Mercedes-Benz Group
The Mercedes-Benz Group
can look back on a tradition that goes back to the inventors of the automobile – Gottlieb Daimler and Carl Benz –
and features pioneering achievements in automotive engineering. The Group is one of the most successful auto-
mobile companies in the world and is one of the largest providers of high-end cars and premium vans. Financing,
leasing, vehicle subscriptions and rental, fleet management, digital services for charging and payment, insurance
brokerage and innovative mobility services round off the range of services.
175,264
Employees worldwide
as of 31 Dec. 2024
2.389 million
Unit sales
€145.6 billion
Revenue
€13.6 billion
EBIT
€9.2 billion
Free cash flow of the
industrial business
TO OUR
SHAREHOLDERS
TO OUR SHAREHOLDERS
Letter from the CEO
Ola Källenius
Chairman of the Board of Management
of Mercedes-Benz Group AG
Dear Shareholders,
For the automotive industry, 2024 was characterized
by a challenging geopolitical situation, a slower
ramp-up of electromobility and a subdued consumer
climate in Asia. Generally speaking, we have managed
to steer Mercedes-Benz well through these difficult
waters. At the same time, we have continued to press
ahead with the implementation of our strategy, and
thus set an important course for the future.
We owe this to the tireless commitment of our
employees. Their skill, dedication and flexibility were
the key to these solid results. The entire Board of
Management would like to thank all of our colleagues
for this.
Looking ahead, what topics are on our agenda?
Mercedes-Benz is about to embark on the biggest
product launch programme in its history. We want to
offer the most desirable products in all segments we
serve. With a total of four new models, we will redefine
the entry into the world of Mercedes-Benz from 2025.
This year we are starting with our new CLA. In the
important core segment, we will expand our electric
portfolio and take the product substance of our models
to the next level. In the Top-End segment, our custom-
ers can look forward to a range of new products from
Mercedes-AMG in the next few years. The S-Class
will continue to strengthen its undisputed leading
position in its segment. In addition, we are continuing
with the further development of our vans product
portfolio.
With our product campaign, we are establishing a new
design idiom. In the future, our vehicles will embody
even more strongly what has characterized Mercedes
for decades: confident ease and timeless style. For the
future, we are focusing on coherence across the entire
portfolio. Customers will primarily decide on a model –
and then on their preferred type of drive. We are in a
position to fulfil all customer requirements well into
the 2030s – from electrified high-tech combustion
engines to all-electric vehicles. Our guiding principle
is that there is a perfect Mercedes-Benz for every
customer requirement. Thanks to intelligent modulari-
zation and maximum efficiency in production, we are
able to live up to this ambition.
The wishes of our global customers also take centre
stage in the development of new technologies. Our
own operating system MB.OS celebrates its debut with
the new CLA. This marks an important milestone for us
in terms of software and digitalization. The integration
of artificial intelligence makes interaction with our cars
even more natural, intuitive and personalized. We are
also making great progress in terms of safety and
automated driving. In Germany, our conditionally
automated driving system DRIVE PILOT, is authorized
to travel at speeds of up to 95 km/h. In Beijing, we
have received authorization to test highly automated
driving systems. This underscores our pioneering role
in this field.
The environment is likely to remain extremely
challenging in 2025. We are therefore working flat out
to further improve the resilience of our business. We
have set up a comprehensive programme for this
purpose. We want to create a standardized and, above
all, exceptional customer experience. Based on our
strong product portfolio, we want to take better advan-
tage of the global markets and increase the quality of
our sales. We will sustainably reduce our costs over the
next few years and further streamline our structures
and processes. We are also launching an initiative to
anchor the desire for top performance even more
firmly in the corporate culture of Mercedes-Benz.
For people all over the world, the Mercedes star is a
symbol of the highest engineering skills, iconic designs
and the pursuit of social advancement and economic
success. Our brand stands for maximum safety, excel-
lent quality, unique comfort and intelligent technol-
ogies. Our team has been underpinning this reputation
for almost 140 years. In the future, this strong team
and the Board of Management in particular will become
even more effective.
These are all good prerequisites for driving forward the
successful future of Mercedes-Benz. We would be
delighted if you were to accompany us on this journey.
Sincerely yours,
Ola Källenius
The Board of Management
Ola Källenius
Dr Jörg Burzer
Mathias Geisen
Renata Jungo Brüngger
Sabine Kohleisen
Chairman of the Board of
Management
Appointed until May 2029
Production, Quality & Supply
Chain Management
Appointed until November
2029
(Member since February 2025)
Marketing & Sales
(since March 2025)
Appointed until January 2028
Integrity, Governance &
Sustainability
Appointed until October 2025
Human Relations & Labour
Director
Appointed until April 2025
Markus Schäfer
Britta Seeger
Oliver Thöne
Hubertus Troska
Harald Wilhelm
Chief Technology Officer,
Development & Procurement
Appointed until May 2026
Marketing & Sales
(until February 2025)
Human Relations & Labour
Director
(as of May 2025)
Appointed until December 2029
Greater China
(since February 2025)
Appointed until January 2028
Greater China
(until January 2025)
“Business Model China”
(since February 2025)
Appointed until July 2025
Finance & Controlling/
Mercedes-Benz Mobility
Appointed until March 2027
Report of the Supervisory Board
Dear Shareholders,
Dr Martin Brudermüller
Chairman of the Supervisory Board
of Mercedes-Benz Group AG
The global environment presented the business of
the Mercedes-Benz Group with numerous challenges
in 2024: ongoing geopolitical conflicts, trade policy
uncertainties and volatile markets characterized the
framework conditions.
We successfully faced the challenges with
determination and conviction in our own abilities as
well as flexibility in our actions. In this demanding
and intensely competitive environment, the
Mercedes-Benz Group asserted its position as one of
the leading suppliers of premium and luxury vehicles
globally. I would also therefore like to thank all
employees who gave their best in 2024.
The economic, regulatory and political conditions will
not become any easier in the foreseeable future. As a
company, we can only influence this to a limited
extent.
It is therefore all the more important that the
Mercedes-Benz Group positions itself optimally,
exploits efficiency potentials, and remains willing
to change and competitive while consistently going
forward with the transformation towards digitization
and electrification. In addition, with the further
development of the Board of Management we are
rejuvenating this body and providing new impulses
at crucial points.
The Mercedes-Benz Group is heading into the 2025
financial year resolutely and optimistically. In doing so,
we rely on our strengths: innovative technologies and
products, financial solidity and a clear focus on a
profitable, sustainable and resilient business model.
Supervisory and advisory activities of
the Supervisory Board
In the 2024 financial year, the Supervisory Board of
Mercedes-Benz Group AG again performed, in full,
the duties incumbent upon it by law, the articles of
association and the rules of procedure.
In this context, the Supervisory Board continuously
advised and monitored the Board of Management in
the management of the company and provided support
on strategically important issues for the further
development of the company.
The Supervisory Board reviewed whether the individual
company and Consolidated Financial Statements, the
Combined Management Report including the
sustainability reporting and the other financial
reporting complied with the applicable requirements.
Furthermore, after careful review and consultation, it
approved numerous business transactions subject to
its consent. This related in particular to the approval of
extensive investment in the further development of the
Mercedes-Benz operating system MB.OS as well as the
drive and product portfolio. It also included financial
and investment planning, cooperation projects and the
conclusion of contracts of particular importance to the
company. The Board of Management informed the
Supervisory Board about a large number of other
measures and business transactions and discussed
them intensively and in detail with the Supervisory
Board; for example, the effects on the company of
political developments and trade conflicts in the main
sales markets as well as the reaction to them in terms
of business policy.
The Board of Management regularly informed the
Supervisory Board about all significant business
developments of the Group and the divisions. During
the reporting period, it kept the Supervisory Board
continuously informed about all fundamental issues
regarding corporate planning, including financial,
investment, sales and personnel planning; current
developments at Group companies; the development
of revenue; the situation of the company and the
divisions; the economic and political environment; and
the current status and assessment of significant legal
proceedings. In addition, the Board of Management
continuously reported to the Supervisory Board on the
profitability and liquidity situation of the company, the
development of sales and procurement markets, the
overall economic situation and developments on the
capital markets and in the financial services sector.
Other topics included the further development of
the product portfolio, securing the long-term
competitiveness of the company and the further
implementation of measures to ensure sustainable,
future-oriented mobility. The Supervisory Board also
dealt in detail with the capital market and its
expectations, the share-price development and its
background, as well as the expected effects of the
strategic projects on the share-price development.
Working methods of the Supervisory Board
In the 2024 financial year, the Supervisory Board held
eight meetings. Seven meetings were held in person,
with the option of participation in virtual form or via
telephone, and one meeting was held as a video
conference. Meeting attendance by the members was
at a very high level, as can be seen in the detailed
overview at the end of this report.
The work of the Supervisory Board was characterized
by open and intensive dialogue. The members of the
Supervisory Board regularly prepared for upcoming
resolutions using documents provided in advance by
the Board of Management. The employee and
shareholder representatives also regularly prepared
the meetings in separate discussions, which were also
attended by members of the Board of Management.
In addition, the Supervisory Board was supported in
depth by its committees. At the meetings of the
Supervisory Board, its members discussed the
measures and transactions to be resolved in detail with
the Board of Management. Executive sessions were
regularly scheduled for the meetings so that topics
could be discussed also in the absence of the Board of
Management.
The Supervisory Board was informed of special events
outside the regular meetings. In addition, some
members of the Supervisory Board and the Board of
Management held bilateral meetings to exchange
views. The Board of Management also informed the
Supervisory Board of the key indicators of the business
development and of existing risks by means of written
reports.
The members of the Supervisory Board assume
responsibility for their training and further education
measures in areas such as changes in the legal
framework and new, forward-looking technologies that
are required for the performance of their tasks and are
supported in this by the company. In the reporting
period, for example, the company held information
events on ‘Digital Trust’ as part of the sustainable
business strategy as well as on the Mercedes-Benz
operating system MB.OS. Both internal and external
experts were involved in these events. In addition, new
members of the Supervisory Board have the opportu-
nity to meet the members of the Board of Management
and senior executives with specialist responsibility in a
specifically designated onboarding programme for a
bilateral exchange on fundamental and current topics
in respect of the relevant areas of the Board of Ma-
nagement, thus gaining an overview of the topics
relevant to the company and of the governance
structure. ESG (environmental, social and governance)
and sustainability-related thematic blocks are also an
integral part of this programme. Furthermore, the
members of the Supervisory Board are regularly
informed about the regulatory environment relevant to
their work on the Supervisory Board and other legal
developments affecting them.
Topics of the Supervisory Board’ Work
On 19 January 2024, at an extraordinary meeting, the
Supervisory Board was informed of the plans of the
Board of Management to comprehensively review the
structures of the Group’s Own Retail operations in
Germany and this was discussed intensively.
In its meeting on 21 February 2024, the Supervisory
Board decided on the extension of Renata Jungo
Brüngger’s and Britta Seeger’s appointments. In the
presence of representatives of the auditor, the
Supervisory Board then discussed the preliminary key
figures of the 2023 company and the Consolidated
Financial Statements, the outlook for 2024 as well as
the preliminary proposal to the 2024 General Meeting
for the appropriation of profits and noted them with
approval. The Supervisory Board determined that there
were no objections to their publication. The preliminary
key figures for the 2023 financial year, the outlook for
2024 and the preliminary proposal for the appropria-
tion of profits were published at the annual press
conference on 22 February 2024. At the same meeting
the Supervisory Board approved the new general share
buyback policy as well as another share buyback
programme to the value of up to €3 billion intended by
the Board of Management as well as the general share
buyback policy. Furthermore, the Supervisory Board
discussed the results of the self-assessment carried
out in the 2023 financial year, which confirmed very
good professional cooperation characterized by a high
degree of trust between members of the Supervisory
Board and with the Board of Management. In addition,
the Board of Management provided information on the
status of the fulfilment of the settlement concluded
with the US authorities in relation to diesel emissions.
Furthermore, the body dealt with the Board of Manage-
ment’s remuneration on the basis of the remuneration
system approved by the General Meeting in 2023.
At the meeting in March 2024, the Supervisory Board
discussed the Annual Financial Statements, the
Consolidated Financial Statements and the Combined
Management Report, including the Non-Financial
Declaration for the 2023 financial year of Mercedes-
Benz Group AG and the Group, each of which had been
issued with an unqualified audit opinion by the auditor,
as well as the reports of the Audit Committee and the
Supervisory Board, the Declaration on Corporate
Governance, the Remuneration report, and the
proposal for the appropriation of profits. The members
of the Supervisory Board were provided with extensive
documentation for their preparation. In addition, the
Supervisory Board passed its proposed resolutions on
the agenda items for the 2024 Annual General Meeting.
In order to meet the expectations of investors to
improve shareholder participation, it was decided,
among other things, to again publish a shareholder
letter before the Annual General Meeting. This includes
comments on strategy, the share buyback programme,
the proposed dividend, the Supervisory Board, the
Board of Management’s remuneration and legal issues.
At its meeting on 24 April 2024, the Supervisory Board
was informed of current legal issues. It welcomed the
decision by the U.S. Department of Justice to end the
criminal investigations against the company in relation
to diesel emissions. The Board of Management then
provided information on the measures to mitigate
cyber security risks, including in the area of production.
The Supervisory Board also dealt with the refocusing
and operationalization of the sustainable business
strategy, going into detail in particular on the
preliminary results of the double materiality assess-
ment carried out based on the European Sustainability
Reporting Standards (ESRS). Furthermore, the
Supervisory Board decided on a series of measures
that required its approval.
At the virtual Annual General Meeting held on 8 May
2024, the candidate suggested by the Supervisory
Board, Dr Doris Höpke, was elected as successor to
Dr Bernd Pischetsrieder, who left the body at the end
of the Annual General Meeting. In addition, I was re-
elected early as a member of the Supervisory Board,
effective from the end of the 2025 Annual General
Meeting. At the Supervisory Board meeting that took
place following the Annual General Meeting, I was
elected as successor to Dr Bernd Pischetsrieder as
chairman of the Supervisory Board. In addition, elec-
tions were also held on committee appointments.
At the end of July 2024, the Supervisory Board met for
another meeting. Together with the Board of Manage-
ment, the Supervisory Board discussed the business
development and the results for the first half of the
year in detail. The Supervisory Board went into detail
on the product strategy as well as the Mercedes-Benz
operating system MB.OS. Furthermore, it approved
product projects that required its approval. Moreover,
the Board of Management provided information on the
expansion of the high-power charging network in the
United States as well as the opening of the new
competence centre for the development of innovative
high-power battery cells and new manufacturing
processes (eCampus) in the Stuttgart-Untertürkheim
plant. Finally, the Supervisory Board was informed of
current legal issues as well as the status of the
fulfilment of the settlement concluded with the US
authorities in relation to diesel emissions.
In September 2024, the Supervisory Board convened in
Beijing for a strategy meeting lasting several days. The
meeting focused on discussing the strategic challenges,
in particular the challenges of the Chinese market,
which is of particular relevance to the company.
Involving the responsible managers from Germany and
China, the members of the Supervisory Board and the
Board of Management discussed in a constructive and
open dialogue how Merecdes-Benz would position
itself to face existing and new challenges and which
opportunities should be made use of. An integral
component of the discussions included sustainability
aspects as well as the perspective of the capital
market. The Supervisory Board also used the trip to
Beijing to meet important business partners as well as
representatives of important Chinese companies. In the
context of the regular ESG reporting, the Board of
Management also reported on the operationalization of
the six focus areas of the sustainable business strategy
(decarbonization, resource utilization and circular
economy, employees, human rights, digital trust as well
as road safety), going into particular detail on the
management of sustainability topics.
As part of the meeting held on 11 December 2024, the
Supervisory Board dealt with and approved the busi-
ness planning (Mercedes-Benz Business Planning)
based on comprehensive documentation and discussed
existing opportunities and risks in this context. In
addition, the Supervisory Board decided on changes to
the Board of Management. Other items on the agenda
included the Board of Management’s report on the
current financial status, volumes and prices of vehicle
clusters of current as well as future portfolios of
Mercedes-Benz Cars and Mercedes-Benz Vans as well
as the Supervisory Board’s resolutions on several
measures subject to its approval. Furthermore, the
body dealt with the Board of Management’s report on
the development of current as well as concluded
acquisitions and cooperations. In addition, the
Supervisory Board was informed of the sustainability
reporting, in particular on the important impacts, risks
and opportunities (IROs) which were determined as
part of the materiality assessment.
