Objectives and Strategy
The automotive industry is undergoing far-reaching changes at a highly dynamic pace. Four future-oriented fields are set to radically change the nature of mobility: greater vehicle connectivity, advances in automated and autonomous driving, the development of digital mobility and transport services, and electric mobility. We are addressing this challenge - both strategically and structurally. Our objective is clear: We intend to continue to be a leading vehicle manufacturer while developing into a leading provider of mobility services. We are supporting this transformation by implementing a cultural and organizational realignment. The measure of our success is always the satisfaction of our customers, as we seek to inspire them with our products and services and to ensure that we remain a partner they can trust.
Sustainable profitable growth
The foundation for profitable growth is formed by a forward-looking product portfolio, strong brands and a global presence. We want all of our businesses to be the leaders in their respective segments. Our goal at Mercedes-Benz Cars is to ensure that we play the leading role in the worldwide premium segment over the long term. We also aim to enhance the smart brand’s role in urban and electric mobility. Daimler Trucks seeks to further strengthen its leading position in the global truck business. Mercedes-Benz Vans is striving to be the number one brand in the premium van segment. Daimler Buses plans to further strengthen its leading position in the segment for buses above eight metric tons gross vehicle weight. Daimler Financial Services seeks to maintain its position as one of the leading captive providers of financial and mobility services; it will continue to expand its mobility services and continue growing, in part by means of cooperative ventures. The success of our business operations today creates the financial foundation for investments in the future of our company. We intend to achieve a 8 to
A leader in innovation
We are setting the standards for the future-oriented fields of Connected, Autonomous, Shared & Services and Electric (CASE). We want to expand vehicle connectivity even further and thus create added value for our customers. We also seek to be a leader in the use of digital technologies, both in our products and services and along the entire value chain. The digitization of our core processes and the utilization of forward-looking technologies are creating new business opportunities that revolve around the mobility requirements of our customers. We seek to play a leading role in automated and autonomous driving at all our divisions. This will result in the creation of new and attractive business models for private car customers, fleet customers, and the public transport and commercial goods transport sectors.
We are further expanding our strong portfolio in the field of mobility services. With our broad customer base and presence in all of the relevant mobility segments, we have already established a strong foundation for future success. We remain on course for growth through innovative mobility services and strong cooperation partners. We want to offer our customers the best drive system for their needs – everything from high-tech combustion engines to hybrid and electric drive systems. In the field of electric mobility, we are establishing an ecosystem of products and services in order to make electric vehicles at least as convenient and pleasant to use as those with combustion engines. We also plan to become a leader in the area of electric commercial vehicles. In addition, we continue to expand our strong position in relation to vehicle safety, the security of our services and our use of customer data.
Inspiring our customers
We gain and maintain our customers’ trust with outstanding products and services that inspire them. We create added value with our strong brands, unique range of products and customized services. Our innovative services and new service-based business models set us apart from our competitors. We handle customer data responsibly and we use this data to anticipate new customer expectations.
The best team
Our goal is to further develop the Group and make it even more successful. We seek to recruit the most talented individuals by further promoting a passion for innovation and encouraging our employees to take on additional responsibility. We have adopted an employee-focused culture in order to ensure we remain an attractive employer that can rely on the best team in the automotive industry. We improve our employees’ skills and qualifications and offer them opportunities for lifelong learning. We promote and support diversity and inclusion. Integrity is extremely important for our company, especially as we are undergoing a phase of fundamental transformation. Integrity guides our dealings with respect to the Group, its employees, business partners and customers, and society as a whole. We are convinced that conducting business responsibly provides us with orientation, especially in times of major transformation; it makes us more successful over the long term, and it also benefits our society. (See Integrity, compliance and legal responsibility)
Daimler: Corporate Movie 2018
Five strategic components
We are utilizing five closely linked strategic components to shape the biggest transformation in our company’s history. Our 5C strategy focuses on
- Strengthening our global core business (CORE)
- Leading in new future fields (CASE)
- Adapting our corporate culture (CULTURE)
- Strengthening our customer- and market-focused structure (COMPANY).
At the center of all our activities is our fifth and most important C: the customer (CUSTOMER). Our processes and organization focus on our customers – we work with and for our customers to ensure we provide them with the best products for their needs and the best solutions for their mobility requirements.
