Ten cameras in different systems with a wide range of purposes, long and short-range radar systems, fusion of the resulting data and reconciliation with stored values, networking with traffic light systems and an automatic braking system – these are the technical requirements of the Mercedes-Benz Future Bus with CityPilot for semi-automated driving on BRT routes. The CityPilot is another milestone reached by Mercedes-Benz on the road to autonomous driving. The CityPilot is based on the Highway Pilot of the Mercedes-Benz Actros, however it exceeds the latter’s capabilities to meet the needs of its specific area of operation: new functions include traffic light recognition, pedestrian recognition, centimetric precision when halting at bus stops and the ability to drive semi-autonomously in tunnels. In this way the bus becomes one with its environment not only with its design, but also with the technology it uses to move along its line and communicate with its surroundings.

BRT lines are ideal for autonomous driving

Always the same route on a separate line or track, a clearly defined timetable, defined and identical actions at bus stops: regular service city buses on BRT lines (BRT = Bus Rapid Transit) are ideal for autonomous driving. Both in the truck and passenger car sectors, Mercedes-Benz is the leader in taking steps on the way towards autonomous driving. Transferring this comprehensive know-how to the regular city service bus sector is therefore logical.

Bus operation is however subject to certain special circumstances – this is why the technology cannot simply be adopted from other vehicle systems, but must rather be developed further in the important aspects and where necessary also supplemented regarding the specific operating conditions. This applies to typical traffic situations such as traffic lights and pedestrian recognition, vehicles ahead in the same lane, passing through tunnels, negotiating junctions controlled by traffic lights, stopping and departing from bus stops and automatic opening and closing of passenger doors.

CityPilot – a highly specialised and unique technical feature

The specific operating conditions for a city bus therefore require equally specific technical equipment for autonomous driving – the cost and effort required for monitoring the road and the surroundings is extraordinarily high. Mercedes-Benz can however fall back on extensive experience with the Future Truck. This includes features such as long-range radar with a range of up to 200 m, electrically actuated Servotwin steering and the mirrorcams instead of exterior mirrors. Also familiar is the lane-tracking camera, which is used for the Lane Keeping Assist systems in other Mercedes-Benz buses and trucks. A further lane-tracking camera is used as an additional safeguard.

There are no less than four short-range radar sensors – two in the front section and two at the front corners – to cover distances from 50 centimetres to ten metres ahead of the bus. Two stereo cameras with a range of up to 50 metres allow 3D vision and recognition of obstacles and pedestrians.

Precise positioning with centimetric accuracy

Precise positioning of the Mercedes-Benz Future Bus is ensured by the satellite supported location system GPS, the lane-tracking cameras and four cameras for global visual location. These cameras are installed at front axle level high up on the sides, monitoring the surroundings and comparing them with images pre-stored in memory. Their purpose is to ensure exact positioning, and they are guided by waypoints. They operate to an accuracy of eight centimetres and are also used in illuminated tunnels. Such cameras were first used three years ago, for the autonomous journey of a Mercedes-Benz S-Class on the Bertha-Benz Memorial Route.

Two further close-range cameras are directed vertically downwards at the front sides. These recognise the pattern of the asphalt road surface like a fingerprint, and likewise compare this continuously with previously stored images of the route. And finally there are three cameras recording the journey. They record both the movements of the bus and the actions of the driver.

In this way a complex process of sensor fusion creates a precise picture of the local environment, with the exact position of the bus in its immediate surroundings. This means that it moves along its lane with centimetric precision. More precisely than a driver could ever hope to achieve manually in day-to-day operation.

Networking technical data with the traffic light infrastructure along the route ensures early recognition of each traffic light status, thus allowing a predictive, consistent and as a result more fuel-efficient driving style than is possible by conventional means.