Further topics in the meeting included remuneration,
corporate governance issues and legal matters.
In particular, the Supervisory Board, together with its
legal experts, dealt in detail with the question of any
potential liability of Members the Board of Manage-
ment regarding the diesel emissions issue. The Super-
visory Board agreed with the findings of its legal
experts and the recommended resolution from the
Legal Affairs Committee and concluded that there are
no claims against any of the Members of the Board of
Management who had been on the Board since 2005.
Furthermore, the Supervisory Board received reports
on the status of anti-trust matters and the progress of
the review of potential responsibilities in this context.
Work in the Committees
The Supervisory Board has set up five committees.
These are the Presidential Committee, the Audit
Committee, the Legal Affairs Committee, the Nomina-
tion Committee and the Mediation Committee. The
chairs of the various committees provided the
Supervisory Board’s plenary meetings with detailed
reports on the work of the committees. You can find
detailed information on the tasks of the committees of
the Supervisory Board in the Declaration on Corporate
Governance.
The Presidential Committee held two meetings in the
past financial year. Both meetings were held in person,
with the option to take part virtually or by telephone. In
particular, the Committee discussed personnel matters
and succession planning for appointments to the Board
of Management. Furthermore, the Presidential Commit-
tee discussed the acceptance by members of the
Board of Management of board positions at other
companies and institutions, corporate governance
issues, D&O insurance and the remuneration of the
Board of Management. The committee specifically
addressed the proposal for the further development of
the remuneration system for the Board of Management,
which is to be submitted to the General Meeting for
approval.
The Audit Committee held six meetings in the year
2024. Five meetings were held in person, with the
option of participation in virtual form or via telephone,
and one meeting was held as a video conference.
The Chairman of the Supervisory Board attended all
meetings as a permanent guest. Other permanent
participants, in compliance with the statutory
requirements, were the Chairman of the Board of
Management, the members of the Board of Manage-
ment responsible for Finance and Controlling and for
Integrity, Governance & Sustainability, and the
representatives of the auditor. The heads of specialist
departments such as Accounting, Corporate Audit,
Compliance and Legal also provided information on
individual items on the agenda. Regular executive
sessions also took place with the auditor without the
presence of the Board of Management. The Audit
Committee audited and discussed the Annual Financial
Statements, the Consolidated Financial Statements and
the Combined Management Report, including the Non-
Financial Declaration of Mercedes-Benz Group AG and
the Group for the 2023 financial year, each of which
had been issued with an unqualified audit opinion by
the auditor, as well as the Remuneration report, the
Declaration on Corporate Governance, and the pro-
posal for the appropriation of profits. Furthermore, in
the reporting period, the committee dealt in detail with
the interim financial reports for the first and third
quarters of 2024 and the mid-year financial report
2024 as well as the results of the auditor’s review.
Furthermore, the committee received the reports from
the units Corporate Audit, Compliance and Legal. The
reports from Corporate Audit included reviews and
findings related to ESG and the reports from Legal
covered the current status of important legal proceed-
ings, including anti-trust proceedings as well as
proceedings in relation to diesel emissions. In addition,
the Audit Committee received regular reports on
possible violations of rules, which employees and
external parties reported to the BPO (Business &
People Protection Office) whistle-blowing system.
The Audit Committee dealt with issues of accounting,
financial reporting and non-financial reporting. In so
doing, the draft version of the law on the implemen-
tation of Directive (EU) 2022/2464 regarding corporate
sustainability reporting, the status of the materiality
assessment and the resulting impacts, risks and
opportunities (IROs) were dealt with. Taking into
account audit quality indicators, the Audit Committee
reviewed the quality, qualification and the indepen-
dence of the auditor. Moreover, the committee
discussed the appropriateness, effectiveness and
functionality of the risk management system, the
internal review system and the compliance manage-
ment system (including sustainability-related aspects).
It received, among other things, reports on the integra-
tion of sustainability topics into the existing risk
management process (in particular ESG risks and
opportunities as well as the inside-out perspective),
the refocused sustainability business strategy, adjust-
ments to ESG governance and the newly established
Mercedes-Benz Sustainability Management Model.
After the election of the auditor by the General
Meeting, the Audit Committee engaged the auditor to
conduct the annual audit and the auditor’s review of
the interim financial reports. In addition, the Audit
Committee agreed on the important audit issues and
negotiated the audit fees with the auditor. The Audit
Committee also engaged the auditor to conduct the
audit of the sustainability reporting as part of the
Management Report. Furthermore, the committee dealt
with the management of currency, energy and raw
material risks and received the reports from the Head
of Taxes, the Data Protection Officer for the Group as
well as Human Rights Officer. During the reporting
period, the Audit Committee carried out a self-evalua-
tion of its activities, on the basis of an extensive
company-specific questionnaire. The positive results of
this self-evaluation were presented and discussed in
the meeting on 19 February 2025. A basic need for
change was not evident. Individual ideas and
suggestions were discussed.
The Legal Affairs Committee held three meetings in
the year 2024. Two meetings were held in person, with
the option of participation in virtual form or via
telephone, and one meeting was held as a video
conference. In those meetings, the Committee was
informed in detail about legal matters relating to
emissions and cartels and discussed these matters in
the presence of the legal advisers of the Supervisory
Board. It discussed the continuing further development
of the technical compliance management system, also
with respect to future technologies. Following the
completion of the analysis initiated by the Supervisory
Board, the Committee dealt in detail with the question
of any potential liability of Members of the Board of
Management regarding the diesel emissions issue. In
doing so, the Committee members, together with their
legal experts, analysed all circumstances from a factual
and legal perspective and agreed with the findings of
the legal experts. The Committee concluded that there
are no claims against any of the Members of the Board
of Management, and submitted a corresponding
resolution recommendation to the Supervisory Board.
As part of the settlement reached with the US
authorities in connection with diesel emissions, the
Committee was assigned specific tasks and decision-
making competences with regard to the fulfilment of
the obligations assumed in the settlement. The
Committee also fulfilled these tasks in full and with
great care. Furthermore, the Committee received
reports on the status of anti-trust matters and the
progress of the review of potential responsibilities in
this context.
The Nomination Committee held two meetings in the
2024 financial year, both of them as video conferences.
The Committee specifically considered the recommen-
dations for the proposals of the Supervisory Board to
the General Meeting regarding the election of share-
holder representatives to the Supervisory Board. In this
context, it was guided by the interests of the company,
taking all circumstances of the individual case into
account, and striving to fulfil the overall profile of
requirements, along with the diversity concept and
competence profile for the entire Supervisory Board.
During the reporting period, there was no reason to
convene the Mediation Committee.
Corporate governance and declaration of
compliance
During the 2024 financial year, the Supervisory Board
continuously addressed the standards of good
corporate governance.
Following my election as chairman of the Supervisory
Board in May 2024, as part of the ongoing investor
dialogue I conducted talks in September 2024 with
investors and proxy advisors on Supervisory Board-
specific topics such as Board of Management
remuneration and the work and composition of the
Supervisory Board and its committees.
In July 2024, the Supervisory Board agreed on
measures to make the work of the committee more
effective and to create additional room for strategic
discussions. At the same time, the members of the
Supervisory Board agreed that they wanted to be
available to the Board of Management even more as
sparring partners and to discuss existing risks more
intensively.
In December 2024, the Supervisory Board adopted
the regular 2024 Declaration of Compliance. With the
exceptions explained there, all recommendations of
the Code have been and are being complied with. In
addition, the Supervisory Board agreed on adjustments
to the overall requirements profile for the composition
of the Board of Management and the Supervisory
Board.
In the interests of good corporate governance, the
members of the Supervisory Board of Mercedes-Benz
Group AG are required to disclose to the Supervisory
Board as a whole any conflicts of interest, in particular
those that could arise as a result of an advisory or
board function with customers, suppliers or lenders of
Mercedes-Benz Group AG or other third parties.
There were no indications of actual conflicts of interest
during the 2024 financial year.
The Supervisory Board regularly assesses how
effectively the Supervisory Board and its committees
perform their duties. In 2023, a comprehensive self-
assessment of the Supervisory Board and its commit-
tees on the basis of an extensive questionnaire and
additional interviews took place with the involvement
of an external consultant. The Board of Management’s
perspective was also included in this assessment. The
results of the audit, which the Supervisory Board dealt
with extensively at its meeting on 21 February 2024,
confirm that the members of the Supervisory Board
cooperate very effectively and professionally with one
another and with the Board of Management and do so
on a basis of great trust.
The Audit Committee also conducted a self-evaluation
of its activities on the basis of a comprehensive
company-specific questionnaire in 2024. The positive
results of this self-assessment were presented and
discussed at the Audit Committee meeting on 19
February 2025.
For supervisory boards of listed companies subject to
codetermination and equal representation of share-
holders and employees on the supervisory board, such
as that of Mercedes-Benz Group AG, the German Stock
Corporation Act (AktG) prescribes a mandatory gender
quota of at least 30% women and 30% men. The quota
is to be met by the Supervisory Board as a whole.
As of 31 December 2024, women make up 40% of
the shareholder side of the Supervisory Board of
Mercedes-Benz Group AG with Liz Centoni, Dame Polly
Courtice, Dr Doris Höpke and Professor Dr Helene
Svahn, while the remaining 60% are men. On the
employee side, Nadine Boguslawski, Gabriela Neher,
Pia Simon and Monika Tielsch make up 40% women
and the remaining 60% are men. Thus, the Supervisory
Board as a whole also currently fulfils the statutory
quota. On 1 January 2025, Ms Barbara Resch was
appointed by the court as successor to Roman
Zitzelsberger, who left the Supervisory Board on 31
December 2024. Since this point in time, 50% women
and 50% men belong to the Supervisory Board on the
employee side.
At its meeting on 19 February 2025, on the recommen-
dation of the Nomination Committee, the Supervisory
Board decided to propose to the 2025 General Meeting
to re-elect Ben van Beurden, Liz Centoni, Timotheus
Höttges, Olaf Koch and Prof Dr Helene Svahn to the
Supervisory Board. If the proposed candidates are re-
elected, the proportion of women on the shareholder
side will remain at 40%. The gender quota would
remain fulfilled both on the shareholder side and for
the Supervisory Board as a whole.
Corporate governance at Mercedes-Benz Group is
explained in detail in the Declaration on Corporate
Governance.
Changes in the Supervisory Board and
the Board of Management
Several members of the Board of Management were
reappointed in the course of the financial year. The
reappointment periods are in line with the Supervisory
Board’s guidelines on the appointment and reappoint-
ment of members of the Board of Management.
At its meeting on 21 February 2024, the Supervisory
Board reappointed Renata Jungo Brüngger as a member
of the Board of Management of Mercedes-Benz Group
AG with effect from 1 January 2025 for a further one-
year term, and Britta Seeger with effect from 1 January
2025 for a further five-year term.
At the virtual Annual General Meeting on 8 May 2024,
the candidate proposed by the Supervisory Board,
Dr Doris Höpke, was elected to the Supervisory Board
as the successor to Dr Bernd Pischetsrieder, who left
the body at the close of the Annual General Meeting. In
addition, I was re-elected early to the Supervisory
Board, effective from the end of the 2025 Annual
General Meeting. In the Supervisory Board meeting that
took place following the Annual General Meeting, I was
elected as successor to Dr Bernd Pischetsrieder as
chairman of the Supervisory Board. In addition,
elections were also held on committee appointments.
At the end of 31 May 2024, Roman Romanowski left the
Supervisory Board. The court appointment of his
successor, Sebastian Fay, was effective as of 1 June
2024. Pia Simon, the successor to Dr Frank Weber who
also left the Supervisory Board at the end of 31 May
2024, took up office as his elected replacement
member effective as of 1 June 2024.
At the Supervisory Board Meeting on 11 December
2024, the Supervisory Board decided on changes to
the Board of Management. The Supervisory Board
appointed Mathias Geisen as a member of the Board of
Management of Mercedes-Benz Group AG for a term of
three years, effective as of 1 February 2025.
As of 1 March 2025 he took over responsibility for the
‘Marketing & Sales’ division from Britta Seeger. As of
1 May 2025, Britta Seeger is taking over responsibility
for the division ‘Human Relations and Labour Director’
from Sabine Kohleisen, who will be leaving the Board
of Management on 30 April 2025. In addition, the
Supervisory Board appointed Oliver Thöne as a
member of the Board of Management of Mercedes-
Benz Group AG for a term of three years, effective as of
1 February 2025. He assumed responsibility for the
‘Greater China’ division from Hubertus Troska. Lastly,
the Supervisory Board appointed Olaf Schick as a
member of the  Board of Management of Mercedes-
Benz Group AG for a term of three years, effective as of
1 October 2025. As of 1 November 2025, he takes over
responsibility for the ‘Integrity, Governance &
Sustainability’ division from Renata Jungo Brüngger,
who will be leaving the Board of Management on
31 October 2025. The Supervisory Board would like to
thank the very esteemed members of the Board of
Management Sabine Kohleisen, Renata Jungo Brüngger
and Hubertus Troska, who are leaving the Board in the
course of the 2025 financial year, for their willingness
to hand over their respective areas of responsibility to
their successors before their own contracts end, thus
enabling the changes to the Board of Management.
At the end of 31 December 2024, Roman Zitzelsberger
left the Supervisory Board. The court appointment of
his successor Barbara Resch took place with effect
from 1 January 2025.
At the Supervisory Board Meeting on 19 February 2025,
based on a corresponding recommendation from the
Nomination Committee, the shareholder representa-
tives decided to propose to the 2025 Annual General
Meeting to re-elect Ben van Beurden, Liz Centoni,
Timotheus Höttges, Olaf Koch and Prof Dr Helene
Svahn to the Supervisory Board.
Audit of the individual company and Consolidated
Financial Statements
The Annual Financial Statements of Mercedes-Benz
Group AG as well as the Consolidated Financial
Statements and the Combined Management Report for
Mercedes-Benz Group AG and the Group for 2024 were
duly audited by PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft, Frankfurt am Main,
and issued with an unqualified audit opinion. In
addition, the sustainability reporting was subject to a
voluntary audit to obtain limited assurance, whereby
individual disclosures were checked with reasonable
assurance. The audit was provided with a
corresponding audit opinion.
In a meeting of the Supervisory Board on 19 February
2025, the preliminary key figures of the 2024 company
and Consolidated Financial Statements, the Combined
Management Report including the sustainability
reporting 2024, as well as the preliminary proposal to
the 2025 General Meeting for the appropriation of
profits were discussed and noted with approval in the
presence of representatives of the auditor. The
Supervisory Board determined that there were no
objections to their publication. The preliminary key
figures for the 2024 financial year and the preliminary
proposal for the appropriation of profits were
published at the annual press conference on 20
February 2025. At the same meeting, the Supervisory
Board approved another share buyback programme
agreed on by the Board of Management to the value of
up to €5 billion over a period of up to 24 months. The
share buyback programme is based on and in
accordance with the general share buyback policy and
is subject to the renewed authorisation of the Annual
General Meeting in May 2025 to buy back company
shares to the extent of up to 10% of the share capital.
On 11 March 2025, the Supervisory Board discussed the
Annual Financial Statements, the Consolidated
Financial Statements and the Combined Management
Report, including the sustainability reporting for
Mercedes-Benz Group AG and the Group as well as the
Declaration on Corporate Governance, the Remuner-
ation Report, and the proposal for the appropriation of
profits.
The members of the Supervisory Board were provided
with extensive documentation for their preparation,
including the Annual Report with the Consolidated
Financial Statements compiled in accordance with
IFRS, the Combined Management Report including the
sustainability reporting for Mercedes-Benz Group AG
and the Group, as well as the Declaration on Corporate
Governance, the Remuneration report, the Annual
Financial Statements of Mercedes-Benz Group AG,
the proposal of the Board of Management for the
appropriation of profits, the audit opinions of
PricewaterhouseCoopers GmbH Wirtschaftsprüfungs-
gesellschaft for the Annual Financial Statements of
Mercedes-Benz Group AG and the consolidated
financial statements, in each case including the
Combined Management Report, the note on the
voluntary audit of the sustainability reporting, and
a draft of the report of the Supervisory Board.
