2011  was a record year for Mercedes-Benz Cars, selling a total of 1,362,908 Mercedes-Benz, smart and Maybach vehicles.   Just over 77,000 units more than in the previous record set in 2007 (1,285,900 units).  Helping to make 2011 a record year was Mercedes-Benz USA with 264,460 vehicles sold in 2011.  This was also a record for MBUSA, representing the highest annual volume on record with a 17.5% increase over the 225,007 vehicles sold during the same period in 2010.

2011 was also the best sales year in the history of the brand Mercedes-Benz. With 1,260,912 units sold and an increase of 8.0% compared to the prior year the previous sales record of 2007 (1,185,200 units) was clearly exceeded. Since the beginning of the year sales of the brand with the star have been up every month. Particularly successful was the sales development in the fourth quarter. 341,624 delivered units made it the best-selling quarter in the company’s history. In December alone, worldwide deliveries rose by 15.1% to 124,387 vehicles despite the very good result achieved already in December 2010. Thus last month, more vehicles were sold than ever before in this period.

“We’re very satisfied with our sales development. In 2011 we sold more vehicles than ever before,” says Dr. Dieter Zetsche, CEO of Daimler AG and Head of Mercedes-Benz Cars. “We also set the course for the future: The newly introduced generation of the C-Class, the C-Class coupe, the SLK, and the CLS are extremely popular among customers. The same applies to the new B-Class and new M-Class, which were introduced in Europe only recently. The full-year 2011 was also shaped by our strong development in important growth markets such as the BRIC countries and positive development in the U.S.”

Positive outlook for 2012 – new models to provide additional momentum

The year 2012 provides a good base to pursue last year’s success. Dr. Zetsche: “In 2012 we will consequently continue our product offensive and launch additional attractive vehicles on the market, which will give us a further boost. The vehicles will be spearheaded by the new A-Class, which will allow the brand to reach out more strongly to younger target groups. The new CLS Shooting Brake will underscore our leading role when it comes to innovative vehicle concepts and design.”

The new SL will also celebrate its market launch in 2012 just in time for the model series’ 60th anniversary. After the successful introduction of the new M-Class in 2011, additional demand will be generated in the SUV segment by the new GL, the new generations of the GLK and the time-honored G-Class.

Once again sales record in China, Russia, and India; dynamic development in Brazil

Mercedes-Benz continued to do outstandingly well in China (including Hong Kong) last year, where the brand surpassed its sales record of 2010 by 30.6%. The brand therefore substantially exceeded its full-year target of increasing sales in China by at least 20%. A total of 193,339 customers opted for a vehicle bearing the Mercedes star. In December alone, 23,227 people purchased a new Mercedes-Benz passenger car (+29.5%).

Over the past twelve months, Mercedes-Benz did also well in all other BRIC countries. The previous year’s record sales were substantially exceeded in both Russia (29,058 units; +47.3%) and India (7,089 units; +22.7%). In Brazil the brand built on the dynamic development of 2010, boosting sales by 35.3% in full-year 2011, to 10,197 vehicles. Summed up, Mercedes-Benz therefore reported a sales increase of 32.4% in the BRIC-countries in 2011.

Over the past twelve months, Mercedes-Benz also saw sales rise to all-time highs among others in Taiwan (+31.7%), South Korea (+18.8%), Mexico (+17.7%), Denmark (+15.0%), and Sweden (+12.2%). The development in Japan is also notable. Despite the strong earthquake in March and the serious consequences for the country, Mercedes-Benz sold 7.1% more vehicles in Japan last year (32,405 units) than in 2010.

Outstanding development in the U.S.; record sales in Canada and the entire NAFTA region

As in 2010, Mercedes-Benz posted double-digit growth in the U.S. and grew faster than the total market. From January to December 2011, sales rose by 13.3% to 245,231 units. Thus the United States were once again the brand’s second-largest market. Driven by the new generation of the C-Class and the new M-Class, sales of Mercedes-Benz vehicles rose to 25,701 units in December (+27.9%). In Canada a total of 28,584 (+1.8%) vehicles with the Mercedes star were sold during 2011. Following the record set in 2010, this result represents a new all-time high. Mercedes-Benz also achieved a record result in the entire NAFTA region in 2011, with sales amounting to 279,946 vehicles (+12.2%).

