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Daimler Banker’s Day India – Dr. Michael Mühlbayer
 

Daimler Banker’s Day India – Dr. Michael Mühlbayer

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    Daimler Banker’s Day India – Dr. Michael Mühlbayer Daimler Banker’s Day India – Dr. Michael Mühlbayer Presentation Transcript

    • Banker´s Day IndiaDr. Michael MühlbayerHead of Investor Relations & TreasuryInvestor Relations & Treasury – Dr. Michael Mühlbayer
    • Agenda 1 Q3-2012 Results 2 Daimler Strategy 3 Mercedes-Benz Cars Strategy 4 Daimler Trucks Strategy 5 Financing StrategyInvestor Relations & Treasury – Dr. Michael Mühlbayer 2
    • Highlights in Q3 2012 Group sales 528,600 (+1%) Sales record at Mercedes-Benz Cars 345,400 (+2%) Further sales increase at Daimler Trucks 119,100 (+3%) Market launch of the new A-Class and the new CLS Shooting Brake Start of production of Mercedes-Benz Antos distribution truck Market launch of the first BharatBenz trucks in India First jointly produced Auman truck rolled off the assembly line in China Sales start of the new urban delivery van Mercedes-Benz CitanInvestor Relations & Treasury – Dr. Michael Mühlbayer 3
    • Accelerating economic slowdown in the course ofQ3 2012 Stronger headwind for world economy, mainly in Western Europe and in important emerging markets Accelerating downward trend of the Western European car and van markets Demand for medium and heavy trucks in Western Europe affected by heightened uncertainty Growth of truck sales in the North American market slowed down Brazilian market for commercial vehicles did not show the expected turnaround so farInvestor Relations & Treasury – Dr. Michael Mühlbayer 4
    • Key financials- in billions of euros - Q3 2011 Q3 2012 Revenue 26.4 28.6 EBIT as reported 2.0 1.9 from ongoing business 2.1 1.9 Net profit 1.4 1.2 Earnings per share (in euros) 1.21 1.03 Net liquidity industrial business (2011: year-end) 12.0 8.2 Free cash flow industrial business -0.8 -0.2Investor Relations & Treasury – Dr. Michael Mühlbayer 5
    • Mercedes-Benz CarsMercedes-Benz Cars: Effects from higher unit salescompensated by investments for future growth- in billions of euros - - 133 8.0%* Sales increase 6.4%* 1,108 Positive net pricing 975 Foreign exchange rates Enhancement of product attractiveness Higher expenses amongst others for new technologies, new products and additional capacity Discounting of non-current provisions EBIT EBIT Q3 2011 Q3 2012* Return on salesInvestor Relations & Treasury – Dr. Michael Mühlbayer 6
    • Mercedes-Benz CarsBalanced sales structure- Unit sales in thousands - 337 345 21% 23% Rest of world 22% Western Europe 23% excl. Germany 22% 20% Germany 16% 21% USA 18% 14% China Q3 2011 Q3 2012Investor Relations & Treasury – Dr. Michael Mühlbayer 7
    • Mercedes-Benz CarsUnit sales increase mainly driven by M- and B-Class- Unit sales in thousands - 337 345 22 23 smart 58 68 SUV segment 55 51 A-/B-Class 106 109 C-Class 78 75 E-Class 18 19 S-Class Q3 2011 Q3 2012 Investor Relations & Treasury – Dr. Michael Mühlbayer 8
    • Mercedes-Benz CarsProduct highlights New A-Class CLS Shooting Brake SLS AMG Coupé Electric Drive New GL-ClassInvestor Relations & Treasury – Dr. Michael Mühlbayer 9
    • Daimler TrucksDaimler Trucks: Effects from higher unit sales in NAFTA andAsia compensated by costs from product offensive- in millions of euros - - 48 7.3%* 6.3%* 555 Sales increase in NAFTA and Asia Lower warranty costs 507 Foreign exchange rates Lower unit sales in Brazil and Western Europe Costs related to product offensive Discounting of non-current provisions EBIT EBIT Q3 2011 Q3 2012* Return on salesInvestor Relations & Treasury – Dr. Michael Mühlbayer 10
    • Daimler TrucksSales increase driven by business in NAFTA and Asia- in thousands of units - 116 119 14 Rest of world 15 35 43 Asia 17 13 Latin America 33 35 NAFTA region 16 14 Western Europe Q3 2011 Q3 2012Investor Relations & Treasury – Dr. Michael Mühlbayer 11
