Annual Report 2017

Investment

In the context of our strategy of strengthening our core business, we aim to make good use of the opportunities presented by the global automotive markets. At the same time, we intend to play a major role in shaping the fundamental technological change occurring in the automotive industry, and to assume a leading role with the development of the future areas of CASE (Connected, Autonomous, Shared & Services and Electric). This requires substantial investment in innovative products and new technologies, as well as in the expansion of our worldwide production network. In 2017, we therefore once again significantly increased our investment in property, plant and equipment – as already announced in Annual Report 2016 – from an already high level to €6.7 billion (2016: €5.9 billion).

At December 31, 2017, financial obligations of €4.0 billion exist in connection with future investments in property, plant and equipment.

Daimler AR2017 B.27 Investment in property plant and equipment

B.28 Investment in property, plant and equipment by division

  2017 2016 16/15
In millions of euros     % change
     
Daimler Group
in % of revenue
6,744
4.1
5,889
3.8
+15
Mercedes-Benz Cars
in % of revenue
4,843
5.1
4,147
4.6
+17
Daimler Trucks
in % of revenue
1,028
2.9
1,243
3.7
-17
Mercedes-Benz Vans
in % of revenue
710
5.4
373
2.9
+90
Daimler Buses
in % of revenue
94
2.2
97
2.3
-3
Daimler Financial Services
in % of revenue
43
0.2
37
0.2
+16

At Mercedes-Benz Cars, investment in property, plant and equipment of €4.8 billion in 2017 was significantly above the prior-year level (2016: €4.1 billion). The most important projects included the model upgrade of the S-Class and the successor models in the compact class, as well as new combustion engines and transmissions. We also made substantial investments in the reorganization of our German production facilities as competence centers and in the expansion of our international production network. At the same time, we are preparing our worldwide production network for electric mobility. The main areas of investment at Daimler Trucks in 2017 were successor generations for existing products, new products, global component projects and the optimization of the worldwide production network. Total investment in property, plant and equipment at Daimler Trucks decreased to €1.0 billion (2016: €1.2 billion). At the Mercedes-Benz Vans division, the focus of investment was on the next-generation Sprinter in Germany and the United States. The main investments at Daimler Buses in the reporting period were in alternative drive systems, new products and the modernization of the production network.

In addition to property, plant and equipment, we also invested in associated companies and joint ventures in the reporting period. Through targeted investments, we strengthened our position especially in the area of mobility services and in the development of a charging infrastructure for electric mobility. Also in 2017, Daimler acquired an equity interest of 15 % in LSH Auto International Limited (LSHAI) for €0.3 billion. LSHAI is a subsidiary of Lei Shing Hong Group and is one of the biggest Mercedes-Benz dealers worldwide. With this transaction, the two partners are strengthening their longstanding cooperation.

Furthermore, we capitalized development costs of €2.8 billion in 2017 (2016: €2.3 billion); this is presented under intangible assets. (See Intagible assets)

Zurück
Refinancing
Other financial commitments