Global sales - May 2011 - Audi, BMW, MB

[EnI]

Does someone know if Diamler AG shifts money from diffrent divisions..to finance R&D and so on?

Usually they do not. Usually there's no money shifting between divisions. According to my knowledge every Daimler division has it's own accounting / book-keeping system. But I guess one division can land some money to other division if there's extra free cash available - since it's cheaper than eg. getting it from bank. But that's happening in emergencies only - when a certain division has a huge liquidity problem, while other has huge amount of free cash. Not a current situation within Daimler though.

The concern is there to provide synergies & some economies of scale advantages. But there is a tendency to make divisions financially as independent as possible.

But sure there is some common R&D going on within the concern - so I guess all the divisions participate with their own resources. Some less, some more. In this case it can be said one division helps another. But not directly financially.

It's not like - we'll cancel some commercial vehicle plans & pour the money from truck division into passenger car division.

They have learned how damaging can be when one division lives on & eats other divisions' money. Remember "DaimlerChrysler - the horror movie"?

 

[LaArtist]

In that case i do not know where they pull the money from.. to have a huge line up..and still invest in halo models like Black Series cars..sports cars..maybach.. and what not..

Cause its pretty simple..if they are self sustaining and do not get help from rest of daimler..then they should have less money to play with than BMW..as BMW sells more..and profits more..

Or maybe BMW pays out to shareholders..while MB reinvests whatever they make..:s

 

[LaArtist]

Just fun facts:

Daimler:

Revenue €97.76 billion (2010)
Operating income €7.274 billion (2010)
Profit €4.498 billion (2010)
Total assets €135.83 billion (end 2010)
Total equity €37.95 billion (end 2010)
Employees 260,100 (end 2010)

BMW:
Revenue €60.48 billion (2010)
Operating income €5.094 billion (2010)
Profit €3.218 billion (2010)
Total assets €108.87 billion (end 2010)
Total equity €23.10 billion (end 2010)
Employees 95,450 (end 2010)

Audi:
Revenue €35.441 billion (2010)
Profit €1.850 billion (2009)
Total assets €16.832 billion (2009)
Total equity €3.451 billion (2009)
Employees 46,372 (2009)

VAG:

Revenue €126.88 billion (2010)
Operating income €7.141 billion (2010)
Profit €6.835 billion (2010)
Total assets €199.39 billion (end 2010)
Total equity €48.71 billion (end 2010)
Employees 399,380 (end 2010)

 

[LaArtist]

^ its pretty obvious who the Giant is.. as VAG is a total of about 15 brands under its umbrella..
While Diamler has 5 maybe.. and 2 of them are Smart and MM.. which are bearly qualified to be called brands

So more or less..Daimler is Mercedes-Benz and everything that comes with it.. Trucks,Cars, Vans.. and the Stake in EADS

 

[Wolfgang]

Mercedes-Benz seems to be happy with the recent performance, on a path of profitable growth.

SOME SALES GOALS

2011
From today’s perspective, the Group anticipates unit sales of more than 1.2 million automobiles solely of Mercedes-Benz brand in the full year. Including smart, unit sales should exceed 1.3 million. “We want to make our anniversary year a record year as well,” stated Zetsche. With their inventions 125 years ago, Gottlieb Daimler and Carl Benz laid the foundations for the present Daimler Group.

2015
Zetsche has no doubt that the structural upheaval in the automotive industry will continue after the economic crisis: “The focus of regional growth is shifting to Asia and we are experiencing a technological paradigm shift toward electric mobility.” He believes it is necessary to play a role in shaping this “dual transformation” without neglecting the core business and without putting all of one’s eggs in one basket in a volatile world. Daimler has always given this structural task top priority. By 2015 at the latest, the Mercedes-Benz brand is to pass the annual sales mark of 1.5 million cars.

Daimler Annual Shareholders? Meeting: We are on a path of profitable growth | Daimler > Investor Relations > News

 

[EnI]

One of my posts from March - 2010 financial results:

Yes.

Daimler Group = MB Cars + MB Vans + Daimler Trucks + Daimler Buses + Daimler Financial Services.
BMW Group = Automobiles + Motorcycles + Financial Services.

Here you have financial results of the car divisions only:

MB Cars (MB + smart + Maybach): EUR 53.4 billion revenues, EBIT of EUR 4.66, 8.7% profit margin.