    • Daimler TrucksLower level of order intake in all major regions- in thousands of units - 107 12 95 15 Rest of world 35 32 Asia 17 12 Latin America* 28 24 NAFTA region 15 12 Western Europe Q3 2011 Q3 2012* Due to the business model, incoming orders in Brazil correspond with unit sales.Investor Relations & Treasury – Dr. Michael Mühlbayer 12
    • Daimler TrucksProduct highlights Mercedes-Benz Antos Freightliner Coronado Fuso Canter Eco Hybrid Auman truck BharatBenz trucksInvestor Relations & Treasury – Dr. Michael Mühlbayer 13
    • 2012 expectations for EBIT from ongoing businessThis guidance reflects a significant slowdown of major markets and intensified competition since Q2 2012. We expect Group EBIT for FY 2012 of around €8 billion based on the following divisional EBIT: Around €4.4 billion Around €1.7 billion Around €650 million Around minus €80 million Around €1.3 billionThis guidance is based on the most recent market expectations and exchange rate environment. Risks exist in light of adifficult economic environment and volatile markets.Investor Relations & Treasury – Dr. Michael Mühlbayer 14
    • The operating performance in Q4 2012 will be drivenby: • Weaker European markets • Support of dealer network in China • Higher unit sales driven by new compact cars • Weaker than expected European and Brazilian markets • Slowdown of demand in NAFTA • Expenses related to the start of business in India and China • Weak Western European markets continue to impact business • Higher unit sales due to Citan launch • Lower unit sales due to weak Western European and Brazilian markets • Charges of around €40 million for business repositioning • Normalization of cost of riskInvestor Relations & Treasury – Dr. Michael Mühlbayer 15
    • Mercedes-Benz Cars: Mid-term financial performance Strategic return target: Return on sales of 10% on average Challenges Opportunities/Management initiatives • Worsened economical environment • Strong growth momentum based on new models • Market demand weaker than expected • Implementation of China strategy • Increasing competition in core markets • Fit for Leadership: targeted benefits of €2.0 billion by the end of 2014 • Model changeover of key products; meaningful profit contribution from successor models as of H2 2013 • China business structure • Continued investments in our growth strategy To achieve 10% RoS in 2013 has become more challenging based on current market developments. We continue to target a RoS of 10% on average, however, from a later starting point.Investor Relations & Treasury – Dr. Michael Mühlbayer 16
    • Mercedes-Benz Cars: Mid-term financial performance Flight path towards benefits Key levers Additional top-line effects Cost reduction • Sales growth and positive pricing from new models We aim to achieve • Implementation of China strategy a significant portion of cost reduction by 2013 • Material costs – earlier achievement €2.0bn of net-zero approach • Production costs – accelerated hours per vehicle (HPV) initiative • Reduction of fixed costs • Reduction of R&D and capital expenditures 12/2012 12/2013 12/2014Investor Relations & Treasury – Dr. Michael Mühlbayer 17
    • Daimler Trucks: Mid-term financial performance Strategic return target: Return on sales of 8% on average over the cycle Challenges Opportunities/Management initiatives Demand in core markets still below normal-year level Accelerated recovery of core markets (e.g. Europe, Brazil, China) NAFTA Market recovery in 2012; 2013 slight market growth potential, Realization of measures defined under DT#1 but still below pre-crisis level Europe Recovery in 2012 slowed down by sovereign debt crisis; 2013 market without improvement and still significantly below pre- crisis level LA Instable market development; impacts from economic slow-down and introduction of EURO V put 2013 market development at risk Japan Growth due to reconstruction measures and governmental subsidies after the earthquake expected to decline in 2013 China 2013 market expected to be still below 2011 level Increasing competitiveness in core markets To achieve 8% RoS in 2013 has become more challenging based on current market developments. We continue to target a RoS of 8% on average over the cycle, supported by DT#1, however, from a later starting point.Investor Relations & Treasury – Dr. Michael Mühlbayer 18