Mercedes-Benz leads Germany’s premium segment in 2011

In Germany Mercedes-Benz has been the Number One automaker in the premium segment since 1993. Despite the sometimes limited availability of the high-volume A- and B-Class due to the changeover of production to the new models, the brand’s sales in its home market totaled 262,256 vehicles in 2011, which was almost as high as in the previous year (2010: 265,000 units). In December sales of the brand with the star rose by 16.8% (25,290 units). In Western Europe (excluding Germany) deliveries also nearly matched the previous year’s level (2010: 291,853 units) at 289,285 units in the past twelve months. A sales increase was recorded among others in the UK (+10.1%).

New generation of the C-Class with outstanding customer response – sedan model leader in its segment

In 2011 the C-Class confirmed the vehicle’s standing as a very successful model also with its new generation. In the C-Class segment, Mercedes-Benz recorded growth of 16.8% over the past twelve months to 401,340 units. Very popular and once again the most successful model in its segment during the year as a whole was the C-Class sedan. A total of 270,968 units were delivered to customers (+8.1%). In the year of the facelift, deliveries of the C-Class estate rose to a new all-time high of 76,446 vehicles (+21.6%). Demand for the new C-Class coupe has also been very high ever since the vehicle was launched on the market last June. To date, 23,698 units of the sporty coupe have been delivered to customers. The SLK also did well last year, with 26,756 customers buying one of the roadsters from January through December 2011. This corresponds to an increase of 85.7%.

E-Class segment attains new record result in 2011

Following the record sales of the previous year, sales in the E-Class segment rose by 4.7% in 2011 to a new all-time high (338,386 units). Deliveries of the E-Class sedan and estate totaled 244,341 units last year (2010: 252,775 units). 32,533 customers opted to buy the CLS model, which was introduced in January 2011 (+210.4%).

Sales of S-Class sedan surpass previous year’s high level

Despite having to face much younger competitor models, the S-Class sedan once again increased sales compared to the prior year. Since the car’s market launch in 2005 more than 440,000 units of the brand’s flagship vehicle have been sold. Sales of the CL also rose, with deliveries increasing by 6.9%. The SLS AMG has also met with a great response from customers. More than 5,000 units of the super sports car have already been sold since the vehicle was launched on the market in March 2010.

At more than 200 units, sales of the high-end luxury sedan Maybach were higher than in each of the two previous years.

SUVs post monthly record sales from January through December

The SUVs from Mercedes-Benz enjoyed another great year in 2011. They achieved new sales records each month from January through December, enabling them to surpass last year’s record figure by 24.0% (248,574 units). More customers decided to buy a GLK than ever before in a single year (93,836 units; +24.0%). The compact SUV is also popular in China, where it has been produced for the local market since early December. All other model series did very well throughout the world in 2011, increasing sales substantially compared to the previous year. Sales of the R-Class rose by 45.5%, while those of the G-Class increased by 28.3%. The GL boosted sales by 28.2%, and deliveries of the M-Class increased by 17.9% despite the model changeover.

B-Class does well during phase-out

In spite of production changes resulting from the B-Class model changeover and the associated limited availability of A- and B-Class models, Mercedes-Benz sold 194,133 units in this segment last year (2010: 222,373 units). Sales of the B-Class even continued to increase until shortly before the new model was launched on the market.

Sales of smart fortwo pass 100,000 mark

The smart fortwo did extremely well in 2011. Sales passed the target of 100,000 units, rising to 101,996 vehicles (+4.6%). Dr. Dieter Zetsche: “The development of the smart fortwo last year by far exceeded our expectations. Also for 2012, all lights are on green. The third generation of the smart fortwo electric drive and the smart ebike are two genuine highlights that will be introduced in the coming twelve months. We expect them to give the brand another boost.” In full-year 2011 the innovative two-seater was especially popular in China (including Hong Kong), where a total of 11,045 buyers drove home from the dealership in a smart fortwo (2010: 3,900 units). The smart fortwo also posted very high growth rates in other countries, including Mexico (+57.1%), Poland (+50.7%), the Czech Republic (+26.6%), and Taiwan (+21.4%). In Germany the smart fortwo defended its segment leadership throughout the year, with customers buying a total of 29,005 units (+3.3%). More than 1.5 million units of the brand have been sold since the first generation of the compact urban vehicle was introduced on the market in 1998.

October sales for Mercedes-Benz USA have been released showing sales of 24,449 vehicles, an astounding 28.2 percent improvement over October 2010 (19,076) and the company’s highest October volume on record. On a year-to-date basis, the 206,632 vehicles sold represent a 12 percent increase over the 184,431 vehicles sold during the same period last year.

