Daimler is in talks with BAIC about allowing the Chinese company to take a stake in the German carmaker, although it remains unclear whether any deal will materialize, CEO Dieter Zetsche said today.
If it did, BAIC would become the third Chinese automaker to invest in a foreign car manufacturer, after Dongfeng took a stake in PSA/Peugeot-Citroen and SAIC bought shares in General Motors.
Daimler already owns a 10 percent stake in BAIC, the Hong-Kong listed unit of China’s Beijing Automotive Group, which co-owns a joint venture to produce Mercedes-Benz passenger cars in China.
“We have said from the start that it could lead to a cross-shareholding,” Zetsche told Reuters, saying he cannot say yet whether “concrete steps” will result from the discussions.
That would be up to the potential investor, the CEO added.
Any stake purchase by the Chinese manufacturer should be fashioned in a way that does not dilute the interests of current Daimler shareholders, Zetsche said, adding that the two sides were discussing “possible mechanisms” to achieve that goal.
Daimler has in the past issued new shares to allow strategic shareholders to buy a stake. In 2009 it increased its share capital by 10 percent, allowing Abu Dhabi’s Aabar Investments to take a 9.1 percent stake.
Reuters reported last month that the Chinese manufacturer was in talks with Daimler about taking a stake in the German company, citing sources with knowledge of the matter.
Daimler and BAIC have deepened ties in recent years. In December 2013, BAIC took a 51 percent stake in a China-based manufacturing joint venture to produce the new Mercedes C class and GLA SUV, while the German automaker took a 51 percent stake in a China sales organization for Mercedes cars.
Daimler’s largest shareholders are currently Renault-Nissan with a 3.1 percent stake and Kuwait’s investment authority, which has 6.8 percent.
The chairman of Daimler and head of Mercedes-Benz on the sales outlook for the luxury auto brand.
Have pricing power and health finally returned to the auto industry?
I think Mercedes has tremendous momentum right now. That is very much based on our great new products. The new Mercedes AMG-GT sports car is an obvious example.
Aren’t the economic troubles in the euro zone having an impact?
We are basically growing everywhere. In Europe, where the market is pretty slow, we’ve been growing at about 16 percent, thanks to strong product and great demand. We are defined by our capacity. We could sell more if we could produce more.
You have an E-Class, an S-Class, an M-Class, and a G-Class series of cars. Don’t you risk diluting the brand?
We think the opposite is true. With the new compact cars like the CL, new and younger customers are coming to us. At the same time, the S-Class is considered the best car in the world by many people. And this combination gives us more momentum, more dynamics.
Via: Businessweek
With less than two weeks away from the 2014 Mercedes-Benz S-Class official unveiling, new images of the flagship sedan have made their way onto the web. This round of photos shows off the S-Class’ interior, including photos of Chairman of Daimler AG and Head of Mercedes-Benz Cars, Dr. Dieter Zetsche enjoying the exceptionally large back seat. Judging by the size, the photos were likely taken in the long wheelbase version of the S-Class.
We’ve also included a complete compilation of all the undisguised exterior and interior photos of the 2014 S-Class. Click here to skip straight to the photo gallery. Enjoy!
Changes to the 2014 S-Class include more sculpted doors with two strong character lines, a very large glass roof, slim chromed exhaust pipes with cross-drilled brake rotors, and more subtle fender flares. The 2014 S-Class will be offered in eleven exterior colors, including three new ones: Anthracite Blue, Ruby Black and Diamond Silver.
When it comes to technology, the 2014 Mercedes-Benz S-Class is loaded. It will have active seat belts (which are power-deployable), a system that works together with the PRE-SAFE system for automatic tension before an imminent collision. Another incredible addition is what’s being called Magic Body Control – a cutting edge Active Body Control suspension that detects road imperfections using a camera. When trouble is spotted, the Magic Body Control will automatically configure the suspension to compensate for the imperfection and offer the smoothest ride possible.
Interior Details:
With its clear-cut architecture, the interior design of the new S-Class is the embodiment of a classic and serene, yet ultra-modern saloon car. The interior space derives its expressiveness from a distinctively flowing, sensual and elegant style. Horizontal features and lines create an ambiance characterised by visual breadth and calm solidity. High quality and elegance go hand in hand with clarity and functionality. The interior concept of the S-Class combines driving, spatial and operating comfort at the highest level.
The radically redesigned display extends behind the two-spoke steering wheel – reminiscent of the S-Class heritage – as a major part of the horizontal alignment. It replaces the traditional instrument cluster and combines numerous other functions in a visually and ergonomically highly sophisticated manner (see section “New display concept”). The entire display unit appears to be free-floating, an impression reinforced by ambience backlighting.
The high-quality unit formed by the center air vents and the analogue clock is precisely set into three-dimensional wood trim. For the first time this classic wood trim feature is positioned very low. This creates a second level of decorative trim whose luxurious stitched leather lies in the primary field of vision. Both levels extend elegantly across the entire width of the dashboard and doors. With this layout the designers have created an association with the wingbeat of a bird. The result is an extraordinary impression of width combined with a pleasant, calm ambience.
The visually prominent dashboard is characterised by the striking double-S curve. This already made the preceding model unmistakable, and imparts a feeling of spaciousness, safety and security.
The perfectly coordinated use of materials and colours produces an elegant interior seemingly cast from a single mould. There is generous use of wood trim, especially in the dashboard and centre console. Metallised switch surfaces with pearl-effect paint finishes in three colour shades to suit the interior colour particularly highlight the outstanding quality.
Innovative lighting systems in the form of a continuous light band under the wood trim strips and the central display – a completely new dimension in ambience lighting – and elegant lighting units with stylish details in the headlining enhance the comfortable atmosphere.The number and size of the stowage facilities in the interior have been greatly increased compared to the preceding model.
Passengers in the rear are also seated in first-class – the design and exclusivity of the seats, door panels and all controls are to the same, high standard as the front. If a luxury or reclining seat (Executive seat) is specified for the rear, the backrest inclines backwards into the parcel shelf, which means that legroom is not restricted even in the resting position. As an additional individualisation feature, the “First Class Rear” incorporates a Business centre console combining personal comfort with practical convenience (integration of a telephone handset, additional stowage compartments, folding table, etc.). The side finishers of the front seats are formally integrated and feature useful stowage compartments (for details see section “Seats”).
In combination with the first-class quality of materials and outstandingly high perceived value, the decidedly varied range of available appointments emphatically confirms the premium positioning of Mercedes-Benz. The innovative architecture of the interior design, which is based on both additive and integrating features, allows a choice of different and very individual styling in terms of colours and materials.
Hat tip: Frederic.E of Worldscoop.forumpro.fr via our friends at IndianAutosBlog.
In a unanimous decision, Daimler’s Supervisory Board extended Dieter Zetsche contract for three years through 2016. As if there was any question that Mercedes’ fearless leader would remain. In addition to Dr. Zetsche, Prof. Weber also received a three year extension on his contract as Mercedes’ Head of Development. Weber’s contract also goes through December 2016, maintaining the top-level executive team that is turning the Mercedes-Benz brand around.
Press Release:
In its meeting Thursday, the Supervisory Board of Daimler AG passed a unanimous resolution to extend the contract of service of Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars, until December 31, 2016. The contract of service of Prof. Dr. Thomas Weber, Board of Management Member for Group Research and Mercedes-Benz Cars Development, was also extended until December 31, 2016.
As of April 1, 2013, Andreas Renschler will assume Board of Management responsibility for production and purchasing of Mercedes-Benz Passenger Cars & Mercedes-Benz Vans. At the same time, Dr. Wolfgang Bernhard will assume Board of Management responsibility for Daimler Trucks.
Dr. Dieter Zetsche has been a member of the Board of Management of Daimler AG since December 16, 1998 and its Chairman since January 1, 2006. He is also Head of the Mercedes-Benz Cars division.
Prof. Dr. Thomas Weber has been a member of the Board of Management of Daimler AG since January 1, 2004 and is responsible for Group Research and Mercedes-Benz Cars Development.
Andreas Renschler has been a member of the Board of Management of Daimler AG and Head of Daimler Trucks since October 1, 2004. Dr. Wolfgang Bernhard has been a member of the Board of Management of Daimler AG and Head of Operations Mercedes-Benz Cars since February 18, 2010.
Dr. Manfred Bischoff: “The long-term orientation of the Group’s leadership is an essential factor for Daimler’s sustained success. With today’s extensions of the contracts of Dieter Zetsche and Thomas Weber, we are maintaining the important continuity at the top executive level.”
“Dieter Zetsche and the Board of Management have a clear plan how to further enhance Daimler’s overall performance together with their team. Dieter Zetsche is distinguished of course by his great experience, but also by his ability to combine a feeling for cars with sound engineering knowledge and an entrepreneurial approach,” continued Dr. Bischoff.
“Research and development are two key areas in the automobile industry. I am therefore delighted that we will continue the successful collaboration with Thomas Weber. He will steadily continue to maintain Daimler’s claim to technological leadership,” stated Dr. Bischoff.
“Wolfgang Bernhard and Andreas Renschler are two highly experienced members of Daimler’s Board of Management. With this change, they will both be able to utilize their management know-how from their previous responsibilities within in their new functions, thus expanding their own expertise in all automobile areas” explained Dr. Bischoff.
The contracts of service of Dr. Zetsche and Prof. Dr. Weber would otherwise have expired in December 2013. In accordance with Section 84 Subsection 1 of the German Stock Corporation Act (AktG) and with the Rules of Procedure of the Supervisory Board of Daimler AG, the Supervisory Board passes a resolution on reappointments to the Board of Management at the beginning of the last year of a member’s current period of office.
