Mercedes-Benz pushes ahead with development of China sales structure

By pooling all sales activities for imported and locally produced passenger cars under the umbrella of Beijing Mercedes-Benz Sales Service Co. Ltd. (BMBS), Daimler has established the structural set-up for the optimization of sales operations in China, thus paving the way for sustainable growth. On this basis, the company is pushing ahead with the ongoing development of its sales operations for what is set to be Mercedes-Benz’s most important passenger car market in the future – as illustrated by numerous current examples: a special unit dedicated to China is being set up at Central Sales in Stuttgart, the Chinese dealer network is undergoing fast-track development, a multi-stage after-sales initiative has been started, and basic and advanced training capacities and training measures for sales and dealership staff are subject to continual expansion.

“We have taken numerous measures for our Chinese business in the past six months and are proceeding step by step. May saw a continuation of the positive sales trend from the previous months and we are keeping our foot on the gas together with the sales organization in Germany,” says Hubertus Troska, the member of Daimler’s Board of Management responsible for China. “Together with the expansion and rejuvenation of our product range, a decisive factor for our sustained success is the consistent development of our dealer network, among other things. In this way we are continually opening up cities and regions in which Mercedes-Benz has not previously had an adequate presence.”

New structure: special sales unit in Stuttgart dedicated to the Chinese market

In order to serve the Chinese automobile market even more effectively – also in the context of the Mercedes-Benz 2020 growth strategy – a special unit has been set up at Central Sales in Stuttgart under the name of “Sales Management China” to coordinate all passenger car sales functions relating to the Chinese market and to pool these functions at the company’s headquarters. The aim is to address challenges, market requirements and specific needs relating to Chinese business even more effectively and to provide the colleagues in China with ideal support from headquarters. An important advantage of this closer collaboration is that it will enable the needs of the Chinese market to receive even greater consideration in key decisions relating to sales and products in future, thereby fulfilling a crucial condition for sustained growth in China.

The new unit will be headed by Bernhard Auer (47), a sales specialist and experienced expert on China, who will report directly to the Vice President Sales Mercedes-Benz Cars, Matthias Luehrs. After holding various posts at the technology company STW in Germany and the USA, Bernhard Auer most recently managed the sales unit responsible for China and Hong Kong at Audi AG.

Expansion of the dealer network in 2013

Expansion of the dealer network in China is of central importance for further growth. Mercedes-Benz’s dealer network in China is to grow annually by an average of around 50 new dealerships – in particular away from the well-known mega-cities. This year, the target figure will be surpassed: 75 new dealerships will go into operation, including 36 cities in which the brand previously had no presence at all. In all, Mercedes-Benz will then have significantly more than 300 dealers in China.

The growth of the Mercedes-Benz dealer network is being accompanied by a vast increase in training capacities. In this way the company is ensuring the very highest standards of service quality at all times. Following the recent opening of a new training center in Chengdu (province of Sichuan) – the largest outside of Germany – and together with the additionally planned training center in Shanghai, Mercedes-Benz will have a total of seven such establishments in China. The training capacity for Mercedes-Benz sales staff will increase by 40 percent in comparison to last year, reaching 140,000 training man-days. All training centers are affiliated to the newly established BMBS sales company.

To ensure sales growth on a sustained basis, a further focus lies squarely on the development of the existing after-sales activities. With this in mind a multi-stage initiative has already been launched by the new sales company in China, BMBS, comprising some attractive and competitive maintenance, service and guarantee packages.

Overview of other measures for China:

- Market launch of around 20 new and facelifted vehicles up to 2015; highlights for 2013 are the new E-Class in a long-wheelbase version, the A-Class and the S-Class

- Expansion of local production:

1. increase in capacities for existing model series (C-Class, E-Class and GLK)

2. localization of the GLA, the future compact SUV from Mercedes-Benz

3. production launch of engines to be deployed in locally produced Mercedes-Benz passenger cars and vans

- Continued expansion of financial services and attractive financing and leasing products

- Mercedes-Benz dealers give vote of confidence

Representatives of the five most important dealer groups for Mercedes-Benz in China (Boshi Group, China Grand Automobile, Lei Shing Hong, Pangda, Zhongsheng) have unanimously appointed Daimler’s Management Board member responsible for China, Hubertus Troska, as Chairman of the Carl Benz Academy China ( 卡尔·奔驰学院 ). Troska’s appointment is a vote of confidence for the China management of Daimler and Mercedes-Benz.

The Carl Benz Academy is a joint institution of Mercedes-Benz in China and its most important local dealer groups which offers further vocational training and education (MBA Business Administration) for managerial staff from the automobile sector in cooperation with renowned international universities. To date, about 80 employees of Mercedes-Benz and its dealers in China have benefited from the Academy’s program. The dealers have undertaken to fund the Carl Benz Academy to the tune of RMB 100 million (a good 12 million euros).

In the interests of long-term and sustainable growth in China, the company’s basic and further training efforts are not focused solely on management staff from the area of sales and the dealer network. Since 2006, a further emphasis has been on training young talents in occupations such as car mechatronic, assembly fitter, and CNC chipping operator. The training is based on the German standard of the dual system and has already been completed by more than 1500 trainees; the local teaching staff also receive corresponding basic and advanced training.

Credits: Daimler AG

Copyright © 2013, Mercedes-Benz-Blog. All rights reserved.

Read More

The GLK and G-Class scoop awards in "Off Road" readers' poll: SUV poll win for Mercedes-Benz

True to form, serial winner Mercedes-Benz triumphed once again this year in the annual readers' poll conducted by renowned automotive magazine Off Road to find the "SUV of the Year".

This year the GLK saw off the stiffest international competition to win the SUV category. This was a resounding acknowledgement of last year's revamp of the SUV, entailing comprehensive new technical and design features. The range of engines on offer was additionally bolstered by a particularly agile and economical four-cylinder petrol variant in the spring of 2013. The cutting-edge direct-injection engine in the GLK 250 4MATIC BlueEFFICIENCY offers superior performance coupled with well-balanced drive comfort at an output of 155 kW (211 hp) and 350 Newton metres of torque. The GLK-Class additionally boasts a new infotainment generation with extended functions.

The legendary G-Class was a success on two fronts, topping the "SUV" category while the G Professional model won the "Classic Cars" section. This makes the G-Class the most successful participant in this poll - which has been held annually since 2001 - with a total of nine awards to its name.This year, a total of 125 vehicles were in the running in 13 categories. In all, the Off Road jury counted 74,282 votes cast.

Credits: Daimler AG

Copyright © 2013, Mercedes-Benz-Blog. All rights reserved.

Read More

Mercedes-Benz announces Louis Oosthuizen as new Brand Ambassador

Mercedes-Benz is delighted to announce the appointment of South African professional golfer, Louis Oosthuizen, as its new golf brand ambassador. Mercedes-Benz South Africa will not only be supporting the 2010 Open Championship winner through to further success but will also be assisting his junior golf academy.

“I’m pleased to announce I am joining the Mercedes-Benz family as a golf ambassador! Their dedication to golf for the past 30 years has been first class and I am looking forward to working with a brand that is as passionate about the game as I am,” says Louis Oosthuizen.

He won numerous amateur titles before turning professional in 2002 at the age of 19. Louis also triumphed at his first European Tour event in 2010, the Open de Andalucia de Golf. He followed that with his first major championship, the 139th Open Championship played over the Old Course at St. Andrews, winning by a massive seven shots.

“We are delighted to welcome Louis Oosthuizen to the Mercedes-Benz family – our values of fascination, perfection and passion fit perfectly with Louis’ own principles. He’s one of a new breed of golfer who embodies Mercedes-Benz values both on and off the course”, says Selvin Govender, Divisional Manager Marketing, Mercedes-Benz South Africa.

