No Love Lost Between Old Partners Daimler & Chrysler

Implications: Daimler chairman and Mercedes-Benz Cars chief Dieter Zetsche on Wednesday told the annual meeting in Berlin that, after six months minus Chrysler: "All of our business operations are developing well-our key figures are significantly better than they have been in recent years."

Analysis: In addressing the annual meeting of stockholders, Mercedes Benz chief Dieter Zetsche was careful to point out that MB in no way missed its former partner Chrylsler.

Daimler's road map for sustainable mobility consists of: the ongoing optimization of vehicles with innovative combustion engines; the additional improvement of efficiency through hybridization; and zero-emission driving with fuel cells and battery-driven systems.

MB aims to offer at least one model in each MB core model series that is a leader in terms of consumption and emissions. In addition to zero-emmision driving, Daimler is also pursuing the goal of accident-free driving.

On the economy, Zetsche said: "Currently, the economic climate suggests that things will get tougher rather than easier." Key factors are the credit crisis in the U.S., the ongoing weakening of the dollar against the euro, the development of the raw material markets, and the low level of confidence in the U.S. economy with possible effects around the world.

Demand for passenger vehicles in the U.S. is likely to be much lower this year than in 2007; in Western Europe, it is expected to remain flat.

Industry growth will continue to be driven by emerging markets, whose growth is so dynamic it should offset other slowdowns.

Mercedes Benz Cars aims to achieve an average return on sales of 10% beginning in 2010. For Daimler Trucks, the company aims to achieve an average return on sales of 8% beginning in 2010.

Daimler Financial Services global contract volume is expected to continue expanding. In that business, the Group aims to achieve a return on equity of at least 14% in 2008 and beyond.