The Consumer Electronics show begins Tuesday (January 10) in Las Vegas and Mercedes-Benz USA and parent company, Daimler AG, will be on hand to showcase vehicle technology of today, tomorrow and the future. Think Tomorrowland for Mercedes-Benz
Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars, will deliver a keynote address to discuss the true meaning of the connected vehicle – both what it is and what it isn’t – at 11 a.m. Tuesday, January 10, at the Las Vegas Hilton Theater.
mbrace2 – Mercedes-Benz’s pioneering communications platform, offering the most comprehensive cloud-based system to date, accelerating the process of empowering drivers to customize their vehicle ownership experience to fit ever-changing needs. The mbrace2 system enables an incredible range of features and services related to safety, information, entertainment, personal assistance and vehicle care. These include cloud-based apps, traffic and navigation assistance, speech recognition, Internet browsing and searching, concierge services, automatic crash notifications, and more. The new platform is being shown as it will appear inside the re-designed MY2013 Mercedes-Benz SL, the first of many vehicles which comes standard this year.
The mbrace2 smartphone app – Allows drivers to communicate and send information to their vehicle before getting inside. Drivers can use the app to find their vehicle, lock or unlock it, set valet parking protection, receive geo-fence alerts and Send2Benz, allowing drivers to socially connect with their friends and navigate to them.
Mercedes-Benz Latest Suite of Advanced Driver Assistance System- The most comprehensive active safety system which keeps drivers safe by preventing accidents before they happen.
The DriveStyle iPhone App – Coming later this year, Mercedes-Benz will offer the DriveStyle iPhone App, which allows drivers to interact with the vehicle rather than the phone, minimizing driver distraction. This technology will be demonstrated in the brand-new Mercedes-Benz C350 coupe.
F125! Research Vehicle – As a highlight marking 125 years of the automobile, Mercedes-Benz is presenting a visionary outlook on future technical developments in the luxury segment. The F125! research vehicle anticipates future trends and paves the way for innovative large and luxurious automobiles. The vehicle provides emission-free driving with a range of 621 miles.
DICE, “Dynamic & Intuitive Control Experience” simulator – Take a seat into the future and wave your hands to take control of the vehicle of the future.
Mercedes-Benz top boss and Daimler chairman Dieter Zetsche will deliver the keynote address at the 2012 International CES. The 2012 show marks Mercedes-Benz’ first International CES keynote address.
Dieter Zetsche was named Chairman of the Board of Management of Daimler AG in January 2006. He has held several executive positions since joining Daimler AG’s research division in 1976, including chief engineer of Mercedes-Benz, Brazil, president of Mercedes-Benz, Argentina and president of Freightliner, USA. In 2000, he became CEO and president of the Chrysler Group. Dr. Zetsche has been a member of the Board of Management of Daimler AG since December 1998.
“Dieter Zetsche is an iconic and instrumental leader in the automotive sector, where innovative technology unveiled each year at CES is a vital component of today’s driving experience,” said Gary Shapiro, president and CEO, CEA. “We are thrilled to welcome the innovation leader Mercedes-Benz to the 2012 CES keynote program and look forward to hearing Dieter’s vision on the interplay between automotive innovation and the digital realm.”
Zetsche will speak at 11 a.m. PST Tuesday, January 10, 2012 at the Las Vegas Hilton Theater.
Daimler Chairman Dieter Zetsche to Deliver Keynote Address at 2012 International CES
Zetsche’s CES Keynote to Address the Future of Automobiles in the Digital Realm
The Consumer Electronics Association (CEA)® announced today that Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars, will deliver a keynote address at the 2012 International CES®. Owned and produced by CEA, the 2012 International CES, the world’s largest consumer technology tradeshow, will be held January 10-13, 2012, in Las Vegas, Nevada.
Zetsche’s keynote address is slated for 11 a.m. Tuesday, January 10, at the Las Vegas Hilton Theater. The 2012 show marks Mercedes-Benz’ first International CES keynote address. All 2012 CES keynotes will take place in The Venetian and The Las Vegas Hilton Theater.
“Dieter Zetsche is an iconic and instrumental leader in the automotive sector, where innovative technology unveiled each year at CES is a vital component of today’s driving experience,” said Gary Shapiro, president and CEO, CEA. “We are thrilled to welcome the innovation leader Mercedes-Benz to the 2012 CES keynote program and look forward to hearing Dieter’s vision on the interplay between automotive innovation and the digital realm.”
Automotive technology will be a major focus at the 2012 CES. Electric vehicle technologies, products and services will be featured in the GoElectricDrive TechZone. In addition, the Location Based Services TechZone will return to the CES show floor as the premier location for providers of current location-based custom technologies in both portable and in-car navigation devices. The Safe Driver TechZone will also be featured at the 2012 CES, and will highlight products that assist in auto collision avoidance, land drift assistance, parking, speed monitoring, hands-free, text-to-voice, driver drowsiness detection and more.
Dieter Zetsche was named Chairman of the Board of Management of Daimler AG in January 2006. He has held several executive positions since joining Daimler AG’s research division in 1976, including chief engineer of Mercedes-Benz, Brazil, president of Mercedes-Benz, Argentina and president of Freightliner, USA. In 2000, he became CEO and president of the Chrysler Group. Dr. Zetsche has been a member of the Board of Management of Daimler AG since December 1998.
The relationship between the automotive and consumer technology markets continues to grow. In 2010, shipment revenues of total automotive technology surpassed $9 billion as factory-installed systems totaled more than $5.5 billion. This year, CEA estimates total automotive shipment revenues will exceed $9.3 billion, while shipment revenues of factory-installed systems will total more than $5.9 billion.
For more information and to register for the 2012 International CES, please visit www.CESweb.org.
The Mercedes-Benz CLS Shooting Brake is due to roll-off the assembly line at the Mercedes-Benz Plant Sindelfingen in 2012 and if the recent reports are true, we may get a second smaller Shooting Brake a couple years later. Automotive News has reported that Mercedes-Benz boss Dieter Zetsche has given approval for a second Shooting Brake model based on the upcoming Mercedes CLC that would go on sale in North American in 2014.
The CLC variant would be priced below the larger and more lavish CLS version and will ride on a MFA platform and be offered with a variety of petrol and diesel engines.
The five-door CLC Shooting Brake is expected to be heavily influenced by the Concept Shooting Brake and therefore will receive a sloping roof-line and a heavily-stylized rear end.
Daimler, Mercedes-Benz’ parent company, decided to delay their decision regarding the future of their super luxury brand, Maybach. The decision of whether to turn Maybach into a subbrand of Mercedes-Benz will be delayed by about a month when the Daimler supervisory board is next scheduled to meet. Daimler originally said it would decide the fate of Maybach by July 1.
Folding Maybach into Mercedes-Benz is now under consideration. Under that scenario, Maybach would be a subbrand, like AMG, and the Maybach name would be used for Mercedes’ top-of-the-line versions of its S-Class, GL-Class and CL-Class vehicles with only minor design changes.
According to three company sources, Daimler is still considering a partnership with Aston Martin in which the British car maker would produce the second-generation Maybach. Aston Martin has so far created four concepts for Daimler based on the next-generation S-class architecture.
The Daimler source also said a third option of killing Maybach brand is also on the table.
Daimler CEO Dieter Zetsche confirmed this month that Daimler has been in discussions with Aston Martin, with no other potential partners emerging as possibilities.
We will keep you up to date on Maybach’s future as reports roll in.
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.
Exactly 125 years to the day after Carl Benz registered his “vehicle with gas-engine drive” under patent number 37435 with the Berlin Patent Office in 1886, Daimler AG has celebrated the anniversary of the automobile. Approximately 1,400 invited guests were hosted by the inventor of the automobile at the Mercedes-Benz World in Stuttgart. The evening was moderated by Desirée Nosbusch with guests of honor including the German Federal Chancellor,
Dr. Angela Merkel, and the Prime Minister of the federal state of Baden-Württemberg, Stefan Mappus. They mixed with international guests from the automotive industry and the fields of politics, business, sports, society and the media, as well as members of Daimler’s Board of Management, Supervisory Board and many Daimler employees.
Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars, emphasized the importance of the automobile: “The invention of Daimler and Benz has changed the world for the better – and it will continue to do so. History shows that when a society becomes physically mobile it also becomes socially mobile and economically successful.” At the same time, Dr. Zetsche focused on the future: “As the inventor of the automobile, Daimler strives to be at the forefront of shaping future mobility.”
One of the key challenges is the transition to electric mobility.
Dr. Zetsche is convinced: “If Daimler and Benz were still alive today, they would advise us to make green cars even more fascinating and fascinating cars even greener. Only attractive innovations are effective innovations.”
World tour of fuel cell vehicles to be started
Firm evidence of the innovative strength of Daimler and Mercedes-Benz in the field of green technologies was sent on a world tour as part of the anniversary celebrations. Together with Chancellor Merkel, present and past racing drivers Michael Schumacher, Nico Rosberg and David Coulthard, and three Daimler engineer, Dr. Zetsche symbolically started the Mercedes-Benz F-CELL World Drive. Three B-Class cars with fuel-cell drive are to travel around the world in 125 days.
Patent granted for battery technology
125 years after Carl Benz registered his patent and more than 80,000 patents later, Daimler was granted another technology patent during the anniversary celebrations. Cornelia Rudloff-Schäffer, President of the German Patent and Trade Mark Office, presented Dr. Zetsche with the patent certificate for the so-called bipolar flat-cell frame. This technology is now in the development stage at Daimler and is potentially a further step along the way to the industrialization of lithium-ion batteries.
Milestone: 30 million Mercedes-Benz cars
Right on time for the 125th anniversary of the automobile and after 65 years of post-war production, the Mercedes-Benz brand has reached a new milestone. 30 million automobiles with the three-pointed star have been delivered to customers since 1945.
Dr. Dieter Zetsche: “This unit-sales jubilee is another major milestone in the history of our brand and demonstrates the popularity our cars have enjoyed for many decades with customers around the world.”