Lueder Fromm, Head of Global Marketing Communication for Mercedes-Benz Cars, adds: “We are looking forward to acclaim Louis during the Open Championship in July, where Mercedes-Benz is a Patron, together with our other brand ambassadors like Adam Scott and Marcel Siem.”

Louis Oosthuizen’s vehicles of choice are the performance driven ML 63 AMG in South Africa and the GL 450 in the United States, whilst his foundation, “The Louis Oosthuizen Junior Golf Academy,” founded in 2009, will utilise a new-generation Mercedes-Benz Sprinter van which will be out-fitted to operate as a mobile golfing clinic.

Credits: Daimler AG

Copyright © 2013, Mercedes-Benz-Blog. All rights reserved.

Read More

Mercedes-Benz continues on growth course in May 2013

Mercedes-Benz again grew its unit sales in May with vehicle deliveries to customers that are unprecedented for the month of May (121,360 units, +7.3%). The Stuttgart based manufacturer also posted a new sales record for the period since the beginning of the year with 562,824 units sold (+5.9%). The brand with the star grew strongly, especially in the NAFTA region, Russia and the Asian markets as well as in Western Europe. This success was mainly due to the new Mercedes-Benz compacts and the SUVs.

“We are continuing the positive sales trend in May as well“, said Dr Joachim Schmidt, Executive Vice President Mercedes-Benz Cars Sales and Marketing. “We are posting solid increases in many markets in Europe and Asia, as well as in the USA, at a time, when the new E-Class and the CLA are just entering the big markets.“

Mercedes-Benz delivered 57,759 vehicles in Europe in May (+4,9%) and thus gained market shares in all big markets. The main sales drivers were the UK (+17.3%) and the growth markets Russia (+13.8%) and Turkey (+93.9%). In the home market of Germany, which is generally declining (total market -9.9%), Mercedes-Benz grew its market share to over 9% and with sales of 22,382 vehicles successfully defended its top position as the most registered premium manufacturer (prior year 23,610 units).

In the USA, the Mercedes-Benz brand again posted a new record with 24,713 vehicles sold in May (+9.8%) and maintained its rank as the top-selling premium manufacturer since the beginning of the year.

In the Asia/Pacific region, Mercedes-Benz established itself as market leader among importers in Japan with unit sales growth of 60.4%. Business was also good in China (incl. Hong Kong): With sales of 17,684 units Mercedes-Benz posted a plus of 7.0% in May, thus continuing the positive trend of the previous months.

Among the model series, business increased, primarily due to the compacts with the star, with May deliveries of 31,770 vehicles of the A-Class and B-Class, as well as the new model CLA (+65.6%). In early May, the compact coupe was voted as “Germany’s Most Beautiful Car“ by readers of the automotive magazine “Auto Bild“. After winning the award with the new A-Class last year, Mercedes-Benz is now the all-around winner of this renowned beauty contest for the fifth consecutive time.

The “dream cars“ of the Mercedes-Benz brand are also in particular demand. The brand uses the term to bundle its coupe, convertible and roadster model series, which not only dominate the brand image but at more than 10% also contribute a significant share of car sales. Overall, about 70,000 “dream cars“ have been handed over to customers since the beginning of the year. In doing so, Mercedes-Benz achieved a market share of about 50% compared to its German core competitors.

Mercedes-Benz has achieved a market share of around 50% for coupes, convertibles and roadsters in the premium segment.

The SUVs with the star continued to build on their success in previous months with May deliveries of 25,710 vehicles from the SUV segment to customers (+14.5%). Since January the M-Class sold 18.6% units more than in the previous years’ period and thus continues to maintain its leadership in the segment worldwide.

Mercedes-Benz celebrated the world premiere of the new S-Class in mid-May. The flagship of the brand was showcased to around 750 international guests from politics, business and the media on the runway of the delivery center of the Airbus 380. With its top levels of safety, comfort, luxury and efficiency the S-Class is generally acknowledged as the technological guiding star of automotive development and the epitome of state-of-the art luxury sedans. With over 500,000 vehicles sold, the predecessor S-Class series have enjoyed great popularity since their market launch in 2005. The new S-Class will celebrate its premiere at dealers in Germany in July.

The compact two-seater smart sold 43,052 units worldwide since the beginning of the year (prior year 45,996 units). In particular in the UK and Japan, the city runabout managed to win many new customers in its seventh year of availability as well.

Overview of sales by Mercedes-Benz Cars

Credits: Daimler AG

Copyright © 2013, Mercedes-Benz-Blog. All rights reserved.

Read More

Mercedes-Benz Adds Fifth Month to 2013 Record Sales Streak with May Totals at 24,713 Units

Mercedes-Benz USA (MBUSA) today reported another month of record highs with sales reaching 27,359, an 8.3% increase over May 2012. Sales volumes at Mercedes-Benz jumped 9.8% last month (24,713), bringing year-to-date totals for the brand to a record high of 117,535. Sprinter Van year-to-date sales increased 5.3% from the same time last year to 7,517, combining with steady momentum from smart at 3,678 to round out MBUSA's year-to-date totals of 128,730.

"We've seen five consecutive months of best-ever sales in 2013," said Steve Cannon, president and CEO of MBUSA. "Strong momentum carries across the entire product line from our entry models straight up to the high end, which is ahead 24 percent for the year. We expect to build on that pace as more of our completely redesigned E-Class models roll into dealer showrooms."

The highest Mercedes-Benz volume performers for May were the C-, E- and M-Class model lines. The C-Class—the sporty gateway to the brand for younger and first-time Mercedes-Benz buyers—led sales at 8,013 units, up 20.5% from May 2012. Sales of the E-Class, which receives a complete redesign for 2014 and is now arriving in dealerships, followed at 4,930. MBUSA's top-selling SUV, the M-Class, rounded out the top three with sales of 3,219. Strong performers at the high end included the company's flagship S-Class, up 16.4%, and the award winning GL-Class SUV which increased 41.0% over the same period last year.

The Sprinter model line posted sales of 1,828 for the month, while smart saw a 16.4% boost in sales volume totaling 818 units.

Sales of the company's BlueTEC diesel models were 1,503 for the month, up 47.5% from the same period last year. On the high-performance side, AMG model sales finished the month of May at 536.

Separately, through the Mercedes-Benz Certified Pre-Owned (MBCPO) program, MBUSA sold 8,113 vehicles in May; an increase of 24.2% when compared to May 2012 (sales of 6,534 vehicles). On a year-to-date basis, MBCPO sold 41,231 vehicles, an increase of 25.6% over the comparable period (with sales of 32,826 vehicles).

Mercedes-Benz USA May 2013 Sales Chart

Credits: Mercedes-Benz USA

Copyright © 2013, Mercedes-Benz-Blog. All rights reserved.

Read More

Record-breaking May 2013 as Mercedes-Benz registrations rise 16.5 per cent

- Mercedes-Benz UK car registrations up 16.5 per cent for the month of May
- Total of 8,326 cars were registered in May – a best-ever performance
- Adds to growth of 13.9 per cent for the year-to-date, to 44,615 new cars
- AMG continues high performing year – up 52.9 per cent in 2013 with 1214 registrations
- Coupé and Roadster registrations – led by C-Class, E-Class and SLK-Class – also post significant gains
- Efficient motoring on the rise: smart fortwo registrations up 78.9 per cent in May
- Sprinter panel van sees 24.1 per cent rise in registrations

Mercedes-Benz UK has posted a record 16.5 per cent rise in registrations for the month of May according to figures released today by the Society of Motor Manufacturers and Traders (SMMT) – adding to the momentum already achieved by a record first quarter, and a total year-to-date gain of 13.9 per cent.

