0 Living Electric: Daimler is the market leader in electric cars

In 2013 Daimler AG is once again asserting its market leadership in electric cars in Germany. In the first half of 2013 the electrically powered models from Mercedes-Benz and smart achieved a market share of 42 percent. The absolute leader is the electric smart, which heads the registration list for electric cars with 983 units and a market share of 40 percent. Compared to the previous year, the company has therefore increased its unit sales of electrically powered models in Germany by around 80 percent.

Prof. Dr. Thomas Weber, Member of the Board of Management of Daimler AG, responsible for Group Research and Mercedes-Benz Cars Development: "For us, the future of mobility has long centred on electrification. With a total of nine locally emission-free vehicles with battery or fuel cell power, Daimler AG already has the widest range of electric vehicles on the road. We are very pleased that our German competitors are bringing even more impetus to electric mobility with their own first electric vehicles."

smart – trailblazer in electric mobility

Now an electrically powered automotive icon, the smart fortwo electric drive has been making its mark on roads around the world with its locally emission-free drive system since as far back as 2007. With a lively 35-55 kW, a top speed of 125 km/h and a range of 145 km, it is the perfect companion for practically any mobility scenario in the city. According to the recent findings of one motoring magazine, it is also the best performer among electric vehicles in terms of operating costs. Customer feedback speaks for itself: 93 percent of all E-smart drivers unreservedly recommend the vehicle. Since 2012 the electrically powered two-seater has been out and about on Germany's roads with absolutely zero emissions: coinciding with the start of series production of the third model generation, Daimler AG took a wind turbine into operation. Its nominal output of 2.3 megawatts per year is sufficient to generate sustainable electric power for all the smart fortwo electric drive cars sold in Germany.

The variant of the electric drive modified by the vehicle tuner BRABUS brings even more dynamism into the electric smart world. Thanks to a higher output of 60 kW, maximum torque of 135 Nm and a maximum speed of 130 km/h, the two-seater zips along even more enthusiastically. Acceleration from zero to 60 km/h takes just 4.4 seconds, and the speedometer shows 100 km/h after 10.2 seconds.

Electric mobility on two wheels completes the electric portfolio of the smart brand. A 250-watt hub motor by Bionx at the rear wheel assists the rider of the smart ebike up to a speed of 25 km/h. The energy for a range of up to 100 kilometres is stored by a 423 Wh lithium-ion battery. As a recipient of the coveted "Red Dot Design Award", the smart ebike is available for as little as € 2,849. While the rider of the ebike has to operate the pedals, the next two-wheeled product from smart requires no muscle power at all: the smart scooter.

Locally emission-free with the Mercedes star

This year the latest addition to the Mercedes E-model range has celebrated its world premiere in the USA. Due to be launched from 2014, the B-Class Electric Drive impresses with locally emission-free driving pleasure and no compromises, plus the usual high Mercedes standard of safety and comfort for up to five occupants. The B-Class Electric Drive generates a peak output of over 100 kW and, with acceleration from zero to 100 km/h in under ten seconds, demonstrates that electrically powered vehicles are by no means "slouches", but on the contrary capable of dynamic performance. Its top speed is 160 km/h, the operating range around 200 kilometres.

The sheer fascination of E-mobility is embodied by the Mercedes-Benz SLS AMG Coupé Electric Drive. Presented at the 2012 Paris Motor Show as a limited series production version, the world's most powerful electric super-sports car can now be ordered by customers and continues to impress, not least with its outstanding performance figures: an output of 552 kW, maximum torque of 1,000 Nm which is available right from the start as in all electric models, and acceleration from zero to 100 km/h in 3.9 seconds. It has a range of around 250 kilometres. This super sports car achieved a lap time of 7:56.234 minutes on the North Loop of the Nürburgring, setting a record in its class. The SLS AMG Coupé Electric Drive is available for € 416,500.