Strengthening our global core business (CORE)
Mercedes-Benz Cars will continue to implement its growth strategy with the goal of further safeguarding its leading position in the global premium segment. We seek to build trust with our high quality and safety standards, and our innovative and outstanding products and services are designed to inspire our customers. We are pursuing three different technological approaches as we move ahead on the road to emission-free driving: the further improvement of ultra-modern combustion engines, expanded hybridization, and locally emission-free vehicles with batteries and fuel cells. The most important lever for improving combustion engines is the full electrification of the drivetrain with the belt-driven starter-generator or the integrated starter-generator (ISG) combined with a 48-volt electrical system. Systematic hybridization is an important interim solution on the road to emission-free mobility. Our global development network, technology centers and digital hubs keep us close to our customers, our markets and new technologies. Within the framework of our growth strategy, we have expanded our production network in all regions and improved our global competitiveness. With our lead plants, which assume global manufacturing responsibility for specific product groups, we ensure that we implement uniform standards and consistently deliver the high quality of “Made by Mercedes” worldwide. Our goal is to make our production operations modular, flexible and digital, and greener. These efforts focus on Factory 56, which is an ultramodern, flexible, fully digitized and CO2-neutral assembly plant in Sindelfingen.
The Car Factory of the Future: Factory 56
Plans call for the plant to go into operation early in the next decade. With regard to sales, we focus on the utilization of direct interfaces to our customers, as well as offering them the best possible experience over our entire relationship. Depending on our customers’ needs, we make use of physical and digital channels for customer contact and communication, and also combine these channels wherever appropriate. Our market position in China plays a key role in safeguarding our market leadership. We have already transformed China into the biggest market for Mercedes-Benz cars, thanks to products that are aligned with Chinese customers’ requirements and our further expansion of local development and manufacturing activities. Safeguarding the earnings performance of Mercedes-Benz Cars is an ongoing task. That is why we have refined our “Fit for Leadership” efficiency program and integrated it into our organizational structure.“Fit for Leadership” is expected to result in an additional €4 billion in earnings b
Daimler Trucks continues to pursue its proven strategy, which focuses on leadership in innovation, a global market presence and global platforms. Here, everything always revolves around the customer. In the important North American market, we plan to further safeguard our market leadership in the segment for heavy-duty Class 6 to 8 trucks, whereby the Freightliner Cascadia has played a major role in the success we have achieved so far.
Load One Transport Success Story | Freightliner Trucks
With its new Actros, Daimler Trucks is also underscoring its strong position in the areas of safety, digital cockpits, connectivity and efficiency, particularly in Europe. Fuel efficiency is a key selling argument, and we work continuously to improve it. With the new Mercedes-Benz Actros for example, we have been able to reduce fuel consumption once again compared with the predecessor model. Sinc
#BharatKaBenz | All India Yatra By BharatBenz | 2018
Investment in our development and manufacturing operations in Turkey is geared toward the long term and is proceeding as planned. Daimler Trucks has succeeded in standardizing major assemblies and modules in many applications and regions. The continuous renewal of the product portfolio across all regions makes it all the more important for us to constantly refine our platform strategy.
The full effect of the cost optimizations at Daimler Trucks with the target of permanent savings of €1.4 billion is to be achieved as of the yea
Mercedes-Benz Vans plans to keep growing in the future and to develop from a vehicle manufacturer into a provider of holistic transport and mobility services. Mercedes-Benz Vans is utilizing three strategic components here: market strategies for global growth, product strategies for the further expansion of its product portfolio, and the adVANce future initiative focusing on the development and commercialization of customer-oriented, holistic transport and mobility solutions. Our new Sprinter plant in North Charleston, South Carolina, now allows us to serve the local market even faster and more flexibly. Market potential in China and the increase in online retail sales of goods are enabling further growth. Our product pipeline is in outstanding shape with the new Mercedes-Benz X-Class – the first premium pickup from Mercedes-Benz Vans – and the new Sprinter.
The new Mercedes-Benz X-Class: “First Contact” | Product Film
In order to make production even more efficient and flexible, Mercedes-Benz Vans plans to completely digitize its global manufacturing operations b
Daimler Buses plans to continue its global growth with the help of its regional strategies and state-of-the-art products in the city-bus and touring-coach segments. The new Citaro hybrid city bus makes a convincing impression with an economical and practical concept for operation in cities.
