Investment

In order to achieve our ambitious growth targets, we will make our product range even more attractive in the coming years and focus it even more on our customers’ requirements. At the same time, we want to be able to play a leading role in the far-reaching technological transformation of the automotive industry. This applies in particular to the increasing electrification of our product portfolio and to the digital connectivity of our products and processes along the entire value chain. Against this backdrop, investment in property, plant and equipment is mainly directed at preparations for the production of our new models. Other main areas are the realignment of our production facilities in Germany, local production in growth markets and the establishment of a global production network for electric vehicles and batteries. Against the background of an even more targeted allocation of capital and prioritization of projects, we plan to invest in property, plant and equipment in 2020 at a level similar to that of 2019.

At Mercedes-Benz Cars & Vans, we will invest in 2020, among other things, in preparations to ramp up production of the vehicles in our EQ family with electric drive and in the new generation of the C-Class and S-Class. In addition, we will continue to invest in our production plants and for new engines and transmissions. As a result, investment in property, plant, and equipment at Mercedes-Benz Cars & Vans is also expected to be at the prior-year level.

Against the backdrop of the technological changes taking place in the transport industry, a large part of the investment by Daimler Trucks & Buses in 2020 will be for automated driving and electric mobility. In addition, the division will invest primarily in new products for specific areas of application, such as vocational trucks in the North American market, global component projects and the optimization of the worldwide production and sales network. Overall, we expect a slight increase in investment in property, plant and equipment at Daimler Trucks & Buses compared with 2019.

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