The highest volume performers for the month were the C-Class and E-Class model lines. The all-new 2012 sporty C-Class – gateway to the Mercedes-Benz brand for younger and first-time Mercedes-Benz buyers – led the pack with sales of 7,084, up 87.9 percent from October 2010. The 9th generation E-Class followed with sales of 4,516 and the all-new versatile M-Class, finished third in volume with monthly sales of 4,091. Additionally, sales of the 2012 CLS-Class posted a 192.3 percent increase for the month and sales of the new SLK roadster were up 58.2 percent over October 2010.

Total diesel units sold for October were up 110.9% with sales of 1,930 (vs. 915 units sold in Oct. 2010).

At the high end, the company sold 13 of its supercar — the SLS AMG — bringing its year-to-date sales to 467.

Sales of Sprinter Vans also increased by 104.8% for October with sales of 1,485 – bringing a year-to-date total of 13,937 (up 119.4 %).

Sales of the smart fortwo totaled 327 vehicles for the month (compared to the 367 vehicles sold in October 2010).

Separately, through the Mercedes-Benz Certified Pre-Owned (MBCPO) program, MBUSA sold 5,571 vehicles in October 2011, a decrease of 21.8%. On a year-to-date basis, MBCPO sold 62,929 vehicles, a decrease of 7.6% over the comparable period last year.

Mercedes-Benz USA is reporting sales of 23,897 vehicles for September 2011, marking a 15.6 percent improvement over September 2010 which recorded sales of 20,666 vehicles. This increase made 2011 the company’s highest September volume on record. On a year-to-date basis, the 182,314 vehicles sold represent a 10.3 percent increase over the 165,355 vehicles sold during the same period last year.

The C-Class and E-Class model lines were the best sellers with combined sales of 11,987 vehicles, nearly half of all vehicles sold. The all-new 2012 C-Class – and gateway to the Mercedes-Benz brand for younger and first-time Mercedes-Benz buyers – led the pack with sales of 6,865, up 32.1% from September 2010. The 9th generation E-Class followed with sales of 5,122 and the full-sized SUV, the GL-Class, finished third in volume with monthly sales of 2,541. Additionally, sales of the newly launched 2012 CLS-Class posted a 399.3% increase for the month and sales of the new SLK roadster were up 50.8% over September 2010.

At the high end, the company sold 25 of its supercar — the SLS AMG — bringing its year-to-date sales to 454.

Sales of Sprinter Vans also increased by 121.3% for September with sales of 1,779 – bringing a year-to-date total of 12,452 (up 121.3 %).

Sales of the smart fortwo totaled 469 vehicles for the month (compared to the 422 vehicles sold in September 2010).

Separately, through the Mercedes-Benz Certified Pre-Owned (MBCPO) program, MBUSA sold 5,707 vehicles in September 2011, a decrease of -8.6%. On a year-to-date basis, MBCPO sold 57,359 vehicles, a decrease of -5.9% over the comparable period last year.

July sales for MBUSA improved by 16.7 percent over July 2010 for a total of 21,065 vehicles sold. This increase for Mercedes-Benz USA made it their highest July volume since 2006. On a year-to-date basis, the 139,086 vehicles sold represent an 11.3% increase.

The highest volume performers for the month were the E- and C-Class model lines. The 9th generation E-Class led the pack with sales of 5,114 and the sporty C-Class – the gateway to the Mercedes-Benz brand for younger and first-time Mercedes-Benz buyers – followed with sales of 4,554. MBUSA’s stylish SUV, the M-Class, finished third in volume with monthly sales of 2,778 up 40.8% over last July. Additionally, sales of the all-new SLK roadster were up 1,758.3% and the all-new 2012 CLS-Class posted a 657% increase over July 2010. Sales of the full-sized GL-Class SUV were up 60.2% for the month as well.

Sales of Mercedes-Benz diesel models were up 134.1% for the month (913 versus 390) and up 120.3 % for the year (6,866 versus 3,117).

At the high end, sales of the S-Class were up 13.9% for the month and the company sold 49 of its supercar — the SLS AMG — bringing its year-to-date sales to 397.

Sales of Sprinter Vans also increased by 154.3% for July with sales of 1,732 – bringing a year-to-date total of 8,827 (up 122.1 %).

Sales of the smart fortwo totaled 327 vehicles for the month.

Separately, through the Mercedes-Benz Certified Pre-Owned (MBCPO) program, MBUSA sold 5,895 vehicles in July 2011, a decrease of 14.7%. On a year-to-date basis, MBCPO sold 45,750 vehicles, a decrease of 5.1 % over the comparable period last year.