    • Daimler Trucks: Mid-term financial performance Flight path towards benefits Key levers €1.6bn • Sales push • Closing of global white spots Top-line 30% • Aftersales push We aim to achieve a significant portion of • Remanufacturing growth cost reduction by 2013 • Fixed costs Cost 70% • Material costs reduction • Production costs • Warranty and quality costs • Platform scale/portfolio optimization 2012 2013 2014Investor Relations & Treasury – Dr. Michael Mühlbayer 19
    • Mercedes-Benz Cars: Fit for Leadership Growth Strategy Mercedes-Benz 2020 "Fit for Leadership" 2012 2013 2014 2015 2016 Structural Optimization Profit Optimization Program set-up addresses all levers on functional & cross-functional level 2 1 3 2020Investor Relations & Treasury – Dr. Michael Mühlbayer 20
    • Core elements of the MBC China strategy MBC Retail Performance Measures in 2012 Mid-term (units in thousands, incl. smart) 198.5 • New product launches (M-Class and B- • Extension of attractive product portfolio Class) • Dealer professionalization and 147.3 • Full availability of locally produced GLK expansion of network 152.5 • Continue to strengthen brand/ product • Ensure China-specific product and +9% vs. 09/11 positioning through marketing & PR market requirements through further platforms extension of local R&D capacity and 68.5 • Setup of new Regional West Office in competence 38.8 Chengdu (4 regions’ build-up completed) • Reduction of material costs/expansion • Leasing company established of “Chinese Supplier Base” • Share increase MB China (Daimler • Expansion of production capacity 2008 2009 2010 2011 2012 75%/LSH 25%) YTD09 • Expand dealer network from 207outlets • Further increase dealer network – Network Development in 2011 to approximately 260 in 2012 average 50 new dealers per yearInvestor Relations & Treasury – Dr. Michael Mühlbayer 21
    • Looking beyond 2012 In 2014, Mercedes-Benz Cars will have a significantly younger model lineup than today. At Daimler Trucks, the product offensive and the regional launches will be completed in 2014. All divisions will consistently implement their initiatives to further enhance efficiency and realize further optimization potentials. We will optimize our business model and better exploit our potential in China.Investor Relations & Treasury – Dr. Michael Mühlbayer 22
    • Agenda 1 Q3-2012 Results 2 Daimler Strategy 3 Mercedes-Benz Cars Strategy 4 Daimler Trucks Strategy 5 Financing StrategyInvestor Relations & Treasury – Dr. Michael Mühlbayer 23
    • Daimler‘s identity as an automotive pioneer is fueled byleading technologies, strong brands and global reach Technology leadership Brand Market leverage Cars Trucks Vans Buses ServicesInvestor Relations & Treasury – Dr. Michael Mühlbayer 24
    • Daimler corporate strategy: Four central themes Strengthen core business Develop new markets Lead in „Green“ and Safety Shape mobility conceptsInvestor Relations & Treasury – Dr. Michael Mühlbayer 25
    • Agenda 1 Q3-2012 Results 2 Daimler Strategy 3 Mercedes-Benz Cars Strategy 4 Daimler Trucks Strategy 5 Financing StrategyInvestor Relations & Treasury – Dr. Michael Mühlbayer 26
    • Leadership -- a state of mind 2 3 1 Mercedes-Benz 2020Investor Relations & Treasury – Dr. Michael Mühlbayer 27
    • Four levers of Mercedes-Benz 2020 Brand Product Sales ProfitInvestor Relations & Treasury – Dr. Michael Mühlbayer 28
    • Brand: “The Best or Nothing” Mercedes-Benz is the most valuable premium automotive brand worldwide and Europes most valuable brand overallInvestor Relations & Treasury – Dr. Michael Mühlbayer 29
    • Products: SUV Offensive - Our new GLK-ClassInvestor Relations & Treasury – Dr. Michael Mühlbayer 30
    • Products: SUV Offensive - Our new GL-ClassInvestor Relations & Treasury – Dr. Michael Mühlbayer 31
    • Products: Our new SL-ClassInvestor Relations & Treasury – Dr. Michael Mühlbayer 32
    • Products: Mercedes-Benz Concept Style CoupéInvestor Relations & Treasury – Dr. Michael Mühlbayer 33