Registrations totalled 8,326 cars in May – bringing the number of cars registered by Mercedes-Benz for the year-to-date to 44,615.

Highlights in May included strong performances by the Coupé and Roadster models – the C-Class, CLS-Class, E-Class and SLK-Class each achieving significant gains for the month. Likewise, AMG continued its record form – 1214 examples have been registered in 2013 attributing for a 52.9 per cent rise for the year-to-date.

In the month that saw the new S-Class being unveiled, the existing model retained top spot in its market segment – finishing May as the Number One luxury car, a position it’s held all year.

At the other end of the scale, the smart fortwo posted a 78.9 per cent rise in registrations in May, adding to what has been a highly successful year so far for the smart brand. A number of these cars will be used by car2go customers, the simple-to-use car sharing service based in London and Birmingham.

A consistently popular model in the UK, the B-Class, maintained its strong performance with a 56.8 per cent rise in registrations in May, and YTD registrations of 2,965 cars.

Mercedes-Benz Commercial Vehicles registrations were also strong against a challenging market, with the Sprinter panel van achieving an 24.1 per cent gain in May – a total of 1,261 vans. The Sprinter range is up 9.3 per cent for the year while, the panel van version has posted a 15.2 per cent gain.

Marcus Breitschwerdt, President and CEO Mercedes-Benz UK, commented: “A strong May and a record-breaking first five months, signs of growth in our Commercial Vehicles operations and another great performance by the AMG brand have put us in a strong position as we enter the summer.

“My colleagues and I at Mercedes-Benz UK and the sales and customer service teams at our passenger car Retailers and CV Dealers throughout the UK will continue to work hard to sustain and build on this progress. As we introduce new and exciting models to the UK – most recently the CLA-Class, the new E-Class and the new GL-Class - we are welcoming new customers to Mercedes-Benz, and along with those of our existing owners, we will meet and exceed their expectations.”

Credits: Mercedes-Benz UK

Copyright © 2013, Mercedes-Benz-Blog. All rights reserved.

Read More

REPORT: Mercedes-Benz to launch sub-A-Class city models in the near future

It makes no sense to think that, when your major opponents are orienting their forthcoming fleet of models towards the stringent needs of the overcrowded city of the future, you sit relaxed and watch the show. If you once believed you will not see any Merc model smaller than the A-Class, you should give it a second thought.

A while ago, we were reporting on the odds Mercedes-Benz launches the X-Class towards 2018 (see HERE), a niche offering destined for city mobility, in two distinct variants: a crossover with SUV aura based on the looks of the A-Class, but with specific styling, and a four-meter van.

Now, it appears Mercedes-Benz will also release a three-door city car in four to five years from this moment. Currently in the early phases of development, the mini A-Class will be engineered on a new technical, front-driven platform to also underpin the future Renault Twingo. First test mules should be out in two years, if the world premiere is slated for mid-2017.

Although everything sounds sci-fi at the moment, we are also pleased to inform that smart will also reveal themselves a similar model, placed above the upcoming 2015 forfour and competing directly with MINI Cooper and Audi A1.

Insiders claim this new project will receive the CLY badge as series car, but that sounds unlikely even though Mercedes-Benz registered this trademark last year (see HERE). The model might also stay X-Class or convert into CLX, as the future range of city vehicles seems to concentrate around the "X" letter.

For powering the new Mercedes-Benz City Car, Daimler and Renault will develop new petrol and diesel powerplants with 3-cylinder architecture and low displacement (one litre and below), but impressive consumption and CO₂ emission levels. The E-CELL all-electric powertrain could also be available at launch.

Pricing should start at 20,000 euros or just beneath in most European countries. The new model will also be introduced to the North American market, but it is still unknown whether it will reach China.

Image Source: L'Automobile Magazine

Copyright © 2013, Mercedes-Benz-Blog. All rights reserved.

Read More

Mercedes-Benz and Mercedes-AMG at the 66th Cannes Film Festival: The stars are shining brightly along the Croisette

Once again, Mercedes-Benz and Mercedes-AMG are supporting the Cannes Film Festival with a wide range of activities. Twelve high-performance models from Mercedes-AMG will be adding to the glamour along the Croisette between 15 and 26 May 2013. They are there to provide an exclusive shuttle service, for spur-of-the-moment test drives and as display vehicles. One particularly special star will, in addition, be putting in a sparkling appearance in front of the Hotel du Cap-Eden-Roc: the new Mercedes-Benz S-Class which, in a parallel event to the opening of the Film Festival, yesterday celebrated its world premiere Hamburg.

The new luxury saloon, which includes such features as a hot-stone ENERGIZING massage function and individual perfume atomisation, will be making its debut on the Côte d‘Azur at the legendary Cinema Against AIDS gala evening in aid of the amfAR foundation, to be held on 23 May at the Hotel du Cap-Eden-Roc. Mercedes-Benz is a Signature Sponsor of this star-studded gala, considered one of the most prestigious events held during the Film Festival. As well as the new S-Class, Mercedes-AMG will be presenting the world's most powerful electric super sports car in the grounds of the hotel - the SLS AMG Coupé Electric Drive. And ensuring that guests arrive in style at the red carpet will be a shuttle service provided by Mercedes-Benz and Mercedes-AMG.

Exclusive shuttle services and test drives with AMG vehicles

Each day of the Film Festival, the shuttle vehicles will carry celebrity guests and visitors to "Le Club by Albane" at the Hotel JW Marriott and to the Boulevard de la Croisette for film shoots for the daily show "Le Grand Journal" on French TV channel Canal+, and from there to the red carpet outside the "Palais du Festival". Attracting attention outside the Hotel InterContinental Carlton, directly on the Croisette, will be a display incorporating the Mercedes-Benz SLS AMG Coupé Black Series. A vast LED wall behind the vehicle will share special impressions of the world of AMG with visitors.

And last, but not least, Mercedes-AMG will be offering individual test drives for guests and visitors on each day of the Festival. Participants will be able to take the wheel of one of a range of current AMG models and experience for themselves the AMG brand claim of "Driving Performance" along the twisting coast roads of the Côte d‘Azur. From 15 to 26 May, daily between 11 a.m. and 4 p.m., anyone interested can sign up for a test drive outside the Hotel 3.14.

Credits: Daimler AG

Copyright © 2013, Mercedes-Benz-Blog. All rights reserved.

Read More

Mercedes-Benz launches campaign for its dream cars

“Mercedes-Benz dream cars” is a combined concept for the Stuttgart-based manufacturer’s sales and marketing activities around its coupé, cabrio and roadster model series. The campaign is currently being rolled out in its core markets. The dream cars include the new E-Class coupe and cabrio models, the SLK and SL sports cars, the CL as well as the CLS and the CLS Shooting Brake. Selected classics such as the SL Pagoda or the SE Coupé round off the portfolio of the Mercedes-Benz dream cars.

“We have always made automotive dreams come true. ‘Mercedes-Benz dream cars’ is intended to underline this as a new umbrella term,” says Dr. Joachim Schmidt, Executive Vice President Mercedes-Benz Cars Sales and Marketing. “Those models in particular are what make the Mercedes-Benz brand so exciting.”

Approximately 133,000 of these dream cars were sold worldwide in 2012. The aim is to increase model sales further during 2013. The E-Class cabrio and coupe are set to play an important role when they take to Europe's roads from 1 June 2013 onwards.