Mercedes-Benz July 2011 Sales Chart

Mercedes-Benz USA (MBUSA) released their June 2011 sales which came in 18.8 percent higher than June 2010 sales for a total of 22,563 vehicles sold. This was the highest June volume and first half of the year on record for Mercedes-Benz USA. On a year-to-date basis, the 118,021 vehicles sold represents a 10.4 percent increase.

The highest volume performers for the month were the E-Class and C-Class model lines. The 9th generation E-Class led the pack with sales of 5,798, up 19.1 percent over June 2010. The sporty C-Class – the gateway to the Mercedes-Benz brand for younger and first-time Mercedes-Benz buyers – continued its strong momentum with sales of 4,620. MBUSA’s stylish SUV, the M-Class, finished third in volume with monthly sales of 3,071, up 44.6 percent over last June. Additionally, sales of the all-new 2012 CLS-Class four-dour coupe were up 645.5% and the full-sized GL-Class SUV posted a 75.9 percent increase over June 2010.

Sales of Mercedes-Benz diesel models were up 128.4 percent for the month (1,231 versus 539) and up 188.3 percent for the year (5,953 versus 2,727).

At the high end, sales of the commanding G-Class were up 89.1 percent for the month and the company sold 18 of its supercar — the SLS AMG — bringing its year-to-date sales to 348.

Sales of Sprinter Vans also increased by 162.5 percent for the month, with sales of 1,911 – bringing a year-to-date total of 7,095 (up 102.1 percent).

Separately, through the Mercedes-Benz Certified Pre-Owned (MBCPO) program, MBUSA sold 6,413 vehicles in June 2011, a decrease of 0.2%. On a year-to-date basis, MBCPO sold 39,863 vehicles, a decrease of 3.6 % over the comparable period last year.

Mercedes-Benz USA reported May sales of 20,306 vehicles, a 5.9 % improvement over May 2010, and the best May on record since May 2008. On a year-to-date basis, the 95,458 vehicles sold represent an 8.5 % increase.

The highest volume performers for the month were the E-Class and C-Class model lines. The 9th generation E-Class led the pack with sales of 5,751, up 5% over May 2010. The sporty C-Class – the gateway to the Mercedes-Benz brand for younger and first-time Mercedes-Benz buyers – continued its strong momentum with sales of 4,936. MBUSA’s compact SUV, the GLK-Class, finished third in volume with monthly sales of 2,214, up 22.1% over last year. Additionally, sales of the versatile R-Class crossover were up 237 % over May 2010.

• Sales of Mercedes-Benz diesel models were up 108.5% for the month (1,147 versus 550) and up 115.8 % for the year (4,722 versus 2,188).

• At the high end, the company sold 21 of its supercar — the SLS AMG — bringing its year-to-date sales to 330.

• Sales of Sprinter Vans also increased by 126.1% for the month, with sales of 1,420 – bringing a year-to-date total of 5,184 (up 102.1 %).

Separately, through the Mercedes-Benz Certified Pre-Owned (MBCPO) program, MBUSA sold 6,818 vehicles in May 2011, a decrease of 2.1%. On a year-to-date basis, MBCPO sold 33,450 vehicles, a decrease of 4.1 % over the comparable period last year.

Mercedes-Benz May 2011 Sales Chart

Mercedes-Benz USA today reported April sales of 19,157 vehicles, a 5.1 % improvement over April 2010, and the best April on record since April 2008. On a year-to-date basis, the 75,152 vehicles sold represent a 9.2% increase.

The highest volume performers for the month were the E- and C-Class model lines. The 9th generation E-Class led the pack with sales of 5,342, up 17.9% over April 2010. The sporty C-Class – the gateway to the Mercedes-Benz brand for younger and first-time Mercedes-Benz buyers -continued its strong momentum with sales of 5,232, up 13.1% over last year. MBUSA’s versatile SUV, the M-Class, finished third in volume with monthly sales of 1,990.

On the high end, the commanding G-Class was up 29.4% over April 2010, and the company sold 54 of its supercar — the SLS AMG — bringing its year-to-date sales to 309.

Sales of Sprinter Vans increased by 85.8% for the month, with sales of 1,115 – bringing a year-to-date total of 3,764 (up 94.3%).