Mercedes-Benz Technology and Innovation | The Citaro hybrid. [EN]
Our new driver assistance systems underscore our strength in the area of active safety. Daimler Buses’ European production network, which has manufacturing locations in Germany, France, Spain and the Czech Republic, is being reorganized to make it more efficient and more competitive. The Mannheim plant is being transformed into the center of competence for city buses and electric mobility, while the facility in Neu-Ulm will become the center of competence for touring coaches and autonomous driving. Innovations in the coming years will be shaped more by additional technologies than by the launch of new model series. For this reason, we are strengthening our development expertise in the fields of electric mobility, connectivity and autonomous driving. Through our own regional centers, the production of school buses and touring coaches in India, and the use of the Brazilian production facility as a hub for exports to other countries in South America, Africa and Asia, Daimler Buses continues to expand its international business operations, particularly in emerging markets.
Occupying an outstanding position in the area of safety technology and with highly efficient products, Daimler Buses aims to offer a convincing holistic package of new and used vehicles, service and maintenance contracts, financing plans and new mobility services.
Daimler Financial Services plans to use its balancedSTRATEGY to strengthen the foundation of its current success – the financing of mobility – while also continuing to expand its operations as a provider of mobility services. The future importance of mobility services will also be underscored when Daimler Financial Services AG is renamed as Daimler Mobility AG in Jul
Leading in new future fields (CASE)
As a pioneer of automotive engineering, we seek to be the leader in all CASE fields (Connected, Autonomous, Shared & Services, Electric) and to generate additional potential by linking these four fields. The individual divisions benefit here from developments throughout the Group in the areas of electric mobility, driving and safety systems for automated and autonomous driving, and digitization and connectivity.
Reinventing mobility: Connectivity | CASE
More detailed information on CASE can be found in the “Innovation and safety” section in the Management Report.
Mercedes-Benz Cars is forging ahead with the intelligent connectivity of products, services and customers. Our cars are part of the Internet of things and therefore offer customers a broad range of services that simplify life and make vehicle operation more intuitive and convenient. Our outstanding and intuitive Mercedes-Benz User Experience (MBUX) control system concept points the way forward in this respect.
MrJWW presents the A-Class 2018 (Part 2): MBUX & Connectivity
With “smart ready to …” the smart brand is being expanded in order to offer a range of digital services for urban mobility.
Connectivity will also be a crucial factor for success in the logistics sector in the future. At Daimler Trucks as well, connectivity is creating substantial added value and leading to efficiency gains in the transport chain. Our goal is to create a seamless transport logistics system with connected trucks and technologies that ensure that all vehicles are ideally always fully loaded, with no downtimes or waiting periods. With the digital cockpit in the new Actros, we are combining our extensive range of digital services with a convenient and intuitive operating concept.
Connectivity is an important component of the adVANce strategic initiative at Mercedes-Benz Vans. The digital@Vans program brings together new digital solutions, thus underscoring the transformation of Mercedes-Benz Vans into a provider of holistic customer-focused transport and mobility services.
Connectivity at Daimler Buses also offers benefits for everyone involved – for example, bus operators in terms of fleet management and maintenance costs, bus drivers on their routes, and passengers using the e-ticketing service. Daimler Buses now brings together all of its current and future digital services for buses on its OMNIplus ON digital portal.
Daimler Financial Services also aims to expand digital business models in the area of financing and mobility services in the context of its balancedSTRATEGY, and is using connectivity to further develop its digital services. The financing business is becoming more flexible with regard to how vehicles are used, the application of use-based billing and the utilization of flat rates for leasing (including insurance and maintenance).
Our approach to autonomous driving is based on the use of comprehensive driving and safety systems, vehicle connectivity and real-time digital maps. As we continue to develop automated and autonomous driving, we are relying on the one hand on technical assistance systems and on the other on automated systems for transporting customers from A to B without a driver. With the S-Class, we have underscored the excellent position Mercedes-Benz Cars occupies in the area of technical assistance systems. On the other hand, we are developing automated systems to be used without a driver exclusively or to be shared with others. Fully automated and driverless systems give back to people the time they now need to spend steering and operating the vehicle. In addition, autonomous driving technology offers people without a driver’s license new opportunities to enjoy mobility. In order to accelerate the development of autonomous driving, we have launched a number of partnerships, for example with HERE for high-resolution digital maps and with Bosch for the joint development of technology for fully automated driving and driverless vehicles.