Semi-automated driving thanks to networking – a new dimension

The result is a new dimension in the efficiency of the bus as a means of transport, thanks to networking with its environment: the bus covers its entire route semi-automatically, without the driver having to operate the accelerator or brake, or even the passenger door controls – an enormous relief in regular service operation. Strictly speaking, the Mercedes-Benz Future Bus operates at level two of the five defined levels on the way to autonomous driving – semi-automation with lane-keeping function, longitudinal guidance, acceleration and braking by assistance systems.

Intensive tests have verified safety and practical relevance

The development engineers have intensively tested the CityPilot both in test vehicles based on the Citaro and in the Mercedes-Benz Future Bus, including numerous test journeys on selected routes in closed-off areas. The world premiere in the Netherlands, on Airport Line 300 between Amsterdam and Haarlem, was also preceded by intensive tests.

One thing is therefore certain: the Mercedes-Benz CityPilot is not science fiction, it can already become a reality tomorrow. Even today, the bus is in public operation following an exemption from the state transport authority in Stuttgart according to Section 70 of the German vehicle licensing regulations, based on an expert report by TÜV Rhineland. It is allowed to operate on public roads despite deviating from the normal technical and service specifications.

World premiere on Airport Line 300 in Amsterdam

The CityPilot will celebrate its world public premiere in the Mercedes-Benz Future Bus technology platform, on Airport Line 300 in the Netherlands. This links the Dutch metropolis of Amsterdam with Amsterdam’s Schiphol airport and the town of Haarlem. The route has a total length of 37.8 km, making it Western Europe’s longest BRT line.

For the world premiere of the CityPilot, Mercedes-Benz is using the 19 km stretch from Amsterdam-Schiphol airport to Haarlem. This has eleven stops, with a driving time of around 30 minutes. Depending on the time of day, the cycle time on this line is six to ten minutes. On average, Airport Line 300 is used by over 125 000 passengers each day, and it is operated by the Dutch transport company Connexxion.

The route profile of Airport Line 300 is demanding: the bends are sometimes very tight, and the oncoming traffic lane is not physically separated. The route also has 22 traffic lights, three tunnels and includes high speeds of up to 70 km/h. The bus stops are raised, allowing passengers to enter the buses conveniently at ground level.

Semi-automated driving with the Mercedes-Benz Future Bus – how the CityPilot works in practice

At the first bus stop on the BRT line, the driver presses a button to switch to semi-automated mode. He/she can then release the steering wheel and pedals – the bus now moves of its own accord. It moves off automatically and accelerates to a speed of up to 70 km/h. It remains precisely in the middle of its 3.1 m wide lane, with a deviation to the left or right of at most 20 cm even at maximum speed – this is far less than a driver can manage manually for a longer period. In illuminated tunnels, even with no GPS signal, the bus safely takes its guidance from its surroundings via global, visual location cameras.

When the bus approaches a bus stop, it stops fully automatically if required. At this slower speed it moves along its prescribed line to an accuracy of two centimetres, thanks to its high-precision systems. When stopping, the bus with CityPilot maintains a very small distance of only five centimetres from the kerb. This allows convenient entry and exit, even for passengers with restricted mobility or parents with pushchairs. The doors open and close automatically at bus stops, then the bus moves off again.

Fuel-savings and a smoothly flowing driving style thanks to networking

Traffic lights en route are no obstacle to the bus with CityPilot, as it knows the traffic lights on its line. Being networked with the traffic light, the bus can influence its status and obtain ‘green lights’ all the way. If the wireless connection to the traffic light is interrupted, the bus uses visual recognition.

Conversely, the traffic light communicates with the bus and tells it when it is about to change. The bus then automatically adjusts its speed to the situation. The result is a highly efficient and smooth driving style. It noticeably reduces fuel consumption and therefore CO2 emissions, saves wear and tear and is also very passenger-friendly by virtue of the smooth ride.

Automatic braking when encountering obstacles and pedestrians on the road

Thanks to its radar and camera technology, the Mercedes-Benz Future Bus with CityPilot is able to recognise obstacles and pedestrians. It can identify pedestrians crossing its lane, for example. In such a case, the bus automatically initiates braking action. Additional function: at the end of a stop it does not accelerate away from the bus stop if pedestrians are crossing its path.