Separately, through the Mercedes-Benz Certified Pre-Owned (MBCPO) program, MBUSA sold 7,093 vehicles in April 2011, a decrease of 8.5% over last year. On a year-to-date basis, MBCPO sold 26,632 vehicles, decrease of 4.7 % over the comparable period last year.

Over the last several months, Mercedes-Benz has been posting very positive sales figures, and February is no exception. Sales of Mercedes-Benz vehicles rose by 10 percent in February, making it the sixteenth month in a row that sales grew at a double digit rate. Compared to 72,110 Mercedes customers worldwide in February 2010, February 2011 saw 79,500 Mercedes-Benz customers worldwide that purchased a passenger vehicle. Since the beginning of the year, Mercedes-Benz deliveries have risen by 17 percent to 162,200 vehicles when compared to 139,100 in January – February 2010.

Dr. Joachim Schmidt, Executive Vice President Sales and Marketing Mercedes-Benz Car stated, “After a strong start into the new year, our sales continued to develop positively in February. We were once again able to grow in many markets — particularly in Asia, but also in the U.S., and the other BRIC countries. We expect sales to get another boost in the coming weeks from a number of new products. After premiering at the Geneva Motor Show, the new generation of the high-volume C-Class and the new SLK will hit dealer showrooms at the end of March. The customer response to these two vehicles has already been fantastic.” Starting from summer, additional momentum will be generated by the new C-Class coupe, which also celebrated its premiere in Geneva. Dr. Schmidt: “Based on our recent success, we expect sales to grow significantly in the first quarter, putting us on track to achieve a new sales record in 2011.”

Mercedes-Benz sales continued to rise in China (incl. Hong Kong) in February, with the brand achieving a new sales record of 12,200 units (February 2010: 7,300). Deliveries rose by 66 percent in February and by 77 percent since the start of the year (27,700 units/January-February 2010: 15.700 units). As a result, Mercedes-Benz is the fastest-growing premium brand in China. Last month, high growth rates were also posted in Russia (up 100 percent), Brazil (up 67 percent), and Taiwan (up 61 percent). Moreover, Mercedes-Benz set new sales records in South Korea (up 22 percent), India (up 48 percent), and Australia (up 18 percent).

Mercedes-Benz continued to grow in the U.S. in February, with sales rising by four percent to 15,500 vehicles (February 2010: 14,900). During the first two months of the year, the brand sold 31,900 units, representing an eight percent increase (January-February 2010: 29.600 units).

At 14,800 units, sales of Mercedes-Benz in Germany reached previous year’s level (February 2010: 15,000). With a market share of eight percent, Mercedes-Benz was once again the leading premium brand in Germany. The registration figures of Germany’s Federal Motor Transport Authority (KBA) showed that the new CLS and the S-Class lead the luxury segment last month. The E-Class Coupe and the B-Class were also the market leaders in their respective segments. Since the beginning of the year, Mercedes-Benz has increased its sales in Germany by seven percent to 25,900 units (January-February 2010: 24.200 units). Deliveries in Western Europe were up by eight percent since January, with high growth recorded in the UK (up 49 percent), Belgium (up 25 percent), Switzerland (up12 percent) and Sweden (up 36 percent)

The S-Class continues to be very popular with customers, and it was once again the world’s best-selling vehicle in its comparative segment – despite having to compete with partly much younger model series of its competitors. Sales of the luxury sedan rose by 26 percent to 5,000 units. Mercedes-Benz continues to post sales increases in the E-Class segment as well. It sold a total of 21,800 vehicles in February, representing an increase of 12 percent. Just one month before the market launch of the new generation, the C-Class is meeting with great customer response. The estate posted high growth rates with sales increasing by 39 percent. The SUV models achieved a new sales record. Sales in this segment increased by 27 percent (16,200 units), with all model series recording high double-digit growth. In the year of the start of the new compact car generation, sales in the A-Class and B-Class segment once again did well in February, rising by seven percent (14,500 units).

The smart fortwo continued its good start into the new year by posting sales growth in February as well. Deliveries increased by seven percent to 7,000 units last month (February 2010: 6,600) and by 13 percent since the start of the year (13,700 units/January-February 2010: 12.100 units). In February, growth was particularly high in China, where sales totaled 700 units, or six times more than in the same month last year. The smart fortwo also continues to be successful in Germany and gained market shares with sales rising by 25 percent last month to 1,900 units. This was the twelfth month in a row that the smart fortwo was the Number One car in its respective KBA segment.