Daimler Trucks is underscoring its leading position in the area of safety through the further development of tried-and-tested safety technologies such as the fifth-generation Active Brake Assist system and Sideguard Assist, which Mercedes-Benz offers as a fully integrated system.
Mercedes-Benz new Actros: Active Brake Assist 5
With the new Actros and the new Freightliner Cascadia, Daimler Trucks is the first manufacturer to offer partially automated driving in series-produced trucks.
Mercedes-Benz Vans is also actively positioning itself in the area of automated and autonomous driving. With Vision URBANETIC, Mercedes-Benz Vans has presented a mobility concept that goes far beyond previous ideas regarding automated and autonomous vehicles. Vision URBANETIC eliminates the separation between passenger and goods transport by offering an autonomous driving platform that enables flexible use for cargo or passenger transport as needed.
World premiere of the Mercedes-Benz Vision URBANETIC.
With its Mercedes-Benz Future Bus with CityPilot, Daimler Buses has demonstrated the highly advanced stage its research has reached in the area of partially automated driving on a BRT (bus rapid transit) route near Amsterdam.
Mercedes-Benz Future Bus
BRT systems are an important element of future urban mobility and already enable efficient, fast and cost-effective public transport in many cities around the world.
Daimler Financial Services plans to use the experience it has gained as a vehicle fleet operator and a global provider of mobility services as it moves ahead with the establishment of automated and autonomous systems. The division will also continue to play an important role in the design of the customer interface and business model.
Shared & Services
Daimler Financial Services finances and develops shared mobility. Customers should be able to enjoy mobility instantly and at all times with mobility services tailored to their needs. At the same time, mobility systems need to be sustainable in order to ensure a good quality of life in cities. We continuously invest in the expansion of a comprehensive mobility ecosystem and the further development of our mobility services car sharing, ride hailing and mobility-as-a-service. At the same time, we are working both independently and with partners to develop the core expertise for the business with fleets of automated and autonomous vehicles. car2go is a leading company for flexible car-sharing services. With regard to ride hailing, the Daimler subsidiary mytaxi is one of the leading providers in the app-based taxi service market in Europe, while moovel offers our customers a platform that enables them to optimally compare, combine, book and pay for various mobility services. In order to enable the rapid scaling of on-demand mobility, all car-sharing, ride-hailing, parking, charging and multimodal services currently offered by Daimler Mobility Services and the BMW Group will be merged and strategically further expanded. Within the framework of a joint venture known as ViaVan, Mercedes-Benz Vans and its strategic partner Via are now offering flexible shuttle services and pooling concepts in several European cities to complement local public-transport systems. The ViaVan service, which was initially launched in Amsterdam and then in London and Berlin as well, generates real-time matches of passengers headed in the same direction and then offers them transport in a single van. This sustainably reduces traffic volumes in cities while increasing mobility capacities.
We plan to continue growing in the business customer segment as well. Our Mercedes-Benz Vans Mobility GmbH subsidiary is expanding and fully digitizing its van rental services in Germany and around the world. With CharterWay, Daimler Trucks has been offering customized mobility and services for more than two decades now. And the Mercedes me app allows Mercedes-Benz Cars customers to share their A-Class with a predefined group of users.
Mercedes-Benz Cars plans to significantly expand its range of electric vehicles over the coming years. Daimler assumes that by the yea
Daimler Trucks is also focusing more strongly on vehicle electrification. Increasing restrictions on vehicles with combustion engines in cities, as well as more stringent emission limits, are promoting the development of alternative drive systems for commercial vehicles as well. We are a leading truck manufacturer and we also want to be a leader in truck electrification. With the eCanter from FUSO, the FUSO Vision One, two electric trucks from Freightliner, the Mercedes-Benz eActros and the Saf-T Liner C2 school bus from Thomas Built Buses, Daimler Trucks already has a very extensive portfolio of electric commercial vehicles. The establishment of the E-Mobility Group maximizes the effectiveness of our investments in this strategically important technology. We plan to introduce a globally standardized electric architecture and develop the best solutions for truck batteries and charging and energy management systems.
