Daimler Sells Equity Interest In Tata Motors

STUTTGART, Germany, March 9 /PRNewswire-FirstCall/ -- Daimler (stock exchange abbreviation DAI) today sold all of its 5.34% of the ordinary shares of Indian automotive company Tata Motors to various groups of investors through the capital market. Tata Motors' share price has risen significantly, especially last year, so Daimler will receive a substantial cash inflow of approximately euro 300 million from the sale of its shares. The transaction will have a positive effect on Daimler's EBIT of approximately euro 265 million and will be accounted for in the first quarter of 2010.

(Logo:  http://www.newscom.com/cgi-bin/prnh/20080409/NYW017LOGO )

Daimler is today in an excellent position to capitalize on the growth potential of the Indian passenger and commercial vehicle markets and continues to intensify its own activities there. An equity participation of Daimler in Tata is therefore no longer necessary. This has been done in full consultation with Tata. Relations between the two companies are excellent and will not be adversely affected by this sale.

Significant growth potential of Indian market

Despite the global financial crisis, the Indian economy is clearly booming, accompanied by dynamic social developments and a corresponding need to catch up for the country's automotive industry. Daimler is participating in these growth opportunities by strengthening its own activities in both, the car and commercial vehicle sectors.

Mercedes-Benz Cars

Mercedes-Benz is firmly established in India. The wholly owned subsidiary Mercedes-Benz India has been producing Mercedes-Benz cars and commercial vehicles in Pune since 1995. In February 2009, a new plant was opened in Pune for Mercedes-Benz E-Class and S-Class models. Meanwhile, the brand is represented with showrooms and service centers in 25 cities.

The brand with the star started successfully into 2010 in India: In the first two months, Mercedes-Benz almost doubled its sales to a total of 800 vehicles. Additional positive impetus is expected this year from the launch of the new E-Class. In 2010, Mercedes-Benz intends to gain market share and to grow at a double-digit rate. A total of more than 3,200 Mercedes-Benz cars were delivered to customers in India last year.

Daimler Trucks

Daimler Trucks sees India as one of the key markets of the future, because particularly strong growth in demand for commercial vehicles is expected in the BRIC countries (Brazil, Russia, India and China). Daimler India Commercial Vehicles Ltd. (DICV) took over the marketing of Fuso branded commercial vehicles in India at the beginning of 2010. The first Fuso vehicle was sold to an Indian customer in January 2010.

For Daimler Trucks, India is not only a fast-growing market, but also the key to a completely new generation of products. In 2009, Daimler Trucks founded its own production company, Daimler India Commercial Vehicles Ltd. (DICV), which is building a new plant in Chennai in the southeast of India. Starting in 2012, the new plant will initially produce light, medium and heavy-duty commercial vehicles for the Indian volume market under a new brand name. The production of trucks for export to other emerging markets will follow at a later date.

In addition to its car and commercial vehicle activities, Daimler also established its biggest research and development center outside Germany in Bangalore in 1996.

Further information on Daimler is available on the Internet: www.media.daimler.com  

This document contains forward-looking statements that reflect our current views about future events. The words "anticipate," "assume," "believe," "estimate," "expect," "intend," "may," "plan," "project," "should" and similar expressions are used to identify forward-looking statements. These statements are subject to many risks and uncertainties, including a lack of further improvement or a renewed deterioration of global economic conditions, in particular a renewed decline of consumer demand and investment activity in Western Europe or the United States, or a downturn in major Asian economies; a continuation or worsening of the tense situation in the credit and financial markets, which could result in a renewed increase in borrowing costs or limit our funding flexibility; changes in currency exchange rates or interest rates; the ability to continue to offer fuel-efficient and environmentally friendly products; a permanent shift in consumer preference towards smaller, lower margin vehicles; the introduction of competing, fuel-efficient products and the possible lack of acceptance of our products or services, which may limit our ability to adequately utilize our production capacities or raise prices; price increases in fuel, raw materials and precious metals; disruption of production due to shortages of materials, labor strikes, or supplier insolvencies; a further decline in resale prices of used vehicles; the effective implementation of cost-reduction and efficiency-optimization programs at all of our segments, including the repositioning of our truck activities in the NAFTA region and in Asia; the business outlook of companies in which we hold an equity interest, most notably EADS; changes in laws, regulations and government policies, particularly those relating to vehicle emissions, fuel economy and safety, the resolution of pending governmental investigations and the outcome of pending or threatened future legal proceedings; and other risks and uncertainties, some of which we describe under the heading "Risk Report" in Daimler's most recent Annual Report and under the headings "Risk Factors" and "Legal Proceedings" in Daimler's most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission. If any of these risks and uncertainties materialize, or if the assumptions underlying any of our forward-looking statements prove incorrect, then our actual results may be materially different from those we express or imply by such statements. We do not intend or assume any obligation to update these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made.

About Daimler

Daimler AG is one of the world's most successful automotive companies. With its divisions Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services, the Daimler Group is one of the biggest producers of premium cars and the world's biggest manufacturer of commercial vehicles with a global reach. Daimler Financial Services provides its customers with a full range of automotive financial services including financing, leasing, insurance and fleet management.

The company's founders, Gottlieb Daimler and Carl Benz, made history with the invention of the automobile in the year 1886. As an automotive pioneer, Daimler continues to shape the future of mobility. The Group applies innovative and green technologies to produce safe and superior vehicles which fascinate and delight its customers. With the development of alternative drive systems, Daimler is the only vehicle producer investing in hybrid drive, electric motors and fuel-cell systems, with the goal of achieving emission-free mobility in the long term. This is just one example of how Daimler willingly accepts the challenge of meeting its responsibility towards society and the environment.

Daimler sells its vehicles and services in nearly all the countries of the world and has production facilities on five continents. Its current brand portfolio includes, in addition to the world's most valuable automotive brand, Mercedes-Benz, the brands smart, Maybach, Freightliner, Western Star, Fuso, Setra, Orion and Thomas Built Buses. The company is listed on the stock exchanges of Frankfurt, New York and Stuttgart (stock exchange symbol DAI). In 2009, the Group sold 1.6 million vehicles and employed a workforce of more than 256,000 people; revenue totaled euro 78.9 billion and EBIT amounted minus euro 1.5 billion.

SOURCE Daimler Corporate Communications

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED