DaimlerChrysler Group Annual Results
2000: DaimlerChrysler Increases Revenues by more than 6 Percent to approximately Euro 160 billion
Despite an increasingly difficult market in the U.S., DaimlerChrysler AG increased revenues in the year 2000. According to preliminary figures, total revenues at DaimlerChrysler rose by more than 6 percent to approximately Euro 160 billion (1999: Euro150 billion). Revenues would have grown by 10 percent on a comparable basis, the company reported at the opening of the North American International Auto Show in Detroit.
Last year DaimlerChrysler largely completed its strategic refocus, becoming the best positioned automotive company in the world. The automotive business (including financial services) now accounts for over 90 percent of total revenues. DaimlerChrysler established a strong position in the Asian growth markets in 2000 through an alliance with Mitsubishi Motors in Japan and a stake in Hyundai Motor in Korea. DaimlerChrysler was also able to significantly improve its position on the North American market with the acquisition of the engine manufacturer Detroit Diesel, the Canadian commercial vehicle manufacturer Western Star and the planned joint venture with Caterpillar.
DaimlerChrysler's non-automotive activities took place within the framework of pioneering partnerships: the successful stock market launch of EADS (to which DaimlerChrysler contributed Dasa), the IT joint venture between debis IT Services and Deutsche Telekom, and the upcoming sale of the Adtranz rail systems subsidiary to Bombardier.
At the Mercedes-Benz Passenger Cars and smart division, revenues climbed by over 13 percent to over Euro 43 billion. This represents a significant gain on the record high achieved in 1999. Sales of Mercedes-Benz vehicles reached more than 1.05 million units, or an increase of about 5 percent on the previous year. Developments were particularly favorable in the U.S., Germany, Latin America, Southeast Asia and Australia. In Germany, Mercedes-Benz succeeded in increasing its market share to almost 12 percent in a declining market. In the U.S., retail sales for the first time broke the 200,000 mark, reaching more than 205,000 passenger cars (+ 8.5 percent).
The new C-Class which was launched in the spring of 2000, is extremely popular with customers around the world. More than 150,000 vehicles of this series were delivered to customers in the first year of production.
Sales at Micro Compact
Car smart GmbH exceeded expectations and sales targets in 2000, selling
more than 101,000 units; sales were up more than 25 percent over the
previous year. The "cult" car is not only very successful in Germany
but also in Italy, France, Spain, Belgium and Greece.
Chrysler Group vehicles were exposed to intense competition and increasing incentive costs in the U.S. market during 2000. Moreover, segment leading Chrysler and Dodge brand minivans were replaced by all-new 2001 models, resulting in production declines due to model changeover and high incentives to clear inventories of the previous models. The Chrysler,Dodge and Jeep® and brands generated revenues of nearly Euro 68 billion last year. The increase of about 6 percent is largely attributable to the strength of the dollar against the euro. Vehicle sales declined to about 3 million units.
Revenues at the Commercial Vehicles division (Mercedes-Benz, Freightliner, Sterling, Setra, Thomas Built Buses, American LaFrance, Orion and Western Star brands) increased by about 5 percent to approximately Euro 28 billion. Some 544,000 units were sold — a decline of roughly 2 percent on the previous year's record level. The decline in North America was almost fully offset by favorable developments in Europe and Latin America with trucks, vans and buses.
For DaimlerChrysler Services AG (formerly debis), the year 2000 was characterized by strong dynamic growth of revenues and a strategic refocus on financial and mobility services. DaimlerChrysler's service company increased revenues by more than 30 percent to Euro 17 billion and boosted contract volume by over 20 percent to more than Euro 120 billion.
In the first half of 2000 (its last six months before being incorporated into the European Aeronautic Defence and Space Company — EADS), Dasa posted revenues of Euro 3.3 billion. Revenues at the Aeroengines unit (MTU Munich) totaled Euro 2.1 billion for the year as a whole, an increase of about 20 percent. New orders climbed by more than 40 percent to Euro 2.3 billion.
Revenues at the rail systems subsidiary Adtranz increased by about 8 percent to Euro 3.8 billion. It is expected that the European Commission will approve the sale to Bombardier during the first quarter of 2001.
Revenues at the Automotive Electronics (TEMIC) business unit rose sharply by approximately 19 percent to Euro 1.1 billion in 2000. Order volume was up roughly 13 percent to around Euro 1.2 billion.
The MTU/Diesel Engines unit was once again able to boost revenues and order volume in 2000. Revenues rose by more than 7 percent to over Euro 1 billion, while order volume was up nearly 11 percent to Euro 1.1 billion.
Stuttgart/Auburn Hills – January 8, 2001