In 2020, Mercedes-Benz, encompassing Cars & Vans, faced a challenging year with a sales decrease of 13%, totaling 2,461,800 vehicles compared to 2,823,800 in 2019. This downturn was reflected in revenue, which landed at €98.6 billion, down from €106.9 billion the previous year. Despite these declines, the division demonstrated resilience and improved profitability.
The Mercedes-Benz Cars & Vans division reported an EBIT of €5,172 million, a significant turnaround from a loss of €109 million in 2019. This resulted in a return on sales of 5.2%, a stark contrast to the negative 0.1% in the prior year. Adjusted EBIT also showed positive growth, reaching €6,802 million, up from €6,151 million in 2019, with an adjusted return on sales improving to 6.9% from 5.8%. Furthermore, the cash flow before interest and taxes (CFBIT) saw a substantial increase to €7,048 million from €598 million. The adjusted CFBIT also rose significantly to €7,917 million from €1,939 million, and the adjusted cash conversion rate (CCR) stood at 1.2, a considerable jump from 0.3 in 2019.
Specifically, Mercedes-Benz Cars experienced a 13% decrease in sales, selling 2,087,200 vehicles (2019: 2,385,400). Mercedes-Benz Vans also saw a downturn, with sales decreasing by 15% to 374,600 units (2019: 438,300). However, a notable achievement for Mercedes-Benz in 2020 was meeting the stringent EU CO2 targets. The average CO2 emissions for their new car fleet in Europe (EU28, UK, Norway, and Iceland) were expected to reach 104 g/km, a significant reduction from 137 g/km NEFZ in 2019.
Daimler Trucks & Buses also felt the impact of market headwinds in 2020. Unit sales for this division decreased by 27% to 378,500 vehicles (2019: 521,100). Revenue amounted to €34.7 billion, down from €44.4 billion in 2019. EBIT for Daimler Trucks & Buses was €525 million, significantly lower than the €2,672 million reported in 2019, leading to a return on sales of 1.5% compared to 6.0% the previous year. Adjusted EBIT mirrored this trend, recorded at €678 million, also down from €2,672 million in 2019, with an adjusted return on sales of 2.0% (2019: 6.0%). Cash flow before interest and taxes (CFBIT) was €2,513 million, slightly lower than the €2,654 million in 2019, with the adjusted CFBIT remaining the same at €2,513 million (2019: €2,654 million). The adjusted cash conversion rate (CCR) was 3.7, a notable increase from 1.0 in 2019. Daimler Trucks sales declined by 27% to 358,300 vehicles (2019: 488,500), and Daimler Buses experienced a steeper decline of 38%, selling 20,100 vehicles (2019: 32,600).
Daimler Mobility also experienced a contraction in new business, decreasing by 9% to €67.8 billion (2019: €74.4 billion). The contract volume also saw a decrease to €150.6 billion (end of 2019: €162.8 billion). Revenue for Daimler Mobility was €27.7 billion, slightly down from €28.6 billion in 2019. The division’s EBIT was €1,436 million, lower than the €2,140 million in the previous year, resulting in a return on equity of 9.8%, down from 15.3% in 2019. Adjusted EBIT was €1,595 million (2019: €1,827 million), and the adjusted return on equity was 10.9% (2019: 13.1%).
In summary, Mercedes-Benz in 2020 navigated a challenging economic landscape, experiencing sales and revenue declines across its divisions. However, the Mercedes-Benz Cars & Vans division demonstrated financial resilience by significantly improving profitability and achieving crucial environmental targets, showcasing the brand’s adaptability and strategic focus amidst global challenges.