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:

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

Sales of Mercedes-Benz passenger cars developed positively throughout 2010, with double-digit increases recorded every month. As a result, the brand had already surpassed its 2009 sales volume by the end of November. The fourth quarter has been the best quarter in the company’s history, with deliveries of 313.700 units, an increase of 14 percent. Worldwide sales of Mercedes-Benz passenger cars rose 15 percent in 2010, to 1,167,700 units (2009: 1,012,300). In December, the brand managed to increase sales by double-digit figures for the fourteenth month in a row: 108,100 units were sold, an increase of eleven percent compared to December 2009 which was itself a very good month (97,700 units).

Dr. Dieter Zetsche, CEO of Daimler AG and Head of Mercedes-Benz Cars: “We were extremely successful this past year, exceeding practically all of our targets, some quite considerably. Our sales in many markets developed much better than expected. This means that our forecast for achieving sales growth of at least ten percent for

Mercedes-Benz in 2010 turned out to be more than correct. Our growth outperformed that of the global passenger car market as a whole, which is why we were able to gain market shares. The year was marked by the success of the E-Class and S-Class in particular, as well as high growth rates mainly in China and the other BRIC countries. We are also very satisfied with our performance in the U.S.”

Product offensive to generate positive momentum in 2011

Zetsche on the outlook for 2011: “Prospects are looking very good for Mercedes-Benz in the new year. We’ve got an attractive and competitive model lineup and expect to generate additional momentum with a wide range of new products.”

The 2011 product offensive will kick off with the market launch of the new CLS on January 10. Incoming orders for this vehicle already indicate that the model’s past success will continue. With its combination of fascinating design, high quality, extensive safety features, and outstanding efficiency, the CLS completely embodies the brand values of Perfection, Fascination, and Responsibility. The offensive continues in the spring with the new generation of the brand’s highest volume model, the C-Class, which will further boost sales momentum, as will the new SLK and the new C-Class coupe. The fall of 2011 will see the launch of the new M-Class, a model that will stimulate additional demand in the SUV segment. The offensive will continue at the end of the year with the new B-Class — the first model of the new compact-vehicle generation. Mercedes-Benz will also pursue the introduction of its new and highly efficient four, six, and eight-cylinder engines, as well as its standard start-stop feature. Highlights here will include the C 220 CDI BlueEFFICIENCY from the new-generation C-Class series with a fuel consumption of only 4.4 liters per 100 km and CO2 emissions of 117 grams.

China: Sales more than doubled – premium brand with highest growth rate; other BRIC countries with sales increases of 40 to 80 percent

In 2010, Mercedes-Benz set new sales records every month in its third-largest single market, China (incl. Hong Kong), posting higher rates of growth than its key competitors. The original sales target of 120,000 units had already been exceeded at the end of November. Deliveries for full-year 2010 in China totaled 148,400 passenger cars, or more than double the number of units (+112%) sold in the prior year (70,100 units). A total of 18.300 customers opted to purchase a passenger car from the brand with the star in December, an increase of 94 percent from December 2009 (9,500 units).

Mercedes-Benz also recorded very high growth rates in many other markets besides China. The premium segment in India for example was marked by dynamic development in 2010. Mercedes-Benz sales reached the record level of 5,800 units, an increase of 80 percent, which was well above expectations. Mercedes-Benz achieved record sales in Russia as well (19,700 units; +64%). In Brazil, deliveries increased by 46 percent to 7,500 units. Record sales were also posted in South Korea (16,500 units; +86%) and Turkey (12,300 units; +27%). In South Africa (22.300 units; +16%), Mercedes-Benz was the market leader in 2010. Mercedes-Benz was also very successful in Australia (18,900 units; +19%) and Taiwan (7,200 units; +49%).

14 percent growth in the U.S. – Mercedes-Benz gains market shares; market leader in Canada

Mercedes-Benz exceeded its original sales target of 200,000 units in the U.S. in 2010. The brand delivered 216,400 passenger vehicles in its second-largest single market, an increase of 14 percent (2009: 190,600 units). This result enabled Mercedes-Benz to gain market shares. In December, sales rose slightly to 20,100 units – despite a strong December in the prior year (December 2009: 20,000 units). A new sales record was posted in Canada, where Mercedes-Benz was the market leader and delivered 28,100 cars to customers in 2010, an increase of 16 percent.

