AMGmarket.com News/Source: Stuttgart – Mercedes-Benz sales are once again setting new records: Last month the brand had its best June ever. Worldwide, a total of 120,510 passenger cars (June 2010: 113,297) were delivered to customers, an increase of 6.4 percent compared to the same month last year, when a high sales volume was recorded. Thanks to the strong sales in June, the second quarter of this year was the highest-volume quarter ever; sales increased 7.2 percent to a total of 329,979 units (Q2 2010: 307,733). In the first half of the year overall, Mercedes-Benz thus sold more vehicles than in the first half of any previous year. From January to June, 610,531 customers (Jan.-June 2010: 556,691) decided to buy a Mercedes-Benz brand vehicle, an increase of 9.7 percent.

Dr. Joachim Schmidt, Executive Vice President Sales and Marketing Mercedes-Benz Cars: “The first half of the year went very well for Mercedes-Benz. We achieved double-digit increases in many markets, our products are in demand, and we succeeded in setting a new record. Our aim is to continue this trend. In the second half of 2011 we want to achieve further growth compared to last year.” In addition to the very popular new C-Class generation, the new M-Class will also be a driver of the positive development. Customers can order the M-Class starting on July 11, the market launch in Western Europe will be in fall. Dr. Schmidt: “We’re on the right track, and this year we have our sights set on achieving an all-time sales record by selling more than 1.3 million Mercedes-Benz passenger cars and smart fortwo.”

The first half of this year was marked by dynamic development and high growth rates, particularly in Asia and the BRIC countries. Sales of Mercedes-Benz vehicles in China rose 52.3 percent to the record-setting level of 92,174 units (Jan.-June 2010: 60,511). Deliveries in June were up 19.1 percent compared to June 2010, with 16,278 units (June 2010: 13,667) sold - yet another new record. Dr. Schmidt: “In China we will begin production of the GLK for the Chinese market later this year. From 2013, we will gradually start with the local production of three of our new compact cars, thus establishing the conditions for continued dynamic growth of Mercedes-Benz in China. We expect to sell 300,000 units there in 2015.”

Good news was also reported in the other Asian markets: In Taiwan (plus 45.0 percent) and South Korea (plus 16.6 percent) Mercedes-Benz surpassed the previous best marks in the first half of the year. This was also the case in India (plus 40.3 percent) and Russia (plus 70.6 percent). Mercedes-Benz sales in Brazil were up 34.7 percent compared to the first half of 2010. In June, Mercedes-Benz achieved the best month of the company’s history in Brazil and Russia.

The brand was also very successful in its second largest market, the U.S. Sales were up 13.0 percent to 20,652 passenger cars in June (June 2010: 18,269). Deliveries to American customers totaled 110,926 units (2010: 103,674) for the first half of the year, an increase of 7.0 percent. In Canada, Mercedes-Benz set a new record for the period of January through June (14,503 units, plus 1.5 percent).

Mercedes-Benz remained the best-selling premium brand in Germany last month. Sales totaled 26,747 vehicles, nearly reaching the high sales volume of June 2010 (26,974). Since the beginning of the year, deliveries have risen slightly to 123,013 units (Jan.- June 2010: 122,458). In Western Europe (without Germany), Mercedes-Benz sold 153.830 passenger cars in the first half of 2011, a slight increase compared to last year (Jan.-June 2010: 152.332) – despite decreases in many of the total markets. There was especially strong demand for Mercedes-Benz vehicles in the U.K. (plus 11.7 percent), Belgium (plus 13.0 percent), and Sweden (plus 20.0 percent).

The new-generation C-Class, the S-Class sedan, and the SUVs were important growth drivers in the first half of the year. Since its introduction, the new generation C-Class sedan has been defending the leading position in its class - and did so once again in June. Sales in the C-Class segment increased 11.4 percent in the first half of the year; in June, they were up 18.7 percent. The C-Class estate, in particular, has recorded high growth since January (plus 38.5 percent). And the new SLK continues to be a strong performer: Sales of the car increased 23.9 percent in June. The S-Class succeeded in defending its position as the best-selling luxury-class sedan - in the month of June and in the first six months of the year, with a sales increase of 18.1 percent to 35,956 units since January. In the SUV segment Mercedes-Benz has set new records every month since the beginning of the year with sales rising by 30.7 percent to 118,629 units. Deliveries of the GLK were up 43.1 percent compared to the same period last year, and sales of the new generation of the R-Class increased by 67.5 percent. Shortly before the market launch of the new M-Class, sales of the vehicle rose another 13.2 percent. Also very popular was the G-Class with an increase of 59.7 percent compared to the first half of 2010. In the E-Class segment, Mercedes-Benz recorded growth of 8.0 percent in the first six months of 2011. Demand was especially strong for the E-Class convertible (plus 80.1 percent). The new CLS also performed very successful during the first six months of this year (plus 155.4 percent).