As a pioneer in the field of fuel cell technology, Daimler AG produced the first of around 200 examples of the B-Class F-CELL (100 kW/136 hp, range 380 kilometres, top speed 170 km/h) in Rastatt back in 2009. During the Mercedes-Benz F-CELL World Drive 2011, the technology impressively demonstrated its high level of maturity over more than 30,000 kilometres around the globe. Since the presentation of the first prototype in 1994, the company remains committed to this high-potential technology on the road to sustainable mobility. The partnership with Ford and Nissan further underscores the company's determination to bring the technology to market. From 2017 the first competitive series production models with fuel cell power are to be available on a broad basis.

Hybrid drive for the E- and S-Class

Suitably configured hybrid models round off the range of electric drive systems from Mercedes-Benz. In the case of the E 300 BlueTEC HYBRID, which combines a four-cylinder diesel engine (150 kW/204 hp) with an electric motor (20 kW/27 hp), fuel consumption is just 4.1 l/100 km, corresponding to CO2 emissions of 107 g/km. These figures secure a top position in this segment for the E-hybrid. Moreover, the recent findings of one motoring magazine confirm that it has the most favourable operating costs. In combination with the optional 80-litre fuel tank, and if the advantages of its hybrid drive are consistently exploited, the E 300 BlueTEC HYBRID can achieve an operating range of 1,900 kilometres, so completely redefining the concept of a long-distance vehicle. In markets where the diesel engine is of lesser importance, the E-Class is available with petrol hybrid drive.

The Mercedes-Benz hybrid system is modular and scalable in design, and can be applied to numerous model series. In the coming years, in line with the timing of new model introductions, there will be numerous new hybrid models. The modular hybrid system also shows its strengths in conjunction with the different drive systems. In-line four-cylinder engines (petrol and diesel) can be hybridised just as well as e.g. a V6 petrol engine.

The new S-Class demonstrates how luxury and sustainability can be combined at a previously unprecedented level. Apart from fuel-optimised petrol and diesel models, hybrid and plug-in hybrid models are available. Joining the S400 Hybrid, the S 300 BlueTEC HYBRID will be launched next year as the first car in the luxury segment to offer a fuel consumption level of under five litres per 100 kilometres. Also in the coming year, the S 500 PLUG-IN HYBRID will set new standards in the luxury class with a fuel consumption of less than four litres per 100 km. While the S 400 HYBRID meets the criteria for efficiency class A, the S 300 BlueTEC HYBRID is the only luxury saloon to be classified as A+.

Electric drive also for commercial vehicles

In addition to passenger cars, Mercedes-Benz also offers a range of electrically powered commercial vehicles. Series production of the Vito E-CELL, for example, commenced as early as 2010. The electrically powered Vito is now available in 15 European countries. The van is powered by a 60 kW electric motor (maximum torque 280 Nm). The lithium-ion batteries with a capacity of 36 Kwh are located beneath the load compartment floor so that load capacity is not restricted and a maximum payload of 850 kilograms is possible. A top speed that is limited to 89 km/h allows a range of 130 kilometres. The Fuso Canter E-CELL is also part of Daimler's electric vehicle portfolio. It is powered by a 70 kW electric motor and has a range of 120 kilometres. The award-winning, emission-free Mercedes-Benz Citaro FuelCELL Hybrid city bus, which has been servicing urban public transport networks in European cities since 2011, also demonstrates that fuel cell technology is suitable for use in large vehicles. Freightliner in the USA offers the Custom Chassis MT E-CELL All Electric.

Credits: Daimler AG

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

Detail: Living Electric: Daimler is the market leader in electric cars

0 Daimler Group EBIT for Q2 2013 above market expectations

Daimler AG (stock symbol DAI) today disclosed its preliminary figures for the second quarter of 2013. The Group generated revenues of € 29.7 billion while Group EBIT including special items amounts to € 5.2 billion.