The Audit Committee and the Supervisory Board
reviewed these documents in detail and discussed
them intensively in the presence of the auditors, who
reported on the results of their audit and, in particular,
addressed the key audit matters and the relevant audit
procedures, including the conclusions drawn, and were
available for additional questions and information.
Following the final result of the review by the Audit
Committee and its own review, the Supervisory Board
concurred with the result of the audit by the auditor. It
determined that there were no objections to be raised
and adopted the financial statements prepared by the
Board of Management and the Combined Management
Report, including the sustainability reporting. The 2024
Annual Financial Statements of Mercedes-Benz Group
AG were thus adopted. On this basis, the Supervisory
Board endorsed the proposal of the Board of Manage-
ment for the appropriation of distributable profits.
The Supervisory Board also adopted the Report of the
Supervisory Board, the Declaration on Corporate
Governance and the Remuneration report, as well as its
proposed resolutions on the agenda items for the 2025
Annual General Meeting.
Appreciation
The Supervisory Board would like to thank the Board
of Management members and all employees of the
Mercedes-Benz Group for their dedicated contribution
to the results of the 2024 financial year.
The Supervisory Board would also like to thank Roman
Romanowski, Dr Frank Weber and Roman Zitzelsberger,
who closely supported the company through their
dedicated work on the Supervisory Board and left the
Supervisory Board last year.
A special thank you goes to the former chairman of the
Supervisory Board Dr Bernd Pischetsrieder who has
rendered outstanding services to the company.
Stuttgart, March 2025
For the Supervisory Board
Dr Martin Brudermüller
Chairman
Individualized disclosure of attendance at meetings by members of the Supervisory Board of Mercedes-Benz Group AG in the 2024 financial year
Plenary Supervisory Board
Presidential Committee
Audit Committee
Nomination Committee
Legal Affairs Committee
Participation
in meetings
Participation
rate (in %)
Participation
in meetings
Participation
rate (in %)
Participation
in meetings
Participation
rate (in %)
Participation
in meetings
Participation
rate (in %)
Participation
in meetings
Participation
rate (in %)
Dr Martin Brudermüller1
(Chairman, since 8 May 2024)
8/8
100
1/1
100
2/2
100
Dr Bernd Pischetsrieder
(former Chairman, until 8 May 2024)
4/4
100
1/1
100
1/1
100
Michael Bettag
8/8
100
Ben van Beurden
8/8
100
2/2
100
2/2
100
Nadine Boguslawski
8/8
100
Liz Centoni2
6/8
75
1/1
100
1/1
100
Dame Veronica Anne (“Polly”) Courtice
8/8
100
3/3
100
Sebastian Fay (since 1 June 2024)
3/3
100
3/3
100
2/2
100
Marco Gobbetti
8/8
100
Michael Häberle
8/8
100
3/3
100
Dr Doris Höpke (since 8 May 2024)
4/4
100
2/2
100
Timotheus Höttges
7/8
88
5/6
83
Olaf Koch3
8/8
100
6/6
100
3/3
100
Ergun Lümali
8/8
100
2/2
100
6/6
100
3/3
100
Gabriela Neher
8/8
100
Michael Peters
7/8
88
Stefan Pierer
7/8
88
Roman Romanowski (until 31 May 2024)
5/5
100
3/3
100
1/1
100
Pia Simon (since 1 June 2024)
3/3
100
Prof Dr Helene Svahn
8/8
100
Monika Tielsch
8/8
100
Dr Frank Weber (until 31 May 2024)
5/5
100
Roman Zitzelsberger
(until 31 December 2024)
8/8
100
2/2
100
1 Chairman of the Presidential Committee and the Nomination Committee.
2 Liz Centoni was a member of the Legal Affairs Committee until 8 May 2024 and is a member of the Nomination Committee since 8 May 2024.
3 Chairman of the Audit Committee and the Legal Affairs Committee.
The Supervisory Board
Dr Martin Brudermüller
Chairman of the Supervisory Board
of Mercedes-Benz Group AG
(Chairman since 8 May 2024)
Elected until 2028
Ergun Lümali*
Deputy Chairman of the Supervisory Board
of Mercedes-Benz Group AG;
Chairman of the Group Works Council
of Mercedes-Benz Group AG;
Chairman of the General Works Council
of Mercedes-Benz Group AG;
Chairman of the Works Council
of Mercedes-Benz Sindelfingen Plant
Elected until 2028
Michael Bettag*
Chairman of the Works Council of the Mercedes-Benz
Nuremberg Own Retail Branch
Elected until 2028
Ben van Beurden
Former Chief Executive Officer Shell plc
Elected until 2025
Nadine Boguslawski*
Head Treasurer of IG Metall
Elected until 2028
Liz Centoni
Executive Vice President and
Chief Customer Experience Officer,
Cisco, Inc.
Elected until 2025
Dame Veronica Anne (“Polly”) Courtice
Former Director of the University of Cambridge
Institute for Sustainability Leadership
Elected until 2026
Sebastian Fay*
Head of Collective Bargaining Policy and Craft Trades
at IG Metall Headquarter Frankfurt
(since 1 June 2024)
Appointed until 2028
Marco Gobbetti
Former Chief Executive Officer of
Salvatore Ferragamo S.p.A.
Elected until 2026
Michael Häberle*
Deputy Chairman of the Group Works Council
of Mercedes-Benz Group AG;
Deputy Chairman of the General Works Council
of Mercedes-Benz Group AG;
Chairman of the Works Council
at the Mercedes-Benz Untertürkheim Plant
Elected until 2028
Dr Doris Höpke
C-Suite/Senior Advisor and Mediator (independent
and partnering with Reckhenrich Advisors)
(since 8 May 2024)
Elected until 2028
Timotheus Höttges
Chairman of the Board of Management
of Deutsche Telekom AG
Elected until 2025
Olaf Koch
Partner and Managing Director of Zintinus GmbH
Elected until 2025
Gabriela Neher*
Member of the Works Council at the
Mercedes-Benz Rastatt Plant
Elected until 2028
Michael Peters*
Chairman of the Works Council of
Mercedes-Benz Bremen Plant
Elected until 2028
Stefan Pierer
Chairman of the Board of Management of
Pierer Industrie AG
Elected until 2027
Barbara Resch*
IG Metall District Manager Baden-Württemberg
(since 1 January 2025)
Appointed until 2028
Pia Simon*
Director Integrity Management & Corporate
Responsibility; Chairwoman of the Management
Representatives Committee, Mercedes-Benz Group
(since 1 June 2024)
Elected until 2028
Prof Dr Helene Svahn
Professor in Nanobiotechnology at the
Royal Institute of Technology, Sweden
Elected until 2025
Monika Tielsch*
Member of the Works Council at the
Mercedes-Benz Sindelfingen Plant (RD)
Elected until 2028
Roman Zitzelsberger*
Former IG Metall District Manager Baden-Württemberg
(until 31 December 2024)
Retired from the Supervisory Board
Dr Bernd Pischetsrieder
Chairman of the Supervisory Board
of Mercedes-Benz Group AG
Retired on 8 May 2024
Roman Romanowski*
In-house Legal Counsel
to the Board of Management of IG Metall
Retired on 31 May 2024
Dr Frank Weber*
Center Manager BodyTEC, Mercedes-Benz AG;
Chairman of the Management Representatives
Committee, Mercedes-Benz Group
Retired on 31 May 2024
COMBINED
MANAGEMENT REPORT
COMBINED MANAGEMENT REPORT
Mercedes-Benz Group AG
(Condensed version in
accordance with the German
Commercial Code)
Combined Non-Financial Declara-
tion of Mercedes-Benz Group and
Mercedes-Benz Group AG     
1 This chapter contains disclosure requirements related to the European Sustainability Reporting Standards (ESRS) with respect to strategy, business model and value chain.
2 Study by the US brand consulting company Interbrand in October 2024.
Corporate Profile
Business model 1
Overview
The Mercedes-Benz Group can look back on a tradition
that goes back to the inventors of the automobile
– Gottlieb Daimler and Carl Benz – and features
pioneering achievements in automotive engineering.
The Group is one of the most successful automobile
companies in the world and is one of the largest
providers of high-end cars and premium vans.
Financing, leasing, vehicle subscriptions and rental,
fleet management, digital services for charging and
payment, insurance brokerage and innovative mobility
services round off the range of services.
The Mercedes-Benz Cars, Mercedes-Benz Vans and
Mercedes-Benz Mobility divisions manage the business
operations of the Mercedes-Benz Group.
In the reconciliation of the segments to the Group
(reconciliation), investments not allocated to the
divisions and gains and/or losses at the corporate level
are shown. In addition, the reconciliation includes
effects from the elimination of intra-Group transactions
between the segments.
Mercedes-Benz Group AG is the parent company of
the Mercedes-Benz Group and has its headquarters in
Stuttgart. Along with Mercedes-Benz Group AG, the
Mercedes-Benz Group comprises all subsidiaries over
which Mercedes-Benz Group AG can exercise a con-
trolling influence either directly or indirectly. Detailed
information on this topic can be found in the statement
of investments pursuant to Section 313 of the German
Commercial Code (HGB) in the Notes to the Consolidat-
ed Financial Statements.
Mercedes-Benz Group AG defines the Group strategy,
manages the Group and, as the Group parent company,
ensures the effectiveness of legal, organizational and
compliance-related functions throughout the Group.
The management reports for Mercedes-Benz Group AG
and for the Group are combined within this annual
report.
The Mercedes-Benz brand is one of the most valuable
brands in the world 2. The following graphic provides an
overview of the Group and its brands.
Mercedes-Benz Group
Mercedes-Benz
Cars
Revenue
€107,761 million
Employees*
139,196
Mercedes-Benz
Vans
Revenue
€19,320 million
Employees*
18,871
Mercedes-Benz
Mobility
Revenue
€25,083 million
Employees*
9,269
Employees* 175,264
Revenue €145,594 million
*As of 31 December 2024
The Mercedes-Benz Group’s value chain provides
an overview of the Group’s own business activities as
well as the upstream and downstream value chain.
The Mercedes-Benz Group uses a wide variety of
material and intangible resources. Employees play a
crucial role throughout the entire value chain. The most
important intangible resources are the brand, the
supplier network and the innovation potential. As one
of the most traditional and valuable brands in the
world, the Mercedes-Benz brand is well known
worldwide. The global supplier network ensures the
Group’s access to external technology and is the
cornerstone of an efficient production process. The
Group’s great innovation potential forms the basis
for the development of high-end products for its
customers. New standards in vehicle technology and
design are regularly set and the short and long-term
competitiveness of the Mercedes-Benz Group is
secured.
Value Chain of the Mercedes-Benz Group
Upstream
Supply Chain
Production
Marketing &
Sales
Sales and Service
Partners
Vehicle operation
Development of
products
Procurement of raw
materials, materials,
and services/
development
partnerships
Use of sustainable
materials
Global supplier network
Global production
network and expansion
of electric vehicle
production
Net carbon-neutral*
production and efficient
resource use
High-end cars and
premium vans
Electrification of the
product portfolio
Customer-oriented
driving experience
Safety as a core brand
value
Expansion of the digital
customer experience,
charging infrastructure,
and digital charging
services
Implementation of a
circular economy
Refurbishment and
recycling
Battery recycling
concept
Innovative vehicle
technology and design
Battery technology
Conditionally auto-
mated driving systems
Innovative digital
services
Charging solutions for
electric vehicles
Financial and mobility
services
Own Operations
Downstream
Reuse & recycling
Customer contact management and customer
retention
Sales and service quality as well as parts
availability
Product management
and market research
Management of the
sales system
Internal and external
communication
* Net carbon-neutral means that carbon emissions that are not avoided or reduced at Mercedes-Benz are compensated for by certified offsetting projects.
Input: material / immaterial resources (e.g. human capital, brand)
Output: high-end cars, premium vans and financial and mobility services
1 Net carbon-neutral means that carbon emissions that are not avoided or reduced at Mercedes-Benz are compensated for by certified offsetting projects.
The Group is continuously developing its global pro-
duction network and making production more flexible
in terms of drive systems. The “Mercedes-Benz Group
Global Production Network” graphic shows the produc-
tion sites around the world as of 31 December 2024.
With its “Ambition 2039”, the Mercedes-Benz Group is
striving for a net carbon-neutral 1 new vehicle fleet
across all stages of the value chain and the entire life
cycle. Important levers for this are the extensive use of
recycled materials, the use of renewable energies in
production, the electrification of the vehicle fleet and
the inclusion of renewable energy sources for charging
the vehicles.
The Mercedes-Benz Group sells vehicles and provides
services in nearly every country in the world and has
over 30 production facilities in Europe, North America
and South America, Asia and Africa.
Under the title “Sales of the Future”, sales in many
countries are being realigned by switching to direct
sales. With Germany and the United Kingdom, key
passenger car markets switched to the new sales
model in 2023. Unchanged from the prior year, around
55% of European passenger car sales have been
converted.
Direct sales are also being introduced in other regions.
As of the reporting date, a total of eleven passenger
car markets had switched to direct sales. In addition,
retail activities in some countries were sold as part of
the optimization of the sales model.
1 The Top-End category comprises all AMG models, including the AMG models of the various class model ranges and their derivatives in the Core and Entry segments.
Mercedes-Benz Cars
As a luxury automobile manufacturer, Mercedes-Benz
Cars seeks to produce the most desirable vehicles in
the world. Mercedes-Benz Cars offers a broad range of
products that are spread out among the three product
categories of Top-End, Core and Entry. The Top-End 1
portfolio encompasses the brands Mercedes-AMG and
Mercedes-Maybach, the product brand G-Class and all
S-Class models. Core represents the heart of the brand
and comprises the Mercedes-Benz C-Class and E-Class
model ranges and their derivatives. The Entry models
of the A-Class and B-Class and their derivatives offer
customers a point of entry into the compact vehicle
portfolio.
When looking at the unit sales by classes in the chapter
Business development, the S-Class models include the
S-Class, EQS, GLS and EQS SUV. The C-Class models
include all derivatives of the C-Class. The E-Class
models include all derivatives of the E-Class including
the EQE and EQE SUV. The A-Class models include
all derivatives of the A-Class including the EQA. The
derivatives of the B-Class including the EQB are com-
bined to form the B-Class models. When considering
the classes, the existing AMG derivatives and the
Maybach variants of the models are added to the unit
sales of the class.
In order to be able to meet the most diverse customer
needs – whether it’s an all-electric drivetrain or an
electrified combustion engine – production is set up to
be flexible in terms of drive systems.
Along with its production sites in Germany, Mercedes-
Benz Cars also operates major manufacturing facilities
in the United States, Hungary, Mexico and South Africa.
Production operations in China are carried out by the
associated company Beijing Benz Automotive Co., Ltd.
(BBAC).
The most important markets for Mercedes-Benz Cars in
2024 were China with 34% of sales, the United States
with 16%, Germany with 11% and the other European
markets (European Union, United Kingdom,
Switzerland, Norway) with 22%.
Mercedes-Benz Vans
Mercedes-Benz Vans is a global manufacturer of a
comprehensive van portfolio. The models offered in the
commercial segment comprise the large van Sprinter,
the mid-size van Vito and the small van Citan. In the
private customer segment, Mercedes-Benz Vans is
represented in the mid-size van segment with the
V-Class and the V-Class Marco Polo family, as well as in
the small van segment with the T-Class.
The small vans are offered in Europe (European Union,
the UK, Switzerland, Norway), while the mid-size vans
are offered in Europe and China and the large vans are
sold in Europe and the United States. Vans are also
offered in specific segments in other markets.
Mercedes-Benz Vans has anchored its aim to lead in
electric drive in its strategy and has systematically
electrified the complete product portfolio. Since 2023
Mercedes-Benz Vans has been offering an all-electric
version of each model – i.e. the eSprinter, the eVito and
the eCitan in the commercial van segment. In addition,
the all-electric EQV and EQT (energy consumption
combined: 20.9–19.3 kWh/100 km | CO₂ emissions
combined: 0 g/km | CO₂ class: A) are available for the
private segment.