    • More to come: At least 10 additional model series by2015CompactMid-SizeFull-SizeLargeSUVInvestor Relations & Treasury – Dr. Michael Mühlbayer 34
    • Sales: At least 1.6 million cars in 2015 – salesleadership in 2020 Mercedes-Benz sales forecast [million units – without smart] Best sales* >1.6 >1.5 1.28 2011 2014e 2015e 2020e *Within automotive premium segment; schematic representationInvestor Relations & Treasury – Dr. Michael Mühlbayer 35
    • Products: Delivering on responsibility ML 250 BlueTEC 4MATIC E 300 BlueTEC HYBRID SLS AMG E-CELL 6.0 4.2 0 Fuel consumption combined in l/100 kmInvestor Relations & Treasury – Dr. Michael Mühlbayer 36
    • Products: CO2- Emissions in 2011 300 New cars registered in Germany 270 227 CO2-Emissions (g/km) 240 210 199 180 159 153 151 151 150 142 120 30 6.1 l 0 MBC* Audi BMW** Jaguar Porsche VW Volvo * Mercedes-Benz Cars incl. smart and excl. Vans ** BMW incl. Mini Source: Federal Motor Transport Authority (KBA); auto, motor und sport 5/2012Investor Relations & Treasury – Dr. Michael Mühlbayer 37
    • Profit: Common vehicle architectures and modulestrategy enable efficient use of resourcesInvestor Relations & Treasury – Dr. Michael Mühlbayer 38
    • Profit: Strong improvement at New GenerationCompact Cars, S-Class and C-ClassEBIT Lifecycle Performance Development S-Class C-Class New Generation Compact Class Former A/B NGCC BR 221 BR 222 BR 204 BR 205Investor Relations & Treasury – Dr. Michael Mühlbayer 39
    • Profit: Mercedes outperforms competition in initialquality and long term quality dependabilityInvestor Relations & Treasury – Dr. Michael Mühlbayer 40
    • Profit: By 2015 two flexible manufacturing networks will be establishedWe will be more flexible:• Within products across plants• Within plants across products• Within architecture across plants and products Investor Relations & Treasury – Dr. Michael Mühlbayer 41
    • Financial Outlook and Targets ▸ Sales leadership Milestones: >1.5 in 2014 / >1.6 in 2015 ▸ Technology leadership Milestone: 125 g CO2 / km fleet average in 2016 ▸ Flexible footprint and productivity improvement Milestone: HPV 30h in 2015 ▸ Capital and cost discipline Milestones: CapEx Ratio ~7% / R&D Ratio ~6% ▸ Strategic Return Target 10% RoS on averageInvestor Relations & Treasury – Dr. Michael Mühlbayer 42
    • Agenda 1 Q3-2012 Results 2 Daimler Strategy 3 Mercedes-Benz Cars Strategy 4 Daimler Trucks Strategy 5 Financing StrategyInvestor Relations & Treasury – Dr. Michael Mühlbayer 43
    • Truck industry offers positive dynamics • Market growth in NAFTA and Japan Short- • Challenging market in Brazil term • Low visibility in Europe • Continuing market volatility 1 • 3.6% p.a. growth, increasing relevance of BRIC 2 • Convergence of emission regulations Mid- TCO increasingly relevant for customers 3 • term 4 • Vehicle upgrading – "Modern Domestic" becoming biggest segment 5 • Structural growth of high margin aftersales businessInvestor Relations & Treasury – Dr. Michael Mühlbayer 44
    • 1 Sustainable industry growth of 3.6% p.a. expected until 2020 across cycles driven by global GDP growth Stable past Crisis GrowthMDT/HDT market1 Growth p.a.(Million registrations) 11-204.0 +3.6% p.a. 3.63.5 3.4 3.4 +5.0% 3.3 3.2 3.1 2.9 3.03.0 2.8 RIC growth +2.6% p.a. 2.62.5 2.5 +2.5% 2.3 2.2 2.1 2.0 2.1 1.9 2.0 1.92.0 1.8 1.81.5 +5.0% Triad + Brazil recovery1.00.50.0 ’00 ’01 ’02 ’03 ’041 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19 ’20 1. 11 TOP OEMs considered Rest of World RIC (Russia, India, China) Triad + Brazil 45
    • 2By 2015 – most of the truck world will have reached advancedemission technology levels allowing for global engine scaleInvestor Relations & Treasury – Dr. Michael Mühlbayer 46
    • 3TCO increasingly relevant as key driver for customerdecisionsInvestor Relations & Treasury – Dr. Michael Mühlbayer Source: Bundesverband Güterkraftverkehr, Logistik und Entsorgung; Truckers Report 47
    • 4Technology dynamics will lead to significant vehicleupgradingInvestor Relations & Treasury – Dr. Michael Mühlbayer 48
    • 5Industry profits expected to further shift from vehicleto high margin aftersales businessInvestor Relations & Treasury – Dr. Michael Mühlbayer 49