Germany: Mercedes-Benz remains the number one premium brand

Mercedes-Benz was once again by far the best-selling premium brand in Germany in 2010. Market share in the country rose considerably, to 9.6 percent. The brand also recorded an eleven percent sales increase in the fourth quarter. As expected, and against the background of a strongly declining overall market (minus 23 percent), sales of Mercedes-Benz in 2010 reached the same level as in 2009: 265,000 units were delivered to customers (2009: 265,500 units). Mercedes-Benz sales in Western Europe (excluding Germany) totaled 291,900 passenger vehicles (2009: 286,100 units) in 2010, an increase of two percent. Sales were up from the prior year in several markets, including the UK and Spain. In Portugal Mercedes-Benz recorded an increase of 36 percent with sales of 9.100 units and marked the best year in the company’s history.

E-Class convertible completes E-Class family; high growth rates for the sedan, estate, and coupe

The completion of the E-Class family with the addition of the E-Class convertible in the spring of 2010 was one of the major highlights of 2010. A total of 20,800 units of the model were sold last year. All the other E-Class models also met with a huge response in 2010: The sedan attracted 208,400 customers, or 32 percent more than in the prior year, while sales of the estate more than doubled (44,400 units; +157%). Both models were the market leaders in their respective segments in 2010. The coupe was also very popular (49,600 units; +39%).

S-Class: Setting standards for sales and efficiency in its segment

Besides the success of the E-Class, high growth rates for the S-Class also contributed to the brand’s high value model mix in 2010. A total of 66,500 customers opted for the luxury sedan. This increase of 25 percent was very impressive given the new model launches by competitors. In 2010 Mercedes-Benz not only came out ahead of its competitors in this segment in terms of S-Class sales, but also took the lead in efficiency: With fuel consumption of only 5.7 liters per 100 km, the S 250 CDI BlueEFFICIENCY is the most economical luxury sedan in the world. The S 350 BlueTEC is one of the cleanest diesels worldwide and recently achieved five stars in the ADAC EcoTest as the first vehicle in its class.

Additional momentum was generated in 2010 by the new CL, which recorded a sales increase of 53 percent following the model’s market launch in the fourth quarter. In the spring of 2010, Mercedes-Benz presented the facelifted Maybach with a much broader range of new equipment features for the high-end luxury sedan segment. Despite a pause in production due to the facelift, Daimler was able to sell around 200 Maybach vehicles last year, matching the previous year’s level.

C-Class sedan again market leader worldwide; record SUV sales

Mercedes-Benz’ best-selling model, the C-Class, was very successful in 2010 – the last year ahead of a facelift for the series. Deliveries of the sedan rose eleven percent to 250,600 units, making the vehicle the market leader in its segment. The estate was also very popular in 2010 (62,900 units; +9%).

All Mercedes-Benz model ranges in the SUV segment were successful in 2010, leading to a new sales record (200.500 units; +17%). The GLK played a major role by setting a sales record with an increase of 20 percent. Also performing extremely well were the new-generation R-Class (+7%), the M-Class (+12%), the GL-Class (+28%), and the G-Class (+19%).

A-and B-Class maintain success; zero-emission vehicles now in series production

The Mercedes-Benz A- and B-Class performed well in the final year before the launch of the first model of the new compact-vehicle generation. Sales of the two models increased from the prior year, totaling 222,400 units (2009: 219,300). The A-Class

E-Cell with its electric drive system, and the B-Class F-Cell with its fuel cell drive demonstrate Mercedes-Benz’ innovative power and technology leadership in the field of alternative drive systems. Both models are already manufactured under series-production conditions – the first B-Class F-Cell units were delivered to customers in Europe and the U.S. at the end of last year, while deliveries of the A-Class E-Cell will start at the beginning of 2011.

smart fortwo: Pioneer in electric mobility

Small-series production of the smart fortwo electric drive started in the fall of 2009. High demand for the model caused the production target for 2010 to be raised to 1,500 units, half of which had already been delivered by the end of the year. Global sales of the smart fortwo totaled 97,500 units in 2010 (2009: 117,000 units; -17%). The sales development of the smart fortwo was highly influenced by strong declines in the comparative class of vehicles, especially in the key smart markets of Germany, Italy, and France. Nevertheless, the innovative two-seater remained at the top of its segment for ten consecutive months in Germany, for example. The model is also very popular in China, where it initially went on sale in April 2009. A total of 3,900 smart fortwo were delivered in China in 2010, or more than twice the number sold in the prior year (+116%).