The Mercedes-Benz Vans division has manufacturing
facilities in Germany, Spain, the United States and
Argentina. In future, the production of light commercial
vehicles in a new plant in Jawor, Poland is planned.
Production in China is managed via the joint venture
Fujian Benz Automotive Co., Ltd. The Citan and T-Class
with their respective electric variants are produced in
France through an alliance with Renault-Nissan-
Mitsubishi.
The most important markets for Mercedes-Benz Vans
in 2024 were Germany with 25% of unit sales, the other
European markets (European Union, United Kingdom,
Switzerland and Norway) with 41%, the United States
with 12% and China with 7%.
Mercedes-Benz Mobility
The Mercedes-Benz Mobility division supports the
sales of the Mercedes-Benz Group’s vehicle brands
worldwide with customized financial and mobility
services.
These services range from leasing and financing
contracts for end customers and dealers as well as
insurance, flexible subscription and rental models to
fleet management services for business customers,
with the latter primarily offered via the Athlon brand.
Mercedes-Benz Mobility offers individual service
tailored to customer requirements in 34 markets. The
most important markets for Mercedes-Benz Mobility
in 2024 were the United States with 30% of the portfo-
lio, Germany with 16% and China with 10%.
Mercedes-Benz Mobility also brings together all
activities relating to electric vehicle charging. The
Group’s own charging service Mercedes me Charge
enables easy and convenient access to more than
2 million public charging points within the Mercedes
me Charge network. In addition, the Mercedes-Benz
Group is continuously expanding its existing offering
by setting up its own global Mercedes-Benz charging
network and through cooperation with other
automobile manufacturers to expand high-power
charging networks.
Mercedes-Benz Mobility is also integrating its
Mercedes pay digital electronic payment platform into
numerous applications at the Mercedes-Benz Group.
The product range is rounded out by investments in
companies that offer mobility services, for example the
premium chauffeur services platform Blacklane.
Objectives and Strategies
The Mercedes-Benz Group comprises the two auto-
motive divisions Mercedes-Benz Cars and Mercedes-
Benz Vans as well as Mercedes-Benz Mobility. Each of
the divisions pursues a market- and customer-specific
strategy. The common foundation consists of three
principles: guided by sustainability, integrity and diver-
sity, driven by an ambitious team and accelerated by
data and artificial intelligence (AI).
Guided by sustainability, integrity and diversity
Sustainability
Sustainability is a high priority for the Mercedes-Benz
Group. The interests of the most important stake-
holders are taken into account: customers, investors
and employees, business partners and society as a
whole. The Mercedes-Benz Group acts on the basis of
the sustainable business strategy that the Board of
Management of the Mercedes-Benz Group AG has
adopted with the involvement of the Supervisory
Board. Economic, ecological and social responsibility
go hand in hand – along the entire value chain.
In the reporting year, the Mercedes-Benz Group used
Guided by sustainability, integrity & diversity
Driven by an ambitious team
Accelerated by data & AI
Mercedes-Benz Cars
Mercedes-Benz Vans
Mercedes-Benz Mobility
Mercedes-Benz Group
a comprehensive, multi-stage analysis process to
revise the strategic sustainability topics that the Group
intends to focus on. The perspectives of all relevant
stakeholders were taken into account in this analysis
process. With the six identified sustainability focus
areas, the Mercedes-Benz Group addresses topics that
are material for the environment, society and the
company.
These include: Decarbonization, Resource Use and
Circularity, People, Human Rights, Digital Trust and
Traffic Safety.
Further information can be found in the Sustainability
Statement.
Integrity
The Mercedes-Benz Group is convinced that long-term
success can only be achieved by acting in an ethically
and legally responsible manner. Integrity is therefore
the basis for each business activity. For the Mercedes-
Benz Group Integrity means doing the right thing by
complying with external and internal rules listening to
the inner compass and aligning actions with shared
principles.
Diversity
The Group firmly believes that sustainable success can
only be achieved with diverse teams. Through the use
of appropriate measures and activities, the Mercedes-
Benz Group seeks to foster a work environment that
offers equal opportunities to all employees.
Driven by an ambitious team
The commitment of the employees plays a key role
in the Mercedes-Benz Group’s global success. Indeed,
if the transformation is to be successfully shaped, a
team that is ready and willing to embrace change and
continuously extend its knowledge and skills needs to
be in place. The company therefore puts lifelong
learning and the further education of employees at the
centre of its sustainable personnel development
approach.
As an attractive employer, the company also offers
flexible working conditions, varied assignments and a
variety of development opportunities in the context of
a culture of cooperation based on trust. With its People
Principles, the company defines how to communicate,
lead and collaborate.
Accelerated by data and AI
Data and artificial intelligence (AI) are core drivers of
the Mercedes-Benz Group strategy. The Group aims for
data-driven business and decision-making processes.
This involves investing in data quality, utilizing advanc-
ed data and AI technologies, shaping enterprise data
architecture, the implementation of processes to com-
ply with regulatory requirements and ethical standards,
and developing data and AI literacy within the
workforce.
Mercedes-Benz Cars
Mercedes-Benz Cars’ goal is to build the world’s most
desirable cars. The division aligns its actions in pursuit
of this goal with six strategic pillars.
Mercedes-Benz Cars Strategy
Our goal: we will build the world’s most desirable cars
Think
Expand
Focus
and act like a
luxury brand
customer base by
growing Top-End
Luxury
on profitable
growth
Guided by sustainability, integrity & diversity
Driven by an ambitious team
Accelerated by data & AI
Think and act like a luxury brand
Mercedes-Benz has always had luxury deeply em-
Embrace
Lead
Lower
customers and
grow lifetime
revenues
in electric drive
and digital
experience
cost base, improve
industrial footprint
and increase
supply chain
resilience
bedded in its DNA, and the company’s thoughts and
actions will focus even more strongly on it in the
future. Mercedes-Benz Cars’ claim is to offer the most
desirable vehicles on the basis of a combination of
pioneering technologies, exceptional aesthetics and
integrated sustainability. In this manner, the company
also makes a connection between two essential
characteristics – its strong roots as an automaker
that has created numerous style-defining icons, and
the pioneering spirit with which Mercedes-Benz Car
is driving the further development of the automobile.
Mercedes-Benz underscores this for the ninth succes-
sive year with its top position as the world’s most
valuable luxury automobile brand in the current “Best
Global Brands” 2024 ranking.
The goal for the future is a brand that embodies the
many facets of the lives of our customers – from
lifestyle and technology to the digital realm, mobility
and culture – and does this by working together with
cultural pioneers in a manner that is as inspired as
it is unexpected. We intend to achieve this goal by
creating an emotional bond with the Mercedes-Benz
Cars brands and getting people excited about them in
connection with every product and in every encounter
we have with customers and anyone who is interested
in or is a fan of the brand.
Focus on profitable growth
Mercedes-Benz Cars wants to make the transformation
towards an all-electric future profitable and to con-
tinue its growth in the lucrative market segments. This
is underlined by the strategic target of an adjusted
return on sales of 10% or higher. A clear positioning as
a luxury brand helps to maintain higher profitability
across all product categories – Entry, Core and Top-
End. Along with a clear focus on the customer, the
important ways in which this can be accomplished
are by focusing and further developing the portfolio,
achieving strong pricing, and securing the margins.
These means will also be employed for the electrifica-
tion of the models throughout the entire Mercedes-
Benz brand portfolio. The positioning as a luxury brand
will also be used to achieve Mercedes-Benz Cars’ goal
of sustainable high profitability as a division that can
rely on its solid business system, even in challenging
times.
Expand customer base by growing Top-End Luxury
In the Top-End segment, Mercedes-Benz Cars boasts
an extraordinary brand portfolio that goes beyond
the Mercedes-Benz core brand. This portfolio also
includes the Mercedes-AMG and Mercedes-Maybach
brands, as well as the iconic G-Class product brand.
The Mercedes-Benz Cars Strategy will be used to
unfold the full potential of the Mercedes-Benz brand
portfolio, accelerate the development of the Top-End
product category and achieve additional EBIT growth.
Brand-specific formats and customer experiences are
also to be used to address new target groups. At the
same time, even stronger interrelationships are to be
established between the brands, in order to exploit
synergies in customer communications, for example.
Embrace customers and grow lifetime revenues
In order to intensify and further boost customer
loyalty, the division is systematically creating unique
customer experiences along its entire customer journey
and addressing customers in an individualized and
data-driven manner within the Mercedes-Benz
ecosystem. One of the basic preconditions for this is
comprehensively digitalized sales and service
processes that, for example, are enabled by the
stepwise transformation of sales to the direct sales
model. In this way, all channels – online and offline,
and from consulting to service – are to be adapted to
the dynamic customer requirements and flexibly
developed further. Moreover, customers are to be
provided with tailored and market-specific offers that
enthuse them about more than just the purchase
of vehicles. These offers include such things as after-
sales services and spare parts as well as over-the-
air (OTA) updates and digital extras. In this way,
Mercedes-Benz Cars aims to continuously increase
the attractiveness of its products and also ensure
that they retain their value.
Lead in electric drive and digital experience
Mercedes-Benz Cars is endeavouring to become a
leader for electric mobility and the digital experience.
The division is creating the essential preconditions
for becoming all-electric, with ambitious product
development goals and the market launch of new
locally emission-free and software-driven technologies.
The pace of the transformation is determined by
market conditions, infrastructure and consumer
behaviour. Mercedes-Benz can flexibly offer vehicles
with both all-electric drives and electrified high-tech
combustion engines into the 2030s. To this end,
production has been set up to be flexible in terms of
drive systems. Efficiencies between new and existing
model series are sustainably utilized for the further
development of the product portfolio. In 2025, the
new CLA will be the first derivative of the Mercedes
Modular Architecture (MMA), featuring both all-electric
vehicles and vehicles with electrified high-tech com-
bustion engines. In 2026, Mercedes-Benz Cars plans to
introduce the Mercedes-Benz Electric Architecture
(MB.EA) and AMG Electric Architecture (AMG.EA).
In order to further underscore the claim to leadership
with regard to the digital experience, and to meet
customers’ needs even better in future, Mercedes-Benz
Cars will introduce its own data-based and updatable
Mercedes-Benz Operating System (MB.OS) with
the launch of the next generation CLA. In this way, the
customers will be able to access a unique brand
experience that includes special new digital extras and
product features while control of the interface with
1 SAE Level 3:The automated driving function takes over certain driving tasks. However, a driver is still required. The driver must be ready to take control of the vehicle at all times when prompted to intervene by the vehicle.
customers can remain in the Mercedes-Benz eco-
system. MB.OS will create the basis for an even faster
and more flexible response to customer requirements
in the future, including during a product’s life cycle.
Another aim is to establish smart connectivity between
the vehicle, the cloud and the IoT world (Internet of
Things). Data security and data protection play a key
role for Mercedes-Benz Cars here.
Since December 2021, Mercedes-Benz has been the
world’s first automotive company to meet the legal
requirements of UN-R157 for a conditional driving
automation driving system (SAE Level 3 1) with DRIVE
PILOT. Shortly thereafter, the market launch took place
in Germany and certain US states. In the year 2025,
Mercedes-Benz will introduce the next certified version
of DRIVE PILOT in Germany. This will enable the system
to follow a vehicle ahead in a conditionally automated
manner on the outside lane of the highway at speeds of
up to 95 km/h under certain conditions. With this,
Mercedes-Benz offers the world’s fastest SAE Level 3
system.
Lower cost base, improve industrial footprint
and increase supply chain resilience
The consistent continuation of profitability targets is a
fundamental component of the sustainable successful
transformation of the company. Mercedes-Benz Cars
aims to further optimize its break-even point and
financial strength and has taken additional steps to
reduce the cost base across all cost types and to
improve its industrial footprint.
In order to safeguard and increase the competitiveness
of the Group and the resilience of its business activi-
ties, Mercedes-Benz Cars intends to manage its supply
chains even more actively.
Mercedes-Benz Vans
The goal of Mercedes-Benz Vans is to offer the most
Mercedes-Benz Vans Strategy
Our goal: we offer the world’s most desirable vans and services
Target
Lead
Lower
Embrace
premium segments and
focus on profitable growth
in electric drive and digital
experience
the total cost base and
improve the industrial
footprint
customers and grow lifetime
revenues
Guided by sustainability, integrity & diversity
Driven by an ambitious team
Accelerated by data & AI
desirable vans and services worldwide. The strategy of
Mercedes-Benz Vans is based on four pillars.
Target premium segments
and focus on profitable growth
Mercedes-Benz Vans has extensively shaped the van
market worldwide since the very beginning. As
part of the Mercedes-Benz brand family, the division
continuously sharpens its profile as a supplier of
future-oriented transport solutions for commercial and
private customers. Vans in the private segment are
aligned with the strategy of Mercedes-Benz Cars, while
commercial vans are marketed within the framework of
a premium strategy.
Mercedes-Benz Vans strives for the highest quality,
reliability and sustainability in both the commercial
and private sectors. A key element of the strategy is
the increased focus on high-sales and high-margin
markets and segments. In parallel with the expansion
of its activities in Europe, the division also intends to
further intensify its efforts in China and North America.
In addition, Mercedes-Benz Vans plans to focus more
strongly on the growing premium segments in the
most profitable sectors and to enter into attractive
segments at the upper end of the portfolio through
partnerships with body builders.
Embrace customers and grow lifetime revenues
Mercedes-Benz Vans intends to ensure its profitability
at a high level by means of a modified business model
for sales and a customer-focused service portfolio.
The focus here will be on pushing direct sales in order
to reduce selling expenses.
1 SAE Level 3: The automated driving function takes over certain driving tasks. However, a driver is still required. The driver must be ready to take control of the vehicle at all times when prompted to intervene by the vehicle.
2 SAE Level 4 stands for highly automated driving and describes the second highest level of automation: In defined scenarios and environments, the vehicle can perform driving tasks without the driver having to be ready to take over.
With regard to the new-vehicle business, Mercedes-
Benz Vans is increasingly making use of online sales
channels. This involves using the existing Mercedes-
Benz Cars Online Store platform and expanding it
to include van-specific features. For example, fleet
customers will be able to place repeat orders quickly
and easily directly online.
Another goal is to generate additional revenue
potential along all customer contact points: from
consulting to sales of vehicles to after-sales services.
Lead in electric drive and the digital experience
With the eCitan, EQT (energy consumption combined:
20.9–19.3 kWh/100 km | CO₂ emissions combined:
0 g/km | CO₂ class: A), eVito, eVito Tourer, EQV and
eSprinter, Mercedes-Benz Vans has been offering all-
electric vehicles across its portfolio since 2023. With
the market launch of the new, even more versatile
eSprinter in 2024, the existing product portfolio was
further updated. In order to flexibly fulfil customer
requirements, Mercedes-Benz Vans is planning to offer
vans with state-of-the-art combustion engines on a
single architecture in addition to electric vehicles. All
newly developed vans are to be based on the modular,
flexible and scalable Mercedes-Benz Van Architecture
in future. The plan is to introduce the all-electric
models of the Van Electric Architecture (VAN.EA) from
2026. With the second variant of the architecture, the
Van Combustion Architecture (VAN.CA), state-of-the-
art combustion-engine vans are planned to follow.
In the future, the MB.OS operating system developed
by Mercedes-Benz will also be used in the vans from
Mercedes-Benz and in the vehicles based on the
new Van Architecture. Mercedes-Benz Vans expects
that MB.OS will also enable it to quickly expand and
optimize its digital extras and services. The operating
system will also serve as the basis for the development
of automated driving functions. Based on MB.OS and
its technical capabilities, Mercedes-Benz Vans aims to
achieve conditional driving automation according to
SAE Level 3 1 for private customers by the end of the
decade. For the commercial segment, Mercedes-Benz
Vans aims to achieve highly automated driving accord-
ing to SAE Level 4 2 by the end of the decade in order to
tap into the business potential of driverless transport.
Lower the total cost base and improve the
industrial footprint
Mercedes-Benz Vans has launched a comprehensive
cost initiative at company, production and product
level in order to maintain profitability at a high level
and to improve competitiveness. The goals here
include further optimizing production processes and
lowering production costs. This is to be achieved
mainly by reducing the complexity of the product
portfolio and focusing on efficiency in core production
processes.
