Mercedes 2013 Annual Report Download - page 258

262
Together with the investment of Daimler in BAIC Motor, BAIC
Motor increased its stake in BBAC by 1% to 51% on November 18,
2013. As a result of this transaction, Daimler’s equity interest
in BBAC decreased to 49% and the Group classified the invest-
ment in BBAC as an associated company; the company was
accounted for as a joint venture until the end of the third quarter
of 2013. The effect of the change of status of BBAC was
not material; BBAC is furthermore accounted using the equity-
method.
BBAC produces and markets Mercedes-Benz vehicles in China
for the Daimler Group. Daimler already contributed additional
equity of €0.2 billion to the joint venture BBAC in 2013. In addi-
tion, Daimler plans to contribute further equity of €0.2 billion
to the joint venture in 2014. Additional funds needed by BBAC
to fund its investments will be directly raised on the capital
markets by BBAC. In December 2013, the shareholders of BBAC
declared a dividend to its shareholders, of which €101 million
are attributable to Daimler. The respective receivable against
BBAC is included in the table  F.97.
In connection with the Group’s 45% equity interest in Toll
Collect GmbH, Daimler has provided a number of guarantees
for Toll Collect, which are not included in table  F.97
(€100 million as of December 31, 2013 and €110 million
as of December 31, 2012).
Joint ventures. The transactions with joint ventures
predominantly relate to the business relationship with BBAC
(see information under section associated companies).
Together with the investment of Daimler in BAIC Motor,
Daimler increased its stake in the integrated sales joint
venture Beijing Mercedes-Benz Sales Service Co., Ltd.
by 1% to 51% on November 18, 2013.
Until the end of March 2013, further significant sales and
purchases of goods and services were related to Mercedes-
Benz Österreich Vertriebsgesellschaft, which distributes
cars and spare parts of the Group. In March 2013, the remaining
shares of the entity were acquired together with other Pappas
Group entities.
The Group also has substantial business relations with the
Chinese joint venture Fujian Benz Automotive Co. Ltd. (FBAC).
FBAC produces and distributes vans under the Mercedes-
Benz brand name in China. In 2013, a new research and devel-
opment center of Mercedes-Benz Vans was opened in China.
A total of approximately €60 million was invested in the new
center.
In December 2011, the joint venture company Beijing Foton
Daimler Automotive Co., Ltd. (BFDA) was established by
Daimler and the Chinese truck manufacturer Beiqi Foton Motor
Co., Ltd.. Daimler committed to making a cash contribution
to the joint venture company and to establishing the production
of a truck engine at BFDA. In 2012, capital of €344 million
was injected.
The joint ventures Mercedes-Benz Trucks Vostok OAO and
Fuso Kamaz Trucks Rus Ltd., which have been established with
Kamaz OAO, another of the Group’s associates, produce and
distribute trucks of the Mercedes-Benz and FUSO brands and
distribute buses of the Mercedes-Benz and Setra brands in
Russia. As part of their strategic partnership, Daimler and Russian
truck manufacturer Kamaz signed licensing agreements on
Axor and Atego cab production and also a contract covering
the supply of engines and axles for the Russian company’s
trucks and buses.
Contributions to plan assets. In 2013 and 2012, the Group
made contributions of €560 million and €1,084 million to
its external funds to cover pension and other post-employment
benefits. For further information, see also Note 22.
Board members. Throughout the world, the Group has busi-
ness 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 Board of Management or of the Super-
visory Board and close family members of these board members
of Daimler AG or its subsidiaries.
Board of Management and Supervisory Board members and
close family members of these board members may also
purchase goods and services from Daimler AG or its subsidiaries
as customers. When such business relationships exist,
transactions are concluded on the basis of customary market
conditions.
For information on the remuneration of board members,
see Note 37.