There is no automatic emergency braking function, out of consideration for standing passengers and those seated without a seat belt. If necessary, the driver can however take control of the vehicle at any time and take emergency braking action. The driver anyway has full responsibility at all times.

From the track-guided bus and the O-Bahn Busway to the Mercedes-Benz Future Bus

Mercedes-Benz has been a pioneer in autonomous driving in sophisticated city bus and BRT systems for decades. One of the precursors to the networked electronic systems of today’s CityPilot was the track-guided bus from Mercedes-Benz. Presented in 1979, it has operated in the city of Essen since 1980. In this city bus with mechanical track guidance, side-mounted guide rollers on the wheels run along guide rails – the driver can release the steering wheel when on the move. In subsequent years the network in Essen was expanded, with track-guided buses even sharing tracks in tunnels with trams in some instances. A further track-guided bus line was operational in Mannheim from 1992 to 2005.

From 1979, at its plant site in Rastatt, Mercedes-Benz operated electrified track-guided bus routes for buses with both mechanical and electronic track guidance using a guide cable recessed into the road surface. The route included a bridge and a tunnel, as well as a fast stretch for speeds of up to 100 km/h. There was also a one-off vehicle in operation: a double articulated bus with a length of 24 metres in two-way operation.

Another great pioneering achievement by Mercedes-Benz is the so-called O-Bahn Busway in Australia. It links the city of Adelaide with suburbs. Initially set up as a test route in the early 1980s, it began to carry passengers in 1988. In peak periods the buses operated with cycle times of just under one minute and reached speeds of up to 100 km/h. The O-Bahn in Adelaide is still in operation today, and is even being expanded.

“The three new Mercedes-Benz vehicles clearly deserve a triple A rating,” said Andreas Renschler, the Daimler Board of Management Member responsible for Daimler Trucks and Daimler Buses, at the Arocs world premiere, which took place today in Munich. “The first three representatives of our heavy-duty truck platform are giving our global module strategy a big boost. At the same time, the all-new Arocs is enabling us to bring our Euro VI offensive for heavy-duty trucks to a close a full nine months before the new emissions limit goes into effect.” As a result, Mercedes-Benz customers are well prepared not only with regard to timing but also with respect to the total cost of ownership. Although the trucks are fitted with complex Euro VI technology, the Actros, Antos, and also the new Arocs are more efficient than their predecessor models. In fact, fuel consumption has been reduced by up to five percent.

The investment in the development of new vehicles is paying off. In 2012 Daimler Trucks produced almost as many vehicles in 11 months as it did in the whole of 2011, when the division’s six truck brands (Mercedes-Benz, Fuso, Freightliner, Western Star, Thomas Built Buses, and BharatBenz) manufactured approximately 426,000 vehicles. “Daimler Trucks substantially increased sales in 2012, despite volatile markets,” said Renschler. “We want to grow this year as well, especially in the second half of the year. We are benefiting from our global business model. Although the debt crisis hampered markets in Europe, Mercedes-Benz was able to buck the general trend, thanks, in part, to the model offensive spearheaded by the new Actros. In Germany, three out of four new Mercedes-Benz Actros trucks are already being ordered with Euro VI technology.”

Arocs to be launched on the market in mid-2013

Beginning in May 2013, the new Mercedes-Benz Arocs will be gradually introduced in Europe. In addition to being extremely environmental friendly as a result of Euro VI technology, the special construction vehicles boast three special attributes: power, efficiency, and robustness.

Never before in the history of Mercedes-Benz Trucks has the range of heavy-duty construction vehicles been as broad as it is today. The truck brand was established more than 110 years ago, when automobiles began to supplant horse-drawn vehicles. “Our roots are here in the construction industry,” said Stefan Buchner, Head of Mercedes-Benz Trucks since December 2012, at the presentation of the all-new Arocs. “Mercedes-Benz has shaped the construction sector more than any other truck manufacturer. We have an above-average market share in nearly all areas of the construction sector. Almost half of the construction site trucks in Germany sport the Mercedes star on their hoods. More than two out of five Mercedes-Benz trucks sold worldwide are construction site vehicles.”

