Sales up 18 percent to 270,500 units for the first six months of the year. Revenues up 16 percent to 12.8 billion euros
.

Freightliner

Photo: DaimlerChrysler

Brand and Product Growth

The growth of the Commercial Vehicles division is based on its solid positioning in the majority of its international markets. Sales in Germany rose 15 percent to approximately 56,100 units. DaimlerChrysler succeeded in selling over 86,100 commercial vehicles in the rest of Europe - an increase of six percent.

Once again the Commercial Vehicles division posted extremely positive results on the U.S. market. DaimlerChrysler boosted its North American sales to some 92,100 units –83 percent more than during the same period last year. The picture was mixed in other markets, however. In Latin America - traditionally an important market for the company - sales decreased 33 percent to 23,700 commercial vehicles, and in Turkey, where DaimlerChrysler maintains production facilities, sales also fell as a result of the economic crisis in that country.

Looking at the Commercial Vehicles division's activities worldwide, it is clear that the entire product range contributed to the positive development of sales during the first half of 1999. DaimlerChrysler sold 108,100 vans (up 5 percent), 138,200 trucks (up 30 percent) and increased bus sales by 29 percent to 21,000 units between January and June of this year.

George Surdu, director of Technical Services, and Ford Motor Company's Year 2000 Global Program manager, testified on Ford's behalf, stressing that Ford is, "right on target with its Y2K readiness." Surdu also testified Ford has been working with its suppliers to ensure their Y2K readiness, and ensure Ford will be able to maintain an unbroken supply chain. He added that an enterprise test plan for all key business processes has been developed, with completion scheduled in September.

Senator Bob Bennett, Chairman of the Senate Special Committee on the Year 2000 technology problem reminded the witnesses of the important role global corporations play. "The companies represented here today have developed exemplary Y2K programs and established themselves as leaders. You are here as an example of companies that are doing it right," he said. Also testifying at the hearing were Y2K experts from the U.S. Department of State, CIO Magazine, International Telecommunications Union, Ahold USA, Inc., Philip Morris Companies, Procter & Gamble, and Praxair, Inc. In November Ford Motor Company was the first automotive manufacturer to become certified by the Information Technology Association of America as meeting its Y2K best practices standards.

- In a next step, Gefco and Kuehne & Nagel will merge their respective activities in Belgium, Italy, the Netherlands, Portugal, Spain, and the United Kingdom under the umbrella of new companies, in which Gefco holds the majority. They are uniformly to be named Gefco-KN.

In the remaining 28 countries, the partners will continue to operate with their own national companies: Gefco in France, and Kuehne & Nagel in Scandinavia, Eastern Europe, Austria, Greece, Luxembourg, Switzerland and Turkey.

With the objective of centrally steering their new pan-european network, the partners are to set up a Gefco-controlled joint management company in Paris. The network will not only implement uniform IT and communication systems, but also work to the same high operational and quality service levels. Within the framework of the strategic alliance agreement, Gefco shall utilize Kuehne & Nagel's ocean and airfreight network comprising some 500 locations in more than 80 countries around the globe.