The facelifted smart fortwo continues to set a dynamic pace. In June the two-seater posted worldwide growth of 7.9 percent, with 10,314 units delivered (June 2010: 9,560). Deliveries to customers worldwide totaled 54,801 units in the first half of the year (Jan.-June 2010: 50,723), an increase of 8.0 percent. In Germany, demand for the smart rose 19.2 percent to 15,729 units, making it number one in its segment in every month from January to June. Sales development was also very positive in France, where smart deliveries increased 11.4 percent in the first six months of 2011. In China the smart continues to write a dynamic success story: Since January, more than four times as many customers chose the two-seater as was the case in the same period last year, 5,493 vehicles were delivered (Jan.-June 2010: 1,204 units).

Overview of sales by Mercedes-Benz Cars

In May 2010 , BMW was recognized as the leading brand but in the November 2010 study the automaker fell to the third spot, behind Mercedes-Benz and Audi. Volkswagen and Volvo took the 4th and 5th spots, accordingly.

The full Daimler press release follows and the ADAC release can be viewed on their website here (in German).

AMGmarket.com News/Souce: Daimler PR, Stuttgart – Mercedes-Benz has regained the top position in the AutomarxX brand ranking of ADAC, the world´s second largest automobile club, making it Germany’s best automotive brand. Mercedes-Benz is the most successful automotive brand since AutomarxX was introduced in 2001, capturing first place a total of 12 times and beating its competitors in more than half of all the rankings. The ADAC study assesses the automotive brands sold in Germany in the categories of Product Strength/Vehicle Quality, Safety, Customer Satisfaction, Environment, Brand Image, and Market Strength. The results reflect the current capabilities of all automakers that are of relevance in Germany. A winner is ascertained for each category, on the basis of which the overall winner is then determined.

“It’s a great honor to take first place in the ADAC AutomarxX ranking, and we’re very happy about it,” says Dr. Joachim Schmidt, Executive Vice President Sales and Marketing, Mercedes-Benz Cars. “That we ranked at the top shows how successful and desirable the Mercedes-Benz brand is. At the same time, the result confirms us in our efforts to deliver our customers the very best in all areas each and every day. For us, this includes remaining the pioneer for active and passive safety systems, for which AutomarxX gives Mercedes-Benz the best marks this year.”

The main factors assessed in the Safety category are the availability of active and passive safety systems and the degree to which vehicles are fitted with these systems as standard without any surcharge. Mercedes-Benz took first place in this category. The Product Strength/Vehicle Quality category incorporates the results of 500 recent vehicle tests, includes those of external safety organizations such as the TÜV and DEKRA reports and of the ADAC breakdown statistics. Mercedes-Benz also did outstandingly well in this category.

In the Brand Image category, the individuals surveyed were primarily interested in maximum quality and the best-possible safety standards. Not only did Mercedes-Benz take first place in both of these areas, the people surveyed also ranked the brand at the top with regard to automotive research and development. Mercedes-Benz improved its position in two other categories, which evaluated Customer Satisfaction and Market Strength.

Since 2001, the ADAC AutomarxX study has been assessing the reputation and market strength of automakers that are of relevance in Germany. To date, the study has been published 23 times, with Mercedes-Benz taking the top spot on 12 occasions. The AutomarxX results are based on numerous studies and interviews. For example, the evaluation for the Brand Strength category incorporates the results of the ADAC Motorwelt image survey of 4,000 German citizens as well as an assessment of vehicle residual values.

Daimler AG together with Aabar Investments PJSC will take over 75.1 per cent of the Brawn GP team, with Daimler taking 45.1 per cent and Aabar 30 per cent. The rest of the 24.9 per cent will remain with the current stakeholders. With 9.1 per cent, Aabar is the biggest single shareholder of Daimler AG. This transaction is subject to the approval of the EU and the Swiss cartel authorities.

The background to this decision are the new terms and conditions for Formula 1. The “Resource Restrictions” set by FOTA and FIA effectively limit expenditure for the design, construction and running of the racing cars. In addition, there will be a significantly higher income available for a Formula 1 team generated by the commercial rights of the racing series following the signing of the new Concorde Agreement.

The partnership between McLaren Mercedes has been in place since 1995 and ended its 15^th joint Formula 1 season in 2009. The change to the form of cooperation is taking place by mutual agreement. Mercedes-Benz and McLaren will continue to co-operate with each other and the supply of engines could continue until 2015.

The McLaren Group have set themselves new targets, especially in the automotive sector, and Daimler understands and respects these new strategic objectives. For this reason, it has been agreed that the buy-back by the McLaren Group of the 40 per cent McLaren share owned by Daimler AG will be completed by 2011.

By taking this decision, Mercedes-Benz resumes its marvellous motor racing history on the 75^th anniversary of the Silver Arrows, the world’s most unique racing cars. Mercedes wants to continue the tradition in the style of these flawless Silver Arrows, which put their stamp on each era by winning the majority of the races they competed in.

“Mercedes-Benz is the most valued and best-known premium automotive brand in the world. This brand looks for competition of the utmost quality in all relevant fields in order to continually improve its performance in the face of such new challenges”, explains Dr. Dieter Zetsche, CEO of Daimler AG and Head of Mercedes-Benz Cars.