The all-new Arocs is Mercedes-Benz Trucks’ third heavy-duty special vehicle. The first was the Actros for long-haulage operations, followed by the Antos for heavy-duty distribution transportation, and now the Arocs for the heavy-duty construction segment. Stefan Buchner is convinced that this product strategy exactly matches the interests of today’s customers. “All-purpose vehicles are increasingly becoming a thing of the past,” he said. “That’s why we used a common platform to develop custom-tailored vehicle series for individual segments.”

This product strategy is already beginning to pay off for the Actros. “To date, we have sold more than 16.000 units of the new Actros truck in Europe,” Buchner said. “One-third of these trucks feature Euro VI technology. It was mainly due to the Actros that no other manufacturer sold more tractors in Europe last year than we did.”

The construction industry has a lot of catching-up to do

Andreas Renschler, Head of Daimler Trucks, predicts that the all-new Arocs will have a bright future. “The commercial vehicle business will continue to grow globally,” he said. “This is due, in part, to the construction industry, which estimates that alone in Germany there is a demand for 250,000 new apartments per year. New construction was about 40,000 units below this figure in 2012 and will probably be about 20,000 units lower this year. In other words, the construction industry has a lot of catching-up to do.”

Daimler AG (stock-exchange symbol DAI) today presented its preliminary and unaudited results for the year 2010 for the Group and the divisions.

Daimler achieved Group EBIT (earnings before interest and taxes) of €7,274 million in 2010 (2009: minus €1,513 million), bringing the year to a very successful close.

“Daimler managed an excellent comeback last year,” stated Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars, at the annual press conference in Stuttgart. “Our goal now is to maintain the level we have reached over the long term and to further improve it wherever possible. We have the right products, technologies and strategies to do so.”

Based on current estimates, Daimler expects EBIT from the ongoing business in 2011 to surpass the level of 2010 significantly.

Financial year 2010

After the prior year had been severely impacted by the financial and economic crisis, earnings in all divisions developed much more positively than had been anticipated at the beginning of 2010. This was due not only to the general market recovery, but in particular to the attractive product range as well as efficiency gains that were implemented. There was an opposing effect on EBIT from increased research and development expenditure.

Special items affecting earnings in the years 2009 and 2010 are listed in the table on page 11 and in the descriptions of the individual divisions.

The positive development of EBIT led to a significant improvement in net profit to €4,674 million in 2010 (2009: net loss of €2,644 million). Earnings per share improved accordingly to €4.28 (2009: loss per share of €2.63).

After Daimler decided not to pay a dividend last year, more than 40% of the Group’s net profit attributable to Daimler shareholders is now to be distributed. On this basis, the Board of Management and the Supervisory Board have decided to recommend to the shareholders for their approval at the Annual Meeting to be held on April 13, 2011 that a dividend of €1.85 per share be paid out. The total dividend payout will then amount to €1,971 million.

Daimler sold a total of 1.9 million vehicles in 2010. The level of the prior year, which had been very low due to the global economic and financial crisis, was thus surpassed by 22%. Group revenue increased by 24% to €97.8 billion; adjusted for exchange-rate effects, there was an increase of 19%.

The free cash flow of the industrial business increased by a significant €2.7 billion to €5.4 billion. Compared with the prior year, the net liquidity of the industrial business grew by €4.7 billion to €11.9 billion.

The size of the workforce increased slightly due to stronger demand. As of December 31, 2010, the Group employed 260,100 people worldwide (2009: 256,407). Of that total, 164,026 were employed in Germany (2009: 162,565). The number of apprentices was 8,841 (2009: 9,151).

In view of the Group’s positive economic development in the year 2010, Daimler’s Board of Management and General Employee Council have agreed that the special efforts made by the workforce in 2010 will be rewarded with a high performance participation bonus of €3,150 per entitled employee of Daimler AG. In the anniversary year of the invention of the automobile, each employee worldwide will also receive a special bonus of up to €1,000, depending on his or her length of time at the Group.