Adaptable communication activities around the globe

Advertising and marketing tools featuring a standard design, and which can be used in various different ways worldwide, are to be stepped up. Markets will have access to a “dream car toolbox” containing print visuals and moving image material. There are also dealer communication modules and event guidelines to assist dealers in implementing point-of-sale events. This gives all markets the flexibility to respond to their specific target audience. In Germany, the print ads will run from mid-May 2013. A concurrent radio campaign starring the E-Class cabrio and coupe will invite listeners to “dream car weeks”. Special formats like the 2014 Mercedes-Benz calendar will also be entirely dedicated to the dream car theme. Long-term, this extensive package of activities will not only ensure that the dream cars fully live up to driver expectations, but also contribute to the Mercedes-Benz 2020 growth strategy.

Rising demand for dream cars

In Germany, the E-Class coupe and cabrio have proved to be the most popular vehicles in their segments for the third time in succession. Demand in the UK and the United States – the biggest sales market – is even greater than in the home German market. Worldwide, some 75,000 customers have opted for an E-Class cabrio since the market launch of the current model series in 2010. Meanwhile, more than 132,000 units of the coupe version have been sold since it was unveiled in 2009. The majority of both cabrio and coupe customers select a paint finish in obsidian black. Diamond white metallic is the second most popular colour. When it comes to optional extras, customers value entertainment and comfort above all: around two-thirds of customers choose the COMAND multimedia system and more than four-fifths order AIRSCARF neck-level heating for their E-Class Cabrio.

In the roadster segment the Mercedes-Benz SLK was the global segment leader last year, with 31,800 new cars sold. Most SLKs in 2012 went to owners in Germany, followed by the UK and the United States. Besides the PARKTRONIC system ordered by 90 percent of customers, the most popular extra equipment include AIRSCARF neck-level heating and a navigation and entertainment system. Furthermore, over four-fifths of SLK buyers opted for leather equipment in black. The top paint colour choices for the SLK are tenorite grey, palladium silver and iridium silver.

Now in its sixth generation, the iconic Mercedes-Benz SL sports car continues to be as popular as ever. From the current model series 10,700 units were sold in 2012, three times as many as in the previous year. The SL’s history dates back 60 years to the 300 SL racing sports car of 1952. Today, one in every two SL models goes to an owner in the United States. Germany and Japan are other major sales markets. Proving that no other vehicle in its class unites sportiness and comfort like the SL, the vehicle has won a 2012 “Automotive Brand Award” for its outstanding design. The highest of accolades for vehicle body construction was also received in 2012 in the shape of the “EuroCarBody Award”.

The unique concept behind the CLS Shooting Brake last year saw Mercedes-Benz establishing an entirely new segment. In terms of design idiom and equipment, this model fulfils every customer requirement. An American cherry wood load compartment floor, for example, helps to create an exclusive yachting ambience. In February, the CLS Shooting Brake was awarded the 2013 Design Trophy in the Estate Class category for its exciting design. The jury also voted it the most beautiful car of all and therefore the overall champion. Just under 37,000 units of the CLS and CLS Shooting Brake were delivered to customers in 2012, making it number one in its competitive class. Since the CLS debuted in 2003, over 240,000 of the vehicle have been sold.

Credits: Daimler AG

Copyright © 2013, Mercedes-Benz-Blog. All rights reserved.

Read More

Daimler at re:publica 2013: What moves us tomorrow?

Where will the increasing connectivity of the automobile lead on to? Will there still be traffic accidents in the future? And will the car possibly even take the wheel? These and other exciting questions Dr. Dieter Zetsche, CEO of Daimler AG and Head of Mercedes-Benz Cars, is asked at the re:publica, one of the biggest conferences of the European digital society. Among others, topics such as communication between vehicles or autonomous driving are in the center of the discussion. In addition, new mobility services like car2go and moovel are looked at from various angles.

The two founders of the re:publica, Andreas Gebhard and Johnny Haeusler, confirm: “Mobility is changing, that is beyond question. But how and what that means for all of us leaves definitely room for speculation. The more we look forward to the insights and perspectives of our partner Daimler what will be possible in the future. And maybe the future is closer than we assume.”

Under the motto IN/SIDE/OUT the Internet-oriented audience of the re:publica immerses from 6-8 May in Berlin into a world of curious questions and creative answers about the issues of politics and science, business and society. More than 350 national and international speakers offer the expected 5,000 visitors a varied program on seven stages and four workshop areas.

For the second time Business Innovation - the Daimler Lab for innovative business models – supports the re:publica as partner. As last year, the dialogue with the participants has priority at the Daimler booth. Under the motto “What moves us tomorrow?” the talks and discussions are recorded live with the help of Visual Recording techniques. Another element of the booth is an installation of www.moovel.com . The platform combines the services of different mobility providers for the optimal way from A to B - the user-friendly app links individual and public transport. Moovel started in July 2012 in Stuttgart and in October 2012 in Berlin. Since end of April 2013 moovel can be used in the area of Rhine and Ruhr as well.

In addition, Alexander Mankowsky from Research Society and Technology of Daimler AG deals in one of the workshops on May 7 with the question: “Does the digital conquer the analog worlds? From coexistence to disruption”. Together with Prof. Erich Schöls of the Steinbeis Research Center Design and Systems the futurologist discusses about the opportunities that may arise from disruptive innovations.

Credits: Daimler AG

Copyright © 2013, Mercedes-Benz-Blog. All rights reserved.

Read More

AUTO BILD Design Award 2013: The CLA is Germany's most beautiful car

A style rebel has been voted Germany's most beautiful car by readers of the motoring magazine AUTO BILD. The CLA came through in assured style as the overall winner among all automotive new arrivals.

In addition, the new Mercedes-Benz E-Class was voted the winner of the beauty stakes in its own particular category. In honouring Mercedes-Benz with the AUTO BILD Design Award 2013, the jury of readers acknowledged the brand's innovative styling, which confidently sets bold and intelligent new design trends in all categories.

"Beauty triumphant" – was this year once again the motto of the AUTO BILD Design Award. More than 90,000 readers heeded the call from the motoring magazine to vote for the winners among the year's automotive new arrivals in five categories. The new Mercedes-Benz E-Class took first place in the executive and luxury category, while among the coupés and cabriolets it was the Mercedes-Benz CLA which won. This new four-door coupé was also easily the highest-scoring winner across all categories, so earning it the accolade as Germany's most beautiful car. The result means that this is the fifth time in a row that the overall winner of this prestigious beauty contest has come from Mercedes-Benz.

The four-door Mercedes-Benz CLA secured the AUTO BILD Design Award 2013 for itself based on the avant-garde coupé styling that defines it as a style rebel and makes it stand out from the automotive crowd. Sporty proportions, allied to a powerful and dynamic design idiom characterised by a dramatic interplay between concave and convex surfaces, make the CLA unmistakable. Furthermore, the Mercedes-Benz designers have achieved the art of giving the CLA a stunning and sophisticated body that delivers immediate impact, and of combining this with the best aerodynamic performance in the world for a series-production model – beauty that is so much more than skin-deep.

The interior of the CLA matches the progressive and sporty appearance of its exterior.

With its significantly sharpened styling, redesigned front end and overall air of sporty elegance, the Mercedes-Benz E-Class also brings a breath of fresh air onto the scene, so earning it the AUTO BILD Design Award 2013 in the executive and luxury category.

Credits: Daimler AG

Copyright © 2013, Mercedes-Benz-Blog. All rights reserved.

