Mercedes 2012 Annual Report Download - page 143

149
4 | The Divisions | Daimler Trucks
In order to optimally exploit the advantages of our global reach,
we have created programs at the various operating units as
well as new cross-business excellence initiatives. For example,
as part of its module strategy, Daimler Trucks aims to achieve
a much higher rate of shared parts in its products without elim-
inating the key distinctions between the various brands. Reduced
complexity and a smaller range of parts generate not only
cost benefits in procurement, but also significant economies
of scale in production and logistics. Furthermore, we are now
realigning our R&D organization to optimally harmonize our
development activities with our global platform and module
strategy. Closer cooperation, including the systematic sharing
of best practices, will also help us achieve our goal in the
aftersales business. At the same time, a global growth strategy
for component remanufacturing will enable us to exploit addi-
tional earnings potential. By expanding our regional activities
and product range, we aim to increase the revenue from our
remanufacturing business by 30% in the medium term. Finally,
we are working on an integrated business model for Asia
that will enable us to benefit from the region’s growth potential
even more than was previously the case.
Significant growth in worldwide unit sales.

4.04 Weak
economic developments combined with the sovereign-debt
crisis led to fewer purchases in Western Europe, thus causing
the market to contract. At 58,000 units, sales at Daimler Trucks
were down by 6% from the prior-year level. The year-on-year
declines were particularly severe in southern European markets
such as Italy and Spain. However, those two countries
account for only a relatively small share of Daimler Trucks’ sales
in Western Europe (6%; 2011: 8%). In contrast, we once again
reached or slightly surpassed the prior year’s unit sales in
Germany and the Netherlands. Despite facing a challenging
market environment, Daimler Trucks was able to maintain
its good position. In both Western Europe as a whole and
Germany, its home market, Mercedes-Benz strengthened its
market leadership by further increasing its market share in
the medium and heavy segments. In the year under review, our
market share was 22.9% in Western Europe (2011: 22.3%);
in Germany it was 39.2% (2011: 37.5%).
The situation was similar in Turkey, where demand was very
high in 2011 before dropping last year, particularly in the
key heavy-truck segment. As a result, Daimler Trucks saw
sales in Turkey fall slightly by 8% to 18,300 units. Despite this
decrease, we substantially increased Mercedes-Benz Trucks’
market share in the country to 45.4% (2011: 37.3%) and
consequently extended our market leadership. At the end of
August, we also added the Fuso Canter to our truck lineup
in Turkey. Thanks to a favorable market environment, we sold
7,100 Mercedes-Benz and Fuso brand vehicles in Russia,
representing an increase of more than 30%. This positive
development is partly due to our joint venture’s successful
cooperation with Kamaz, the country’s market leader for
heavy trucks.
In Latin America, a substantial worsening of the overall
economy and the introduction at the beginning of the year of
tougher emissions standards in the region’s main market,
Brazil, caused sales to drop considerably to 46,200 vehicles
(2011: 61,900). The change in emission limits from Euro III
to Euro V not only required vehicles to use significantly more
advanced technology, but also placed great demands on the
infrastructure. For example, it became necessary to ensure the
availability of suitable diesel fuel and AdBlue, an important
exhaust gas treatment, throughout the country. The Brazilian
government responded to the weakening of the economy
by substantially improving the terms of the FINAME support
program. Favorable financing conditions and short amorti-
zation periods are intended to serve as additional sales incen-
tives and should eventually cause the truck business to rebound.
A global reach with a unique portfolio of truck brands is a key element of our strategy for the future growth of Daimler Trucks.