The divisions’ preliminary EBIT including special items are as follows:

Mercedes-Benz Cars: € 1,041 million
Daimler Trucks: € 434 million
Mercedes-Benz Vans: € 204 million
Daimler Buses: € 27 million
Daimler Financial Services: € 319 million

Negative special items in connection with ongoing restructuring programs are included in the earnings of the divisions Daimler Trucks (minus € 82 million) and Daimler Buses (minus € 20 million). As previously announced, there was also a special item with a positive impact on EBIT related to the sale of all EADS; this amounts to € 3.2 billion.

As previously announced, the earnings situation from ongoing business improved in the second quarter.

The divisions’ revenues are as follows:

Mercedes-Benz Cars: € 16.3 billion
Daimler Trucks: € 8.0 billion
Mercedes-Benz Vans: € 2.4 billion
Daimler Buses: € 0.9 billion
Daimler Financial Services: € 3.5 billion

EBIT outlook for full-year 2013

Second-quarter earnings are largely in line with our internal expectations and thus also with our current outlook for the development of EBIT in 2013. The current EBIT forecasts for the Daimler Group and its divisions therefore continue to apply unchanged. On the basis of our unchanged assumptions for the further development of our key markets and the ongoing growth initiatives and efficiency programs, we continue to assume that EBIT in the second half of the year will be higher than in the first half.

These Q2 numbers are preliminary and have not yet been reviewed by the external auditors. Daimler will publish its final results for the second quarter along with other details in Interim Report Q2 2013 on July 24, 2013.

Credits: Daimler AG

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

Detail: Daimler Group EBIT for Q2 2013 above market expectations

0 Daimler Buses at the RDA Workshop

Premiere at the most important specialised trade fair for coach and group tourism. For the first time, the two brands Mercedes-Benz and Setra are present at the 39th RDA Workshop in Cologne (23 – 25 July 2013) sharing a stand together. In addition to two luxury touring coaches, the Setra S 516 HD/2 from the new ComfortClass 500 model series and the Mercedes-Benz Travego M, Stuttgart-based Daimler AG is also presenting a Sprinter Travel 65. These three exclusive vehicles can be seen on stand G 47 in Hall 10.2 of the Cologne exhibition grounds.

The S 516 HD – experiencing travel in a new way with the innovative model series 500

It has four stars and room for 48 people; it is a compelling proposition for bus and coach operators thanks to its trend-setting lifecycle costs and it takes travellers to their destination swiftly and safely, powered by an environmentally friendly Euro VI engine. The S 516 HD/2 from the new Setra ComfortClass 500 is the Setra highlight at this year's RDA Workshop, taking place under the motto "Experiencing culture". The vehicle is equipped with a Mercedes-Benz 315 kW OM 470 "Blue Efficiency Power" Euro VI-generation engine and a GO 210-6 6-speed transmission. In the 2012 Daimler AG Bus Record Run, the ComfortClass 500 vehicles demonstrated impressively that comfortable coach travel can now be even more fuel-efficient. This alone is reason enough to use the new Setra coach generation for operation on German and international long-distance routes. A subject to which that the organisers of the Cologne trade fair even dedicated a special show this summer.

Travego M – luxury coach with the most advanced safety features

The Travego M Euro VI likewise stands for economic efficiency coupled with pure travel comfort. This premium high-decker with the three-pointed star is presented in Cologne equipped with an OM 471 BlueEfficiency Power engine delivering 350 kW (476 hp). The new in-line engine displays compellingly low consumption figures and particularly low pollutant emissions, complying already today with the European emission standards coming into force from 2014 onwards. The three-axle vehicle is equipped with second-generation Active Brake Assist. In an emergency this system initiates an automatic braking manoeuvre, even if the obstacle causing the intervention is stationary, for example a sudden tailback on a motorway.