Mercedes-Benz Vans is also reorganizing its production
network in order to become more efficient and flexible
and to prepare the network for an electric future. In
particular, the manufacturing plant in Jawor, Poland, is
expected to set new standards worldwide for pro-
ductivity and lean processes. The reorganization of
the production network will enable Mercedes-Benz
Vans to react quickly to changing market conditions in
the future while at the same time optimizing its cost
structure.
Mercedes-Benz Mobility
Mercedes-Benz Mobility pursues a clear ambition: we
Mercedes-Benz Mobility Strategy
Our goal: we will be the number one financial and mobility service provider
for luxurious driving in the electric era
Electrify our
future
Excite our
customers
Power up our
business
We drive the electric
transformation,
establish a
compelling charging
ecosystem and build
a High-Performance-
Charging network.
We delight our
customers by
integrating MBM
products across the
customer journey to
strengthen our
customer loyalty.
We operate our
business in a lean
and efficient set-up
to lower our cost
base.
Guided by sustainability, integrity & diversity
Driven by an ambitious team
Accelerated by data & AI
will be the number one financial and mobility service
provider for luxurious driving in the electric era.
Mercedes-Benz Mobility contributes to the strategic
success, sales success, increased brand loyalty, and
financial success of the Mercedes-Benz Group.
The foundation for this is the integration of Mercedes-
Benz Mobility into every phase of the customer journey
and consistent customer orientation. This begins
with bundling products such as financing and leasing
contracts with insurance, extends to offering seamless-
ly integrated digital payment methods, and includes the
planned expansion of the charging infrastructure. The
goal is to provide customers with an exceptional brand
Drive sustainable
growth
Imagine it, do it,
live it
We generate
profitable new
business by utilizing
all growth
opportunities.
We create an
excellent employee
experience that
fosters strong
relationships and
empowers our team
members to actively
contribute to the
company’s success.
experience and retain them within the Mercedes-
Benz ecosystem with individually tailored follow-up
contracts and solutions.
The strategy of Mercedes-Benz Mobility is geared
towards a business environment characterized by rapid
changes and increasing competition. It aims to future-
proof the further transformation of the company and
its operational activities. For this purpose, five areas of
action were defined within the strategy.
Electrify our future
The future is electric. Mercedes-Benz Mobility wants
to encourage customers to enter the electric age
by making the switch to electromobility as easy and
comfortable as possible. To accelerate customer
acceptance and respond sustainably and profitably to
market-specific conditions, Mercedes-Benz Mobility
offers attractive and flexible electromobility solutions
as well as a first-class charging experience.
In addition to setting up its own global Mercedes-Benz
fast-charging network and the more than two million
charging points already available to Mercedes me
Charge customers worldwide, Mercedes-Benz Mobility
is also focusing on cooperation with other automobile
manufacturers. This includes collaborations within the
European and North American fast-charging networks
IONITY and IONNA, as well as IONCHI, the joint
venture with BMW to expand charging options in
China. This enables Mercedes-Benz Mobility to offer its
customers easy and fast charging. Charging in public,
at home, and for business purposes will become a
comfortable, reliable, and seamless experience.
Through flexible rental, subscription and leasing
models, Mercedes-Benz Mobility offers a variety of
options for getting started with electromobility.
Customers can switch to an electric vehicle after the
contract for a combustion engine vehicle ends without
entering into long-term commitments. This supports
the transition to future-oriented mobility and promotes
customer loyalty.
Excite our customers
In its development towards becoming the leading
financial and mobility service provider, Mercedes-Benz
Mobility leverages the continuous growth of direct and
online sales models and aims to offer highly personal-
ized solutions. This strengthens the ecosystem by
actively engaging customers at every point of the life
cycle.
Through its seamlessly integrated digital solutions and
the personal touch in human interactions, Mercedes-
Benz Mobility aims to exceed customer expectations
and deliver an exceptional customer experience.
Power up our business
In a fast-paced market environment, Mercedes-Benz
Mobility continuously improves its processes and
systems to meet the expectations of its customers, the
Mercedes-Benz Group AG, and its shareholders.
The goal is to simplify internal processes through the
use of data and cutting-edge technology, including
artificial intelligence.
Drive sustainable growth
Making a sustainable financial contribution to the
Mercedes-Benz Group is one of the driving forces of
Mercedes-Benz Mobility and a key factor for future
success.
The focus of Mercedes-Benz Mobility is on successful
corporate development through the expansion into
new growth areas, sustainable risk management and
the generation of further efficiencies. This strategy is
intended to help achieve the profitability targets and
the planned operating result.
Imagine it, do it, live it
The employees make the difference, and Mercedes-
Benz Mobility intends to be a preferred employer.
Mercedes-Benz Mobility aims to create an excellent
working environment that promotes strong
relationships and enables team members to actively
contribute to the company’s success.
1 Net carbon-neutral means that carbon emissions that are not avoided or reduced at Mercedes-Benz are compensated for by certified offsetting projects.
2 Scope 1 (direct CO2 emissions from sources for which the Group is directly responsible or which it controls) and Scope 2 emissions (indirect CO2 emissions from purchased energy such as electricity and district heating that are generated externally but consumed by the Group) in
comparison to 2018.
Important events
Review of future structure of Own Retail in Germany
On 19 January 2024, the Mercedes-Benz Group
announced a comprehensive review of the structures
of the Group’s Own Retail in Germany. In the third
quarter of 2024, as a preparatory measure for starting
talks with potential buyers, Mercedes-Benz AG was
able to conclude negotiations with the employee
representative bodies regarding possible benefits for
potentially affected employees. The Group has begun
talks with potential buyers from the fourth quarter of
2024. The Group will review the transactions as open-
ended with regards to the outcome, step-by-step and
individually for each retail location. The Group expects
the transformation process to take several years. As
of the reporting date, there were no effects on the
profitability, liquidity and capital resources, and
financial position; future effects cannot be reliably
estimated at this time.
Information on the sale of sales companies and retail
activities abroad can be found in the Consolidated
Financial Statements in the chapter Notes to the
Consolidated Financial Statements under the note
Consolidated Group.
Share buyback policy and further share
buyback programme
On 21 February 2024, Mercedes-Benz Group AG
resolved to implement a share buyback policy. Based
on this policy, the future free cash flow of the industrial
business (as available after potential small-scale M&A
transactions) generated beyond the approximately
40% dividend payout ratio of Mercedes-Benz Group
previous year’s net profit is to be used to fund share
buybacks with the purpose of redeeming shares.
In this context, in addition to the first share buyback
programme launched in March 2023, Mercedes-Benz
Group AG has also resolved to conduct a further share
buyback programme, through which it was intended to
acquire own shares worth up to €3 billion (not includ-
ing incidental costs) on the stock exchange and to then
cancel them. The further share buyback programme
was also based on the authorization of the Annual
General Meeting of Mercedes-Benz Group AG on 8 July
2020, according to which the Board of Management,
with the approval of the Supervisory Board, was
permitted to purchase own shares up to a maximum of
10% of the share capital until 7 July 2025.
The additional share buyback programme commenced
in May 2024 and was initially implemented in parallel
with the share buyback programme launched in March
2023 with a volume of up to €4 billion (not including
incidental costs). The buyback programme launched in
March 2023 was completed in August 2024. The buy-
back programme, which began in May 2024, was
completed in November 2024. All repurchased shares
were cancelled on 13 December 2024 without a capital
reduction.
Further information on the share buyback can be found
in the Consolidated Financial Statements in the
Notes to the Consolidated Financial Statements under
the Note Equity.
Mercedes-Benz Group ESG Conference 2024
At the ESG conference on 20 March 2024, the
Mercedes-Benz Group presented the progress it has
made in achieving the sustainability targets. The Group
continues to pursue the goal of making the entire new
vehicle fleet net carbon-neutral 1 across all stages
of the value chain by 2039. As part of the global expan-
sion of the electric vehicle portfolio, the goal is to
achieve an electrified vehicle share of up to 50% of
new vehicle car fleet sales in the second half of this
decade. An 80% reduction in CO₂ emissions is planned
in production by the end of this decade (based on
Scope 1 and Scope 2) 2. By 2039, 100% of the plants’
energy requirements are to be covered by renewable
sources of energy. In addition, social aspects and good
corporate governance contribute to a holistic
sustainability approach. Strategically focused and
tactically flexible, the company remains
1 SAE Level 4 stands for highly automated driving and describes the second highest level of automation: In defined scenarios and environments, the vehicle can perform driving tasks without the driver having to be ready to take over.
2 In accordance with China National Standard GB/T 40429-2021 “Taxonomy of driving automation for vehicles”, published in 2021 by the National Technical Committee of Auto Standardization.
3 SAE Level 3:The automated driving function takes over certain driving tasks. However, a driver is still required. The driver must be ready to take control of the vehicle at all times when prompted to intervene by the vehicle.
4 Availability and use of DRIVE PILOT features on motorways depends on options, countries and relevant laws.
environmentally and economically on the path towards
a sustainable future.
General Meeting of Mercedes-Benz Group AG
At the Annual General Meeting of Mercedes-Benz
Group AG on 8 May 2024, the shareholders approved a
dividend of €5.30 per share for the year 2023 (2022:
€5.20). The total distribution for the year 2023 was
€5.5 billion (2022: €5.6 billion).
At the end of the Annual General Meeting, Dr Bernd
Pischetsrieder resigned as a member and Chairman of
the Supervisory Board. Dr Doris Höpke, former member
of the Board of Management of Münchener Rück-
versicherungsgesellschaft Aktiengesellschaft, was
newly elected to the Supervisory Board. Dr Martin
Brudermüller was re-elected to the Supervisory Board
early with effect from the end of the 2025 Annual
General Meeting and, following the 2024 Annual
General Meeting, was elected as Dr Bernd Pischets-
rieder’s successor as Chairman of the Supervisory
Board.
A further step towards establishing a circular
economy with regard to end-of-life vehicles
On 15 May 2024, the Mercedes‑Benz Group published a
Memorandum of Understanding – MoU with TSR
Recycling GmbH & Co. KG for the recovery of second-
ary raw materials. The focus is on steel, aluminium,
polymers, copper and glass. In this way, the Group is
aiming to transition to a circular economy for end-of-
life vehicles.
Sustainable financing
In July 2024, Mercedes-Benz Group AG issued the first
Green Auto Loan Asset-Backed Security (ABS) in China.
The transaction has a volume of RMB 765 million (ap-
proximately €100 million), a weighted average life of
1.42 years and a coupon rate of 1.87% p.a.
Approval to test highly automated driving
systems in China and conditionally automated
driving in Germany
In August 2024, the Mercedes-Benz Group started
testing highly automated driving systems (SAE Level 4 1)
on designated inner-city roads and motorways in
Beijing. The aim is to test the hardware and software of
future automated driving systems for private vehicles.
In December 2023, the Mercedes-Benz Group was one
of the first car manufacturers to receive approval to
test conditionally automated driving systems (Level 3 2)
in Beijing.
In September 2024, the Mercedes-Benz Group an-
nounced the next version of DRIVE PILOT for conditio-
nal driving automation (SAE Level 3 3) in Germany 4. This
level makes it possible to follow a vehicle in front on
motorways at speeds of up to 95 km/h under certain
conditions. The new certification by the Federal Motor
Transport Authority took place in December 2024.
Sales are planned to start in early 2025.
Opening of own battery recycling factory
in Kuppenheim
On 21 October 2024, the Mercedes-Benz Group opened
Europe’s first battery recycling factory with an integrated
mechanical-hydrometallurgical process in Kuppenheim,
southern Germany. Once operational, the process will
be used to recover valuable, limited raw materials
such as lithium, nickel and cobalt and, in cooperation
with suppliers, to use them to manufacture new battery
cells for Mercedes-Benz vehicles.
1 This section contains disclosure requirements related to the European Sustainability Reporting Standards (ESRS) regarding actions addressing significant impacts on the own workforce.
Changes in the Board of Management
of Mercedes-Benz Group AG
On 11 December 2024, the Supervisory Board of
Mercedes-Benz Group AG decided on changes to the
company’s Board of Management. Board members
Sabine Kohleisen (Human Resources & Labor Director),
Renata Jungo Brüngger (Integrity, Governance &
Sustainability) and Hubertus Troska (Greater China until
31 January, 2025) will leave the company in 2025.
Sabine Kohleisen will resign from her position on
30 April 2025. She will be succeeded on 1 May 2025 by
Britta Seeger, who was responsible for Sales on the
Board of Management until 1 March 2025.
Mathias Geisen, previously Head of Mercedes-Benz
Vans, was appointed to the Board of Management
effective 1 February 2025, and took over the Board of
Management responsibility for Sales effective 1 March
2025.
Effective 1 February 2025, Hubertus Troska has
assumed a new function as a member of the Board of
Management and General Representative of Mercedes-
Benz Group AG for China (“Business Model China”)
until his departure on 31 July 2025. Oliver Thöne, previ-
ously Head of Product Strategy and Controlling, was
appointed as Hubertus Troska’s successor on the
Board of Management for Greater China effective
1 February 2025.
Renata Jungo Brüngger will leave the company on
31 October 2025. Olaf Schick, currently a member of
the Board of Management of Continental AG,
responsible for Finance, Controlling, Integrity and
Legal Affairs, will be her successor in the Board of
Management responsible for Integrity, Governance &
Sustainability on 1 October 2025.
The overlaps in the succession to individual board
positions serve to support a smooth handover.
Extension of job security guarantee and measures to
reduce personnel costs in Germany 1
As part of the “Next Level Performance” programme,
costs are to be sustainably reduced in the coming
years. In this context, in the fourth quarter of 2024, the
management of Mercedes-Benz Group AG began
discussions with the General Works Council on
measures to reduce personnel costs with the goal of
sustainably improving the company’s competitiveness
and thus enabling the extension of the job security
guarantee by a further five years until 31 December
2034. At the beginning of March 2025, the
management and the General Works Council agreed on
a key points paper that includes measures to reduce
personnel costs in Germany. In addition, a personnel
reduction programme based on double voluntary
action by employees and company will be enabled in
Germany.
Performance measurement system
Various targets are defined on the basis of the
Mercedes-Benz Group’s corporate strategy and busi-
ness strategy. The Group’s performance measurement
system is oriented towards the achievement of these
targets. Along with financial aspects, they include
sustainability-related targets in particular.
The information provided below primarily relates to the
Group’s financial performance measurement system.
Information on the sustainability targets and the con-
cepts and measures being taken to achieve them can
be found in the chapter Sustainability Statement.
Objective
The financial performance measurement system used
at the Mercedes-Benz Group is designed to ensure that
the investors’ interests and expectations are taken
into account within the framework of a value-based
management system. The value added is based on this
principle. It shows the extent to which the Group and
its divisions achieve or exceed the return requirements
of the investors. Due to the only indirect relationship of
value added to ongoing business operations, the value
drivers of the value added are utilized as financial
performance indicators for the periodic controlling of
the Group and its divisions.
Value added can be calculated as the difference
between the measure of operating profit (EBIT or net
operating profit) and the cost of capital of the average
net assets.
Calculation of value added
Cost of
capital (%)
Net assets
×
Value
added
Profit
measure
-
=
Cost of capital
The return on net assets (RONA) is calculated from the
ratio of EBIT to net assets. Value is created for the
shareholders when RONA exceeds the cost of capital.
The required rate of return on net assets, and thus the
cost of capital rate, is derived from the minimum rates
of return that equity investors and lenders expect
on their invested capital. In contrast to cost of capital
rates based on peer-group logic for purposes of the
impairment test at the level of the cash-generating
units, when determining the Group cost of capital rate
for deriving the value added, the focus is on the use of
company-specific data. For 2024, the Group’s cost of
capital rate amounted to 9.5% after taxes.
A pre-tax cost of capital rate of 13.0% was used for
both the automotive divisions and Mercedes-Benz
Mobility.
Cost of capital rates
2024
2023
in %
Group, after taxes
9.5
9.0
Automotive divisions, before taxes
13.0
13.0
Mercedes-Benz Mobility, before taxes
13.0
13.0
The quantitative development of value added and the
related financial performance measures are explained
in the chapter Profitability.
Financial performance measures
Profit measure
The measure of operating profit at the divisional level
is EBIT (earnings before interest and income taxes).