Read More

Mercedes-Benz UK thrives in April 2013 as car registrations rise 14.2 percent

- Mercedes-Benz UK Passenger Car registrations rose by 14.2 per cent in April – following on from a record first quarter of 2013
- AMG has now registered over 1,000 cars in 2013 – the first time such a figure has been achieved so early in the year – contributing to a 71.3 per cent year-on-year rise
- C-Class Coupé, SLK-Class, CLS-Class and S-Class lead their respective market segments
- New CLA-Class makes its UK debut
- Citan, Sprinter and Fuso Canter continue strong Commercial Vehicle performance

Mercedes-Benz UK has recorded a 14.2 per cent rise in sales for the month of April, according to figures released today by the Society of Motor Manufacturers and Traders (SMMT).

Driving the success were the C-Class Coupé, SLK-Class, CLS-Class and S-Class – each of which led their respective market segments in April.

Likewise, the E-Class also posted a substantial rise in registrations, the Saloon achieving a 31 per cent gain in registrations compared to the same month last year.

The new A-Class also achieved its highest market share figures yet since deliveries began in January, securing 7.3 per cent of its segment in April with a total of 1,344 registrations.

Inspired by the arrival of Spring, registrations of roadsters were up in April. Registrations of the SLK-Class rose by 38.5 per cent while the SL-Class secured a substantial 27.5 per cent of its segment.

Making its debut in the SMMT figures in April was the innovative new CLA-Class – the very first examples being registered ahead of the arrival of the car in Mercedes-Benz Retailers in the coming months.

The performance arm of Mercedes-Benz, AMG, achieved over 1,000 registrations for the year to date in record time. The success continued AMG’s sustained rise in registrations, posting a 33.5 per cent gain for April, contributing to an overall rise of 71.3 per cent for the year. While the C 63 AMG Coupé and C 63 AMG Saloon continue to lead the registrations figures for AMG, it was the new E 63 AMG that recorded the biggest gain, posting a 460 per cent rise.

Mercedes-Benz Commercial Vehicles also posted a strong month, with the Citan van achieving its highest market share figures yet with an 8.2 per cent share for April. The Sprinter was among the best-performing vans with a 48.4 per cent gain in registrations compared to April 2012 but the Fuso Canter took the top spot for the biggest gain with a rise of 100 per cent.

The Axor truck also performed well, a 21.3 per cent rise in sales being posted in April.

Marcus Breitschwerdt, President and CEO Mercedes-Benz UK, commented: ‘We’ve had a great 2013 so far – our best ever results for the first quarter and these figures for April prove that both our UK Passenger Car and Commercial Vehicle operations continue to thrive through innovation, relevant products and great customer support by our Retailer network.

‘This growth is led by AMG, which continues to be the fastest-growing performance brand in the UK.

‘This month saw the very first examples of the new CLA-Class being registered – this is just one of a number of exciting and inspiring new products in new market segments set to arrive this year as we continue to grow and offer our customers greater choice, quality and value than ever before.’ 

Credits: Mercedes-Benz UK

Copyright © 2013, Mercedes-Benz-Blog. All rights reserved.

Read More

Mercedes-Benz raises April 2013 sales by 11.7% to a new record high

Mercedes-Benz delivered 116,566 vehicles to customers in April (+11.7%), more than in any previous April. Unit sales since the beginning of the year totaled 441,464 vehicles (+5.6%). The brand with the star was able to grow strongly, especially in the NAFTA region, Russia and the Asian markets. In April, Mercedes-Benz also posted double-digit sales in Europe, gained market shares, and secured its market leadership in several markets at the same time. On the domestic market Mercedes-Benz maintained its position as the premium manufacturer with the highest new vehicle registrations, holding a market share of 9.6% in April and 9.4% per April. The new Mercedes-Benz compacts and SUVs posted significant new growth and the launches of the new E-Class models and the CLA were very successful.

„April was a very successful month for the Mercedes-Benz brand. We again posted new records in many growth markets and are thus continuing the positive sales trend“, said Dr. Joachim Schmidt, Executive Vice President Mercedes-Benz Cars Sales and Marketing. „We are particularly pleased that we are growing in the difficult market environment in Europe and have gained market shares in many markets. Our new products are enjoying an excellent response from our customers, and we are already feeling the first sales impetus from the new E-Class and the CLA.“

Mercedes-Benz sold 56,988 vehicles in Europe in April, thus achieving growth of 11.8%. The brand posted significant gains particularly in Russia (+18.1%) and Turkey (+78.5%), as well as in the UK (+14.5%), France (+19.8%) and Belgium (+11.1%). Also in Germany the brand with the star posted growth (+6.3%) and secured its market leadership among the premium manufacturers with a market share of 9.6% in April.

In the USA, Mercedes-Benz again posted a new sales record with 23,635 vehicles sold (+5.8%) and was once more the premium manufacturer with the highest new vehicle registrations. April sales also moved very strongly in Latin America with more than twice as many vehicles sold than in the same month of the prior year.

The growth in the Asia/Pacific region was driven mainly by Japan (+47.3%) and South Korea (+42.4%). The start into the second quarter was also positive in China (incl. Hong Kong), where Mercedes-Benz posted 10.7% growth with sales of 16,241 units, thus continuing the positive trend of the preceding month.

Among the model series of the Mercedes-Benz brand, the new compacts continued to sell especially well with deliveries of 107,488 units of the A-Class, B-Class and the CLA (+52.0%) since the beginning of the year. The A-Class celebrated its market premiere at the Shanghai Auto Show in China two weeks ago and is now also available on the Chinese market. The popularity of the A-Class on its domestic market was proven in April by a poll of the Europe-wide online car market AutoScout24. About 223,000 users in eight European countries voted and elected the Mercedes-Benz A-Class the “Best Car” from 55 new releases in 2012. The third model of the new compacts, the CLA, had its launch in mid April amidst enthusiastic customer reviews. With the coupe’s positioning as a sports car, Mercedes-Benz is targeting a young, lifestyle-oriented target group to attract new customers for the brand with the star.

The new E-Class also celebrated its premiere at European dealers few weeks ago and is meeting with an excellent response from customers. Overall, 17,379 E-Class sedans and estates were sold in April (+4.3%). The CLS also posted significant gains (+6.5%) and was the market leader in its comparative class in April.

The demand for the SUVs with the star is consistently high. Since January, 103,492 units were delivered to customers, 28.5% more compared to the prior-year period. The SUVs set yet another sales record in April (26,265 units, +22.5%).

The compact two-seater smart delivered 34,372 units to customers since the beginning of the year (prior year: 36,532 units). In its seventh year of sales, it is thus nearly constant at the prior-year level. In April, the Chinese government gave the go-ahead for the smart electric drive, which made smart the first European importer to offer a fully electric vehicle in the Middle Kingdom. In Germany, the smart electric drive advanced in a record short time to become the market leader among the pure battery-electric vehicles (BEVs).

Overview of global sales in March 2013

Credits: Daimler AG

Copyright © 2013, Mercedes-Benz-Blog. All rights reserved.

Read More

Mercedes-Benz USA Sails into Second Quarter with Record April Sales of 23,635 Vehicles

Mercedes-Benz USA (MBUSA) today reported the highest second quarter start in its history with record April sales of 26,157, a 4.4% increase over April 2012. Mercedes-Benz models alone saw a 5.8% gain in sales volume at 23,635 bringing year-to-date totals for the brand to 92,822. Combined with monthly sales from smart (667) and Sprinter Vans (1,855) MBUSA saw a year-to-date total of 101,371, a 10.2% increase over the previous year, making this April the earliest month ever to break 100,000 units.

"We've entered the second quarter of 2013 at an incredible pace," said Steve Cannon, president and CEO of MBUSA. "A record first quarter gave us a great start. With our completely redesigned E-Class now in showrooms, I fully expect to see continued momentum in the months ahead."

