DaimlerChrysler Profile, Honda Profile and Renault Profile

DaimlerChrysler Profile

The German company Daimler-Benz merged with US based Chrysler to form DaimlerChrysler in 1998 (see automotive mergers and acquisitions). It has five business units: Mercedes car group, Chrysler group, commercial vehicles, services and other activities. Its product portfolio ranges from small cars to sports cars and luxury sedans; and from versatile vans to heavy-duty trucks and coaches.

It markets its cars and commercial vehicle, under an array of brand names like Maybach, Mercedes-Benz, Chrysler, Jeep, Dodge, Smart, Freightliner, Sterling, Western Star, Setra, and Mitsubishi Fuso. DaimlerChrysler is well positioned globally with strong passenger car and commercial vehicle brands. It more or less operates in every product category and consumer segment. With nearly 100 manufacturing bases in 17 countries, DaimlerChrysler sells its products in over 200 countries.

DaimlerChrysler Financial Profile

In 2003, DaimlerChrysler reported net earnings of EUR448 million in a difficult market environment. The decrease in net earnings, from EUR4718 million in 2002, was primarily due to Chrysler Group’s negative result and the negative contribution from its investment in Mitsubishi Motors. Lower volumes and high customer incentives in a difficult US market (see US auto industry) also depressed profits significantly.

Mercedes car group’s revenues increased to EUR51,446 million in 2003 from EUR50,170 million in 2002 due to better model mix.

The revenues of Chrysler group fell from EUR60,181 million in 2002 to EUR49,321 million in 2003 due to currency fluctuations.

The revenues of commercial vehicles increased to EUR28,517 million in 2003 from EUR28,401 million in 2002, despite challenging market conditions, due to the success of efficiency boosting programs at all of the division’s business units..

The total revenues of the services unit came down from EUR15,699 million in 2002 to EUR14,037 in 2003, due to the appreciation of the euro against dollar.

The revenue of the other activities unit decreased to EUR440 million in 2003 from EUR2,723 million in 2002 owing to sale of the MTU Aero Engines business unit towards the end of 2003.

Honda Profile

Honda Motors, established in 1948, is one of the leading producers of automobiles and the largest manufacturer of motorcycles in the world. It is recognized internationally for its expertise and leadership in developing and manufacturing a wide variety of products ranging from small general purpose engines to specialty sports cars - all incorporating its renowned engine technology, known for its quality, durability and reliability.

About 17.2 million Honda products were sold worldwide during the fiscal year ending March 31, 2004. Honda has a worldwide market share of 6 percent in the automobile business. It operates through a global network of 441 subsidiaries and affiliates.

Honda’s businesses are broadly divided into four areas: motor cycles, automobiles, financial services and power products and other divisions. Honda has 31 factories, five of them in Japan (see Japan auto industry).  Honda produces a wide range of motorcycles from 50 cc to 1,800 cc. Its principal automobile products include passenger cars, multi-wagons and mini-vehicles. It offers a variety of financial services to its customers and dealers through financial subsidiaries in Japan and abroad. It manufactures a variety of power products, including power tillers, portable generators, general-purpose engines, grass cutters, outboard engines, water pumps, snow throwers, power carriers, power sprayers, lawn mowers and lawn tractors.

Honda Financial Profile

Overall sales of Honda moved up by 2.39 percent in 2004. Net earnings, meanwhile, went up from USD4,040 millions in 2002/03 to USD4,397 million in 2003/04 owing to better operational efficiency, see table 29. Purchase full updated report here. Honda has improved its net margin from 4.30 percent in 2000 to 5.69 percent in 2004.

Renault Profile

Renault is the flagship company of the Renault Group. It holds a stake of 44.4 percent in Nissan Motors and 20 percent in AB Volvo (see automotive mergers and acquisitions). Renault also holds 99.1 percent of Dacia’s equity and a 70 percent stake in Renault Samsung Motors. Renault group has over 350 industrial and commercial sites in more than 40 countries and employs 130,740 people globally. The collective global market share of Renault and its partners touched 9.3 percent in fiscal year 2003. Renault group posted revenue of EUR37.5 billion in 2003, up 3.8 percent.

The Group's activities are organized into two divisions: automobile division and sales finance division. The automobile division, accounting for 95 percent of total revenues, is responsible for designing, manufacturing and marketing passenger cars and light commercial vehicles.

The sales finance division, accounting for 5 percent of total revenues, is a complementary division, which brings together subsidiaries responsible for sales financing and services. It is additionally responsible for managing the group’s cash funds. RCI Banque and its subsidiaries handle the activities of the division and RCI Banque is the entity that finances sales and services for the Renault group and Nissan brands.

Renault Financial Profile

The revenues of the Renault Group grew by 3.8 percent to EUR37,525 million in fiscal year 2003, see table 30. The automobile division achieved revenues of EUR35,535 million in 2003, an increase of 3.7 percent, largely due to the success of new models and a steady rise in diesel sales. This positive impact offset a drop in sales in France caused by a sharp contraction in the overall automobile market. The rise in international billings and stronger sales of components and assemblies to other firms also gave a positive thrust to revenue. 

The group posted better net earnings of EUR2,480 million in fiscal year 2003 compared with EUR1,956 million in 2002, owing to cuts in purchasing and production costs, overheads and R&D expenses.

The sales financing division posted a revenue of EUR1,990 million in 2003, up 5.1 percent. This increase in revenue is due to 8.8 percent rise in average loans outstanding and 9.2 percent increase in sales of financing-related services in 2003 (general insurance, corporate fleet services).

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