EBIT thus reflects the divisions’ responsibility for profit
and loss. EBIT that is calculated at the Group level
takes into account centrally managed matters and
eliminations.
In order to provide a more transparent presentation of
the ongoing business, adjusted EBIT is also calculated
and reported for both the Group and the divisions.
The adjustments include individual items insofar as
they lead to material effects in a reporting year. These
individual items can relate in particular to legal pro-
ceedings and related measures, restructuring measures
and M&A transactions.
Group EBIT minus the centrally managed income taxes
equals net operating profit. The chapter Profitability
shows how net operating profit is calculated.
Return on sales
As one of the main factors influencing value added,
return on sales is of particular importance for assessing
the profitability of the automotive divisions. Return on
sales is the ratio of EBIT to revenue, and vehicle sales
are the primary source of revenue.
The measure of profitability for Mercedes-Benz
Mobility is return on equity (the ratio of EBIT to
average equity on a quarterly basis). On the basis of
adjusted EBIT, an adjusted return on sales is reported
for the automotive divisions and an adjusted return on
equity is reported for Mercedes-Benz Mobility.
Net assets
All assets, liabilities and provisions for which the auto-
motive divisions are responsible in day-to-day opera-
tions are allocated to them. Performance measurement
at Mercedes-Benz Mobility is implemented on an
equity basis. Net assets at the Group level include the
net operating assets of the automotive divisions and
the equity of Mercedes-Benz Mobility, as well as assets
and liabilities from income taxes and other reconciling
items which are not allocated to the divisions. The
average annual net assets are calculated on the basis
of the average quarterly net assets.
Cash flow
A change in net assets – for example as a result of
investments – generally leads to the application or
release of liquid funds. Along with earnings, net assets
thus also have a direct effect on the cash flow. Of out-
standing importance for the financial strength of the
Mercedes-Benz Group is the free cash flow of the
industrial business, which comprises the cash flows at
the automotive divisions and the cash flows from inter-
est, taxes and other reconciling items that cannot be
allocated to the divisions. The operating cash flow
before interest and taxes (CFBIT) for the automotive
divisions is derived from EBIT and the change in net
assets. The cash conversion rate (CCR) is the ratio of
CFBIT to EBIT over a period of time and is an important
measure for cash-flow management at the automotive
divisions.
In order to provide a more transparent presentation
of the ongoing business, the adjusted free cash flow of
the industrial business and the adjusted CFBIT of the
automotive divisions are also calculated and reported.
An adjusted cash conversion rate on the basis of
adjusted CFBIT and adjusted EBIT is presented for the
automotive divisions. The adjustments include
individual items insofar as they lead to material effects
in a reporting year. These individual items can relate
in particular to legal proceedings and related measures,
restructuring measures and M&A transactions.
Key performance indicators
Key financial performance indicators
The following indicators are the key financial
performance indicators used to measure the operating
financial performance of the Mercedes-Benz Group:
– Revenue
– EBIT
– Free cash flow of the industrial business
For the automotive divisions Mercedes-Benz Cars
and Mercedes-Benz Vans, the adjusted return on
sales and the adjusted cash conversion rate, for which
forward-looking statements have already been made,
will be included as key performance indicators from
2025 onwards due to their importance for the internal
measurement of the performance of the divisions. The
following financial key figures are therefore of
particular relevance as key performance indicators:
– Adjusted return on sales
– Adjusted cash conversion rate
– Investments in property, plant and equipment
– Research and development expenditure
For Mercedes-Benz Mobility, the adjusted return on
equity is the key financial performance indicator. New
business remains an important key figure, but will no
longer be a key performance indicator from the year
2025 onwards.
Key non-financial performance indicators
In addition, the following key figures are used as non-
financial indicators for measuring the performance of
the automotive divisions Mercedes-Benz Cars and
Mercedes-Benz Vans:
– Unit sales
– Share of electrified vehicles (xEV)
Declaration on
Corporate Governance
The Declaration on Corporate Governance, which is
combined for the company and the Group in accord-
ance with Section 289f and Section 315d of the
German Commercial Code, can be found in the chapter
Declaration on Corporate Governance of the Annual
Report as well as on the Internet at 🌐 group.mercedes-
benz.com/dcg.
Pursuant to Section 317 Subsection 2 Sentence 6 of
the German Commercial Code (HGB), the purpose of
the audit of the statements pursuant to Section 289f
Subsections 2 and 5 and Section 315d of the HGB by
the auditors is limited to determining whether such
statements have actually been provided.
Economic Conditions
and Business Development
The world economy and
automotive markets
The world economy
General economic conditions
The world economy performed better throughout the
reporting year than expected at the beginning of the
year and, at 2.7%, grew only slightly slower than in the
previous year (2.8%). The economic momentum was
supported over the course of the year by interest rate
cuts in the majority of countries. However, there were
again significant differences between, and in some
cases within, individual regions. The resilience of the
US economy continued this year, and large emerging
economies such as India and Brazil were again able to
achieve strong growth. In contrast, the economies of
Europe remained largely weak and China continued to
struggle with structural challenges, but was able to
further expand its strong position on the global market.
In this environment, world trade increased by about
1.5% compared to the prior year.
The US economy was almost able to keep up the
previous year’s growth momentum in the reporting year
despite the ongoing dampening effects of past interest
rate hikes and stricter lending standards, and success-
fully defied the risks of recession. Private consumption
was once again the biggest driver of growth. Inflation
continued to fall over the course of the year and, at
2.9%, was significantly lower than in the prior year.
This enabled the central bank to start its interest rate
cutting cycle in September and reduce the policy rate
by 100 basis points to 4.5% by the end of the year. For
the year as a whole, growth in the US economy came
in at 2.8% thanks to robust domestic demand.
In the Eurozone, the economic activity was much more
subdued. The industrial sector continued to suffer from
eroding competitiveness and weak demand and shrank
again over the year as a whole. The recovery in private
consumption also fell well short of expectations
despite rising real incomes. In contrast, inflation in the
Eurozone, at 2.4% on average for the year, came
close to the central bank’s target of around 2%, so that
the European Central Bank was also able to reduce
its policy rate by 100 basis points to 3.0% by the end
of the year. Nevertheless, the Eurozone economy only
grew by 0.7% over the year as a whole.
After a solid start to the year, the Chinese economy
came under increasing pressure. The ongoing weakness
in the real estate sector and a crisis of consumer
confidence dampened growth in the middle of the year.
Thanks to strong exports, an expansion of government
support measures and comprehensive monetary
easing, the announced growth target of 5.0% was
nevertheless achieved. However, in view of weak
domestic demand, deflationary tendencies intensified
further and consumer prices rose by just 0.2% for the
year as a whole.
Development of exchange rates
In this environment, exchange rates were volatile. The
US dollar to euro exchange rate fluctuated between
1.04 and 1.12 over the course of the year. At the end of
the year, the euro was around 6% weaker than at the
end of 2023. The Chinese renminbi fluctuated between
7.55 and 7.95 against the euro. Compared to the end of
the year, the euro depreciated by around 3.5%. Against
the Japanese yen, the euro gained around 4%, with a
fluctuation range of 155 to 175 yen per euro.
Energy and raw material prices
The price of Brent oil fluctuated between USD 70 and
USD 93 per barrel over the course of the year, but the
annual average was USD 80, roughly 2% below the
previous year. TTF gas prices in Europe reached their
lowest level since 2020 in the spring and were, on
average, more than 10.0% lower than in the prior year.
However, lower inventory levels, cool temperatures
and geopolitical risks led to a significant price increase
at the end of the year; at almost €49 per megawatt
hour, the price was around 50% higher than at the end
of the previous year.
Automotive markets
The conditions described above also shaped the devel-
opment of the global automotive market in the past
year. While the markets developed regionally very
differently over the course of the year, overall there
was a visible reluctance to buy among customers in
the face of economic and political uncertainty.
In this environment, the global passenger car market
was slightly above the previous year’s level. In the
United States, the market for light vehicles was also
slightly higher than in the previous year. The sales
volume of electrified vehicles (xEV) in the United States
grew slightly more strongly than the total market;
however, the xEV share of the total market increased
only marginally to about 10%. The European car market
was at the same level as the previous year. Unit sales
of xEV in Europe were slightly below the previous
year’s level and thus significantly below expectations.
In consequence, the xEV share of the overall car
market remained at around 23%. Although thanks to
the government’s economic stimuli the Chinese total
passenger car market grew significantly, the unit sales
of many foreign premium manufacturers recorded
significant losses. Unlike in Europe and the United
States, xEV sales in the overall Chinese car market rose
sharply. Therefore, xEV accounted already for nearly
half of the total passenger car market in China.
The factors mentioned above also shaped the devel-
opment of important van markets. In Europe, the
combined market segment of mid-size and large vans
nevertheless recorded a significant increase compared
to the prior year. The small van segment in Europe also
expanded significantly. Growth was especially strong
in the first half of the year particularly for mid-size and
large vans due to pre-buy effects in anticipation of
regulatory changes. In the second half of the year,
market momentum slowed significantly. The US market
for large vans came in at the previous year’s level. In
China, the market segment for mid-size vans was able
to exceed the previous year’s level slightly. The market
continued to be supported by the introduction of
new vehicle models from various competitors. With the
exception of China, the xEV share was still at a low
level in most markets.
Business development
Mercedes-Benz Group
In a challenging global market environment, 2,389,000
cars and vans were sold worldwide in 2024. In the
prior year, 2,491,800 vehicles were sold.
Mercedes-Benz Cars
Mercedes-Benz Cars’ unit sales decreased 3% in 2024
compared to the prior year.
Unit sales of Top-End vehicles reached 281,500 units,
failing to match the previous year’s level. Unit sales in
the Top-End category thus amounted to 14% of total
sales in 2024 (2023: 16%). The decrease in unit sales
compared to the previous year was primarily due to
market conditions in China, model changes and weaker
demand for electric vehicles. The S-Class remained the
market leader in its segment in all major regions. With
a positive development in the last quarter of 2024,
Mercedes-AMG’s sales figures in 2024 were below the
previous year’s level. The G-Class achieved its best
quarterly result to date after new model launches in
the fourth quarter of 2024 and was at the previous
year’s level for the full year 2024.
Unit sales in the Core segment increased by 6%
compared to the prior year. This increase was due to
good demand for E-Class and GLC models. This
category’s share of the total portfolio was 59% in 2024
(2023: 54%).
The Entry category represented 27% (2023: 30%) of
the total portfolio in 2024. Unit sales were 14%
below the previous year’s level mainly due to market
developments in China.
Overall, Mercedes-Benz Cars achieved a share of
electrified vehicles of 18.5% (2023: 19.7%) in total unit
sales in 2024. Unit sales of all-electric vehicles in
key markets decreased in the reporting year. Unit sales
of plug-in hybrids, on the other hand, increased
worldwide in 2024. This was mainly due to the US
market.
Unit sales by product categories and classes
2024
2023
24/23
In units
% change
Total unit sales1
1,983,403
2,044,051
-3
Top-End
281,492
328,268
-14
S-Class models2,3
127,073
171,124
-26
Mercedes-AMG
140,282
143,184
-2
G-Class2
42,260
42,708
-1
Mercedes-Maybach
21,302
27,911
-24
Core
1,167,119
1,096,923
+6
E-Class models2
512,143
528,210
-3
C-Class models2
725,129
631,784
+15
Entry
534,792
618,860
-14
B-Class models2
183,772
213,505
-14
A-Class models2
374,033
420,610
-11
smart
5,696
18,054
-68
thereof
Electrified vehicles (xEV)
367,610
401,943
-9
All-electric vehicles (BEV)
185,059
240,668
-23
Plug-in hybrid vehicles (PHEV)
182,551
161,275
+13
Share of electrified vehicles
in % of unit sales
18.5
19.7
1 This figure includes the unit sales of the associated company Beijing Benz
Automotive Co., Ltd. (BBAC), which is an equity-method investment.
2 Including AMG models and their derivatives.
3 Including Maybach variants.
In Europe, Mercedes-Benz Cars’ unit sales were below
the previous year’s level. Development in individual
markets within the region was mixed, with positive
momentum in the United Kingdom, where unit sales
increased compared to the prior year. In Germany, unit
sales were below the previous year’s level.
Driven by good sales momentum in the US market, unit
sales in North America increased compared to the
prior year. Full availability of the GLC models and other
model launches from Mercedes-AMG contributed to
this positive development.
In Asia, unit sales remained subdued compared to the
prior year, particularly in the Top-End segment.
Overall, sales fell compared to the previous year.
Unit Sales by region
2024
2023
24/23
In units
% change
Total unit sales
1,983,403
2,044,051
-3
Europe1
641,792
659,627
-3
thereof Germany
213,456
234,274
-9
North America2
365,358
339,493
+8
thereof United States
324,529
298,013
+9
Asia
892,147
963,789
-7
thereof China3
683,568
737,226
-7
Other markets
84,106
81,142
+4
1 European Union, United Kingdom, Switzerland and Norway.
2 United States, Canada and Mexico.
3 This figure includes the unit sales of the associated company Beijing Benz
Automotive Co., Ltd. (BBAC), which is an equity-method investment.
Order situation
At the end of 2024, Mercedes-Benz Cars’ order intake
was slightly above the previous year’s level. The
G-Class developed positively, with higher order intake
for the new model. Demand for the GLC also
contributed to a positive order situation.
Mercedes-Benz Vans
Mercedes-Benz Vans sold 405,600 (2023: 447,800)
vehicles worldwide in 2024.
Unit sales in 2024 were impacted by special effects
such as the model change for mid-size vans (particu-
larly in Europe in the first half of the year and in China
in the second half of the year) and the scheduled
discontinuation of the Metris in the United States. In
addition, unit sales were impacted by the declining
market development for large vans with combustion
engines in the United States and for mid-size vans
with combustion engines in China.
Sales of electrified vans worldwide amounted to
19,500 (2023: 22,700) units. These were exclusively
all-electric models. The share of electrified vehicles in
total unit sales was 4.8% (2023: 5.1%). The overall
market for all-electric models of small, mid-size and
large vans in the core region of Europe was also
subdued in 2024 compared to the prior year.
Unit Sales by segment
2024
2023
24/23
In units
% change
Total unit sales1
405,610
447,790
-9
Commercial Vans
343,683
380,435
-10
large Vans (Sprinter/
eSprinter)
219,127
237,429
-8
mid-size Vans (Vito/eVito)
101,205
118,882
-15
small Vans (Citan/eCitan)
23,351
24,124
-3
Private Vans
61,926
67,355
-8
mid-size Vans (V-Class, EQV)
56,809
59,986
-5
small Vans (T-Class, EQT2)
5,117
7,369
-31
thereof
Electrified vehicles (xEV)3
19,516
22,666
-14
Share of electrified vehicles
in % of unit sales
4.8
5.1
1 This figure includes the unit sales of the joint venture Fujian Benz Automotive Co.,
Ltd (FBAC).
2 Mercedes-Benz EQT (energy consumption combined: 20.9–19.3 kWh/100 km |       
CO₂ emissions combined: 0 g/km | CO₂ class: A).
3 Exclusively all-electric models (BEV).
Unit Sales by region
2024
2023
24/23
In units
% change
Total unit sales
405,610
447,790
-9
Europe1
271,500
279,408
-3
thereof Germany
103,247
113,986
-9
North America2
59,953
86,449
-31
thereof United States
49,538
75,090
-34
Asia
33,993
42,358
-20
thereof China3
26,613
33,430
-20
Other markets
40,164
39,575
+1
1 European Union, United Kingdom, Switzerland and Norway.
2 United States, Canada and Mexico.
3 This figure includes the unit sales of the joint venture Fujian Benz Automotive Co.,
Ltd (FBAC).
Order situation
At Mercedes-Benz Vans, the order backlog at the end
of 2024 was significantly below the above-average
high level of the previous year.
Mercedes-Benz Mobility
The Mercedes-Benz Mobility division had a contract
volume of €138.1 billion – slightly above the previous
year’s level – at the end of 2024 (31 December 2023:
€135.0 billion, +2%; after adjusting for exchange-rate
effects 0%). The figure for contract volume shows the
total monetary amount of all leasing and financing
contracts on a certain date.