Investments to safeguard the future

Daimler increased its research and development expenditure last year to €4.8 billion (2009: €4.2 billion). Research and development spending totaled €3.1 billion at Mercedes-Benz Cars (2009: €2.7 billion) and €1.3 billion at Daimler Trucks (2009: €1.1 billion).

The main areas of research and development work were new, extremely fuel-efficient and environmentally friendly drive technologies. This included working on the optimization of conventional drive technologies and enhancing their efficiency through hybridization, as well as on electric vehicles with fuel-cell drive and battery power. Another focus was on new safety technologies.

Capital expenditure on property, plant and equipment amounted to €3.7 billion (2009: €2.4 billion). The focus was on investments in new vehicle models and new drive systems. €2.1 billion of the total volume of capital expenditure was in Germany.

The divisions in detail

Mercedes-Benz Cars, comprising the brands Mercedes-Benz, Maybach and smart, increased its unit sales by 17% to 1,276,800 vehicles last year (2009: 1,093,900). As the structure of unit sales shifted toward higher-value models, revenue increased at the significantly higher rate of 29% to €53.4 billion.

The division achieved EBIT of €4,656 million (2009: minus €500 million) and its return on sales was 8.7% (2009: minus 1.2%).

This excellent result is mainly a reflection of the high volume of unit sales following the decline in demand for cars in the previous year. Above all in the United States and China, the Mercedes-Benz Cars division was able to increase its unit sales significantly because of its attractive product range. Other factors with a positive impact on earnings were an advantageous product mix, improved pricing and increased efficiency. An additional positive effect came from lower charges from the compounding of non-current provisions (2010: €140 million; 2009: €657 million). Compared to the prior year, there was higher research and development expenditure.

Daimler Trucks increased its unit sales by 37% to 355,300 vehicles (2009: 259,300). Revenue increased by 31% to €24 billion.

The division’s EBIT amounted to €1,323 million (2009: minus €1,001 million) and its return on sales was 5.5% (2009: minus 5.5%).

This earnings improvement is primarily due to the good development of unit sales with contributions from all major markets (Europe, United States, Latin America and Japan). Earnings were boosted in 2010 also by cost-reducing actions, in particular from the repositioning of Daimler Trucks North America and Mitsubishi Fuso Truck and Bus Corporation, although the implementation of those programs still had a negative impact on earnings of €40 million in 2010 (2009: negative impact of €340 million).

In addition, EBIT for 2010 includes expenses relating to the reassessment of long-term warranty and service obligations as well as higher expenditure for research and development. There was an opposing, positive effect from income of €160 million recognized at Daimler Trucks North America in connection with the adjustment of health-care and pension plans. Lower charges from the compounding of non-current provisions also had a positive impact (2010: €58 million; 2009: €241 million).

Mercedes-Benz Vans sold 224,200 vehicles (2009: 165,600). Revenue of €7.8 billion was also a significant increase compared with the prior year (2009: €6.2 billion).

The division achieved a significant earnings improvement with EBIT of €451 million (2009: €26 million). Its return on sales of 5.8% was well above the prior-year figure of 0.4%.

The positive earnings trend resulted primarily from increased unit sales, especially in Western Europe, the United States and China, and also from better pricing. Charges from exchange-rate effects were more than offset by sustained efficiency improvements.

Daimler Buses posted unit sales of 39,100 complete buses and bus chassis (2009: 32,500). Revenue amounted to €4.6 billion (2009: €4.2 billion).

The division increased its EBIT to €215 million (2009: €183 million) and achieved a return on sales of 4.7% (2009: 4.3%).

This earnings development mainly reflects the substantial increase in deliveries of bus chassis in Latin America. There were opposing effects from lower unit sales of complete buses in Western Europe and North America.