Sprinter Travel 65 - economic efficiency with elegance

The third in this trio is the Sprinter Travel 65 minibus, presented in Cologne by Mercedes-Benz with large-area glazing and a panoramic windscreen extending far upwards. The elegant flagship of the top model series in the minibus range also shines with its special touring coach rear with luggage compartment flap, 2.0 cu. m. luggage compartment, large rear window and around 10 centimetres more interior width. The Sprinter Travel can also be recognised at a glance thanks to its chrome-plated radiator grille, and wins the hearts of passengers with, among other features, adjustable backrests, a high-performance air conditioning system and an air-sprung rear axle. The 7G-Tronic 7-speed automatic transmission, unique in the van sector, combines economy with dynamism.

Exchange of views in a pleasant atmosphere

For Axel Stokinger, Sales Manager Germany, the RDA Workshop is a trade get-together with far-reaching effect: "The Cologne specialist fair offers us the opportunity to present our very newest products. We look forward to a lively exchange of views with the specialist public in a pleasant, relaxed atmosphere." "Offer quality, show diversity, bond groups" – the RDA 2013 Workshop, which is taking place for the 39th time, will be held under this motto from 23 - 25 July. Last year a total of 1080 exhibitors from 36 countries participated in the specialised fair for group tourism. Opening hours on Tuesday, 23 July and Wednesday, 24 July are from 9.30 a.m. to 6.00 p.m. On Thursday, 25 July the trade fair is open from 9.30 a.m. to 3 p.m.

Credits: Daimler AG

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

Detail: Daimler Buses at the RDA Workshop

0 Double triumph for Daimler: "Goldener Öltropfen 2013" goes to Mercedes-Benz passenger cars and commercial vehicles

For the first time ever, a company has won the "Goldener Öltropfen" award for two developments: Daimler AG triumphed in the passenger cars segment with its NANOSLIDE® technology, while in the commercial vehicles segment the award went to the new Mercedes-Benz Citaro Euro VI with recuperation module.

The KRAFTFAHRER-SCHUTZ e.V. (KS) automobile club awards the "Goldener Öltropfen" annually for technical developments or measures which promote economical and environment-friendly driving. In order to be considered for the award, such innovations must be in practical use and purchasable on reasonable terms. KS president Peter Dietrich Rath praised the decision of the neutral expert jury, noting that the two developments by Daimler represented a major contribution towards making passenger cars and buses more economical and thus more environment-friendly.

NANOSLIDE® technology opens up new avenues

The NANOSLIDE® cylinder surface finishing technology developed by Daimler AG provides for more fuel-efficient engines. Wires consisting of an iron-carbon alloy are melted in an electrically generated arc. An atomizing gas sprays the molten droplets into the cylinders of the aluminum crankcase, where they solidify under the effect of rapid cooling to form a delicate lamellar layer with an ultrafine to nano-crystalline microstructure. The cylinder barrel coating then undergoes extreme smoothing, after which it has a thickness of only 0.1 to 0.15 mm. Micro-pores are exposed as a result of the smoothing process, enabling the surface to absorb exceptionally large quantities of oil. This results in very low friction and very high wear resistance. The technology additionally helps to reduce weight and to lower fuel consumption, thereby making an important contribution towards reducing CO2 emissions. The NANOSLIDE® technology incorporates numerous inventions and ideas and is protected by more than 40 patents.

The NANOSLIDE® process has been used in series production at Daimler since 2006 for the 6.3 l V8 engine produced by AMG GmbH. The roll-out in the new V6 petrol engine (M276 DELA 30) has been underway since March 2013 – beginning with the new E-Class. In comparison to Daimler's own V6 petrol engine offering the lowest friction levels worldwide (M276 DE 35), use of the NANOSLIDE® technology has resulted in a further 2.3 percent reduction in CO2 and weight savings of 2.4 kg. In June 2013 NANOSLIDE® is also to be introduced in the new 4-cylinder high-performance engine (M133) from AMG for the A 45 and CLA 45 models.

In the NANOSLIDE® technology, Daimler has realized an effective system which in addition to benefiting passenger car engines also harbors potential for application in engines for commercial vehicles, including buses such as the Citaro.

