Sales in the Systemhaus Division
rose 9% to DM 1.8 billion, while in
Financial Services they increased 12% to
DM 7.6 billion. Business was especially
good in the mobile communications
market. Through the acquisition of
Bosch Telecom Service, which holds
second place in its sector, debitel was
able to significantly increase its market
share in Germany.
Purchasing Volume Exceeds Level
of Previous Year
the new A-class and the small roadster
(SLK). An important foreign project in
1994 was the new plant in Tuscaloosa,
Alabama, where production of the
recreational All Activity Vehicle (AAV)
is scheduled to begin in 1997.
In 1994 the Daimler-Benz group
purchased goods and services world•
wide in the amount of DM 61.1 billion
(1993: DM 56.7 billion). Nearly 70% of
the purchases pertained to Mercedes-
Benz, 9% to AEG Daimler-Benz Industrie,
14% to Daimler-Benz Aerospace, and 8%
to Daimler-Benz InterServices.
In the Commercial Vehicles Division,
approximately DM 1.3 billion were ex•
pended worldwide to prepare for new
vehicle generations and to adjust cur•
rent product lines to changing customer
demands. In Europe, the focus was on
preparations for two new van families,
Sprinter and City Transporter, model
updates for the light, medium and
heavy-duty truck classes, and the switch
to environmentally friendly EUR02 en•
gines. The MB 700, a light-duty truck
produced in Indonesia for the Asian
market was an additional investment
focus.
The 8% increase in purchasing vol•
ume is primarily due to the higher pro•
duction level, especially for Mercedes-
Benz, as well as to our activities to
further reduce vertical integration.
Because we stepped up our global
sourcing activity, material purchases
from foreign sources continued to
increase. We purchased goods and
services from the New Federal States in
the amount of DM 1 billion in 1994. The
billion-DM threshold was thus reached
one year ahead of schedule, a success
primarily attributable to the "Purchasing
Drive in the New Federal States".
Personnel Adjustments Necessary
The Daimler-Benz group had
330,551 employees at the end of the
year (366,736 in 1993). The cutback
affected above all the workforce in
Germany, where the number of em•
ployees dropped from 284,576 to
251,254. At the end of 1994 Mercedes-
Benz had 197,568, AEG Daimler-Benz
Industrie 44,769, DASA 75,581, debis
9,226, and Daimler-Benz AG 3,407
Capital expenditures at AEG
salaried and hourly-paid employees.
For group management tasks, all in all
amounted to DM 0.6 billion; at DASA,
DM 0.7 billion; at debis, DM 0.2 billion;
and at headquarters, DM 0.1 billion.
Additions to leased equipment
totaled DM 5.6 billion (1993: DM 5.9
billion). The amount of outside capital
used for leasing and sales financing was
DM 14.5 billion (1993: DM 13.7 billion).
5
20 employees were employed at
headquarters.
The adjustment of capacities to an
Investments for the Future
internationally competitive level, initia•
ted in previous years, was continued in
The investments in property, plant
and equipment in 1994 totaled DM 4.7
billion (1993: DM 5.4 billion). If the
effects especially of the first-time
1994. We were able to make personnel
cutbacks in a socially acceptable man•
ner for the most part; only in exceptional inclusion of Fokker in 1993 are taken
DM 8.7 Billion Expended for
cases were layoffs necessary. The
number of employees also declined
through the dissolution of divisions
and divestiture of business interests.
In many parts of AEG Daimler-Benz
Industrie and DASA, working hours
also had to be shortened.
into consideration, investments reached
the same level as in the year before. The
increase in intangible assets amounted
to DM 0.6 billion. Depreciation and
disposal of tangible and intangible
assets amounted to DM 5.9 billion.
We invested in new production
Research and Development Projects
We spent a total of DM 8.7 billion
(1993: DM 9.0 billion) on research and
development. Included in this figure is
DM 3.5 billion for contract-related
development services, incurred almost
exclusively by Daimler-Benz Aerospace.
The group continues to place high value
on environmental safety; our expenditu•
technology, product diversification, and
rationalization measures. The focus of
the investments was on Mercedes-Benz, res for environmental protection mea•
at DM 2.9 billion (1993: DM 2.6 billion).
In the Passenger Cars Division, the bulk
of the investment budget of DM 1.5
billion was allocated to production
preparations for the new E-class, the
new engine plant in Stuttgart-Bad
Cannstatt and the transition to water-
based paint technology. In addition, we
invested in production preparations for
sures in 1994 came to over DM 680
million.
Business Review