    • Global Excellence has brought Daimler Trucks to anew level – foundation laid Global Excellence Global Excellence Pillars Achievements so far Next phase Management Strengthen global of Cycles Flexibility Measures  industry leadership Operational Excellence Efficiency Programs  Growth and Market Exploitation BRIC Expansion  Future Product Generations Global Platform Roll-out Investor Relations & Treasury – Dr. Michael Mühlbayer 50
    • Flexibility Measures Flexibility Measures: Strong progress in increasingDTs flexibility in production plants Wörth, Mount Holly NC, Kawasaki+30% units/year Workforce flexibility • Flexible working hours • Flexible shift models-30% units/year Flexible cycle time • 430 300 units/dayInvestor Relations & Treasury – Dr. Michael Mühlbayer 51
    • Flexibility Measures Further flexibility in global production networkSelected facility flexibility across 27 sitesInvestor Relations & Treasury – Dr. Michael Mühlbayer 52
    • Efficiency Programs Efficiency programs achieved sustainableimprovementInvestor Relations & Treasury – Dr. Michael Mühlbayer 53
    • BRIC Expansion BRIC expansion: Excellent global coverage of Triadand Brazil – RIC coverage implemented in 2012Investor Relations & Treasury – Dr. Michael Mühlbayer 54
    • Global Platform Roll-out Global platform roll-out: Foundations laid to reapbenefits of global scaleInvestor Relations & Treasury – Dr. Michael Mühlbayer 55
    • Global Platform Roll-out Best products for our customers and regionaloperationsInvestor Relations & Treasury – Dr. Michael Mühlbayer 56
    • We have defined a clear roadmap for Global Excellenceto strengthen our global leadership position: DT#1Investor Relations & Treasury – Dr. Michael Mühlbayer 57
    • DT#1 targets 1.6 bn € benefits – via Excellence Programs in ouroperating units and cross-business initiativesInvestor Relations & Treasury – Dr. Michael Mühlbayer 58
    • Stringent portfolio reviewStringent portfolio review: to optimize our businessstructure and ensure top performanceInvestor Relations & Treasury – Dr. Michael Mühlbayer 59
    • Global scale realizationPlatform and module strategy to fully leveragecommonality for powertrain and vehiclesInvestor Relations & Treasury – Dr. Michael Mühlbayer 60
    • Financial Outlook and Targets ▸ Strategic Return Target 8% RoS on average over the cycle ▸ Sales leadership Milestones: 500k in 2013 / 700k in 2020 ▸ Technology leadership We offer the best products in terms of TCO and fuel efficiency, globally. ▸ Our vision No. 1 in the global truck industry and sustainable leadership in profitability. DT#1 targets benefits of 1.6 B€, coming from Sales / After Sales Push, variable / fixed cost reduction and platform/module rolloutInvestor Relations & Treasury – Dr. Michael Mühlbayer 61
    • Agenda 1 Q3-2012 Results 2 Daimler Strategy 3 Mercedes-Benz Cars Strategy 4 Daimler Trucks Strategy 5 Financing StrategyInvestor Relations & Treasury – Dr. Michael Mühlbayer 62
    • Key balance-sheet figures- in billions of euros - Daimler Group Dec. 31, 2011 Sept. 30, 2012 Equity ratio 26.3% 26.1% Gross liquidity 11.9 16.3 Industrial business Equity ratio 46.4% 45.2% Net liquidity 12.0 8.2Investor Relations & Treasury – Dr. Michael Mühlbayer 63
    • Funding SourcesFinancial Liabilities as of September 30, 2012 Non- Current Total In billions of € current Bonds 6,5 28,1 34,7 Bank Loans 12,3 8,7 21,0 ABS 2,8 2,1 4,9 Commercial Paper 2,1 0,0 2,1 Account Deposits 8,8 2,9 11,7 Other 0,7 0,5 1,3 Total 33,2 42,4 75,6Investor Relations & Treasury – Dr. Michael Mühlbayer 64
    • Daimler Financial ServicesIncrease in contract volume due to growing automotivebusiness- in billions of euros - 77.5 71.7 11.5 Africa & Asia/Pacific 9.9 32.7 Americas 30.6 14.2 15.8 Europe (excl. Germany) 17.0 17.5 Germany 12/31/2011 9/30/2012Investor Relations & Treasury – Dr. Michael Mühlbayer 65
