks#1” at Daimler Trucks, “Performance Vans 2013”
at Mercedes-Benz Vans and “GLOBE 2013” at Daimler Buses.
In total, we intend to achieve a sustained earnings improve-
ment with these programs of approximately €4 billion by the end
of 2014. That total breaks down as Mercedes-Benz Cars
€2 billion, Daimler Trucks €1.6 billion, Mercedes-Benz Vans
€0.1 billion and Daimler Buses €0.2 billion.
As market conditions have significantly worsened, achieving
the profit margins we defined for our divisions as of the
year 2013 over the respective cycles has become much more
challenging. We therefore assume that we will not achieve
those targets until a later date, but we continue to pursue them
consistently – supported by the measures we have taken
and the programs initiated in all divisions.
Although the outlook for the development of our markets
is still very uncertain, we look forward to the challenges ahead
with great confidence. With the actions that have been initi-
ated, Daimler is very well prepared for those challenges, and
the global automobile market continues to offer excellent
prospects in the medium term.
Daimler, Beijing Automotive Group Co., Ltd. (BAIC Group) and
BAIC Motor Corporation Ltd. (BAIC Motor) signed a contract
on February 1, 2013 whereby Daimler will invest approximately
€0.64 billion in BAIC Motor. BAIC Motor is the car company
of BAIC Group, one of the leading automotive groups in China.
The investment will be executed by the issue of new shares
in Daimler and will represent an equity interest of 12% in BAIC
Motor. The agreement is subject to the approval of the relevant
authorities. The approvals for the completion of the transaction
will require at least nine months. The contract specifies that
Daimler will have two seats on the board of directors of BAIC
Motor. Furthermore, the two parties have agreed that BAIC
Motor will increase its interest in the joint venture Beijing Benz
Automotive Co., Ltd. by means of a capital increase by 1
percentage point to 51%. At the same time, Daimler will increase
its interest in the joint, integrated sales company Beijing
Mercedes-Benz Sales Service Co., Ltd. also by 1% to 51%. Daimler
will examine the effects of these transactions on the con-
solidated financial statements; a reliable assessment of the
impact on earnings is not yet possible.
Daimler has announced personnel adjustments for the
Daimler Trucks division in Germany, the United States and
Brazil. In the area of production, it is assumed that up to
1,300 employees will be laid off in the United States, while
approximately 1,400 employees in Brazil who are currently
laid off will be reemployed. In non-production areas, headcount
reductions are expected in Germany of approximately 800
persons and in Brazil of approximately 850 persons. Discussions
with the employee representatives are ongoing. The effects
on the consolidated financial statements can only be calculated
following the resolutions that still have to be made.
Since the end of the 2012 financial year, there have been
no further occurrences that are of major significance
for Daimler. The course of business in the first two months
of 2013 confirms the statements made in the Outlook section
of this Annual Report. E
see pages 133 ff
Events after the End of
the 2012 Financial Year