In order to achieve our ambitious growth targets, we will expand our product range in the coming years and develop additional production and distribution capacities. We also want to make sure that we can play a leading role in the far-reaching technological transformation of the automotive industry. This applies in particular to the digital connectivity of our products and processes along the entire value chain. For this purpose, we will once again significantly increase our already very high investment in property, plant and equipment in the year 2016. The Mercedes-Benz Cars, Daimler Trucks and Mercedes-Benz Vans divisions will account for this increase. In addition to capital expenditure, we are developing our position in the emerging markets by means of targeted financial investments in our holdings. That includes the expansion of our car production capacities in China, together with our partner BAIC.

At the Mercedes-Benz Cars division, we will significantly increase our capital expenditure in 2016. The most important projects include the new E-Class family, the successor models to the current compact class and new gasoline and diesel engines. Substantial investment is planned also for the expansion of our German production sites as competence centers, as well as for the expansion of our international production network. Daimler Trucks will mainly invest in successor generations of existing products, the expansion and modernization of the plants, and new global component projects in 2016. At Mercedes-Benz Vans, the focus will be on further developing the existing model range, expanding the sales-and-service organization and establishing production of the Sprinter in the United States. Key projects at Daimler Buses are advance expenditures for new models and product enhancements and the new bus plant in India.

Research and development