    • Automotive value chain80% of profits are generated after the production phase – financial services accountfor a large share of these profits. Financial services however requires the majority ofthe Groups‘ funding volume. 20% 35% 35% 10% Production and Financial services After-sales Pre-owned- Sales (financing, leasing, etc.) (service, spare parts) vehicles Source: IXIS Securities, Mercer, Booz Allen Hamilton, Arthur D. Little 2006Investor Relations & Treasury – Dr. Michael Mühlbayer 66
    • Financial Services Portfolio Q3 2012: € 77.5 billionin billion € Americas 34 bn. Europe 34 bn. AAP 12 bn.Investor Relations & Treasury – Dr. Michael Mühlbayer 67
    • Funding policyDaimler is committed to insure a strong Financial Flexibility through a balanced mix of  Solid cash position  Committed credit facilities without any covenants  Pool of receivables readily available for saleFurther Diversification of Funding Sources and Instruments to ensure therebycontinued access to markets.General applied Funding Principles: 1. Liquidity matched funding 2. Interest rate matched funding 3. Currency matched funding 4. Country matched fundingInvestor Relations & Treasury – Dr. Michael Mühlbayer 68
    • Worldwide access to capital markets Capital market programs:  144a / RegS  Euro MTN Program Documentation for (35 bn EUR, multi currency and multi issuers) US offerings  Local Programs established in Mexico, Argentina, South Africa, Thailand und Japan  In future: India, China, Korea, Brazil and others to be added, when capital markets open and funding requirements justify the effortInvestor Relations & Treasury – Dr. Michael Mühlbayer 69
    • Bond Issuances in 2012by currenciesInvestor Relations & Treasury – Dr. Michael Mühlbayer 70
    • Group’s rating position Current Ratings: S&P: A- stable A-2 Moody’s: A3 positive P-2 Fitch: A- stable F2 DBRS: A (low) stable R-1 (low) Daimler target: An A rating at all rating agenciesInvestor Relations & Treasury – Dr. Michael Mühlbayer 71
    • Investor Relations & Treasury – Dr. Michael Mühlbayer 72
    • DisclaimerThis document contains forward-looking statements that reflect our current views about future events. The words “anticipate,” “assume,” “believe,”“estimate,” “expect,” “intend,” “may,” “plan,” “project,” “should” and similar expressions are used to identify forward-looking statements. Thesestatements are subject to many risks and uncertainties, including an adverse development of global economic conditions, in particular a decline ofdemand in our most important markets; a worsening of the public debt crisis in the eurozone; a deterioration of our funding possibilities on thecredit and financial markets; events of force majeure including natural disasters, acts of terrorism, political unrest, industrial accidents and theireffects on our sales, purchasing, production or financial services activities; changes in currency exchange rates; a shift in consumer preferencetowards smaller, lower margin vehicles; or a possible lack of acceptance of our products or services which limits our ability to achieve prices as wellas to adequately utilize our production capacities; price increases in fuel or raw materials; disruption of production due to shortages of materials,labor strikes, or supplier insolvencies; a decline in resale prices of used vehicles; the effective implementation of cost-reduction and efficiency-optimization measures; the business outlook of companies in which we hold a significant equity interest, most notably EADS; the successfulimplementation of strategic cooperations and joint ventures; changes in laws, regulations and government policies, particularly those relating tovehicle emissions, fuel economy and safety; the resolution of pending govern-mental investigations and the conclusion of pending or threatenedfuture legal proceedings; and other risks and uncertainties, some of which we describe under the heading “Risk Report” in Daimler’s most recentAnnual Report. If any of these risks and uncertainties materialize, or if the assumptions underlying any of our forward-looking statements proveincorrect, then our actual results may be materially different from those we express or imply by such statements. We do not intend or assume anyobligation to update these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. 73