Mercedes-Benz Citaro BlueTec 6: first series production regular-service bus complying with Euro VI emissions standard

The Mercedes-Benz Citaro is the first regular-service bus to be delivered with engines complying with the Euro VI emissions standard. Its notable fuel savings make an important contribution towards relieving the strain on the environment: emissions from the Citaro with Euro VI emission control technology are 80 percent below its predecessors' levels. As such, the buses play a key role in improving the quality of urban environments. At the same time, transport companies' fuel costs are also reduced, as the new urban buses get by on more than eight percent less diesel fuel.

"In developing the new Citaro, the onus was on combining fuel efficiency and economy with enhanced performance, safety and comfort," stresses Hartmut Schick, Head of Daimler Buses.

The development team have pulled out all the stops to achieve the outstanding economy offered by the new Citaro - a whole array of innovative measures has been applied to reduce fuel consumption and CO2 emissions.

- The regular service bus saves fuel in the following way by means of a recuperation module: electricity which is generated without the use of fuel in overrun mode is stored and subsequently used when the bus is in tractive mode to supply energy to auxiliary consumers, such as blowers and lighting.

- The new, more efficient and electronically controlled twostage air compressor also contributes to the vehicle's economic efficiency. This compressor also operates in recuperative mode on the overrun. The technology reduces the Citaro's fuel consumption and, in turn, its CO2 emissions by more than three percent, depending on the vehicle's form of deployment.

- Battery and generator management also save fuel, while at the same time extending the components' service lives. The doors of entrances two and three have been lowered, thus reducing air consumption when passengers board at ground level (kneeling) and adding a further 0.4 to 0.5 percent to fuel savings.

The buses incorporate sophisticated emission control technology to meet the Euro VI standard. Together with the completely new engine generation, this technology lowers emissions to the limits of detectability. This represents a further significant step in the ongoing development of diesel technology.

To date, Daimler Buses has delivered some 350 buses equipped with Euro VI emission control technology. More than 1700 buses of the Mercedes-Benz and Setra brands featuring the environment-friendly Euro VI emission control technology are to be in service on the road by the end of 2013.

Credits: Daimler AG

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

Detail: Double triumph for Daimler: "Goldener Öltropfen 2013" goes to Mercedes-Benz passenger cars and commercial vehicles

0 Daimler Buses receives order from Austria

ÖBB Postbus GmbH is focusing on vehicles from Mercedes-Benz and Setra as it modernizes its bus fleet. After a Europe-wide advertising Daimler Buses and the ÖBB Postbus GmbH entered into a frame agreement which provides the delivery of vehicles between 2013 and 2017. The orders are open, the exact distribution on the individual models as well but it might be around a volume of about 400 Buses.

ÖBB Postbus operates local public transportation systems throughout Austria and also receives operating contracts from almost all of the transportation networks in the country. “Daimler Buses is a reliable partner of ÖBB Postbus. We’re delighted that the company places such trust in our safe, clean, and reliable high-quality vehicles,” says Till Oberwörder, Managing Director of Sales, Marketing & After-Sales Daimler Buses.
Models supplied are the Mercedes-Benz Intouro, Integro, and Citaro buses as well as the Setra Multi Class 400. All high floor vehicles have a wheelchair elevator in the double broad middle way to enter. All vehicles of Mercedes-Benz and Setra are also equipped with air conditioners for the passenger space and for the driver.

The Mercedes-Benz and Setra buses offer not only outstanding comfort and safety but also great efficiency and excellent sustainability. With a lower engine speed and optimized sound insulation, Mercedes-Benz Citaro, which was named `European Bus of the Year 2013`, won the title against strong hybrid competition. At the Record Run Buses 2012 Mercedes-Benz and Setra showed under a supervision of the examination organization DEKRA that their Euro VI-compliant vehicles consume around 8% less fuel than their Euro V-compliant predecessors.