Sculpture “Aesthetics 125”
The latest sculpture from the Mercedes-Benz design team, “Aesthetics 125,” was unveiled during the celebrations. The sculpture continues the unique designers’ philosophy that “Mercedes-Benz design is art” and is an extension of the sculptures presented previously, “Aesthetics No. 1” and “Aesthetics No. 2.” Like them, “Aesthetics 125” provides an outlook on the future design language of Mercedes-Benz. It combines elements of an automobile’s interior and exterior by means of sweeping, almost soaring shape transitions. The model was made by the Mercedes designers using the innovative rapid-prototyping technology, which enables digital data to be transferred directly to a design object. The technology works with various materials and applies them in fine layers so that no waste material is produced when a sculpture is created.
Start of numerous activities
The anniversary celebrations at the Mercedes-Benz World mark the official start of jubilee year 2011, which Daimler has given the motto “125! years inventor of the automobile.” The Mercedes-Benz brand has given the year the motto “125! Years of innovation.” Numerous events connected with the 125th anniversary of the automobile are scheduled to take place this year.
Special bonus for the worldwide workforce
Daimler’s success – in the past, the present and the future – depends above all on the motivation and enthusiasm of its approximately 260,000 employees all over the world. For this reason, many activities and projects will be taking place in the coming year that focus on the employees. First of all, Daimler will pay out a total of 125 million euros to its worldwide workforce in the form of a special anniversary bonus. In recognition of the efforts and achievements of recent years, each employee will receive a bonus of up to 1,000 euros depending on his or her length of time at the Group.
Support for the Gottlieb Daimler and Karl Benz Foundation
In addition to the special bonus to be paid to the employees, Daimler is also making a gesture of social responsibility, and will increase the capital of the Gottlieb Daimler and Karl Benz Foundation (www.daimler-benz-stiftung.de) to 125 million euros. This foundation was established in 1986 – the year of the 100th anniversary of the automobile – and deals primarily with long-term research projects concerning the ever changing relationship between human beings, the environment and technology. The capital increase is intended to develop the foundation into a think tank specializing in this field.
“We move it! – 125 employee projects for sustainability”
There will be a very special event to honour employees’ social involvement: “We move it! – 125 employee projects for sustainability”. Employees in Germany can apply presenting environment- and community-related projects to which they dedicate their free time as volunteers. A jury of experts will select 125 projects which will then be supported or financed by Daimler with up to 5,000 Euros per project. Every employee already working, or wishing to work, for a non-profit organisation or in a public corporation can take part. Applications can be submitted starting January 29, 2011. Similar campaigns will be started in other countries such as Brazil and France.
Celebrations for employees and their families
In 2011, at virtually all the Daimler locations around the world, employee and family festivities will be organised. The celebrations at the multiple Daimler locations are intended as a “thank-you” to the workforce. For today’s celebration, 125 invitations were raffled amongst employees. Apart from this, in different events, Daimler will also raffle tickets for the international football match in the Mercedes-Benz Arena and numerous other prizes.
Exhibitions around the world
The central anchor point for the automobile’s history is the Mercedes-Benz Museum, which in 2011 celebrates its 5th anniversary at its new home in the Mercedes-Strasse in Stuttgart. In addition to the museum’s automotive classics, the guest exhibition ART 125! will be on show here from May to September 2011. Over 160 exhibits from the company’s collection of modern and contemporary art created by more than 80 internationally renowned artists will be on display. Among the works of art that will be seen there are many which originated in the artist’s treatment of the history, models or design of Mercedes-Benz motor cars. Worthy of mention among these: Andy Warhol’s (1928-1987) legendary series of paintings “CARS”, created by the artist 25 years ago on the occasion of the 100th anniversary of the automobile. Beside further works with reference to the motor car by Bertrand Lavier, Robert Longo, Sylvie Fleury and Vincent Szarek among others, in the Mercedes-Benz Museum it will be possible to see for the first time a work commissioned for the automobile’s 125th birthday.
A publication is to be edited in the form of a book with 125 anecdotes revolving around the motor car, entitled “125 moving stories”. The reader can learn entertaining, informative and surprising stories – some of which have never been set down in writing before.
Exhibitions will be staged at the international Mercedes-Benz Galleries, Mercedes-Benz Brand Centres and the German Mercedes-Benz customer centres, featuring selected historic and present-day exhibits to illustrate the influence the invention of the motor-car had on society and to bear witness to Mercedes-Benz’s power of innovation – not least keeping an eye on the future of mobility. In addition, Daimler will implement a travelling exhibition of classic vehicles, which is to tour selected shopping centres throughout Germany and thus make automobile history tangible for millions of people.
Mercedes-Benz as sponsor of the 2011 Automobile Summer
The State of Baden-Württemberg celebrates the invention of the automobile with a series of events under the heading “Automobile Summer 2011– 125 years of the automobile”. Over 125 days numerous events will take place in Baden-Württemberg, grouped into eight thematic blocks: Family & Children, Origin & History, Art, Culture & Lifestyle, Technology & Research, Travel & Pleasure, Environment & Sustainability, Motor sport & Tuning as well as Wellness & Health. Five of these are planned in Stuttgart, Karlsruhe, Pforzheim, the Lake of Constance region and Mannheim. The event series will begin in Stuttgart on May 8 to finish in Mannheim on September 10. Daimler is actively supporting the 2011 Automobile Summer with its brand Mercedes-Benz acting as a sponsor.
Mercedes-Benz says “Thank you”
Starting in mid-August Mercedes-Benz will initiate activities in Stuttgart, planned to take place on several days and intended to enable members of the public to participate actively in the jubilee celebrations. An international soccer match between the German National Team and the Brazilian selection in the reconditioned Mercedes-Benz Arena in Stuttgart on August 10, 2011 will be the kick-off; Mercedes-Benz acting as “Sponsor of the day”. On subsequent days Mercedes-Benz will offer multi-media performances, vehicle exhibitions and, both for young and old, a glimpse at the future of the motor car.
This “Thank you” event will also be incorporated in the event calendar of the Automobile Summer of the State of Baden-Württemberg.
In addition, this summer Mercedes-Benz, working in close cooperation with the international official Mercedes-Benz Clubs in Berlin is organising the biggest Mercedes-Benz meeting of all times.
Retrospect:125 years of innovation in automotive construction
When Carl Benz registered his Patent number 37435 in Berlin on January 29, 1886, nobody could possibly have imagined the triumphant march the modern motor car would embark upon over the following 125 years. Less than 100 kilometres away, and almost at the same time, Swabian inventor and entrepreneur Gottlieb Daimler was working on his motor wagon, to which he gave the finishing touches that very year. However, both had to wait some years before the groundbreaking development they had succeeded in initiating became a profitable commercial proposition.
The long road to the birth of the modern-day automobile
As far back as the eighteenth century there had been first experiments with automobiles driven by steam engines, in particular in England and France. In the course of the 19th century countless engineers, developers and inventors all over Europe worked at the further development of steam engines. Electric motors were also tried for the first time. However, the decisive steps that led to Gottlieb Daimler and Carl Benz’s invention of the modern motor car took place in Germany with the invention of the four-stroke engine (gas engine) by Nikolaus August Otto.
Both Daimler and his congenial partner, Wilhelm Maybach, as well as Carl Benz realised that their opportunity lay in the reduction of size and weight of the engine coupled with an increase in power output at the same time. The resoluteness with which Carl Benz and Gottlieb Daimler developed their ideas further, and patented, implemented and tested them to finally lead to their application in series production and market maturity, makes them the fathers of an invention that was to change the world – socially, culturally and economically.
Ultimate efficiency paired with powerful, confident designs are the combined hallmarks of the innovations presented by Mercedes-Benz at the 2010 Paris Motor Show. “We are now witnessing the automobile being invented for the second time”, explains CEO Dr. Dieter Zetsche. “Currently we are making advances in efficiency which are unprecedented in automotive history. As the inventor of the automobile, we feel we have a very special responsibility for its future.” Just one example is the introduction of the ECO start/stop function in the CLS and CL-Class.
With its exciting, bold design and refined performance, the all-new 2012 CLS-Class continues to lead the segment which its predecessor created. All the engines in the CLS-Class are new and provide improved fuel economy compared with the previous models. Also contributing to improved fuel economy is the electromechanical Direct-Steer system fitted as standard equipment and celebrating its world premiere in the CLS. The 2012 CLS-Class is also the first car in the world to feature available LED High Performance Active headlamps. The all-new CLS goes onsale in the U.S. in mid-2011.
Mercedes-Benz is also focusing on fuel consumption and exhaust emissions in the exclusive top-end segment with the restyled 2011 CL-Class. In addition to the newly developed BlueDIRECT technology with third-generation spray-guided direct injection, the CL550 4MATIC makes a significant contribution towards reducing consumption by 22 percent. The 2011 CL-Class will be available in U.S. showrooms in November.
The automobile will be 125 years old next year, and the company responsible for this invention is still very much at the forefront of mobility today. Mercedes-Benz is highlighting its leading role by presenting a whole series of innovations at the Paris Motor Show – and as such is acknowledging the words of its founding father Carl Benz: “The passion for invention will never die.”
As part of this, Mercedes-Benz Accessories will be presenting an innovative docking station which will be showcased in an S-Class – after all, mobile entertainment is what the Apple iPad is all about. The prototype demonstrates how the tablet computer could be integrated into the rear of many Mercedes-Benz models: safe, easy to operate and always ready to use.
125 years of Daimler and Benz
Inventing the automobile for the second time
The automobile will be 125 years old next year, and the company responsible for this invention is still very much at the forefront of mobility today. Mercedes-Benz is highlighting its leading role by presenting a whole series of innovations at the Paris Motor Show – and as such is acknowledging the words of its founding father Carl Benz: “The passion for invention will never die.”