“Due to the new Formula 1 environment, we will face the competition in future on the most important motor sports stage with our own Silver Arrow works team.

“Our new Silver Arrow Formula 1 team is a great sporting and technical challenge and we will tackle this with sporting spirit and full of enthusiasm.”

Mercedes-Benz will restructure their Formula 1 program and work hard to achieve further savings, going beyond the already completed steps for significant cost reductions and improved efficiency.

Since 1995, the beginning of the partnership, McLaren and Mercedes-Benz have competed in 256 Grand Prix events and have achieved 60 victories. In 1998, 1999 and 2008, the British-German team won the drivers’ World Championships, as well as the World Constructors’ Championship in 1998. The McLaren Mercedes team became runner-up in the World Championships ten times, with five times in the drivers’ and constructors’ rankings respectively.

After winning the drivers’ title with Lewis Hamilton last year, Vodafone McLaren Mercedes finished third in the World Constructors’ Championships this year. The 2008 World Champion won two races with his current car, the MP4-24, achieving a first historic victory with the brake energy-recovery system, KERS Hybrid. No other driver scored more points in the last eight races from the season’s total of 17 races than Lewis Hamilton.

“I want to thank McLaren for a successful collaboration over the last decade and a half”, says Dr. Dieter Zetsche, CEO of Daimler AG and Head of Mercedes-Benz Cars. “For the benefit of both Mercedes and McLaren, we will continue our partnership cooperation in future. We will be rivals on-track but, off-track, we will cooperate with McLaren and the other teams in order to create the best possible product for spectators worldwide.”

“We look back on 15 successful years of great collaboration with McLaren; in that time, we won four world-championship titles and finished ten times as runner-up in the drivers’ and constructors’ rankings,” states Norbert Haug, Vice-President Mercedes-Benz Motorsport. “Since the first victory in the 1997 Australian Grand Prix, the modern Silver Arrows have achieved a total of 60 victories in 223 races to ensure that our brand symbol, the star, stands for the greatest successes in Formula 1. We thank our partner and will continue to work with McLaren based on an excellent partnership.”

Mercedes Grand Prix, the management team of the former Brawn GP team, will continue to work under the leadership of Ross Brawn, who will continue in his well-known role. The Formula 1 team, as well as the engine team of Mercedes-Benz High Performance Engines, will be coordinated by Mercedes-Benz Motorsport, headed by their Vice-President, Norbert Haug.

“Brawn GP has been through an incredible journey over the last 12 months. From fighting for our survival to forging a strong relationship with Mercedes-Benz High Performance Engines, winning both the Constructors’ and Drivers’ World Championships, and now accepting Daimler and Aabar’s offer to buy our team, which will secure its future”, Team Principal Ross Brawn looks back on a difficult beginning of the year which eventually turned into an extremely successful season.

“Both I and my fellow Directors at Brawn GP are incredibly proud of our staff, drivers and everyone associated with our team and thank them for their commitment, outstanding teamwork and their focus on achieving results in sometimes difficult circumstances. The senior management group will remain in place to lead our team and on behalf of everyone at Brawn GP, we are honored to be representing such a prestigious brand as Mercedes-Benz in Formula One next year and will be working together to do our best to reward their faith in our team.”

The new Silver Arrow team, Mercedes Grand Prix, will compete in Formula 1 as a works team in its own right. Synergies between the 100 per cent Daimler-owned subsidiary Mercedes-Benz High Performance Engines in Brixworth, UK, and the Mercedes Grand Prix team based about 28 miles from there in Brackley in the UK, will create even greater efficiency.

It is our target to develop a model for our Formula 1 activities which will initially be run with significantly reduced budgets by Mercedes-Benz and which, in the foreseeable future, will be self-financing”, comments Norbert Haug. “Furthermore, we naturally want to inspire our faithful spectators and TV viewers worldwide and maximize media coverage for our brand. With Formula 1, Mercedes-Benz can continue to clearly demonstrate its willingness to compete and win on the most important motor sports competition stage in the world.”

Khadem Al Qubaisi, Chairman, Aabar Investment PJSC comments: “Aabar is delighted to join forces with Daimler AG and its world leading brand Mercedes-Benz in order to create a new Formula One Team which follows in the footsteps of the longstanding and successful tradition of the famous ‘Silver Arrows’.

Ever since Aabar became the largest shareholder in Daimler AG, the cooperation between our two organizations has been exemplary, and we have already co-invested in Tesla. Aabar is confident that further successes will follow in this arena.

“Bearing in mind the recent outstanding success of the Abu Dhabi GP, which brought Formula One to the United Arab Emirates for the first time, it is especially exciting to realize that next year, our own cars will be in the field, with the genius of Ross Brawn, who is still deeply involved with the team, now backed by the unrivalled excellence of Mercedes-Benz across the entire spectrum of automotive technology. It is a fantastic prospect, which makes me both pleased and proud for my country.”