BMW Automobiles (BMW + MINI + RR): EUR 54.1 billion revenues, EBIT of EUR 4.35, 8.0% profit margin.

Audi AG (Audi + Lamborghini): EUR 35.4 billion revenues, EBIT of EUR 3.34 billion, 9.4% profit margin.

 

[Merc1]

I wonder at what point will these companies stop trying to grow and just refine what they have? I remember when Mercedes only sold about 800K units a year, now about 15-20 years later they're going for 1.5 million units. I think that is absolutely enough new Mercedes-Benzes in the world each year.


M

 

[HighestOfHigh]

I wonder if this was the result of BMW's buy one get one free sale?

 

[Merc1]

For me, now BMW is hitting on all cylinders. The entire line looks great....sure the 1-series is putrid, but we don't get the really ugly version here so BMW is all good with me. Its either a BMW or Audi for me next. End of Story. The CLK430 Cab will be put on strick weekend duty.


M

 

[K-A]

I wonder at what point will these companies stop trying to grow and just refine what they have? I remember when Mercedes only sold about 800K units a year, now about 15-20 years later they're going for 1.5 million units. I think that is absolutely enough new Mercedes-Benzes in the world each year.


M

I agree with this. I wish M-B would stop focusing on growth, and start segway'ing the brand into some sort of hybrid of being what it is now, and what they wanted Maybach to be. I don't want Benz to be the next Toyota. It would be nice if they had some sub-brand to dilute with all the cheap practical/econ/appliance models.

However, I don't agree with BMW. I think BMW have some very nice cars, however, IMO they have some of the ugliest cars available by any German manufacturer. IMO both M-B and Audi have more consistent and "less ugly duckling amongst Princesses" models that are coming out. M-B is in a weird transitional area, but once the "post-Chrysler era" models are all on showrooms (ML, GL, SLK already, etc.) it will look more coherent, subjective design opinions aside.

I think M-B has the most exciting and powerful appearing lineup of the "Big 3", Audi has the simple and "new kid on the block" fresh understated approach, and BMW has sort of a mixed bag, some classic and smooth models that are very reserved and nearly identical to each other, save for some inches here and there, and some really quirky and bloated ones.

All in all, M-B and BMW are the only two I'd give my money to, still, but Audi has some nice cars that I wouldn't mind to have around, if I was looking for something Euro, refined, and less "statement"-y.

 

[Sunny]

I wonder at what point will these companies stop trying to grow and just refine what they have? I remember when Mercedes only sold about 800K units a year, now about 15-20 years later they're going for 1.5 million units. I think that is absolutely enough new Mercedes-Benzes in the world each year.


M

Sounds good, except under modern free market system, if you stop growing, you will die.

 

[EnI]

Until people will have enough money to buy cars, growth is here to stay. The fittest will survive, the weakest will die off (or will be acquired by some rival). It's a business rule that can't be overturned. And when market for certain product is saturated, and no further penetration is possible, then the compny can only grow by offering new innovative products in new market segments. It's a business, not some romantic fairytale.

 

[K-A]

Yes, of course it's a business, but there are also elements of "romance" that are validated within it. If being huge and growing, and making profits/market-share, etc. are ALL that matter, then why doesn't M-B and BMW take up Toyota's market share? Why don't they release a Camry equivalent/competitor, or a Corrolla one, etc.? Obviously there's still elements of quality and discipline that they incorporate while growing. Enthusiasts are here to make sure they don't lose focus in what their predecessors did to get them to their ICONIC statuses that they're at, today.

I want these guys to make as much money as they can, as to ensure that they remain individual/non-"bought", and able to invest adequate R&D money, but hopefully they still protect their core brands qualities, or else they'll just become "another automaker".

 

[EnI]

I doubt SLS buyer / owner cares about B-class, or A-class. His romantic story with Mercedes - Benz is the one with MB SLS. And that's it. While some other customer have its relationship with B-class, or R-class. What's the problem here? We all know what MB stands for - and what that promise & quality is delivered in a particular product, it doesn't matter. B-class prospect looks for MB values in this segment, while SLS prospect seeks for the same values in that particular segment SLS is a part of.

With over million cars sold per year BMW, MB & Audi are hardly exclusive brands. So, what's the problem? Selling 1 million, or 2 million cars - both is way over of being exclusive. Want an exclusive car? Pick some exotic luxury brand.

MB, BMW, Audi etc are just premium brands for masses. That's it. No romantics here.