Daimler Financial Services’ worldwide contract volume of €63.7 billion was 9% above the prior-year level. Adjusted for exchange-rate effects, it grew by 3%. New business increased compared with the prior year by 17% to €29.3 billion. Adjusted for exchange-rate effects, the increase was 11%.

This division also significantly improved its earnings to €831 million (2009: €9 million). Its return on equity was 16.1% (2009: 0.2%).

The increase in earnings after crisis year 2009 was mainly caused by lower expenses for risk provisions and higher interest margins. There were opposing, negative effects in 2010 from expenses of €82 million related to the restructuring of business operations in Germany. An additional factor was that the division disposed of non-automotive assets that were subject to leasing agreements, resulting in an expense of €9 million (2009: expense of €100 million).

The reconciliation of the divisions’ EBIT to Group EBIT reflects the proportionate share of the results of the equity-method investment in EADS, other corporate gains or losses, and the effects on earnings of eliminating intra-group transactions between the divisions.

Daimler’s proportionate share of the net loss of EADS amounted to an expense of €261 million (2009: income of €88 million). The sharp deterioration is mainly due to the additional provisions recognized at EADS in its 2009 consolidated financial statements in connection with the A400M military transport aircraft (minus €237 million). Negative exchange-rate effects were also a factor.

The income of €30 million recognized at corporate level in 2010 (2009: expense of €486 million) primarily reflects a gain of €265 million on the sale of Daimler’s 5.3% equity interest in Tata Motors and pre-tax income of €218 million related to the positive outcome of a legal dispute involving Daimler AG in October 2010. It also includes expenses totaling €125 million for the anniversary bonus and €88 million for the capital increase for the Daimler and Benz Foundation as well as additional expenses in connection with legal proceedings in 2010.

Outlook

According to current estimates, worldwide demand for motor vehicles will continue to grow this year, but no longer as dynamically as in 2010. The global car market could expand by 5 to 7%, thus reaching a new record volume. The Asian emerging markets and in particular the Chinese market will continue to play a major role. But the outlook remains mixed for the triad markets of Western Europe, the United States and Japan. The US market should continue its recovery, while the best that can be expected for car sales in Western Europe is that they remain at the prior-year level. In Germany, however, significant growth is now to be expected following the double-digit market decline in 2010. On the other hand, the Japanese car market is unlikely to equal its artificially high level of 2010, which was boosted by state incentives for car buyers.

Worldwide demand for commercial vehicles in 2011 will probably feature sharply differing market developments in the triad markets and in the other regions. Market recovery is expected to accelerate in the triad of Western Europe, the United States and Japan, especially in the segment of medium-duty and heavy-duty trucks. Market growth of 20 to 25% is anticipated for the NAFTA region. Demand for trucks in Europe should increase by 15 to 20%. Following the expiry of state incentive schemes in autumn 2010, moderate volume growth is expected for the Japanese market for medium and heavy-duty trucks. Demand for trucks outside the triad will be primarily determined by the Chinese market. Since the state incentive program expired in China at the end of 2010, demand is expected to decline this year.

In view of the continuation of generally good market prospects as well as numerous model changes and new products, Mercedes-Benz Cars anticipates further growth in unit sales by the Mercedes-Benz brand. Thanks to its up-to-date and competitive model range, the division will profit also in the year 2011 from the strong demand for the

E-Class models and from the market success of the S-Class. Another factor is that the new version of the CLS coupe has been delivered to customers since late January 2011. As of March, the new generation of the C-Class sedan and station wagon and the new SLK roadster will provide additional sales impetus. The C-Class coupe will follow in June, the new version of the M-Class will be launched in September, and the roadster version of the Mercedes-Benz SLS AMG will follow in the fourth quarter. In November, the new B-Class will be launched – the first model of four new vehicles in the compact-car segment.

Furthermore, the highly efficient four, six and eight-cylinder engines and the eco-start-stop technology will be introduced in additional models. With the new generation of the C-Class, for example, the C 220 CDI will be available with fuel consumption of just 4.4 liters per 100 kilometers and CO2 emissions of 117 g/km.