Mercedes-Benz Vans plans to electrify its commercial model series over the coming years. The eVito has been available to customers since Novembe
Daimler Buses is also focusing on the development of electric drive systems. Its buses CO2 balance can be further improved with battery operation and the use of other alternative drive systems. The Citaro hybrid was followed i
With car2go, Daimler Financial Services has been operating a system for flexible car sharing with electric vehicles for about seven years now. With 2,100 vehicles distributed across four all-electric fleets in Stuttgart, Amsterdam, Madrid and Paris, we are a leading provider of flexible car-sharing services with electric vehicles. In this way, car2go offers millions of urban residents a simple way to become acquainted with electrically operated vehicles. Daimler Financial Services also supports easy access to electric mobility through leasing plans and overall packages for electric vehicles and accessories.
We move you! Daimler Financial Services
Adapting our corporate culture (CULTURE)
We are also addressing the cultural challenge associated with the transformation of the automotive industry by adapting our corporate culture accordingly. Together with our employees, we have developed a new management culture within the framework of the Leadershi
Leadership 2020 Summit@Daimler (EN)
With our Incubator, which is an internal startup concept for employee ideas, as well as our STARTUP AUTOBAHN initiative, we are supporting the development and implementation of new business ideas and innovations from employees and external partners.
STARTUP AUTOBAHN Plug & Play EXPO Day Program 4
We develop digital solutions at the digital units of our divisions and at our digital hubs. We teach digital skills in order to promote our employees’ enthusiasm for digital technologies and to enable them to use such technologies effectively. We also promote knowledge sharing through new event formats and platforms such as our Social Intranet, blogs and communities. In addition, we offer hands-on experience with digital technologies during our DigitalLife Days and roadshows at our locations. This is how we have cooperated with our employees to create the foundation for the Daimler Group’s cultural transformation.
Strengthening our divisional structure (COMPANY)
In order to continue keeping pace with the highly dynamic development of our business environment, we want to create an organization and structure that will strengthen our focus on markets and customers, boost our entrepreneurial activities, and generate and safeguard synergies (COMPANY). With Project Future, the Mercedes-Benz Cars and Mercedes-Benz Vans divisions will be placed into Mercedes-Benz AG, and the Daimler Trucks and Daimler Buses divisions will be placed into Daimler Truck AG, making them more independent. Daimler Financial Services AG, which is already a legally independent company, is to be renamed as Daimler Mobility AG, probably in Jul
With legally independent business entities resulting from Project Future, we are creating greater proximity to the customers and facilitating more targeted work in the markets. This will enable the individual divisions to react faster and more precisely to new trends, technological leaps and unforeseen market developments. By assigning greater responsibility to the management in the new legal entities below
With our strategic focus areas of CORE, CASE, CULTURE and COMPANY, we have established the conditions needed to ensure we can focus more consistently on the requirements of the CUSTOMER. The goal of Daimler’s 5C strategy is to prepare the company for the challenges and opportunities associated with the new age of mobility, and to continue to be a leading vehicle manufacturer while becoming a leading provider of mobility services.
Extensive investment in the Group’s future
In the coming years, we will continue to forge ahead with our innovation offensive in order to implement our growth strategy through the introduction of new products, innovative technologies and modern manufacturing capacities. The future-oriented CASE fields (Connected, Autonomous, Shared & Services and Electric) will play a key role here. We will invest almost €15 billion in property, plant and equipment i
A.10 Investment in property, plant and equipment
|2017||2018||2019 – 2020|
|Amounts in billions of euros|
|Daimler Financial Services||0.04||0.06||0.1|
A.11 Research and development expenditure
|2017||2018||2019 – 2020|
|Amounts in billions of euros|
Investment in property, plant and equipment will mainly be applied to prepare for the production of our new models. We will also use our investment to realign our manufacturing facilities in Germany, to increase local production in the growth markets and to expand our global production network for electric vehicles and batteries.
Most of our expenses for research and development flow into new products. Key projects include the successor generations of the C-Class and the S-Class and new models in the compact segment. Other focus areas at all of our automotive divisions include innovative drive-system and safety technologies, vehicle connectivity systems and the further development of automated and autonomous driving technologies. Our plans also call for substantial funds to be invested in our comprehensive electric mobility offensive at all of our automotive divisions.