Credits: Daimler AG

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

Detail: Daimler Buses receives order from Austria

0 TECHNICITY as a responsive online magazine

Innovation, Technology, Mobility: These are the structural pillars of the Daimler magazine TECHNICITY. On this basis we have relaunched a completely revamped new online presentation of TECHNICITY. The conceptual, graphic and technical realisation gives the website, which has been developed to cater for absolutely every user device, a modern and dynamic character. The flexible content structure has an integrated multifilter which presents the "content stream" on a topic-specific basis. These innovative characteristics make the site equal to future requirements with respect to use-friendliness and interactivity.

This future-oriented format establishes an integrated print-online communication model whose online function provides its international readership with current topics covering urban mobility solutions, technology and innovation processes and developments from Daimler research every two weeks.

At a glance

The intelligently conceived website includes a responsive layout – whatever device is used to access TECHNICITY.DAIMLER.COM, the page layout is automatically adjusted to the relevant screen size and therefore ideally meets both present and future requirements.

Whether articles, news, videos or surveys – all formats are chronologically arranged at a glance in the content stream. Useful feature: In the topic clusters "Clean", "Safe", "Connected", "Urban" and "Visionary", the extensive contents can be filtered individually and by topic using the open and flexible navigation structure. Moreover, a multiple filtering function makes "personalised reading" possible.

About TECHNICITY

TECHNICITY combines important perspectives and trends from the Daimler research and development locations with topics not specific to the company. Urban mobility solutions, corporate technology and innovation processes as well as creativity and innovation trends in science, research and development are placed in a global context.

An international network of acclaimed scientific journalists reports for TECHNICITY on trends and innovations from the major cities and high-growth regions of the world.

TECHNICITY – the magazine for innovation, technology and mobility – supplementing TECHNICITY.DAIMLER.COM as a print version with three annual editions in English and German.

Credits: Daimler AG

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

Detail: TECHNICITY as a responsive online magazine

0 The Mercedes-Benz management team on the S-Class: The best or nothing, in every respect

"Rather than being about safety or aesthetics, power or efficiency, comfort or dynamism, our aspirations were 'the best or nothing' in every respect. No other car stands for the Mercedes-Benz brand promise more than the S-Class."
Dr Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars

"A few years ago, the progress made in efficiency would have sounded like a utopian dream: within ten years, Mercedes-Benz has almost halved fuel consumption in the 150 kW output category. Intelligent Drive is likewise leading the way by networking the sensors to enhance comfort and safety."
Prof Thomas Weber, Member of the Board of Management responsible for Group Research and Head of Mercedes-Benz Cars Development

"The S-Class is not just the spearhead for Mercedes-Benz but for automotive development as a whole. And it has been for decades. That's why the S-Class is also the world's best-selling luxury car."
Dr Joachim Schmidt, Executive Vice President of Mercedes-Benz Cars, Sales and Marketing

"The sophisticated design of the S-Class has always been an expression of luxury and automotive grandeur of its era. And our new S-Class continues this tradition. With its classic architecture and flowing silhouette, it is a modern embodiment of sensual clarity. The design draws a line from the sophisticated, progressive design idiom to the classic elegance of our 1930s cars – intelligence that speaks to the emotions. Stylish sportiness and sensual forms in synthesis with timeless clarity and effortless superiority make the S-Class a true design icon."
Gorden Wagener, Vice President Design, Daimler AG

Credits: Daimler AG

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

Detail: The Mercedes-Benz management team on the S-Class: The best or nothing, in every respect

0 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.

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

0 AutomotiveINNOVATIONS Awards for Mercedes-Benz and Daimler AG: Mercedes-Benz is the “Most Innovative Automotive Brand”

At yesterday’s award ceremony for the AutomotiveINNOVATIONS Award 2013, CEO of Daimler AG and Head of Mercedes-Benz Passenger Cars, Dr. Dieter Zetsche, accepted two honours: Mercedes-Benz received the distinction as the world's "Most Innovative Automotive Brand", while Daimler took first place in the category "active and passive Safety Systems". With the AutomotiveINNOVATIONS Awards, the Center of Automotive Management (CAM) and PricewaterhouseCoopers (PwC) honour the most innovative automotive manufacturers of the year for the second time.