Mercedes-Benz April sales were driven by the C-, E-, and M-Class model lines. The sporty C-Class - the current gateway to the brand on the car side for younger and first-time Mercedes-Benz buyers - took the lead, posting sales of 7,338, up 14.2%. The E-Class, which receives a complete redesign for 2014 now available in dealerships, followed with sales of 4,431. MBUSA's top-selling SUV, the M-Class, rounded out the top three with sales of 3,280. At the high-end, strong performers were the company's flagship S-Class, which saw 16.4% growth, and the SL-Class, which increased 275.2% over April 2012.

The Sprinter model line saw sales of 1,855 for the month, while smart recorded sales of 667 vehicles.

Sales of the high-performance AMG models were 574 for the month, up 8.5% from the same period last year. Sales of the company's BlueTEC diesel models finished the month of April at 1,171.

Separately, through the Mercedes-Benz Certified Pre-Owned (MBCPO) program, MBUSA sold 8,748 vehicles in April, an increase of 37.4% when compared to April 2012 (sales of 6,368 vehicles). On a year-to-date basis, MBCPO sold 33,118 vehicles, an increase of 26.0% over the comparable period (with sales of 26,292 vehicles).


Mercedes-Benz USA April 2013 Sales Chart

Credits: Mercedes-Benz USA

Copyright © 2013, Mercedes-Benz-Blog. All rights reserved.

Read More

REPORT: Mercedes-Benz rumored to have secured a tie-up with Aston Martin

What could be link between Mercedes-Benz, Aston Martin and Ducati? At first sight, it seems like none, but going deep into the problem solves the mystery. It looks that Aston Martin, now administrated by former Ducati owner Investindustrial, is eyeing a strong technical partnership with Mercedes-Benz AMG division.

The cooperation, yet to be made official, will see Mercedes-AMG provide full powetrains (including engine, gearbox and technical platform) for future Aston Martin models. The British premium firm producing high-end sports cars is now owned by two investment funds: Investindustrial form Italy with a 37.5% stake (as part of a Memorandum of Understanding with the major shareholder for 185 million dollars) and the Kuweit-based Investment Dar with the remaining majority of shares (72.5%).

Aston Martin targets to benefit from the launch of a new AMG V12 engine expected to be released towards 2015, that will replace company's old 12-cylinder Ford unit which powers current models like the Vanquish and DB9. The total value of the new partnership is still unknown, but Investindustrial plans to invest over 600 million dollars at Aston Martin over the next five years in regard to production facilities, dealership network and new models.

It is also worth mentioning Investindustrial won 1.1 billion euros after it sold Ducati Italian motorbike manufacturer (whom the company from Affalterbach had a marketing alliance with during 2011 and 2012) to Audi last year. What is more: Aston Martin could eventually build the Lagonda SUV in around 2-3 years from now, which means the partnership with Mercedes-Benz could also see the Germans supply the Brits with the 4x4 platform of the GL-Class.

In the past, we reported several times on the possibility of a partnership between Daimler and Aston Martin for the development of the future generation of Maybach limousines. In 2012, talks came abruptly to an end and Maybach got discontinued, with the new S-Class portfolio of models destined to replace the high luxury brand.

Now, if reports are confirmed and insiders are not at fault, then this anticipated tie-up with Aston Martin could see Mercedes-Benz in a fairly winning position, as the amount of money involved for constructing powertrains for the partner, as well as ancillary components, is certainly completely worth the challenge and like a huge dose of fresh air for the German brand in these crisis times.

Note: Aston Martin Vanquish pictured.

Copyright © 2013, Mercedes-Benz-Blog. All rights reserved.

Read More

Mercedes-Benz sets new benchmarks in customer approach: New "Mercedes-Benz Connection" City Store opened in Osaka

With the opening of "Mercedes-Benz Connection" city store in Osaka (Japan) last Friday, Mercedes-Benz is consistently continuing its strategy for individual customer approach. Along with Tokyo, this is the second completely redesigned city store in Japan. Worldwide, there are already about ten of these urban centers for the brand. In addition to a café and a restaurant lounge, Mercedes-Benz Connection offers the visitors around 600 square meters of interactive brand and product experience.

"With the Mercedes-Benz Connection city store network in Japan, we deliberately go into the inner cities to enter into dialogue with new audiences in a casual atmosphere," says Dr. Joachim Schmidt, Vice President Mercedes-Benz Cars, Sales and Marketing. "We have created a place where visitors can meet and experience an emotional way to our brand and our products."

Since the opening of the first Mercedes-Benz Connection city store in Tokyo in July 2011, already more than a million visitors were recorded all alone in Japan. With its modern architecture, welcoming hospitality and event concept, this city stores speak to young and new audiences. About 80 percent of visitors of the Mercedes-Benz Connection in Japan are considering to purchase a product of the brand for the first time.

In both Japanese city stores, those interested can test drive the latest Mercedes-Benz models upon request. Regular events such as the Mercedes-Benz Fashion Week Tokyo make the city store a highly regarded and fashionable meeting place. In Tokyo, the visitors can also, through the open space structure in the restaurant, insights into kitchen from a Michelin-starred chef.

Closer to the customer - City Stores and Brand Centres

With the city stores situated in exclusive downtown location, Mercedes-Benz puts the focus on the brand communication. In 1997 Mercedes-Benz opened the first urban brand customers shops in Italy. In addition to the Mercedes-Benz Connection stores in Tokyo and Osaka, there are other stores around the world in Paris, Bologna, Turin, Verona, Rome, Brussels, Salzburg, Berlin and Munich. In 2012, the "Visionary Store" in Milan was launched, offering a unique infotainment experience around the car. In the same year, Mercedes-Benz started the A-Class Roadshow, a three-month presentation event through 90 European cities.

For a special customer experience, the large-scale Mercedes-Benz brand centers in major cities such as Munich, Stuttgart, Cologne, Berlin, Paris, London, Milan, New York, Singapore and Beijing come to complement the city stores since 2000. Since the beginning of the year, the Mercedes-Benz Brand Centre in Delhi attracts clients in its showroom. It is the largest dealership of a premium manufacturer in India. In the brand centres, Mercedes-Benz presents its entire product portfolio and the history of the brand in a space of several thousand square meters. Like in the city stores, the brand centres also guest automobile exhibitions, art galas, lectures and after-work events.

Credits: Daimler AG

Copyright © 2013, Mercedes-Benz-Blog. All rights reserved.

Read More

Saved by Mercedes-Benz: mbrace2 helps track down Boston attack suspects

It was recently discovered that it was Mercedes-Benz's state-of-the-art mbrace2 navigation system that led policeman on the trail of the two suspects who organized the terrorist attack during the Boston marathon of April 15th.

Steven Cannon, CEO of Mercedes-Benz USA, has tweeted a cheerful message on his official Twitter account last week, stating: "Just found out that our mbrace2 technology in the stolen Mercedes helped locate the Boston terrorists! Thanks to our amazing law enforcement."

The two bombers, brothers Tamerlan and Dzhokhar Tsarnaev, happen to have stolen the wrong vehicle to get away from the crime scene: a 2013MY Mercedes-Benz ML 350 BlueTEC whose rightful owner chose to equip his SUV with the intelligent navigation technology called mbrace2, which was also turned on at the moment of the hijack.

Among other interesting facts, mbrace2 also helps track down your personal vehicle in the event it is stolen or you cannot remember where you have parked it by sending the exact coordinates of the car via the special GPS application developed by Mercedes-Benz or via your personal installed iPhone app.

With the help of Mercedes-Benz officials whom where contacted for support in the operation and thanks to the proven accuracy of the mbrace2 telematics system, the police has eventually successfully managed to trace the two criminals and arrest them.