“We are now witnessing the automobile being invented for the second time”, explains CEO Dr. Dieter Zetsche. “Innovative mobility concepts such as ‘car2go’ have played just as big a role in this as our eDrive products for local emission-free motoring.” The future for vehicles with combustion engines is only just beginning too, according to Zetsche: “Currently we are making advances in efficiency which are unprecedented in automotive history. As the inventor of the automobile, we feel we have a very special responsibility for its future.”
Advances in efficiency: V6 with 25 percent lower consumption
By way of example, Zetsche pointed to the new V6 engine generation celebrating its premiere in Paris in the Mercedes-Benz CLS350 BlueEFFICIENCY (not available in the U.S.), which consumes 25 percent less fuel than its predecessor, as well as the S250 CDI BlueEFFICIENCY (not available in the U.S.) which sets new standards in the luxury class. In addition to such innovative engine technology as BlueDIRECT or the remarkable performance enhancements achieved in the diesel engines, other systems contributing towards the increase in efficiency include the ECO start/stop function, the enhanced 7G-TRONIC PLUS automatic transmission and optimized aerodynamics and auxiliary equipment.
Furthermore, hybrid technology has also been consistently expanded. The successful launch of the S400 HYBRID has been quickly followed by a series of other models, including a diesel hybrid for the first time. At the same time, the combination of combustion engine and electric drive has paved the way towards completely emission-free mobility.
On the road to sustainable mobility: real solutions for electric vehicles
Mercedes-Benz has succeeded in making a widespread impact on electric mobility with its A-Class E-CELL, the electric family car suitable for everyday use in urban areas. Celebrating its world premiere at the Paris Motor Show, this fully-functional five-seater features a battery-electric drive and a range of more than 124 miles. Another pioneer of new urban mobility, the smart fortwo electric drive, is now already in its second generation and has been in production since November 2009. Initially limited to 1,000 units for its first production run, this figure has now been increased to 1500 examples thanks to the high demand for the vehicle. Large-scale production of the compact city runabout is due to commence from 2012.
New concepts in mobility: car2go, Paris Autolib, car2gether
The car2go mobility concept began for the public in the spring of 2009 in the German city of Ulm and was extremely successful: some 20,000 customers have taken advantage of the scheme and registered with car2go. The share of car2go customers making up the population of Ulm, meanwhile, has grown to more than 10 percent, while a third of young drivers between the ages of 18 and 35 have already received the car2go authorization stamp on their driving license. A good half of all customers use car2go on a regular basis, while several hundred make use of it every day. Since its launch, more than 350,000 rental transactions have been completed, mostly for a duration of between 30 and 60 minutes. Currently up to 1000 fully automatic rental transactions are recorded each day. In Austin, Texas a second pilot trial of car2go has been running since November 2009. Soon the project is due to start in more international cities – and with the world’s series production car made especially for car-sharing projects, the “smart car2go edition” with solar roof.
Thanks to car2go, Mercedes-Benz has more experience than any other car manufacturer in the integration of car-sharing projects. This know-how, in conjunction with the smart fortwo electric drive, has enabled the company to take over the role of supplier for vehicles and technology as part of a bid by a consortium for the largest car-sharing project in and around Paris, called “Autolib” (a combination of “automobile” and “liberté”/freedom). Some 3000 electric cars are to be made available for hire at approximately 1000 charging stations located around the capital. The project is due to start in September 2011.
In addition, for the first time at the Paris Motor Show the company will be presenting a preview of some one-off two-wheel smart vehicles. Both the smart escooter and the smart ebike are equipped with a battery-electric drive and as such make ideal vehicles for use in the city.
Furthermore, Daimler has also developed another innovative mobility concept for urban conurbations: car2gether. This system enables car-sharing rides to be notified quickly and simply online, and can be accessed either from a PC or via a mobile smartphone. This month Daimler has started trialing the system as part of a pilot project in Ulm.
World premiere: the all-new Mercedes-Benz CLS
Refined sportiness
With its exciting, bold design and refined sportiness, the all-new 2012 CLS benefits from the fact that – as the inventor of the segment – Mercedes-Benz is a whole generation ahead. All the engines available in the CLS are new and provide an improvement in fuel consumption of up to 25 percent compared with the previous models. Also making a contribution to the increase in efficiency is the electromechanical Direct-Steer system fitted as standard equipment and celebrating its world premiere in the CLS. The 2012 CLS is also the first car in the world to feature available LED High Performance Active headlamps.
A generation ahead: with the CLS, Mercedes-Benz created a new vehicle category in 2003 which for the first time combined the elegance and expressiveness of a coupé with the comfort and functionality of a sedan. The customers were delighted, the competition astounded: for years the CLS has endured as the only four-door coupé in its class, and since October 2004 to the present it has been the car of choice for around 170,000 buyers around the globe. “Customers all over the world benefited from our bold move to launch a completely new vehicle concept onto the market”, explains a delighted Dr. Joachim Schmidt, head of Sales and Marketing for Mercedes-Benz. “And with its exciting design, the new edition of the CLS also benefits from the fact that we are a whole generation ahead of the competition with our four-door Coupé.”
The engines: up to 25 percent lower consumption but with higher output
The ultimate in efficiency: this is the hallmark of the engines which are used in the new CLS. Both the output and torque of all units have been increased compared with the previous models, and at the same time consumption has been significantly reduced by up to 25 percent. In the U.S., the V8-powered CLS550 will produce 402hp and 443 lb-ft of torque. In Europe, two six-cylinder models will initially be available in January 2011: the CLS350 CDI BlueEFFICIENCY producing 265 hp and the CLS350 BlueEFFICIENCY producing 306 hp and fitted with the ECO start/stop function as standard. The engine range will be extended just two months later with the addition of the CLS250 CDI BlueEFFICIENCY, producing 204 hp. In the ECE consumption cycle, it consumes 5.1 liters of diesel/100 km.
Lightweight construction and aerodynamics: making significant contributions to efficiency
The intelligent lightweight construction used in the CLS makes a significant contribution towards addressing the classic conflicting goals of low weight and high strength. As a result the 2012 CLS550 is the first vehicle from Mercedes-Benz to be fitted with doors featuring a full aluminum construction. They consist of deep-drawn aluminum panels with extruded sections, and are around 52 lbs lighter compared with conventional steel doors. In addition, the hood, front fenders, trunk lid, parcel shelf, various support sections as well as major parts of the chassis and engine are all made from aluminum too.
Aerodynamics also play a significant role in the outstanding efficiency of the new Mercedes-Benz CLS. Although the new model is wider compared with the previous model and therefore presents a larger frontal area to the wind, it has still been possible to reduce wind resistance by up ten percent. This is thanks to a 13 percent improvement in the Cd value, which now stands at 0.26.
Electromechanical Direct-Steer system: a new steering sensation
Supreme driving dynamics coupled with superlative ride comfort on long journeys was the focus in developing the chassis for the new Coupe, whose design and functions are geared towards a stylish sportiness. To this end the chassis concept, which has already been well-received by the trade press and the public in the new E-Class, has undergone a thorough revamp, adding a central new component: the electromechanical Direct-Steer system is making its world premiere in the new CLS. This pioneering innovation is a radical step forward in the relationship between driver, car and road. This is because for the first time engineers have the freedom to freely choose and program a wide variety of parameters which can influence steering performance.
In addition, this steering technology also makes an important contribution to the overall efficiency of the CLS: the steering assist function only requires energy when steering actually takes place, cutting fuel consumption.
For the front suspension, the principle of a three-link front axle with McPherson struts – as used in the E-Class – was adopted and developed into a special enhanced design for the new CLS. The principle of the lightweight independent multilink rear suspension, fitted to a subframe, was also adopted for use in the CLS from the new E-Class due to its unrivalled wheel location qualities. Compared with the previous model, all components have been modified to achieve higher levels of comfort and driving dynamics.
LED High Performance Active headlamps: enhanced visibility with complete functionality
The CLS is the first car in the world to feature dynamic LED High Performance Active headlamps, which combine the daylight color impression of LED technology with the performance, functionality and energy efficiency of today’s bi-xenon light generation. With a total of 71 LED’s, the headlamps have an exciting look and help to highlight the distinctive appearance of the CLS. The light specialists at Mercedes-Benz were also able to combine the LED technology with the familiar and innovative Adaptive Highbeam Assist for the first time, which has resulted in a completely new level of safety when driving at night.
There are additional benefits of LED-based lighting technology: the average operating life of an LED is around 10,000 hours, around five times longer than that of a xenon light. Also LED headlamps most closely approximate the color temperature of daylight. This means that LED light complements normal human perception patterns. Studies have shown that the closer the color of artificial light comes to daylight, the less the strain on the eyes. With a color temperature of 5500 Kelvin, LED light is closer to daylight (6500 K) than xenon light (4200 K).
New driver assistance systems: enhanced safety
More than a dozen driver assistance systems in the new CLS help prevent traffic accidents and reduce the severity of injuries. New optional equipment includes Active Blind Spot Assist and Active Lane Keeping Assist.
Using short-range radar sensors, Active Blind Spot Assist warns the driver if it detects the risk of a collision when changing lanes. If the driver ignores warnings and the vehicle comes dangerously close to a vehicle in the next lane, Active Blind Spot Assist will intervene. Applying braking force to the wheels on the opposite side of the vehicle via the Electronic Stability Program ESP® creates a yaw movement which counteracts the collision course.
Active Lane Keeping Assist is now also linked to the ESP® for the first time. This system kicks into action if the Mercedes vehicle inadvertently drifts over a solid line to the right or left of a lane. In this case, Active Lane Keeping Assist uses the ESP® to brake the opposite wheels and thereby prevent the vehicle from crossing the line. A display on the instrument cluster warns the driver at the same time. If broken lane markings are crossed, the system controls an electric pulse generator in the steering wheel which generates vibrations for a short time – a discreet but effective cue to countersteer immediately. Before the braking system intervenes, the steering wheel always vibrates to provide a warning.
