Investment still on high level. In the context of our growth strategy, we aim to make good use of the opportunities presented by international automotive markets. This requires substantial investment in new products and new technologies as well as in the expansion of our worldwide production network. In 2014, we therefore once again invested a very high amount of €4.8 billion in property, plant and equipment (2013: €5.0 billion). However, we did not quite reach the investment volume that we planned in the previous year and announced in Annual Report 2013. This was partially due to the very efficient application of our financial resources and the postponement of some investment projects. As of December 31, 2014, no material financial obligations exist in connection with future investment in property, plant and equipment.
At Mercedes-Benz Cars, investment in property, plant and equipment of €3.6 billion was almost at the prior-year level. The most important projects included the models of the new C-Class, which has been in production since 2014 in Bremen as well as in Tuscaloosa, Beijing and East London. Another focus of investment was on new sport-utility vehicles. We also made substantial investments in the modernization and realignment of our German production plants as competence centers, as well as in the expansion of our production capacities in the United States. The main areas of investment at Daimler Trucks were for new products such as the Western Star 5700XE, the new FUSO Super Great V and the new Actros and Arocs heavy-duty tractor units (SLT). In addition, progress was made with various projects for the global standardization of engines and other major components. As in the previous year, total investment in property, plant and equipment at Daimler Trucks amounted to €0.8 billion. At the Mercedes-Benz Vans division, the focus of investment was on the new Viano multipurpose vehicle and the next generation of the Vito. The main investments at Daimler Buses in 2014 were in new products and the modernization of production facilities.
In addition to capital expenditure on property, plant and equipment, we also invested amounts in associated companies and joint ventures in 2014.
Furthermore, we capitalized development costs of €1.1 billion in 2014 (2013: €1.3 billion); this is presented under intangible assets. (See Research and development)
|Investment in property, plant and equipment by division|
|In millions of euros||% change|
|in % of revenue||3.7||4.2|
|in % of revenue||4.9||5.8|
|in % of revenue||2.4||2.7|
|in % of revenue||3.0||3.1|
|in % of revenue||2.5||1.9|
|Daimler Financial Services||23||19||+21|
|in % of revenue||0.1||0.1|