Here you can find out the main highlights of the unqiue mbrace2 technology found in Mercedes-Benz cars:



Video Credits: MBUSA Youtube Channel

Copyright © 2013, Mercedes-Benz-Blog. All rights reserved.

Read More

LIVE PREMIERE: The new Sprinter comes in Stuttgart at 11:00 AM (CEST)

Here you can watch the live webcast of the world premiere ceremony of the new Mercedes-Benz Sprinter 2013 in Stuttgart.

The event is scheduled to commence at 9:00 A.M. (GMT) | 11:00 A.M. (CEST).



Copyright © 2013, Mercedes-Benz-Blog. All rights reserved.

Read More

REPORT: The CLA Shooting Brake gets the green light for production

The CLS Shooting Brake (X 218) will spawn a new model by 2014. Its little brother, the compact four-door coupe CLA, will also receive a five-door coupe treatment next year, when the anticipated X 117 model series will enter the serial production, according to Mercedes-Benz officials.

Prof. Gorden Wagener, head of the design department, has recently signaled the forthcoming CLA Shooting Brake has received the approval of the management board and will enter development phase very soon. First test prototypes should be out by June or July, as the official premiere of the vehicle is set to take place in late spring 2014. This will be the fifth addition to the new premium compact car generation, alongside the A-Class, CLA-Class four-door coupe, the new GLA SUV/crossover and the B-Class.

Both the Coupe and the Shooting Brake will share identical styling up to the A-pillar. Onwards, the X 117 model will showcase the beautiful dropping roofline seen on the CLS Shooting Brake which integrates the trunk hood to create the dynamic wagon shape. The new addition to the compact lineup already proves the success of the X 218 and could build up some impressive sales volumes after the launch. Anyway, the purchase price for the standard equipment, entry-level model should not exceed 35,000 euros in Europe.

Copyright © 2013, Mercedes-Benz-Blog. All rights reserved.

Read More

Daimler achieves EBIT of €917 million in first quarter of 2013

Daimler AG (stock-exchange symbol DAI) achieved earnings below the prior-year level in the first three months of 2013. The Daimler Group posted first-quarter EBIT of €917 million (Q1 2012: €2,098 million). Net profit amounted to €564 million (Q1 2012: €1,425 million). Earnings per share amounted to €0.50 (Q1 2012: €1.26).

“In the first three months of this year, many markets developed worse than expected for economic reasons, especially in Western Europe. Nonetheless, we maintained our unit sales and revenue almost at the levels of the prior-year quarter and gained market share in many segments,” explained Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars, with regard to business developments in the first quarter.

“The response to our new products such as the CLA and the E-Class is excellent, and at Daimler Trucks, our successful product offensive is largely completed with the new Arocs and the new Atego. On the basis of the new products, the ongoing efficiency programs and our assumptions for future market developments, we expect earnings in the second half of this year to be higher than in the first half, due in particular to the launch of the new S-Class,” continued Dr. Zetsche.

“Daimler is now in the middle of the most comprehensive growth offensive in its history. To these ends, we are investing large amounts in products, technologies and markets, which, in combination with the generally weak markets, led to a moderate start to the year 2013 in terms of earnings. But due to the stimulus from new products and the effects of the ongoing efficiency programs, we naturally intend to improve significantly in the coming quarters,” explained Bodo Uebber, Member of the Board of Management of Daimler AG for Finance & Controlling and Financial Services.

The decline in earnings in the first three months of this year is a reflection of both a shift in the regional structure of unit sales and a changed model mix at Mercedes-Benz Cars and Mercedes-Benz Vans, as well as a decrease in unit sales by Daimler Trucks. At Daimler Buses, increased unit sales led to an improved operating profit, while the earnings posted by Daimler Financial Services remained almost constant.

The compounding of non-current provisions and effects from the reduction in discount rates led to charges of €47 million in the first quarter of this year (Q1 2012: €170 million). There was an opposing impact from slightly positive exchange-rate effects.

Group revenue at the prior-year level

In the first quarter of 2013, Daimler sold 501,600 cars and commercial vehicles worldwide, and was thus close to the prior-year level (Q1 2012: 502,100).

Daimler’s first-quarter revenue of €26.1 billion was 3% lower than in the first quarter of last year. Adjusted for changes in currency exchange rates, there was a decrease of 1.5%.

The free cash flow of the industrial business amounted to minus €1.2 billion, primarily due to ongoing high expenditure of €1.6 billion for investment in property, plant and equipment and intangible assets. The net liquidity of the industrial business amounted to €10.0 billion at March 31, 2013.

At the end of the first quarter of 2013, Daimler employed 274,555 people worldwide (end of Q1 2012: 274,127). Of that total, 166,265 were employed in Germany (Q1 2012: 168,017), 21,702 in the United States (Q1 2012: 21,520), 14,622 in Brazil (Q1 2012: 14,737) and 11,242 in Japan (Q1 2012: 11,344). The consolidated subsidiaries in China employed 1,743 persons at the end of the first quarter (Q1 2012: 2,269). The headcount changes in China result from the transition of the sales organizations for cars into a non-consolidated joint venture. In addition, employees in sales functions in South Africa, who were previously allocated to the Mercedes-Benz Cars division, are now allocated to the sales organization.

The divisions in detail

Mercedes-Benz Cars posted yet another high level of unit sales in the first quarter of 2013. Total sales by the car division increased to 341,500 units (Q1 2012: 338,300). First-quarter revenue fell by 6% to €14.1 billion. The division’s EBIT of €460 million was significantly lower than in the first quarter of last year (Q1 2012: €1,230 million). Return on sales was 3.3% (Q1 2012: 8.2%).

Earnings reflect a shift in the regional sale structure and a changed model mix. Furthermore, EBIT was reduced by expenses for the enhancement of our products’ attractiveness and capacity expansion, as well as advance expenditure for new technologies and vehicles. Exchange-rate effects were slightly positive.

Unit sales by Daimler Trucks decreased by 6% in the first quarter to 101,400 vehicles and revenue amounted to €7.0 billion (minus 5%). The division’s EBIT of €116 million was lower than in the prior-year period (Q1 2012: €376 million). Return on sales was 1.7% (Q1 2012: 5.1%).

Earnings were affected by the overall negative development of unit sales and revenue, resulting from weak demand in some core markets. Earnings were reduced also by expenses for the development of business in India and China, product adjustments especially in the NAFTA region and Europe, and higher warranty costs.

Unit sales by Mercedes-Benz Vans increased slightly in the first quarter of 2013 to 52,600 vehicles (Q1 2012: 51,200), despite the difficult market environment in Western Europe. Revenue decreased slightly to €2.0 billion (Q1 2012: € 2.1 billion). The division achieved EBIT of €81 million (Q1 2012: €167 million) and its return on sales fell accordingly to 4.1%, from 8.0% in the first quarter of last year.

In a market environment featuring restrained demand and intense competition in the European markets, Mercedes-Benz Vans’ unit sales in the first quarter of 2013 were slightly higher than in the prior-year period. Earnings decreased significantly, however, mainly due to changes in the product mix and the regional sales structure. Advance expenditure for new products, including the launch of the Sprinter Classic in Russia, additionally reduced earnings.

In the first quarter of 2013, Daimler Buses increased its worldwide unit sales by 23% to 6,000 buses and chassis as a result of rising demand for bus chassis in Latin America. The business with complete buses in Western Europe was below the prior-year level. Revenue rose by 3% to €751 million; however, the changed model mix following the repositioning of the North American business system had a dampening effect on revenue growth. The division’s EBIT amounted to minus €31 million (Q1 2012: minus €105 million) and its return on sales was minus 4.1% (Q1 2012: minus 14.4%).