Exterior: classic Coupé styling with distinctive front
The new CLS builds on the pioneering role of its predecessor yet at the same time is an entirely new interpretation. What immediately strikes the eye is the innovative front design, which is reminiscent of the Mercedes-Benz SLS AMG. Visually, the radiator grille is not integrated into the hood but is formed separately. This highlights the long, sporty hood even further. The grille is dominated by the large central star, which underlines the car’s relationship to the other coupés of the brand and also enhances brand identity.
The typical CLS outline, with its elegantly long proportions, is the dominating attribute of the new model. The effect of the dynamic, athletic form has been enhanced with a new interplay of lines and areas. The front edge of the structure above the wheelwells slopes off towards the rear. Referred to by the designers as the dropping line, this novel design feature also represents a new interpretation of a formal design element harking back to the uniquely rich forms of historic Mercedes sports cars.
A distinctive and muscular sports car-like shoulder line above the rear axle highlights the athletic character of the new CLS. The flared wheel arches resemble the powerful thighs of a feline predator waiting to pounce.
The interior: design brings quality to life
The interior of the CLS is also distinguished by a timeless design which combines straightforward elegance with innovative details and handcrafted perfection. An eye-catching feature is the wrap-around cockpit: a high line sweeps from the driver’s door over the instrument panel and across to the front passenger door. The central display has also been integrated seamlessly into the upper part of the instrument panel. At the same time, the downward sweeping side line on the doors continues the dynamic dropping line of the exterior.
The CLS also lives up to its role as a design icon thanks to the innovative nature of the materials used. These comprise an exciting mixture of satin and high-gloss finishes used on the metal surfaces. The refined sportiness of the interior of the CLS is further reflected in the generous use of high-quality trim elements. They are located on the instrument panel, the center console and on parts of the door linings. Customers can choose between two exclusive types of wood: high-gloss brown burl walnut or high-gloss black ash.
World premiere: the restyled 2011 CL-Class
The epitome of luxury coupés
With stylish, eye-catching design, exclusive appointments and cutting-edge technology, the extensively updated 2011 Mercedes-Benz CL-Class underscores its flagship position in the world of refined automobiles. Powered by a new 429-hp V8 biturbo engine which achieves a 10-15% improvement in fuel economy and 23% improvement in CO2 emissions, the CL550 4MATIC opens a new dimension of efficiency in the luxury coupe segment. This significant reduction is achieved thanks to the newly-developed BlueDIRECT technology with third-generation spray-guided direct injection, energy-efficient control of alternator, fuel pump, air-conditioning compressor and power-assisted steering system. It also features the use of low rolling resistance tires and, on the CL600, the energy-optimized Active Body Control system. In addition, the Mercedes-Benz developers equipped the CL-Class with state-of-the-art multimedia technology, thus helping this model retain its position as the epitome of quality in its class. The 2011MY CL-Class will make its U.S. debut in Autumn of 2010.
With the new generation of the CL-Class, Mercedes-Benz is emphasizing fuel consumption and exhaust gas emissions in this exclusive high-end segment. According to Dr Dieter Zetsche, Chairman of the Board of Management of Daimler AG: “The CL is the ideal ambassador for our brand. It combines in a particular degree those things that characterize Mercedes-Benz: fascination, perfection and responsibility. And with the new generation we have gone a step further, too – especially in the realm of efficiency. But in terms of design, safety, comfort and output, too – the CL shows the way forward: simply follow Mercedes.”
In the realm of safety, a combination of cutting-edge camera and radar-based assistance systems – unique in the luxury coupe segment – including the innovation of the Active Lane Keeping Assist and Active Blind Spot Assist systems, makes the CL-Class a “thinking” partner of the driver. The modified Active Body Control (ABC) with crosswind stabilization system and the Direct-Steer system also contribute to enhancing safety and driving enjoyment.
Design: a muscular, confident presence
The exterior appearance of the new CL-Class is characterized by the taught profile of the hood, the dynamic V-shape radiator grille and the curving headlamps – design details that discreetly but effectively emphasize the car’s elegant yet powerful lines.
The front bumper presents a new three air intake design accented with a prominent chrome trim strip. An LED strip with chrome surround for the daytime running lights is elegantly integrated in the side openings for the brake cooling air. With standard Bi-Xenon Headlamps with active curve illumination and Adaptive Highbeam Assist, the headlamps offer state-of-the-art illumination. LED turn indicators and position marker lamps round off the car’s advanced image while the rear of the vehicle is characterized by the newly-designed tail lamps.
New V8 bi-turbo engine with innovative technology
The new-generation CL-Class also assumes a pioneering role with its drivetrain. Under the hood of the CL550 4MATIC a new V8 biturbo engine with BlueDIRECT technology delivers impressive power. With its 4663 cc displacement, the eight-cylinder engine produces 429 hp so that despite 0.8 liters less displacement, it is still around 12 percent more powerful than its predecessor, which had an output of 382 hp. At the same time, torque was raised from 391 lb-ft to 516 lb-ft – an increase of 32 percent. The new engine achieves a 10-15% improvement in fuel economy and 23% improvement in CO2 emissions. The CL5550 4MATIC requires a mere 4.9 seconds to accelerate from a standstill to 60 mph (previous model: 5.4 seconds). Summing up: the CL550 4MATIC is significantly more agile, torquey and thriftier than its predecessor.
The BlueDIRECT technology package of the V8 biturbo includes a series of new developments, unique in their combination. Worthy of mention among these is the third-generation spray-guided direct gasoline injection with piezo injectors and multi-spark ignition with up to four ignition sparks within a millisecond. Together both enable an innovative combustion process called “homogenous split”. Other factors contributing to the exemplary low fuel consumption continue to be the consistent use of friction-optimized pistons, piston rings and cylinder barrels, the on-demand control of oil pump and the new three-phase thermal management in the coolant circuit. The luxury coupes also controls the alternator depending on the type of driving and on-board voltage. Kinetic energy is recuperated in the overrun mode.
The CL600, with its 510 hp 12-cylinder biturbo engine and 612 lb-ft. of torque remains the top-of-the-line model: it accelerates the luxury coupé from a standstill to 60 mph in a breathtaking 4.5 seconds.
A unique combination of driver-assistance systems
The 2011 CL-Class further enforces its position as an automotive masterwork and a technology platform with the most advanced assistance and protection systems. These highly perceptive assistants convert the coupe into a “thinking” partner that can see, feel and react instantly if it detects a hazard, acting autonomously to prevent accidents or to mitigate their effects. The trailblazing driver assistance systems in the CL-Class are based on state-of-the-art radar, camera and sensor technology.
Active Lane Keeping Assist is a new safety feature making its debut on the CL-Class as part of the optional Driver Assistance Package. If the vehicle threatens to cross a continuous lane marking line, the system actuates an electric motor in the steering wheel, causing it to vibrate briefly – giving the driver a discreet but effective warning hint to countersteer immediately. The active system springs into action if the Mercedes coupe unintentionally crosses a continuous lane marking line to the right or to the left. In this case, the car intervenes by gently braking the wheels on the opposite side of the car, helping the driver to stay in the lane. Active Lane Keeping Assist is built upon the existing ESP® Electronic Stability Program.
Active Lane-Keeping Assist evaluates information provided by a camera mounted on the inside of the windshield. It identifies the contrast between the road surface and the lane markings. In addition, the optional radar system scans the side of the roadway for dividers and other roadway edge markings. The system also evaluates the driver’s actions and can reliably determine whether the car is departing from the lane intentionally or not. For instance, there is no warning if the driver accelerates hard just before passing or when accelerating onto a highway, or if he brakes hard or steers into a curve.
Targeted brake actuation: Active Blind Spot Assist
Another innovation Mercedes-Benz offers for the CL-Class is Active Blind Spot Assist, a system that makes use of a multi-stage warning concept. If the system detects that a lane change would be too dangerous, it warns the driver by displaying a red triangle in the glass of the exterior mirror. Close-range radar sensors monitor the area immediately to the side and to the rear of the car. If the driver disregards this warning and, for example, uses the turn indicator, an audible warning also sounds. If the driver continues to ignore the warnings and comes dangerously close to a vehicle in the neighboring lane, the system acts: a corrective braking intervention via ESP® is applied to the wheels of the opposite side of the vehicle. This causes a yaw movement about the car’s vertical axis due to the unequal distribution of the braking forces. If an accident still cannot be avoided, the active Blind Spot Assist system can reduce the consequences of a collision through the brake actuation.
Assistants to see and be seen better
The Adaptive High Beam Assist system is now offered as standard equipment on the CL-Class. This camera-based system can recognize oncoming vehicles or vehicles ahead with their lights on, and then softly transitions from high-beam to low beam to create the best possible lighting conditions without dazzling other drivers. In addition, Mercedes-Benz offers the optional Night View Assist PLUS system for the CL-Class, featuring a special infra-red camera for pedestrian detection: pedestrians are now specifically highlighted in the display, to help alert the drivers in low light conditions.
On European models, the images supplied by the windshield-mounted camera are also used by the new, optional Speed Limit Assist (not available in the U.S.), which recognizes speed limit signs in passing and shows the relevant speed limit in the central display and on the navigation system’s map display.
For the new-generation CL-Class, Mercedes-Benz has also improved the long and medium-range radar used by Brake Assist (BAS PLUS) and DISTRONIC PLUS proximity cruise control.