For Dr. Dieter Zetsche, the award as "Most Innovative Automotive Brand" is an important confirmation of the long term corporate and product strategies: "Our pioneering spirit is undiminished. We invented the automobile and, since that time, have registered patents for around 90,000 improvements - more than any other premium manufacturer. In the last year alone, we registered an average of nine patents each working day."

With new models in all segments and continuous improvements being made in terms of efficiency, the company remains on course for sustainable and profitable growth. With its CLA model, Mercedes-Benz created a whole new segment – proving, in impressive style, that good design and excellent aerodynamics are far from being contradictory. In fact, the new CLA is the world record holder among production vehicles with a cd value of only 0.22! Mercedes-Benz is the world champion for aerodynamics in almost all vehicle classes.

The first place achieved in the category "active and passive Safety Systems" once again reconfirms the company's leading status in the field of safety. And with the new S-Class, the bar will once again be set even higher. Numerous new systems, grouped together under the term "Mercedes-Benz Intelligent Drive", make the new flagship model from Mercedes-Benz even more comfortable and safer than ever.

During the presentation of the prize for active and passive safety systems, Dr. Dieter Zetsche commented: "Our vision is ‘accident-free driving’: our aim is to reduce the workload of the "guardian angels" of road traffic - with safety systems that continuously become more and more perfect. In the future, our cars will be able to see in all directions. Our new S-Class and E-Class also recognise cross traffic – pedestrians, cyclists and of course other cars. And, they do so much more quickly than humans are able to."

The AutomotiveINNOVATIONS Award 2013 conferred by the Center of Automotive Management (CAM) in conjunction with the accounting and management consultancy firm PwC, rewards outstanding innovative achievement in the automotive industry in eight categories: Most Innovative Automotive Company, Most Innovative Automotive Brand, and Most Innovative Automotive Company in following fields of technology: Conventional Drive Systems, Alternative Drive Systems, Alternative Drive System in Production Vehicles, active and passive Safety Systems, Vehicle Information and Communication Systems and Vehicle Concepts.

Credits: Daimler AG

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

Detail: AutomotiveINNOVATIONS Awards for Mercedes-Benz and Daimler AG: Mercedes-Benz is the “Most Innovative Automotive Brand”

0 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.

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

0 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.

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

0 Daimler plans expansion of Mercedes-Benz Cars production network

The Daimler AG Board of Management has decided to expand the Mercedes-Benz Cars powertrain production network. Following approval by the Supervisory Board, additional capacities for transmission assembly are now planned to be established at the Romanian Daimler subsidiary, Star Transmission. For the production of a new generation of automatic transmissions more than 280 million euros shall be invested in Romania. Overall, the company plans investments of more than 300 million euros there.

Andreas Renschler, Member of the Daimler Board of Management for Manufacturing and Procurement Mercedes-Benz Cars and Mercedes-Benz Vans, explains: "The expansion of our production network to include an additional location for transmission assembly is designed to perfectly complement our existing capacities. Our goal here is to serve the high customer demand with even greater flexibility in the future."

Additional capacities will be built up in view of the high capacity utilization as well as the lack of space for further expansion of transmission production in Stuttgart. "Star Transmission has been a reliable partner of our German powertrain locations for over 10 years. According to the current planning status and based on our excellent experience with Star Transmission, the preferred option for providing the additionally required assembly capacities in a flexible manner is to expand the activities there," explains Peter Schabert, Head of Powertrain Production and Head of the Mercedes-Benz Untertürkheim plant, referring to the plans for the future production network for transmissions. "Our Stuttgart transmission plant will remain the heart of transmission production for Mercedes-Benz Cars and will act as the center of competence in this production network."