Impacted by developments on the sales side and
continued high competition in the financial services
sector, the number of new financing and leasing
contracts in 2024 was 11% below the previous year’s
level at 1.25 million (31 December 2023: 1.40 million).
New business remained only 4% below the level of the
same period last year at €59.5 billion (31 December
2023: €62.0 billion) due to a higher average financing
and leasing volume per contract. New business repre-
sents the volume of leasing and financing contracts
activated in the reporting year.
In the German market, new business was below the
previous year’s level at €9.4 billion (-10%). Contract
volume amounted to €22.5 billion (-8%).
The US market benefited from an increase in the
penetration rate. The penetration rate indicates the
proportion of leased and financed vehicles in the
Group’s unit sales. At €17.4 billion (+7%), the volume
of new business at the end of 2024 was higher than
the figure recorded in the prior year. At the end of
December 2024, the contract volume was €41.2 billion,
15% higher than at the end of 2023.
In China, on the other hand, increased competition
in the financial services sector caused new business to
decrease by 45% compared to the end of 2023 to
€5.4 billion. At €13.3 billion, contract volume was also
lower than in the previous year (-20%).
New business in other markets totalled €27.3 billion
(+6%), while contract volume amounted to €61.1 billion
(+5%).
Investment and research activities
Investment in property, plant and equipment
During the year under review, investments in property,
plant and equipment at the Mercedes-Benz Group
amounted to €4.0 billion and were thus higher than in
the previous year (2023: €3.7 billion).
Investments in property, plant and equipment1
2024
2023
24/23
In millions of euros
% change
Mercedes-Benz Group
4,039
3,745
+8
thereof Mercedes-Benz
Cars
3,392
3,345
+1
thereof Mercedes-Benz
Vans
571
351
+63
1 The investments in property, plant and equipment correspond to additions to
property, plant and equipment in the Consolidated Statement of Cash Flows
in the Consolidated Financial Statements.
In 2024, investments in property, plant and equipment
at Mercedes-Benz Cars focused on the introduction
of derivatives of the two new drive-flexible (MMA)
and electric (MB.EA) architectures. At €3.4 billion,
investments in property, plant and equipment in 2024
were above the previous year’s level (2023: €3.3
billion).
The investments in property, plant and equipment at
Mercedes-Benz Vans amounted to €0.6 billion in 2024
(2023: €0.4 billion) and were thus higher than in the
prior year. Main areas of investments were the planned
transformation of the Mercedes-Benz van fleet and the
expansion of the van plants.
Research and development
Research and development expenditure at the
Mercedes-Benz Group amounted to €9.7 billion in
2024 (2023: €10.0 billion), lower than in the previous
year. €4.1 billion (2023: €3.8 billion) of the research and
development costs were capitalized, representing a
capitalization rate of 43% (2023: 38%).
Research and development
2024
2023
24/23
In millions of euros
% change
Research and development
expenditure
9,717
9,996
-3
thereof Mercedes-Benz
Cars
8,744
9,099
-4
thereof Mercedes-Benz
Vans
1,012
873
+16
Research and non-capitalized
development costs
5,580
6,230
-10
Capitalized development
costs
4,137
3,766
+10
Capitalization rate in %
43
38
Research and development expenditure at Mercedes-
Benz Cars amounted to €8.7 billion and was thus
below the level of the previous year (2023: €9.1 billion).
The decline was due to lower research and non-
capitalized development costs in connection with
existing vehicle models and conventional drive types.
The increase in capitalization was again focused on the
development of new architectures geared towards
electromobility. This also included scope for the
expansion of digitalization and automated driving.
Research and development expenditure at Mercedes-
Benz Vans amounted to €1.0 billion in 2024 (2023:
€0.9 billion), which was higher than the level of
previous year. The reason for this was the increase in
capitalized development costs resulting from the
planned transition of the van fleet. A major factor was
the new, modular and scalable Van Architecture. In
contrast, research and development expenses for the
existing Van models decreased.
Annual Report 2024 | Mercedes-Benz Group
52
Profitability, Liquidity and
Capital Resources, and Financial Position
Profitability, Liquidity and Capital Resources,
and Financial Position
To provide a better insight into the Group’s
profitability, liquidity and capital resources, and
financial position, in addition to the figures for the
Mercedes-Benz Group, a Condensed Consolidated
Statement of Income, a Condensed Consolidated
Statement of Cash Flows and a Condensed
Consolidated Statement of Financial Position are
shown for each of the industrial business and the
segment Mercedes-Benz Mobility. The industrial
business comprises the automotive segments
Mercedes-Benz Cars and Mercedes-Benz Vans. The
effects from intra-Group eliminations between the
industrial business and Mercedes-Benz Mobility, as
well as items at the corporate level, are generally
allocated to the industrial business. In justified
individual cases, effects on the profitability, liquidity
and capital resources, and financial position of the
corresponding segment are presented from an
economic rather than a legal perspective.
In the reporting year, changes have been made to
improve the presentation of the Consolidated
Statement of Income and the Consolidated Statement
of Financial Position. The figures of the previous year
have been adjusted accordingly. Further information is
included in the Note Material accounting policies of
the Consolidated Financial Statements in the chapter
Notes to the Consolidated Financial Statements.
For error corrections made in the previous year within
the meaning of IAS 8.41 ff. please refer to the
Note Corrections in accordance with IAS 8.
In order to provide a more transparent presentation of
the ongoing business, adjusted figures are also calcu-
lated and reported for both the Group and the seg-
ments. The adjustments generally include individual
items insofar as they lead to material effects in a
reporting year. These individual items can relate in
particular to legal proceedings and related measures,
restructuring measures and M&A transactions. The
individual item reported under restructuring measures
concerns expenses from an impairment of the shares in
Automotive Cells Company SE (ACC), which is related
to the strategic focus within the investment.
Further information on the performance measurement
system can be found in the chapter Corporate Profile.
Annual Report 2024 | Mercedes-Benz Group
53
Profitability, Liquidity and
Capital Resources, and Financial Position
Profitability
Consolidated Statement of Income
In 2024, the revenue amounted to € 145.6 billion (2023:
€152.4 billion) and was thus slightly lower than in the
prior year. This was primarily due to the slight decrease
in unit sales in connection with an unfavourable
product and market mix as well as negative net pricing
effects.
Cost of sales amounted to €117.0 billion (2023:
€117.4  billion) in 2024 and was on the same level as in
the previous year. The slight decrease in unit sales and
cost efficiencies, primarily in procurement and produc-
tion, were offset by increased expenses for measures
relating to the product life cycles of Mercedes-Benz
vehicles, higher expenses to suppliers and value adjust-
ments of leased vehicles with electric drive trains as
well as by increased cost of credit risks mainly in the
United States and a negative development of interest
rates in the financial services sector.
Overall, gross profit in relation to revenue decreased
from €35.0 billion to €28.6 billion.
Revenue by segment and region
2024
2023
24/23
(adjusted)
In millions of euros
% change
Mercedes-Benz Group1
145,594
152,390
-4
Segments
Mercedes-Benz Cars
107,761
112,756
-4
Mercedes-Benz Vans
19,320
20,288
-5
Mercedes-Benz Mobility1
25,083
25,571
-2
Reconciliation1, 2
-6,570
-6,225
+6
Regions
Europe1
58,764
61,067
-4
thereof Germany1
21,707
24,631
-12
North America
38,917
40,488
-4
thereof United States
34,900
36,041
-3
Asia
39,643
43,382
-9
thereof China
23,139
25,284
-8
Other markets
8,270
7,453
+11
1 The previous year’s figures have been corrected in accordance with IAS 8. Further
information is included in Note 3 of the Consolidated Financial Statements in the
chapter Notes to the Consolidated Financial Statements.
2 The reconciliation includes eliminations of intra-Group revenue between the
segments.
Selling expenses of €10.0 billion in 2024 were on the
same level as in the previous year (2023: €10.3 billion).
In 2024, general administrative expenses decreased
by €0.3 billion to €2.5 billion (2023: €2.8 billion) mainly
due to lower variable wage and salary components.
Research and non-capitalized development costs
of €5.6 billion in 2024 were below the prior-year level
(2023: €6.2 billion). The decrease was due to lower
expenses in connection with existing vehicle models,
mainly with the current platform generations geared
towards electric mobility, and due to lower expenses
for conventional drive systems. Further information
on this topic is provided in the chapter Investment and
research activities of this Combined Management
Report.
Other operating income of €2.0 billion (2023:
€1.7 billion) was above the level of the prior year. This
was primarily due to income from the reversal of
provisions in connection with governmental and court
proceedings and measures taken relating to Mercedes-
Benz diesel vehicles. In contrast, income from costs
recharged to third parties was reduced mainly as a
result of the first time consolidation of previously
unconsolidated companies. Additionally, expenses in
connection with the discontinuation of business
activities in Russia had a negative impact on earnings in
the previous year.
Annual Report 2024 | Mercedes-Benz Group
54
Profitability, Liquidity and
Capital Resources, and Financial Position
In 2024, the gains/losses on equity-method invest-
ments amounted to €1.1 billion (2023: €2.1 billion) and
were thus significantly below the prior-year level. The
negative development was mainly due to the lower
income from the Chinese investments and an impair-
ment of the shares in Automotive Cells Company SE
(ACC), which is related to the strategic focus within the
investment.
The other financial income/expense was below the
previous year’s level at €0.0 billion (2023: €0.1 billion),
mainly due to higher expenses from the discounting of
non-current provisions.
Earnings before interest and taxes (EBIT) amounted
to €13.6 billion in 2024, which is significantly lower
than in the previous year (2023: €19.7 billion).
Net interest income/expense improved among others
due to the global increase in interest rates to an
income of €0.5 billion (2023: €0.4 billion).
The tax expense of €3.7 billion (2023: €5.6 billion)
was below prior-year level. The effective tax rate for
the reporting year was 26.4% (2023: 27.6%).
Net profit was thus €10.4 billion (2023: €14.5 billion).
Net profit of €0.2 billion is attributable to non-con-
trolling interests (2023: €0.3 billion). The net profit
attributable to shareholders of Mercedes-Benz
Group AG amounted to €10.2 billion (2023:
€14.3 billion), leading to a decrease in earnings per
share to €10.19 (2023: €13.46). The calculation of
earnings per share is based on an average number of
1,002.0 million issued shares (2023: 1,059.6 million
issued shares). The decrease in the weighted average
number of shares in circulation is due to the share
buyback programmes completed in the reporting
period.
Further information on the individual items of the
Consolidated Statement of Income is provided in
Note 5 ff. of the Consolidated Financial Statements
in the chapter Notes to the Consolidated Financial
Statements.
Annual Report 2024 | Mercedes-Benz Group
55
Profitability, Liquidity and
Capital Resources, and Financial Position
Condensed Consolidated Statement of Income/Loss
Mercedes-Benz Group
Industrial Business
Mercedes-Benz Mobility
2024
2023
2024
2023
2024
2023
(adjusted)
(adjusted)
(adjusted)
In millions of euros
Revenue1
145,594
152,390
120,511
126,819
25,083
25,571
Cost of sales1, 2
-117,018
-117,386
-94,264
-94,903
-22,754
-22,483
Gross profit in relation to revenue2
28,576
35,004
26,247
31,916
2,329
3,088
Selling expenses2
-9,993
-10,270
-9,377
-9,585
-616
-685
General administrative expenses2
-2,529
-2,771
-1,774
-1,978
-755
-793
Research and non-capitalized development costs
-5,580
-6,230
-5,580
-6,230
–
–
Other operating income/expense
2,024
1,690
1,845
1,838
179
-148
Gains/losses on equity-method investments, net
1,138
2,129
1,140
2,284
-2
-155
Other financial income/expense, net
-37
108
-36
113
-1
-5
EBIT
13,599
19,660
12,465
18,358
1,134
1,302
Interest income
548
424
Profit before income taxes
14,147
20,084
Income taxes
-3,738
-5,553
Net profit
10,409
14,531
thereof profit attributable to non-controlling interests
202
270
thereof profit attributable to shareholders of Mercedes-Benz Group AG
10,207
14,261
Earnings per share (in euros)
For profit attributable to shareholders of Mercedes-Benz Group AG
Basic
10.19
13.46
Diluted
10.19
13.46
1 The previous year’s figures have been corrected in accordance with IAS 8. Further information is included in Note 3 of the Consolidated Financial Statements in the chapter Notes to the Consolidated Financial Statements.
2 For a more suitable presentation, reclassifications have been carried out in the functional costs. The reclassifications are described in Note 1 of the Consolidated Financial Statements in the chapter Notes to the Consolidated Financial Statements.
Annual Report 2024 | Mercedes-Benz Group
56
Profitability, Liquidity and
Capital Resources, and Financial Position
EBIT by segment
The EBIT of the Mercedes-Benz Cars segment
decreased to €8,460 million in 2024 (2023:
€14,224 million); adjusted EBIT was €8,677 million
(2023: €14,252 million). With a revenue of
€107,761 million (2023: €112,756 million), the adjusted
return on sales of 8.1% was lower than the adjusted
prior-year figure of 12.6%.
Gross profit in relation to revenue decreased from
23.8% to 20.0%. Negative pricing effects, the decrease
in unit sales in connection with an unfavourable pro-
duct and market mix, increased expenses for measures
in connection with product lifecycles, lower earnings in
the used vehicle business and value adjustments of
leased vehicles with electric drive trains had a negative
impact. Opposed to that, cost efficiencies mainly in
procurement and production could significantly over-
compensate for higher expenses to suppliers and thus
had a positive impact on gross profit in relation to
revenue. Lower research and non-capitalized develop-
ment costs due to lower expenses in connection with
existing vehicle models and conventional drive systems
had a positive impact on earnings. Lower general
administrative expenses as a consequence of lower
variable wage and salary components along with lower
selling expenses due to decreased unit sales had a
positive impact as well. In addition, lower gains from
Automotive Cells Company (ACC) and the Chinese
equity-method investments contributed to a decrease
in earnings.
Adjusted EBIT was slightly higher than EBIT in the year
2024. Gains resulting from the measurement of provi-
sions in connection with governmental and court
proceedings and measures taken relating to Mercedes-
Benz diesel vehicles of €133 million (2023: expenses of
€94 million) were adjusted. The individual item repor-
ted under restructuring measures concerns expenses
of €350 million from an impairment of the shares in
Automotive Cells Company SE (ACC), which is related
to the strategic focus within the investment. In ad-
dition, earnings in connection with the discontinuation
of the business activities in Russia in the amount of
€66 million had a positive impact on EBIT in the
previous year.
The Mercedes-Benz Vans segment achieved an EBIT
of €2,932 million (2023: €3,138 million); adjusted
EBIT was €2,825 million (2023: €3,063 million). With
revenue of €19,320 million (2023: €20,288 million),
the adjusted return on sales of 14.6% was slightly lower
than the adjusted prior-year figure of 15.1%.
Gross profit in relation to revenue decreased from
24.9% to 24.1% due to lower unit sales. Opposed to
that, a favourable product mix due to a strong product
substance had a positive impact on gross profit in
relation to revenue. The gains on the Chinese equity-
method investments were below the level of the
previous year due to a model change.
Adjusted EBIT was slightly lower than EBIT in the year
2024. Gains resulting from the measurement of provi-
sions in connection with governmental and court
proceedings and measures taken relating to Mercedes-
Benz diesel vehicles were adjusted and positively
affected earnings by €107 million (2023: €70 million).
Annual Report 2024 | Mercedes-Benz Group
57
Profitability, Liquidity and
Capital Resources, and Financial Position
In 2024, the EBIT of the Mercedes-Benz Mobility
segment amounted to €1,134 million (2023:
€1,302 million); adjusted EBIT was €1,134 million (2023:
€1,695 million). Revenue amounted to €25,083 million
(2023: €25,571 million). Adjusted return on equity of
8.7% was below the adjusted prior-year figure of 12.3%.
The main reasons for the development of EBIT in 2024
were a lower interest margin due to the development
of interest rates and increased competition in the
financial services sector. In addition, cost of credit risks
were above the previous year’s level, mainly due to a
challenging macroeconomic environment in the United
States. Moreover, Athlon’s reduced remarketing result
had a negative impact on earnings. In contrast to that,
functional costs were reduced as a result of efficiency
measures.