An “electronic crumple zone”: the PRE-SAFE® Brake
Mercedes-Benz offers another radar based system for the luxury coupé as a component of the Driver Assistance Package: PRE-SAFE® Brake with automatic emergency braking. If the driver is distracted and fails to recognize the imminent danger of a rear-end collision or the warning signal of an assistance system, PRE-SAFE Brake can intervene and autonomously apply partial braking. If the driver fails to react even after automatic, partial braking action, this new version of PRE-SAFE® Brake activates maximum braking pressure around 0.6 seconds before an unavoidable collision – this emergency braking action can significantly mitigate the severity of the impact. The PRE-SAFE® Brake thus acts as a kind of “electronic crumple zone”.
ATTENTION ASSIST Warns Drowsy Drivers:
Drowsiness is one of the most common causes of accidents. This is why Mercedes experts have developed the ATTENTION ASSIST system which forms part of the standard equipment of the new CL-Class. The system continuously monitors more than 70 different parameters in order to identify driver drowsiness and provides a warning before the dangerous microsleep phase begins. Observing the driver’s steering behavior has proved to be a particularly strong indicator: several years of practical research by Mercedes-Benz have shown that drowsy drivers make minor steering errors which they often correct very rapidly in a characteristic way. This steering behavior is recognized by a special steering angle sensor. Observing the driver’s eyes cannot always provide conclusive evidence of sleep since many drivers can experience micro-sleep withtheir eyes open.
Active Body Control reduces the effect of a crosswind
The CL-Class also meets the highest standards in terms of driving dynamics and agility. This is in part thanks to Direct-Steer, which can vary the steering ratio based on the steering angle, and modified Active Body Control (ABC) with crosswind stabilization (standard on the CL600, CL63 and CL65 AMG). This latest stage in active body development modifies the wheel load distribution via the ABC spring struts within milliseconds (depending on crosswind direction and intensity) to help compensate for crosswind forces.
The Active Body Control suspension system – which ushered in new dimensions of driving dynamics in the preceding CL-Class in 1999 – is unique worldwide as it not only regulates roll, but pitching and squatting movements as well, ensuring a perfect harmony of comfort and handling stability. Since the introduction of this innovative system, engineers in Sindelfingen have continuously refined it, so that eleven years later it still marks the pinnacle of automotive engineering. In addition to crosswind stabilization, the new suspension features an energy-optimized hydraulic pump that takes part of the burden off the engine, contributing towards reducing fuel consumption.
Additional safety and agility during spirited driving is provided by the standard Torque Vectoring Brake in the new CL-Class – targeted, one-sided braking intervention at the inside rear wheel when cornering. This enables the luxury coupe to turn into the bend under precise control with even greater agility.
On-board infotainment: the most advanced multimedia technology
In line with its serene character and sophisticated technology, the CL-Class also sets standards for onboard infotainment. The latest innovation, SPLITVIEW technology, is optionally available for the COMAND system centrally located in the center console. This innovative display concept allows the driver and front passenger to view different contents simultaneously on the same screen. For example, while the driver uses the map-based navigation system, the front passenger can watch a DVD.
The standard COMAND control and display system with Bluetooth®, USB and SD card interfaces offers customers the possibility of exporting their stored data to other vehicles and multimedia devices. It is also possible to transfer and update navigation data. Mercedes-Benz integrates the Media Interface – an interface for mobile audio and video devices – via an auxiliary cable located in the glovebox. Standard audio equipment also includes radio, a 6-disc CD/DVD player with MP3 function, an equalizer with speed-dependent volume control and the 7.2 GB MUSIC REGISTER which stores around 2,500 digital music files in MP3, AAC or WMA format. The system recognizes music files played on CD, DVD or from the MUSIC REGISTER using its stored Gracenote® database, and shows the title, album and performer in the color display. The new Music Search function enables passengers to search SD memory cards, USB sticks, CDs and DVDs for specific music titles and performers.
The standard Navigation system features a nationwide map system stored on a 40-Gigabyte hard disk, enabling extremely rapid route calculation. Another factor contributing to a high level of navigation ease is the detailed 3-D map display with SIRIUS real-time traffic information.
The standard Voice Control system allows the driver to operate the navigation, telephone and audio devices via whole-word input — meaning the driver no longer needs to spell out his commands but simply speaks whole words when entering the destination, choosing a radio station or a music title from the Music Register, or when calling up a name from the phone book.
Co-developed by Mercedes-Benz and Harman Kardon® surround sound system with Discrete Logic7® technology delivers an outstanding performance with three-dimensional sound.
Interior: carefully selected materials and first-class finish
In the interior, too, Mercedes-Benz developers and designers perfected the CL-Class, paying careful attention to detail. A total of four different kinds of fine wood open up the possibilities for perfectly matched material and color concepts: a choice of light or dark high-gloss burl walnut, black ash and high-gloss brown poplar on the CL600. Important to note: in accordance with Mercedes-Benz’ corporate philosophy of sustainability, the CL-Class uses only European wood from renewable forestry sources. Most of the wood components are hand-made and matched individually for color and grain by experienced craftsmen.
The seating materials found in the new CL-Class are of the most exquisite quality. There is a choice of four tasteful color combinations for the vehicle interior: black premium leather, savanna/cashmere premium leather, ash/grey premium leather, sahara beige/black premium leather.
The multifunction wood/leather steering wheel of the CL-Class has also been modified by the Mercedes-Benz designers: the rim and airbag module are lined with soft nappa leather as standard. The new, flatter airbag module also lends a sporty touch to the multifunction wood/leather steering wheel sewn with sophisticated double stitching.
Apart from this, Mercedes-Benz makes more use of light as a styling element in the vehicle interior. Standard ambient lighting provides a choice between three lighting moods: solar (amber), neutral (white) and polar (ice blue).
Innovative holder featuring Mercedes-Benz quality
Apple iPad always ready for use
Mobile entertainment is what the Apple iPad is all about. Thanks to an innovative docking station, Mercedes-Benz Accessories is now demonstrating how the tablet computer could be integrated into the rear of many Mercedes-Benz models.
A prototype docking station is being presented at the Paris Motor Show in an S-Class, and the plan is to launch the integration solution for the iPad onto the market for a variety of Mercedes models after development for series production. Mounted on the back of the front seats at head restraint height, the holder significantly extends the usability of the iPad: the battery of the tablet PC begins to charge as soon as the device is placed in the holder. Once at the destination, it can be simply removed without having to be switched off, and during the journey all of the entertainment products stored on the iPad can continue to be used. The docking station can be turned and tilted to achieve the best viewing angle, and if the vehicle is fitted with the Mercedes-Benz InCar Hotspot then even an iPad without cellular functionality can enjoy the benefit of a full connection to the Internet.
The frame of the docking station, along with the attachment to the seat structure, have also been designed and tested in line with the high safety standards applied at Mercedes-Benz. A significant safety benefit is provided by the fact that the iPad is anchored in the docking station – unlike a device held in the hand or placed on a seat – and in the event of an accident cannot fly uncontrolled through the vehicle, potentially causing injury.
Installation of the docking station takes approximately 1.5 hours, and the vehicle does not require any preinstallation. All in all, the docking station is the perfect match for Mercedes-Benz in terms of its design, look and functionality, and at the same time also highlights the high quality feel of the vehicle interior. The docking station will be available in the U.S. market in 2011.
BYD Company Limited and Daimler AG today signed a contract creating a 50:50 research and technology joint venture called “Shenzhen BYD Daimler New Technology Co. Ltd,” that will develop an electric vehicle for China.
BYD and Daimler will invest RMB 600 million to use as registered capital for the Joint venture. The new generation of electric vehicles developed by the joint venture will capitalize on Daimler’s know-how in electric vehicle architecture and safety as well as BYD’s excellence in battery technology and e-drive systems. The vehicle will be marketed under a new brand jointly created and owned by Daimler and BYD.
Mr. Wang Chuanfu, Chairman and President of BYD Company Limited: “Together with Daimler we are making excellent progress identifying opportunities to utilize the strengths of both companies to create a new brand of electric cars for China. This is a unique and exciting initiative and together we are pushing hard to bring this new electric vehicle to market as soon as possible.”
Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG: “Our new joint venture is well positioned to make the most of the vast potential of electric mobility in China. We are fortunate to have excellent joint venture partners in China and the establishment of this research and technology center with BYD adds another dimension to our growing presence in this important market.”
Chairman Wang and Dr. Zetsche signed the joint venture contract today in Beijing. This follows the signing of a Memorandum of Understanding on March 1. Engineers, designers and other executives from both companies established working teams after the signing of the MOU to begin working on the vehicle concept. The business license for the new joint venture is subject to relevant government approval.
Daimler is a leader in sustainable mobility and in developing automotive architectures for zero-emissions driving. The company recently launched the smart fortwo electric drive and this year will introduce two Mercedes-Benz electric cars: the B-Class F-CELL with fuel cell technology as well as the battery electric A-Class E-CELL.
BYD is China’s leading manufacturer in developing advanced battery technology, a field it has invested in since 1995. The company has enjoyed rapid growth for five years after entering the automotive sector in 2003. It is the fastest growing Chinese automotive manufacturer. BYD introduced its F3DM dual-mode hybrid electric vehicle to the world in December 2008 and started direct sales to individual customers in March 2010. The company recently launched the e6, a pure electric vehicle and established itself as the first manufacturer in China to commercialize taxi business with its e6.
Showing commitment for the H2 Mobility initiative, Dieter Zetsche accepted the Award IPHE (International Partnership for Hydrogen and Fuel Cells in the Economy) in the category” Excellence in Leadership at the opening of the Conference. The aim of the initiative is to advance the commercialization of electric vehicles with fuel cells and make hydrogen and fuel cell technology an integral part in the future of the automotive world.
This is collective effort with EnBW, Linde, OMV, Shell, Total, Vattenfall and the National Organisation for Hydrogen and Fuel Cell Technology (NOW GmbH) whome all adopted a Memorandum of Understanding that was initiated by Daimler and lime. To reach their goal, they have been building a nationwide hydrogen refueling stations in Germany.