 

[Merc1]

For a change, I actually agree with EnI. It is what it is at this point and Sunny is right also, you do have to grow the business because everyone else is doing it also. Mercedes-Benz is just too big now to go back to the 800K unit a year type of operation. I just want Mercedes to be the best and if they can do that at 1.5 million units a year so be it. There are other things (for me) IMO that need more attention at MB than their raw business case.


M

 

[Beemer B773ER]

^ its pretty obvious who the Giant is.. as VAG is a total of about 15 brands under its umbrella..
While Diamler has 5 maybe.. and 2 of them are Smart and MM.. which are bearly qualified to be called brands

So more or less..Daimler is Mercedes-Benz and everything that comes with it.. Trucks,Cars, Vans.. and the Stake in EADS

Yep, and it's also pretty easy to see just how much Audi leans on VW. Looking at those numbers you posted, I now view Audi as a premium sub-brand of VW (eg: as Lexus is to Toyota) rather than Audi being its own brand under the VAG mother-ship.

Thanks for digging up those figures Artist.. very fascinating stuff!

 

[LaArtist]

^no probs.. i thought we should get another perspective on things.. sales are worth shit..if there is no profit to show

 

[K-A]

Growth is fine, as long as they maintain a level of quality and integrity in their offerings.

For example, I have a hard time coming around to BMW, when I see preposterous cars like the 5 GT, and some of the "X" models, etc. It makes me see them in a lesser light, as does the R-Class, etc. "DILUTION" is an important word for these Premium brands (in terms of avoiding it), with all the new products, GT's, GC's, etc. etc. coming out from BMW in the coming years, I don't see how they can avoid brand dilution, and if they continue with that, then I don't see how they will be able to retain premium status as a brand in the future. They'll still have premium cars, but IMO, it'll be more like "Premium cars by a mass-market Toyota-esque brand".

They should just go the Lexus/Toyota route if they want to grow, and protect their core/luxury brands. Keep BMW and Mercedes as the Luxury high-end cars that maintain a certain appeal, and use the other brands for maximum dollar/growth. I'm sure that's much easier said than done, but one can dream.

 

[Human]

VW, BMW lead Europe car sales recovery on German demand

June 17, 2011

MILAN -- Volkswagen AG and BMW AG led Europe's strongest car-sales recovery in 14 months in May, as new models attracted buyers in Germany and France. Registrations rose 7.6 percent from a year earlier to 1.25 million vehicles, industry association ACEA said today in a statement. Five-month sales decreased 0.4 percent.

Demand in Germany and France, Europe's two biggest car markets, expanded 22 percent and 6.1 percent, respectively. European car deliveries have declined every month except two since April 2010, after an end to government-funded car scrapping incentive programs curtailed demand.

"The European market shows signs of recovery," said Fiat S.p.A. head of sales Andrea Formica. "It's still a two-speed market. Germany and France are growing, while Italy, Spain and Greece are still facing difficulties," Formica told reporters at a Fiat model presentation June 14.

Volkswagen, Europe's biggest carmaker, benefited from the sales rebound in its German home market as Europe's largest economy grows. The VW Group recorded a 16 percent sales increase last month to 299,841 vehicles. Its European market share rose to 23.9 percent in May.

BMW sales advanced 22 percent to 77,784 cars. European sales at General Motors Co. rose 16 percent to 110,157 vehicles. Sales for Ford Motor Co. rose 9.7 percent last month. Toyota Motor Corp. and Renault SA recorded declines of 9.5 percent and 8 percent.

Fiat, which also runs Chrysler Group LLC, continued to lose market share last month, falling to 7.3 percent from 7.8 percent, while sales rose 0.2 percent led by a surge in Alfa Romeo deliveries. CEO Sergio Marchionne expects to recover share in the second half of the year with new models such as the subcompact Lancia Ypsilon and the Fiat Freemont, a European version of the Dodge Journey.

Overall new-car sales have declined in the region for the last three years, dropping to 13.8 million vehicles in 2010 from 16 million in 2007, the last year deliveries gained, according to ACEA figures.

Source: Bloomberg

 

[EnI]

I like M-B being the lower volume seller than the other two, as long as their brand image/cache and quality stays ahead (which IMO it does).

To your horror Mr. Zetsche has just announced MB will again enter the "#1 Premium carmaker by Volume" race: “We clearly take on the race for volume. Mid-term, long-term, we are sure that we will be in the hunt for the No. 1 position.”

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