Compared with the previous year, EBIT rose as a result of increased unit sales. Daimler Buses achieved significantly higher shipments of bus chassis, especially in Latin America. Business in Europe developed disparately, however: While demand for city buses recovered somewhat, Daimler Buses recorded lower unit sales of coaches. Exchange-rate effects and the initiated efficiency measures had a positive impact on earnings. Expenditure for the repositioning of the European business system decreased substantially to €4 million (Q1 2012: €36 million).

The business of Daimler Financial Services continued to develop positively in the first quarter. Worldwide, some 253,000 new leasing and financing contracts with a total value of €8.6 billion were concluded, representing growth of 4% compared with the first quarter of 2012. Total contract volume of €81.7 billion at the end of the first quarter was 2% higher than at the end of 2012. Adjusted for the effects of currency translation, contract volume increased by 1%. The division’s EBIT of €314 million was lower than in the first quarter of last year (Q1 2012: €344 million).

This earnings development was primarily due to lower interest margins and normalizing credit risk costs. As an opposing effect, the increased contract volume impacted positively on earnings.

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

Daimler’s share of the net profit of EADS in the first quarter of 2013 amounted to €34 million (Q1 2012: €133 million). The decrease in investment income was also due to the reduction of our equity interest in EADS following the sale of a block of shares in December 2012. The reconciliation also includes expenses at the corporate level of €91 million (Q1 2012: €35 million). The elimination of intercompany transactions in the first quarter of 2013 resulted in income of €34 million (Q1 2012: expense of €12 million).

Outlook

According to current estimates, worldwide demand for cars should grow in the range of 2% to 4% this year, driven primarily by the ongoing strong growth in demand in the United States and the further expanding Chinese market. However, as a result of the continuing economic weakness, a decline is again expected in the Western European market. Demand will thus continue to move around a 20-year low. The German market cannot detach itself from this development and is expected to fall significantly short of the previous year’s level. A decline is expected also for the Japanese market compared with the previous year’s level, which was unusually high as a result of government incentives for car buyers.

According to the current status, global demand for medium-duty and heavy-duty trucks is expected to grow perceptibly in 2013. However, this depends very decisively on the development of the world's biggest market, China, which should experience a perceptible recovery in demand, although the start of the year proved to be below expectations. Demand in North America should stabilize in the coming months, but from today’s perspective, Daimler anticipates market contraction of up to 5%. In view of the continued weak economic environment, the Group expects a drop of approximately 5% for the European truck market. Market volume in Japan could be up to 5% below the prior-year level, whereby the possible effects of the Japanese government’s new economic stimulus package are still difficult to assess. A moderate recovery and market growth of as much as 10% are expected in Brazil, thanks to the improved economic outlook and favorable financing conditions. The Russian market has already returned to near-pre-crisis levels and is expected to grow again moderately in the year 2013. On the other hand, a drop in demand for trucks is expected in India due to the continued below-average economic momentum.

On the basis of the divisions’ planning, Daimler anticipates another increase in its total unit sales in the year 2013.

Mercedes-Benz Carsis consistently moving ahead with its “Mercedes-Benz 2020” offensive. Numerous model changes and new products should ensure that the division achieves yet another record for unit sales in the year 2013. The new models in the high-volume compact car segment are likely to make a major contribution to sales growth. After the successful start of the A-Class and B-Class, the four-door CLA coupe came on the market as the third model based on the new compact car architecture in mid-April 2013. The extensively revised new E-Class sedan and station wagon have also been available at Mercedes-Benz sales and service centers and dealerships since April. As of June 2013, the new E-Class coupes and convertibles will also provide added sales momentum. The electrically driven, locally emission-free super sports car SLS AMG Coupe Electric Drive will come on the market in June 2013. Mercedes-Benz Cars expects significant growth in the luxury segment for the second half of 2013, due mainly to the launch of the all-new S-Class. As the most important new model of the year 2013, the new S-Class equipped with trailblazing innovations will set new standards of comfortable and safe driving under the umbrella term “Mercedes-Benz Intelligent Drive.” In addition, the Mercedes-Benz brand will continue to profit from the market success of the models in the SUV segment in 2013.

The smart brand sees a good chance that the unique two-seater can continue to defy its advancing lifecycle in the highly competitive micro-car segment in 2013 and can achieve unit sales in the previous year’s range once again.

Daimler Trucks expects a slight increase in unit sales in the full year. In the first half of the year, however, the continued weak state of the economy will probably lead to a rather modest or even negative development of unit sales in a number of core markets. The extensive product offensive, which is now largely complete in all relevant regions, should provide a counterbalance to the difficult economic conditions. As a result of this offensive, the division is in a very good starting position: In Europe, unit sales will gain added impetus from a full product range already in line with the stricter Euro VI standards significantly ahead of the date of introduction, with the Actros, the Antos, the new Arocs for the construction sector, and the new Atego. In the NAFTA region, Daimler Trucks will maintain its competitive position with its excellent vehicle offering in combination with strong Detroit components. A convincing sales argument in favor of the Freightliner Cascadia Evolution for example is the optimization of vehicle aerodynamics and powertrain, which yields additional fuel savings of 5% compared to its predecessor, the previous market benchmark.

The Fuso and BharatBenz brands will continue to make an important contribution to sales growth in 2013. In the future, trucks of the Fuso brand will also be produced in Chennai and exported to the Asian markets outside India and to Africa. The Fuso Canter and its hybrid versions, which have also been produced in Europe since 2012, should provide additional demand stimulus. Furthermore, additional models of the BharatBenz truck will be launched in India and the sales and service network will be further expanded. In Russia and China, the division is progressively expanding its collaboration with local partners Kamaz and Foton, and is thus creating the conditions for the further development of those growth markets.

Mercedes-Benz Vans expects to achieve growth in unit sales in full-year 2013. On the product side, this should be assisted by the new Mercedes-Benz Citan and as of mid-2013 by the new generation of the Sprinter. Moreover, the start of local production of the Sprinter Classic in Russia in the second quarter of 2013 should enable the division to continue increasing its unit sales in that growth market.

Daimler Buses anticipates a significant increase in unit sales for the year 2013, with bus chassis likely to account for a higher percentage of total unit sales. The division expects to see a distinct revival of demand in 2013 especially in Latin America. Daimler Buses assumes that its business with complete buses in Europe will follow a stable development at an ongoing low level.

Daimler Financial Services expects further growth in new business and contract volume for full-year 2013.

After the significant increase in the year 2012, Daimler assumes that Group revenue will continue to grow in 2013. In regional terms, above-average growth rates are anticipated in the emerging markets and North America.

On the basis of the planned new models, the increasing effects of the efficiency programs that have been initiated and the assumptions made for the development of important markets, Daimler expects its earnings to improve in the second half of 2013 compared with the first half. Due to the fact that there will be no further equity-method results from EADS in the course of the year, as well as lowered market expectations and the weaker than expected EBIT in the first quarter, Group EBIT from the ongoing business in full-year 2013 is expected to be below the previous year’s level.

Mercedes-Benz Cars anticipates full-year EBIT below the level of 2012. Daimler Trucks and Mercedes-Benz Vans expect to post EBIT from the ongoing business in the magnitude of the prior year, while Daimler Buses should improve on its negative earnings of 2012. In 2014 and the following years, Daimler expects an EBIT improvement for all its automotive divisions and for the Group as a whole. Daimler Financial Services anticipates a stable development of earnings.

From today's perspective, Daimler assumes that the size of its worldwide workforce will remain largely stable compared with the end of 2012.

The items shown in the following table affected EBIT in the first quarters of 2013 and 2012:

Credits: Daimler AG

Copyright © 2013, Mercedes-Benz-Blog. All rights reserved.

Read More