Daimler at the World Hydrogen Energy Conference
The 18th World Hydrogen Energy Conference (WHEC) is considered the world’s most important trade event on hydrogen and its economic use as an energy source. The WHEC pursues the goal of a sustainable, environmentally friendly energy through the use of hydrogen. The international experts will discuss the state of developments and on the market preparation and introduction of hydrogen and fuel cell technology. The focus of this year’s conference is on innovations, developments and the latest research results of German industry and science.
For Daimler AG, participation in this conference as part of a mobility issue is an obvious step, because electric vehicles with fuel cell technology is an integral part of the drive Daimler roadmap to sustainable mobility. It allows locally emission-free mobility, range and short refueling times and at the same time high. “It is no longer a question of whether the fuel cell is a viable alternative to the combustion engine, but only when,” said Dieter Zetsche, CEO of Daimler AG, at the start of the conference. “The technology is already ready for the market. Now, to pave the way for the broad market, we need a targeted research funding, an effective market activation and binding, global standards, “said Dieter Zetsche.
Ride & Drive with electric vehicles with fuel cell
Insights into market-ready state of the art Mercedes-Benz give presentations and exhibits on Daimler’s stand, and the opportunity to Ride & Drive. In addition to the Mercedes-Benz B-Class F-CELL, and the Mercedes-Benz Citaro FuelCELL hybrid is represented at the WHEC. All attendees of the conference, both vehicles offered under the Ride & Drive and try to experience yourself. Both vehicles impressively demonstrate the tangible everyday practicality of fuel cell technology from Daimler.
Introduction of electric vehicles with fuel cell
Ongoing demonstration projects such as the Clean Energy Partnership (CEP), in which the oil industry, energy suppliers and the automotive industry are involved show that the manufacture, storage, transport and use of compressed hydrogen is technically possible, as well as the construction of the necessary infrastructure. In addition, the leading car manufacturer, an MoU for the development and market introduction of electric vehicles have announced a fuel cell. You do this by 2015 worldwide by several hundred thousand vehicles over the entire life cycle.
Daimler AG (stock-exchange symbol DAI) has reported first-quarter EBIT of €1,190 million, as previously disclosed on April 19, 2010 (Q1 2009: minus €1,426 million). “This very good result for the first quarter shows that we did our homework in the crisis and are now firmly on track for success once again,” stated Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars.
The very positive earnings development is reflected by ongoing upward trends in nearly all divisions. Mercedes-Benz Cars in particular posted significantly positive earnings for the first quarter of 2010, due to increased unit sales in the E-Class and S-Class segments.
The positive development of EBIT led to net profit for the Group of €612 million, representing a considerable improvement over the prior-year result (Q1 2009: net loss of €1,286 million). Earnings per share amounted to €0.65 (Q1 2009: loss per share of €1.40).
Total unit sales up by 21% in the first quarter
In the first quarter of 2010, Daimler sold 402,700 cars and commercial vehicles worldwide, which was 21% more than in the same period of last year.
The Daimler Group’s first-quarter revenue increased significantly from €18.7 billion to €21.2 billion; adjusted for exchange-rate effects, revenue grew by 15%.
The free cash flow from the industrial business was positive and increased compared to the prior-year quarter from minus €1.1 billion to plus €0.3 billion.
At the end of the first quarter of 2010, Daimler employed 254,779 people worldwide (Q1 2009: 263,819). Of that total, 161,449 people were employed in Germany (Q1 2009: 164,983).
Details of the divisions in the first quarter
Mercedes-Benz Cars achieved a very positive business development in the first quarter of 2010. Due in particular to strong growth in the E-Class and S-Class segments, unit sales increased compared to the first quarter of last year by 20% to 277,100 vehicles (Q1 2009: 231,200). This year, therefore, the car division has continued its positive development of the fourth quarter of 2009. First-quarter revenue rose by 28% to €11.6 billion.
The division’s EBIT amounted to €806 million (Q1 2009: minus €1,123 million). The main factors contributing to this distinct earnings improvement were the significant increase in unit sales, especially in the full-size and luxury segments, the related improvement in the product mix and improved pricing. The division increased its unit sales above all in the United States and China. Currency translation had a negative impact on earnings, but was partially offset by efficiency gains and cost reductions.
Daimler Trucks sold 70,600 vehicles in the first quarter of 2010 (Q1 2009: 65,400). Lower unit sales in Germany, the Middle East and Japan were more than offset by higher volumes in Latin America (+79%) and Southeast Asia (+48%). Revenue of €4.9 billion was close to the level of the prior-year period.
The division’s EBIT of €130 million was positive again (Q1 2009: minus €142 million). This earnings improvement is primarily due to the good business development in Latin America. Other positive effects resulted from the measures taken to reduce costs, especially from the repositioning of the subsidiaries Daimler Trucks North America and Mitsubishi Fuso Truck and Bus Corporation. Implementing these programs impacted EBIT by minus €17 million in the first quarter of this year (Q1 2009: minus €45 million).
Mercedes-Benz Vans increased its unit sales to 46,700 vehicles following a slight market recovery (Q1 2009: 28,800). Revenue of €1.7 billion was also higher than in the prior-year quarter (€1.3 billion).
The division achieved EBIT of €64 million (Q1 2009: minus €91 million). The positive development of earnings was mainly the result of higher unit sales compared to the prior-year quarter, especially in Western Europe. Charges from currency effects were largely offset by efficiency improvements and cost savings.
Daimler Buses significantly increased its worldwide unit sales to 8,400 buses and bus chassis (Q1 2009: 6,800). Revenue of €1,011 million was higher than in the first quarter of last year (€904 million).
The division posted EBIT of €41 million; as expected, this was lower than the high level of earnings in the prior-year quarter (€65 million). The development in earnings is primarily due to lower unit sales in Western Europe, which could not be fully offset by the positive business development in Latin America.
Daimler Financial Services’ worldwide contract volume amounted to €59.9 billion at the end of the first quarter of 2010, representing a year-on-year decrease of 3%. Compared with the end of the year 2009, contract volume increased by 3%; adjusted for exchange-rate effects, the portfolio decreased by 1% compared to year-end. New business increased compared to the first quarter of last year by 6% to
€6.2 billion; adjusted for exchange-rate effects, there was an increase of 5%.
The division achieved EBIT of €119 million (Q1 2009: minus €167 million). The improvement in earnings was mainly caused by lower provisions for risks and higher interest margins. On the other hand, charges were recognized in particular from the valuation of non-automotive assets held for sale, which are subject to leasing agreements (minus €46 million).
The reconciliation of the divisions’ EBIT to Group EBIT primarily reflects Daimler’s proportionate share in the results of its equity-method investment in EADS, as well as further gains or losses at corporate level.
In the first quarter of 2010, Daimler’s proportionate share of the net result of EADS amounted to a loss of €269 million (Q1 2009: gain of €83 million). The substantial deterioration is primarily the result of additional provisions recognized by EADS in its 2009 consolidated financial statements relating to the A400M military transport aircraft. On the other hand, the sale of the 5.3% equity interest in Tata Motors led to a pre-tax gain of €265 million, which is reflected in the reconciliation to Group EBIT.
Outlook
Based on the divisions’ planning, Daimler expects total unit sales to increase significantly in 2010 (2009: 1.6 million vehicles).
Following a distinct decline in 2009, Daimler assumes that Group revenue will increase again in 2010, but will remain significantly below the level of 2008. All automotive divisions should contribute to this year’s growth.
Daimler expects to achieve Group EBIT from the ongoing business of more than €4 billion in 2010. The key factors for this expectation are the ongoing market revival, the improving economic environment and the market success of the Group’s products.
The division’s expectations for EBIT from the ongoing business in full-year 2010 are as follows:
Mercedes-Benz Cars will profit this year from the full availability of the new E-Class models. Following the very successful market launches in 2009 of the E-Class sedan, coupe and station wagon, the new E-Class convertible was launched in the first quarter of 2010. Unit sales will also be boosted by the new super sports car Mercedes-Benz SLS AMG, and as of autumn 2010 by the new generations of the
R-Class and the CL-Class. Furthermore, the division is continually launching additional fuel-efficient and environmentally friendly versions of existing models. Starting in the third quarter of 2010, new and particularly efficient six- and eight-cylinder gasoline engines will become available. The already extensive portfolio of BlueEFFICIENCY models will be expanded to 85 model versions by the end of 2010. For the smart brand, Daimler anticipates an increase in demand following the launch of a new generation of the smart fortwo in the third quarter of 2010.
On the basis of an attractive and competitive range of vehicles, Mercedes-Benz Cars assumes it will be able to strengthen its market position in 2010 even with a continuation of difficult conditions, and that it will grow at about double the rate of the global car market. From today’s perspective, global demand for cars should increase this year by between 3 and 4 percent.
The division’s EBIT should be facilitated on the one hand by higher volumes and on the other hand by improved profit margins. The projected EBIT range is primarily dependent on market developments, exchange-rate volatilities and the macroeconomic situation. The division will continue to invest substantial amounts in the development and production of new drive technologies and innovative safety systems in order to improve its competitive position in this difficult market environment.
Daimler Trucks anticipates a recovery of unit sales this year, starting from the low level of 2009. The division expects growth impetus initially from some of the Latin American markets and – starting from a very low level – also from the NAFTA region. In Europe, however, a slight revival of demand is anticipated in the second half of 2010 at the earliest.
Against the backdrop of rising customer demand in the van sector and the stabilizing market situation, Mercedes-Benz Vans expects a significant increase in unit sales compared to the prior year.
Daimler Buses assumes that it will increase its unit sales in 2010, mainly due to strong demand in Latin American markets.
Daimler Financial Services anticipates stable development of its worldwide contract volume in the automotive business. The division assumes that credit-risk costs will decrease in full-year 2010 and that further efficiency improvements will be achieved.