For the smart brand, due to the full availability of the new-generation smart fortwo, unit sales are anticipated in the magnitude of the year 2010.

Daimler Trucks assumes that it will increase its unit sales substantially again in 2011. Expectations for unit sales are based on the numerous new products, including the new Atego and the Atego BlueTec Hybrid, both of which were voted Truck of the Year 2011. The new version of the Axor is the first truck of its class in the upper performance range in Germany to be fitted with Mercedes PowerShift transmission as standard equipment. PowerShift optimizes fuel consumption and enhances driving comfort. BLUETEC technology, which has already proven its worth for several years in Europe, was successfully introduced in new engines in the United States and Canada in 2010. The division assumes that with these new engines, it will profit even more from the replacement of aging vehicles that is expected in North America. In November 2010, the all-new Canter light-duty truck was launched, setting new standards in terms of economy, environmental compatibility, safety and design. The Fuso Canter Eco Hybrid is Number 1 for fuel efficiency among trucks up to 5 tons in Japan, and is now available also in Australia, Ireland and Hong Kong.

The wide range of safety technology was expanded for Mercedes-Benz trucks with the second generation of Active Brake Assist, which can initiate an emergency braking procedure also before stationary obstacles if required.

At Mercedes-Benz Vans, the positive sales trend should continue this year. On the product side, demand will be boosted by new generations of the Vito and Viano and additional BlueEFFICIENCY models. Production in Argentina will change over by the end of the year 2011 to the current Sprinter model generation, thus significantly upgrading the product range in South American markets. Furthermore, the Sprinter will be launched in China this year. By means of local production, it is intended to significantly increase unit sales in that market with great potential for the future. In this context, the 50:50 joint venture Fujian Daimler Automotive will produce a bus version of the Sprinter in addition to the Vito and Viano starting in 2011.

Daimler Buses assumes it will maintain its globally leading position for buses above 8 tons with innovative and high-quality new products. The division expects to achieve unit sales similar to the high levels of 2010. But due to the limited scope for growth of its key markets of Western Europe and Latin America, any increase will be rather moderate.

Daimler Financial Services anticipates further growth in 2011 in the financing and leasing business as well as with insurance and fleet management. The division is continually expanding its product offering and combines individual financial services elements into attractive mobility solutions.

The bassumes that its total unit sales will rise and that revenue will grow at a more moderate rate in 2011. The growth will probably be driven by all the automotive divisions.

These growth opportunities are connected with challenges. The year 2011 will feature high expenditure for new products and technologies and to penetrate new markets. The revival of the world economy is likely to lead to rising prices for oil and other raw materials that are important for Daimler. On the exchange-rate side, volatility will remain high. However, the risks arising for Daimler’s business from severe fluctuations in exchange rates have already been largely hedged for 2011.

On the basis of current assessments, Daimler expects to post EBIT from the ongoing business in 2011 significantly in excess of the level of the year 2010.

In the coming years, the earnings of the individual divisions and thus of the entire Group are to be improved, and return targets are to be achieved on a sustainable basis. The Group intends to profit to an above-average extent from the anticipated growth of automotive markets.

As of the year 2013, Daimler aims to achieve on a sustained basis an annual average return on sales for its automotive business of 9% over market and product cycles. This is based on target returns on sales for the individual divisions of 10% for

Mercedes-Benz Cars, 8% for Daimler Trucks, 9% for Mercedes-Benz Vans and 6% for Daimler Buses. For the Daimler Financial Services division, the Group has set a target return on equity of 17%.

In the years 2011 and 2012, Daimler will spend a total of €20.4 billion on research and development activities (€10.3 billion) and investment in property, plant and equipment (€10.1 billion). This is approximately €5.3 billion more than in the years 2009 and 2010. Among other things, substantial amounts are planned for the expansion of production capacities in the United States, China, India and Hungary.

Against the backdrop of rising production volumes and the targeted productivity advances, Daimler assumes that the total number of persons employed by the Group will increase slightly in 2011.