Worldwide demand for Mercedes-Benz passenger cars continues to increase, with 100,500 units sold in October (October 2009: 88,400). Deliveries once again showed double-digit growth, with a gain of 14 percent. This means that Mercedes-Benz also recorded strong growth last month compared to the prior year, even though sales had grown again in October 2009 for the first time following the crisis, particularly in the United States. A total of 954,400 Mercedes-Benz brand vehicles have been delivered to customers since the beginning of this year, up 16 percent over the figure for January to October 2009 (826,000 units).

Dr. Joachim Schmidt, Executive Vice President Sales and Marketing, Mercedes-Benz Cars: “We got the fourth quarter off to a successful start with a strong increase in sales. October marked the twelfth time in a row that we were able to record double-digit sales growth. Our success in Germany played a major role in this development. We attained a market share of 11.1 percent here, representing the highest level since October 2008. Worldwide, we want sales of Mercedes-Benz to record at least ten percent growth for 2010.” This is based on rising demand in the markets of Asia and the BRIC countries, the growth of Mercedes-Benz in the U.S., and attractive new products. The new generation of the R-Class and the CL, for instance, were well received by the customers in October: sales of the R-Class doubled compared to October 2009 and the CL-Class recorded double-digit growth.

Mercedes-Benz was successful in all regions in October. In Germany, Mercedes-Benz bucked the downward trend of the overall market (minus 20 percent) by increasing sales by 14 percent to 27,000 units (October 2009: 23,600). Mercedes-Benz thus gained more market share than any other premium automaker and clearly remains the strongest premium manufacturer in its home market. A total of five models were number one in their segment in the new car registration statistics from Germany’s Federal Motor Transport Authority (KBA): the S-Class, the E-Class coupe, the C-Class, the B-Class and the smart fortwo. In Western Europe, sales of Mercedes-Benz increased by three percent in October to 48,900 units (October 2009: 47,500). Mercedes-Benz succeeded in performing better than the total market for example in France, UK, Italy and Spain.

In China (including Hong Kong), Mercedes-Benz once again set a new sales record of 13,500 passenger vehicles (October 2009: 6,600), thus doubling its last-year result (up 105 percent). Growth since January is now at 122 percent. Mercedes-Benz continues to grow faster in China than its competitors in the premium segment. Mercedes-Benz is also picking up the pace in the other Asian markets, such as South Korea (up 42 percent), Australia (up 20 percent), and Taiwan (up 38 percent). Very high growth rates were also recorded in all of the other BRIC countries: Brazil (up 88 percent), Russia (up 58 percent), and India (up 65 percent).

Despite the high sales volume in October 2009, deliveries in the U.S. were up slightly last month (18,400 versus 18,200). A total of 178,100 passenger vehicles have been handed over to customers in the U.S. since the beginning of the year, 16 percent more than in the same period last year (January-October 2009: 153,600). Mercedes-Benz thus remains the German premium brand with the highest sales volume in its second-largest market since the start of the year. Mercedes-Benz also enjoyed another record month in Canada, where sales rose to 2,200 passenger vehicles.

From compact cars to SUVs, Mercedes-Benz grew in all product segments in October. Sales of the S-Class sedan rose by 28 percent to 6,000 units, and retained the top position in its segment from January to October despite new models from the competition. The growth amounts to 29 percent since the start of the year. The new generation of the CL is also being very well received by the market, with sales up by 13 percent. The E-Class continues to be very popular as well, with the sedan and the estate leading their respective segments since January. Customer deliveries totaled 20,800 units, an increase of 17 percent over the previous year. Deliveries were up 52 percent in the first nine months of the year. The C-Class sedan also maintained market leadership from January to October and recorded a gain of 16 percent last month. The estate set a new record, sales were up 21 percent. Mercedes-Benz also set a new record for SUV sales, with 18,400 customers (up 22 percent) choosing a model from this segment in October. All model ranges recorded growing sales numbers: the GLK (up 27 percent), the M-Class (up seven percent), the R-Class (up 100 percent), the GL (up 28 percent), and the G-Class (up eleven percent). Sales of the A-Class and B-Class increased four percent over the previous year to 19,700 units.

A total of 7,900 smart fortwo were handed over to customers last month (October 2009: 9,300, minus 15 percent). Sales of the smart fortwo are being affected by strong declines in its market segment, particularly in the large smart markets of Italy, Germany, France and Spain. Nevertheless, the smart succeeded in gaining market share in many markets since the beginning of the year, including Germany and Italy. In Germany, October marked the eighth time in a row that the smart fortwo was the best-selling small car in its segment, which declined by 42 percent overall. The company expects to sell around 100,000 units of the smart fortwo in 2010.