As a result of the upturn in demand, Daimler assumes that the size of its worldwide workforce will remain constant or increase slightly this year compared to the end of 2009.
Although we do our best to distance ourselves from politics due to the fact there’s plenty of other news outlets that absolutely love weighing in the various issues of our day, today is a rare exception. News that Daimler is cutting ties with Iran has been published just about everywhere this week, so we figured we may as well tell you about it as well. According to Dieter Zetsche, CEO of Daimler AG, the company plans to sell its 30 percent stake in Iranian Diesel Engine Manufacturing, a subsidiary of Khodro Diesel, plus it will withdraw an application to export commercial vehicles for civilian use to Iran. The news came after a recent nuclear security summit in Washington D.C., after which President Obama moved to isolate Iran from the rest of the free world. German Chancellor Angela Merkel supported the decision, while other German companies – Siemens, Munich Re and Allianz – all have moved to sever ties with Iran as well.
Commenting on Daimler’s relationship with Iran, Zetsche made no reference to the country’s nuclear program, but stated “The policies of the current Iranian leadership have compelled us to put our business relationship with that country on a new footing.” He went on to note that none of the company’s “measures are directed against the Iranian people… In view of the current political situation we have… extensively reassessed this business relationship.”
Despite the move, Jonathan Weckerle, a spokesman for the German chapter of the Stop the Bomb organization (a group aimed at severely reducing trade between the EU and Iran while supporting the pro-democracy movement in the country), was somewhat pessimistic, noting in The Jerusalem Post that “in 2009, Daimler delivered 8,653 trucks to Dubai without special export controls. Daimler will continue to work with the Iranian state company Khodro and industrial Mercedes trucks are continued to be offered on an Iranian trade partner Web site (Iran Khodro Diesel). Without continued reductions and export controls, the Daimler move remains a public relation’s measure.” He added, however, that Daimler’s decision to “end the aggressive lobby politics for the export of dual-use goods like trucks, which can be used as missile-launching platforms, and the separation from the Iranian Diesel Engine Manufacturing Company, are the first positive steps.”
As to how many Daimler commercial vehicles will be available on the Iranian market is unclear due to the fact Daimler will carry out the remainder of its contracts with the country; what is clear is that Daimler will be exporting fewer vehicles to Iran, which by any count, is a good thing.
In the past twelve months, Daimler AG (stock-exchange symbol DAI) has taken some important strategic actions in an extremely difficult environment and has thus created the right conditions for a successful future. “We did not limit ourselves to simply trying to somehow keep our head above water in the crisis,” said Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars, according to the advance text of his speech to approximately 5,000 shareholders this Wednesday at the ICC in Berlin. “We continued to do our strategic homework. Daimler is extremely well positioned in the race to shape the future of the automobile,” he stated.
The decisions that have been made since the last Annual Meeting add up to a coherent picture of Daimler’s strategy: “We are sharpening our brand profiles, spearheading technological transformation, growing in key markets, satisfying changed customer requirements and boosting our efficiency,” explained Zetsche.
The fact that Daimler can look to the future with confidence is shown by the figures for unit sales of Mercedes-Benz Cars in the first quarter of 2010. Worldwide, Group sales of the Mercedes-Benz brand rose by nearly 27 percent. Thanks to the increasing success of the new E-Class and S-Class, the model mix has also improved with a higher percentage of larger cars. In the biggest export market, the USA, Mercedes-Benz sells more cars than any other German premium brand. In China, which is currently regarded as the most important market of the future, unit sales actually increased by 136 percent. Zetsche: “In view of these numbers, our global sales target for the year is ambitious, but it’s also realistic: We plan to grow at around double the rate of the global passenger car market in full-year 2010.”
The Chairman of the Board of Management once again affirmed the outlook given at the annual press conference in February for the development of business in 2010. The Daimler Group assumes that unit sales and revenue will increase this year, but that they will still be significantly lower than the good levels of 2008. In total, Daimler anticipates Group EBIT from ongoing business operations of more than €2.3 billion, with all divisions making a positive EBIT contribution.
Zetsche sees the latest cooperation agreed upon with Renault-Nissan last week as an important step for the Group on the way to establish a “highly efficient business system.” The agreement covers cooperation in four areas: Smart will offer a four-seat model based on a vehicle architecture developed jointly with its partner for the Twingo and the smart, thereby enhancing smart’s position as a young brand offering practical and attractive urban vehicles. In addition, new small three and four-cylinder engines will be jointly developed. Cooperation will also take place in the area of small commercial vehicles. Mercedes-Benz Vans will supplement its portfolio with a completely new entry-level model. And Nissan will be supplied with large Mercedes-Benz gasoline and diesel engines for its luxury brand, Infiniti.
In terms of environmentally friendly products, Daimler aims to be the technological leader, a role it has had for a long time in the field of safety. To help achieve this goal, the internal combustion engine will be further optimized and supplemented with hybrid modules, and fully electric vehicles with battery-powered drive systems or fuel cells will be developed and produced for emission-free driving. In 2009, the CO2 emissions of the cars sold by Daimler in the European Union fell by 13 grams to 160 g/km. Daimler’s goal is to reduce the CO2 emissions of its new-car fleet in the European Union to less than 140 g/km by the year 2012.
Daimler places priority on strong partnerships also in the field of sustainable mobility. This includes its equity interest in Tesla, the cooperation with Evonik on lithium-ion technology, and the collaboration with RWE, Enel and Linde on the development of the required infrastructure for emission free driving.
The world is moving towards “Automobile 2.0.” “Many things that seemed to be permanently defined for almost a century are likely to change in the coming 10 or 20 years,” Zetsche pointed out. This applies above all to drive technology. “Oil is becoming scarcer and more expensive – and its combustion is contributing to global warming. Government regulations regarding emissions are therefore becoming stricter; customers are becoming more environment conscious and the cars are becoming more electric,” stated Zetsche.
The Chairman of the Board of Management welcomes the fact that the German government wants to make Germany into the leading market for electric mobility: “This is good policy.” The “electric automobile summit meeting” planned for early May could be a first step in that direction. But it’s equally clear that it has to be followed by additional steps. The need for political action ranges from promoting research and creating the necessary infrastructure to the introduction of international standards and providing the right incentives for market launch. Zetsche: “In general, we need the support of political decision-makers in order to complete the transition to electric driving. Working together will make us strong!”
Daimler presented its figures for the year 2009 in February. Unit sales decreased in all vehicle segments due to the global economic crisis, leading to a 20 percent fall in revenue to €78.9 billion. As a result of the measures taken at the Group at an early stage to reduce costs by €5.3 billion and the additional efficiency enhancements in the context of the ongoing optimization programs, effective action has been taken to counter falling earnings. The Group posted an operating loss of €1.5 billion and a significant net loss of €2.6 billion.
In view of this unusual earnings situation, the Board of Management and the Supervisory Board decided that Daimler will, by way of exception, not pay a dividend for 2009, whereby that decision solely reflects last year’s business situation. Zetsche: “We would have decided differently had we not been firmly convinced that our course of action was necessary. It is also in the long-term interest of our shareholders, because it raises the dividend payment potential from our retained income in the years to come.” Daimler intends to resume paying a dividend for the current year. The goal remains to achieve a payout ratio in the magnitude of 40 percent of net profit.
On the occasion of its annual “Daimler Key Supplier Meeting” on March 18 in Stuttgart, Daimler AG recognized its best suppliers for their contributions with the “Daimler Supplier Award 2009”. During this year’s meeting, 13 companies received awards in various categories, complemented by a special award for innovation.
With the “Daimler Supplier Award”, the company recognizes outstanding performance, which is determined based on a globally effective rating system. The principles of this rating system are defined in Daimler’s supplier cooperation model, the “Daimler Supplier Network”, and comprise the four value drivers quality, cost, logistics, and technology/innovation. Following the guiding idea of “Commitment to Excellence”, the cooperation model, which was first introduced a year ago, emphasizes the idea of a performance-based partnership. Further key elements of Daimler’s cooperation with its suppliers are the values of fairness, reliability, and trust.
Addressing the meeting, Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars, underlined the significance of the company’s suppliers. He also emphasised that – after the joint efforts during 2009 – there is good reason for confidence.
“We’ll go for the best or nothing. We’ll demand that of ourselves and of you.“ Dr. Zetsche stated in reference to Daimler’s view on the further development of the cooperation with its partners.
Daimler had again invited its most important suppliers to participate in the conference. The company welcomed about 600 external and internal guests.
On behalf of Daimler’s Board of Management, whose members were all attending the conference, Dr. Zetsche thanked the company’s suppliers for their contributions to jointly master what arguably was the most challenging year the global automotive industry had to face in more than half a century.
Winners of the “Daimler Supplier Award 2009” are:
Daimler Trucks and Buses
Exterior: Polyplex AG, Switzerland
Interior: TAKATA PETRI AG, Japan
Mechatronics: Mitsubishi Heavy Industries, Ltd., Japan
Chassis: Kirchhoff Witte GmbH, Germany
Powertrain: ElringKlinger AG, Germany
Mercedes-Benz Cars and Vans
Exterior: Brose Fahrzeugteile GmbH & Co. KG, Germany
Interior: C. Rob. Hammerstein GmbH & Co. KG, Germany
Electrics/Electronics: Kromberg & Schubert GmbH & Co. KG, Germany
Chassis: Willi Elbe Gelenkwellen GmbH & Co. KG, Germany
Powertrain: ThyssenKrupp Gerlach, Germany
International Procurement Services
Construction and Facility Management: Rudolf Fritz GmbH & Co. KG, Germany
IT, General Goods & Services: Computacenter AG & Co. OHG, Germany
Manufacturing Equipment & Services: Fuchs Petrolub AG, Germany
Special Award Innovation
Robert Bosch GmbH, Germany