Table: Earnings in both years were affected by special items, which are listed in the following table:

In millions of euros	2010	2009
Daimler Trucks Adjustment of health-care and pension plans Repositioning of Mitsubishi Fuso Truck and Bus Corporation Repositioning of Daimler Trucks North America	160 -3 -37	– -245 -95
Daimler Financial Services Repositioning of business activities in Germany Sale of non-automotive assets	-82 -9	– -100
Reconciliation Gain on the sale of shares in Tata Motors Income connected with the settlement of a legal dispute Anniversary bonus and allocation to Foundation Losses relating to Chrysler	265 218 -213 –	– – – -294
A400M military transport aircraft*	-237	–

* Expenses relating to the EADS A400M military transport aircraft are not included in the calculation of EBIT from the ongoing business.

Daimler Trucks North America (DTNA) and Daimler Buses have once again received orders for low-emission vehicles. Thomas Built Buses, Daimler Trucks North America’s school bus manufacturer, has received an order for 130 compressed natural gas (CNG) school buses. That’s the biggest contract for natural gas buses in the company’s history. The buses were ordered by the Los Angeles Unified School District (LAUSD), and the vehicles are scheduled to be delivered in the fourth quarter of 2010.

The LAUSD transportation services division only accepts bids for buses operating on alternative fuels. The district currently operates the largest CNG bus fleet in California, with more than 300 natural gas buses. Thomas Built CNG’s produce emission levels that are close to zero. The buses have complied with the U.S. EPA 2010 emissions standards since 2007 and also meet the state’s tough California Air Resources Board (CARB) limits.

“We welcome this opportunity to demonstrate our commitment to environmental stewardship and enhanced passenger safety,” says Kelley Platt, President and CEO of Thomas Built Buses. “LAUSD underscores its commitment to sound environmental strategies with its selection of 130 additional school buses that incorporate clean-fuel technologies.”

Customer acceptance of buses with alternative drive systems is also demonstrated by the orders for Orion-brand hybrid and CNG buses. Daimler Buses North America has so far obtained more than 3,000 orders for Orion buses with hybrid systems, and it delivered 25 Orion VII CNG transit buses to four transit agencies in California last month.

Besides natural gas drives, DTNA is also using other alternative drive systems, including hybrid technology, in commercial vehicles. Last month, Daimler Trucks North America delivered four medium-duty Freightliner Business Class M2 106 Hybrid trucks to the city of Denver. These aerial bucket trucks will be used for forestry, traffic signal, and traffic sign repair.

In June, DTNA also announced the opening of the Local Hybrid Application Center at its Portland location. It will serve as a local competence center for the research and development of hybrid technology in North America and supplement Daimler Trucks’ Global Hybrid Center in Japan.

The new contracts are part of Daimler’s “Shaping Future Transportation” initiative for commercial vehicles. With this initiative, the company aims to use clean and efficient drive systems along with alternative fuels in order to realize the vision of zero-emission commercial vehicles that will satisfy tomorrow’s transportation needs. The initiative involves the sparing use of resources and the reduction of emissions of every kind, while guaranteeing maximum traffic safety.

Daimler Buses North America has delivered three Setra TopClass S 417 touring coaches to the Canadian Navy in Ottawa. These S 417 are versions specially designed for the Canadian Navy and are to be used in the Ontario, Quebec and Prairie regions.

On the outside of the coaches vivid graphics depicting warships and Navy personnel at work act as an attention magnet. In the interior of the vehicles there are electronics kiosks and computer systems to provide information about employment opportunities in the Canadian Navy. This is the first time this customer takes delivery of an S 417 USA with access at the rear. Normally, vehicles for the North American market only have an access at the front of the vehicle.

The vehicles, with a length of 13.72 metres, are powered by a Series 60 Detroit Diesel six-cylinder in-line engine with an output of 339 kW (461 hp). These engines deliver a maximum torque of 2100 Nm at 1100 rpm.

“We hope to further consolidate our market position in North America through this top-class order,” says Lothar Holder, head of Setra coach sales at EvoBus GmbH.