Wolfgang Nieke, Chairman of the Works Council for the Mercedes-Benz Untertürkheim plant and Passenger Car Development: "The plant management and works council agreed two years ago, to set up the production of the new automatic transmission and an assembly module at the Stuttgart-Hedelfingen location. The Board of Management thus reaffirmed its commitment to the in-house production of our transmissions. The second assembly module in Sebes will be supplied from our production location. The increased demand for transmissions ensures the long-term capacity utilization of our transmission production at the Stuttgart-Hedelfingen location."

In order to transfer the Swabian expertise appropriately the Romanian employees will undergo a special qualification program. They spend several months at the Untertürkheim parent plant in quality, maintenance and logistics teams in addition to the production areas.

Daimler subsidiary Star Transmission was founded in 2001. At the moment, the company and the roughly 800 employees at the Cugir location produce components for current Mercedes-Benz car engines and transmissions as well as older generations of transmissions for the spare parts business. The decision has already been made to start production of the 5-speed automatic transmission from the middle of this year at the new location in Sebes until its discontinuation. Starting in 2014, the current generation of front dual clutch transmissions will also be assembled there. This will thus provide additional assembly capacities to complement Stuttgart, where the assembly has been concentrated to date. Subject to the support of the Romanian government for the expansion of the production capacities, it is planned that a new generation of automatic transmissions for cars will also be produced in the new production network involving the locations in Stuttgart (full production including assembly) and Sebes (assembly only) starting in 2016.

The reason for these plans is the expected, continually increasing demand for transmissions in line with the Mercedes-Benz 2020 growth strategy. The Stuttgart-Hedelfingen transmission plant, which is part of the Untertürkheim parent plant from an organizational perspective, is today already at full capacity. All available space has gradually been developed in recent years so that the site – due to its special geographical location in the upper Stuttgart Neckar Valley – has reached its maximum possible expansion level and no meaningful options for further expansion of the facilities exist there.

At the same time, any type of capacity expansion at Mercedes-Benz Cars should also contribute decisively to increased profitability in light of the fierce global competition in the premium segment. This premise naturally also applies for transmissions, which are produced in-house in contrast to the approach preferred by the competition. Overall, the future production network for transmissions is designed to ensure that the required unit figures can – even in the future – be provided in a reliable and extremely flexible manner in line with customer expectations while fulfilling the set cost targets.

About the Mercedes-Benz Cars powertrain production network

The Mercedes-Benz Cars powertrain production network consists of several locations in Germany and is being complemented by international production plants in close connection with the increasing production of Mercedes-Benz vehicles in close proximity to markets and customers. The central location here is the Mercedes-Benz Untertürkheim plant, which produces engines, transmissions and axles in a total of six plant sections. In the past fiscal year, Daimler has invested over 900 million euros here alone in the expansion and conversion of the powertrain plant sections as well as in the startup of new products and production technologies and, as a result of high customer demand, has been able to create 350 new jobs. The company is investing more than 800 million euros at the location in 2013.

The Mercedes-Benz Berlin plant produces engines and powertrain components, while the Mercedes-Benz Hamburg plant is responsible for the production of axles and various additional components. Our subsidiary MDC Power in Kölleda/Thuringia is another important engine production location; it recently received the prestigious "Factory of the Year" award. When it comes to the international locations, the Romanian subsidiary Star Transmission is responsible for the production of engine and transmission components as well as replacement transmissions. Starting this year, the Beijing production location (BBAC – a joint venture between Daimler and the Chinese partner BAIC) in China will start engine production in order to supply local production of Mercedes-Benz cars and vans. Starting in 2014 in the USA, Daimler and Nissan will – as part of the strategic cooperation between Daimler and the Renault-Nissan Alliance – start the joint production of 4-cylinder gasoline engines based on Mercedes-Benz technology at the Nissan plant in Decherd/Tennessee. One of the main customers for these engines will be the future C-Class production at the Mercedes-Benz plant in Tuscaloosa/Alabama.

Credits: Daimler AG

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

Detail: Daimler plans expansion of Mercedes-Benz Cars production network