In the previous year, expenses of €276 million in
connection with the discontinuation of the business
activities in Russia as well as an impairment of the
equity-method gains/losses (€117 million) were
adjusted in EBIT.
The reconciliation of the segments’ EBIT to Group
EBIT comprises items at the corporate level and
the effects on earnings of eliminating intra-Group
transactions between the segments.
In 2024, items at the corporate level resulted in earn-
ings of €883 million (2023: €858 million). This includes
the positive effects on earnings of €711 million (2023:
€797 million) from the equity-method investments in
Daimler Truck Holding AG and €223 million in 2024
(2023: €68 million) from the revaluation of the
liabilities recognized in the context of the share
buyback programmes.
The elimination of intra-Group transactions resulted in
earnings of €190 million in 2024 (2023: €138 million).
Annual Report 2024 | Mercedes-Benz Group
58
Profitability, Liquidity and
Capital Resources, and Financial Position
EBIT of the Mercedes-Benz Group
Mercedes-Benz Group
Mercedes-Benz Cars
Mercedes-Benz Vans
Mercedes-Benz Mobility
Reconciliation
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
(adjusted)
(adjusted)
(adjusted)
(adjusted)
(adjusted)
In millions of euros
Revenue1
145,594
152,390
107,761
112,756
19,320
20,288
25,083
25,571
-6,570
-6,225
Cost of sales1, 2
-117,018
-117,386
-86,191
-85,970
-14,669
-15,235
-22,754
-22,483
6,596
6,302
Gross profit in relation to revenue2
28,576
35,004
21,570
26,786
4,651
5,053
2,329
3,088
26
77
Selling expenses2
-9,993
-10,270
-8,053
-8,094
-1,479
-1,528
-616
-685
155
37
General administrative expenses2
-2,529
-2,771
-1,481
-1,580
-257
-244
-755
-793
-36
-154
Research and non-capitalized development costs
-5,580
-6,230
-5,187
-5,682
-433
-524
–
–
40
-24
Other income/expense
3,125
3,927
1,611
2,794
450
381
176
-308
888
1,060
EBIT
13,599
19,660
8,460
14,224
2,932
3,138
1,134
1,302
1,073
996
Legal proceedings (and related measures)
-236
22
-133
94
-107
-70
–
–
4
-2
Restructuring measures
350
–
350
–
–
–
–
–
–
–
M&A transactions
–
117
–
–
–
–
–
117
–
–
Income/expenses in connection with adjustments of the business
activities in Russia
–
205
–
-66
–
-5
–
276
–
–
Adjusted EBIT
13,713
20,004
8,677
14,252
2,825
3,063
1,134
1,695
1,077
994
Return on sales/return on equity (in %)3
7.9%
12.6%
15.2%
15.5%
8.7%
9.5%
Adjusted return on sales/return on equity (in %)3
8.1%
12.6%
14.6%
15.1%
8.7%
12.3%
1 The previous year’s figures for Mercedes-Benz Mobility and the reconciliation have been corrected in accordance with IAS 8. Further information is included in Note 3 of the Consolidated Financial Statements in the chapter Notes to the Consolidated Financial Statements.
2 For a more suitable presentation, reclassifications in the functional costs have been carried out for Mercedes-Benz Cars, Mercedes-Benz Vans and the reconciliation. The reclassifications are described in Note 1 of the Consolidated Financial Statements in the chapter Notes to the
Consolidated Financial Statements.
3 (Adjusted) return on sales of the segments Mercedes-Benz Cars and Mercedes-Benz Vans is calculated as the ratio of (adjusted) EBIT to revenue. The (adjusted) return on equity of the segment Mercedes-Benz Mobility is determined as the ratio of (adjusted) EBIT to the average
equity of each quarter.
Annual Report 2024 | Mercedes-Benz Group
59
Profitability, Liquidity and
Capital Resources, and Financial Position
Value added and return on net assets
As described in the section Performance measurement
system, value added is calculated as the difference
between the measure of earnings and the cost of
capital. The cost of capital used in the calculation of
value added is based on average net assets multiplied
by the cost of capital rate. The ratio of earnings to
net assets results in the profitability of net assets, i.e.
the return on capital employed (return on net assets,
RONA).
The measure of earnings for the segments is EBIT and
for the Group is net operating profit, which in addition
to the EBIT of the segments also includes earnings
effects for which the segments are not accountable,
such as income taxes and other reconciling items.
The following table shows value added for the
Mercedes-Benz Group and for the individual segments.
Value Added
2024
2023
24/23
In millions of euros
Change
Mercedes-Benz Group
4,273
8,844
-4,571
Mercedes-Benz Cars
3,012
8,841
-5,829
Mercedes-Benz Vans
2,720
2,975
-255
Mercedes-Benz Mobility
-555
-488
-67
The value added of the Mercedes-Benz Group in the
reporting year amounted to €4.3 billion, significantly
below the value added of the prior year of €8.8 billion.
This represents a return on net assets of 16.6% (2023:
23.8%), which was nevertheless higher than the
Group’s required cost of capital rate of 9.5% (2023:
9.0%). The value added of the Mercedes-Benz Group
decreased, mainly due to the negative earnings
development of the segments. Average net assets only
increased slightly to €60,5 billion.
At the Mercedes-Benz Cars segment, value added
of €3.0 billion was significantly below the prior-year
amount of €8.8 billion. RONA amounted to 20.2%
(2023: 34.4%). This was primarily due to the negative
earnings development. The segment’s average net
assets increased by €0.5 billion and were thus slightly
higher than in the prior year. The increase was primarily
due to higher capitalized development costs in
connection with the new architectures geared towards
electromobility.
The value added of the Mercedes-Benz Vans segment
decreased from €3.0 billion to €2.7 billion. RONA
amounted to 179.7% (2023: 250.4%). This was due to
the negative earnings development. Furthermore, there
was an additional effect from the significant increase in
the average net assets to €1.6 billion, which was mainly
due to higher fixed assets due to advance payments for
the new Mercedes-Benz Van Architecture and invest-
ments in van plants to expand production.
At the Mercedes-Benz Mobility segment, value added
amounted to minus €0.6 billion (2023: minus
€0.5 billion). The segment’s return on equity was 8.7%
(2023: 9.5%). The development of the return on equity
primarily reflects the decrease in earnings. By contrast,
the decrease in average total equity had a slightly
positive effect on the return on equity.
Annual Report 2024 | Mercedes-Benz Group
60
Profitability, Liquidity and
Capital Resources, and Financial Position
The following table shows the reconciliation of the
segments’ EBIT to net operating profit of the
Mercedes-Benz Group.
Reconciliation of the segments’ EBIT to net operating profit
2024
2023
24/23
In millions of euros
Change
Mercedes-Benz Cars
8,460
14,224
-5,764
Mercedes-Benz Vans
2,932
3,138
-206
Mercedes-Benz Mobility
1,134
1,302
-168
EBIT of the segments
12,526
18,664
-6,138
Income taxes1
-3,579
-5,430
+1,851
Other reconciliation
1,073
996
+77
Net operating profit
Mercedes-Benz Group
10,020
14,230
-4,210
1 Adjusted for after-tax interest income.
The following table shows the average net assets.
Net assets (average)
2024
2023
24/23
In millions of euros
% change
Mercedes-Benz Cars
41,905
41,407
+1
Mercedes-Benz Vans
1,632
1,253
+30
Mercedes-Benz Mobility1
12,993
13,774
-6
Net assets of the
segments
56,530
56,434
–
Equity-method investment
in DTHAG
8,466
8,221
+3
Other equity-method
investments2
230
253
-9
Assets and liabilities from
income taxes3
-4,717
-5,159
-9
Other corporate items and
eliminations
-19
94
-120
Net assets Mercedes-Benz
Group
60,490
59,843
+1
1 Equity.
2 To the extent not allocated to the segments.
3 To the extent not allocated to Mercedes-Benz Mobility.
The following table shows the derivation of net assets
on 31 December from the Consolidated Statement of
Financial Position.
Net assets of the Mercedes-Benz Group at year-end
31 December
2024
2023
24/23
In millions of euros
% change
Intangible assets1
18,877
17,022
+11
Property, plant and
equipment including right-
of-use assets 1
26,210
25,797
+2
Equipment on operating
leases1
14,698
14,445
+2
Inventories1
25,786
26,126
-1
Trade receivables1
6,418
6,585
-3
Provisions for other risks1
-14,248
-14,481
-2
Trade payables1
-10,104
-11,625
-13
Other assets and liabilities1
-15,542
-12,409
+25
Assets and liabilities from
income taxes1
-3,960
-4,778
-17
Total equity of Mercedes-
Benz Mobility
13,362
13,014
+3
Mercedes-Benz Group
61,497
59,696
+3
1 To the extent not allocated to Mercedes-Benz Mobility.
Annual Report 2024 | Mercedes-Benz Group
61
Profitability, Liquidity and
Capital Resources, and Financial Position
Liquidity and capital resources
Principles and objectives of financial management
Financial management at the Mercedes-Benz Group
consists of capital structure management, cash and
liquidity management, market-price risk management
(foreign exchange rates and interest rates), as well as
pension-asset management and credit and country risk
management. Worldwide financial management is per-
formed within the framework of legal requirements
consistently for the Group entities by the Treasury
department of the Mercedes-Benz Group. Financial
management operates within a framework of policies,
limits and benchmarks, and on the operational level is
organizationally separate from other financial functions
such as settlement, financial controlling, reporting and
accounting.
Capital structure management designs the capital
structure of the Group and the subsidiaries. Decisions
regarding the capitalization of the Mercedes-Benz
Group companies are based on the principles of cost-
optimized and risk-optimized liquidity and capital
resources.
Liquidity management aims to ensure the Group can
meet its payment obligations at any time. For this
purpose, the Group records the cash flows from
operating and financial activities in a rolling plan. The
resulting financial requirements are covered by the use
of appropriate instruments for liquidity management
(e.g. bank credit, commercial paper and notes); liquidity
surpluses are invested in the money market or the
capital market taking into account risk and return
expectations. Our goal is to ensure the level of liquidity
regarded as necessary at optimal costs. Besides opera-
tional liquidity, the Mercedes-Benz Group maintains
additional sources of liquidity which are available in the
short term. Those additional financial resources include
a pool of receivables from the financial services busi-
ness which are available for securitization in the capital
market and a contractually confirmed syndicated credit
facility. Since December 2021, the Group also has
liquidity reserves in the form of its shareholding in
Daimler Truck Holding AG.
Cash management centrally determines the cash
requirements and surpluses. By means of cash-pooling
procedures, liquidity is in general centrally concentrat-
ed on bank accounts of the Mercedes-Benz Group
in various currencies. Most of the payments between
companies of the Group are made through internal
clearing accounts so that the number of external cash
flows is reduced to a minimum. The Mercedes-Benz
Group has established standardized processes and
systems to manage its bank accounts and internal
cash-clearing accounts, and to execute automated
payment transactions.
Management of market-price risks aims to limit the
impact of fluctuations in foreign exchange rates and
interest rates on the earnings of the divisions and the
Group. The Group’s overall exposure to these market-
price risks is initially determined in order to provide a
basis for hedging decisions. These include the volume
to be hedged, the period to be hedged and the choice
of hedging instruments. The hedging strategy is speci-
fied at Group level and uniformly implemented. The
decision-making body is the Treasury Risk Management
Committee, which meets regularly.
Annual Report 2024 | Mercedes-Benz Group
62
Profitability, Liquidity and
Capital Resources, and Financial Position
Management of pension assets (plan assets)
includes the investment of the assets to cover the
corresponding pension obligations. The plan assets are
legally separated from the Group’s assets and are
invested primarily in funds; they are not available for
general business purposes. The plan assets are spread
across a broad range of investment categories such as
equities, fixed-interest securities, alternative invest-
ments and real estate, depending on the expected
development of pension obligations and with the help
of risk-return optimization. The performance of the
asset management is measured by comparison with
defined benchmark indices. The investment risks are
limited via a Group-wide policy. In addition, there are
local regulations for risk management for the individual
plan assets. Additional information on pension plans
and similar obligations is provided in Note 23 of the
Consolidated Financial Statements in the chapter
Notes to the Consolidated Financial Statements.
The risk volume that is subject to credit risk manage-
ment includes the Mercedes-Benz Group’s worldwide
creditor positions with financial institutions, issuers
of securities and customers in the financial services
business, as well as trade receivables. Credit risks with
financial institutions and issuers of securities arise
primarily from investments executed as part of our
liquidity management and from the application of
derivative financial instruments. The management of
these credit risks is mainly based on an internal limit
system that reflects the creditworthiness of the re-
spective financial institution or issuer. The credit risk
with customers of the automotive business results
from relationships with contracted dealerships and
general agencies, other corporate customers and retail
customers. In connection with the export business,
general agencies that according to the creditworthiness
analyses are not sufficiently creditworthy are generally
required to provide collaterals such as first-class bank
guarantees. The credit risk with end customers in the
financial services business is managed by Mercedes-
Benz Mobility on the basis of a standardized risk-
management process. In this process, minimum
requirements are defined for the sales-financing and
leasing business and standards are set for credit
processes, as well as for the identification, measure-
ment and management of risks. Key elements for the
management of credit risks are appropriate credit-
worthiness assessments supported by statistical risk-
classification methods, as well as structured portfolio
analysis and portfolio monitoring.
Financial country risk management includes various
aspects: the risk from investments in subsidiaries and
joint ventures, the risk from the cross-border financing
of Group companies in high-risk countries and the risk
from direct sales to customers in those countries. The
Group has an internal rating system that assigns the
countries in which it operates to risk categories. Risks
from cross-border receivables are partially protected
with the use of letters of credit and bank guarantees in
favour of Mercedes-Benz Group AG and other Group
companies. In addition, an internal committee sets and
restricts the level of hard-currency credits granted to
Mercedes-Benz Mobility companies in high-risk
countries.
Further information on the management of market-
price risk, credit risk and liquidity risk is provided in
Note 33 of the Consolidated Financial Statements
in the chapter Notes to the Consolidated Financial
Statements.
Annual Report 2024 | Mercedes-Benz Group
63
Profitability, Liquidity and
Capital Resources, and Financial Position
Condensed Consolidated Statement of Cash flows
Mercedes-Benz Group
Industrial Business
Mercedes-Benz Mobility
2024
2023
2024
2023
2024
2023
(adjusted)
(adjusted)
In millions of euros
Cash and cash equivalents at beginning of year
15,972
17,679
13,117
14,094
2,855
3,585
thereof cash and cash equivalents classified as assets held for sale at beginning of year
10
–
10
–
–
–
Profit before income taxes
14,147
20,084
13,014
18,792
1,133
1,292
Depreciation and amortization/impairments
6,772
6,663
6,667
6,549
105
114
Other non-cash expense and income and gains/losses from disposals of non-current assets
-1,344
-2,461
-1,377
-2,944
33
483
Change in operating assets and liabilities
Inventories1
737
-2,420
829
-2,590
-92
170
Trade receivables and trade payables
-1,199
1,310
-1,336
1,146
137
164
Receivables from financial services1
3,280
-6,125
56
222
3,224
-6,347
Vehicles on operating leases
-3,110
-640
825
-502
-3,935
-138
Other operating assets and liabilities
986
1,624
787
1,179
199
445
Dividends received from equity-method investments
1,918
2,056
1,918
2,056
–
–
Income taxes paid
-4,452
-5,621
-3,894
-4,807
-558
-814
Cash flow from operating activities
17,735
14,470
17,489
19,101
246
-4,631
Additions to property, plant and equipment and intangible assets
-8,665
-8,213
-8,539
-8,114
-126
-99
Investments in and cash inflows from disposals of shareholdings and other business operations
353
278
588
507
-235
-229
Acquisitions of and cash inflows from sales of marketable debt securities and similar investments
-625
307
-700
229
75
78
Other cash flows
187
313
212
349
-25
-36
Cash flow from investing activities
-8,750
-7,315
-8,439
-7,029
-311
-286
Change in financing liabilities
-188
-697
1,753
2,320
-1,941
-3,017
Dividends paid
-5,725
-5,880
-5,679
-5,758
-46
-122
Acquisition of treasury shares
-4,921
-1,941
-4,921
-1,941
–
–
Other cash inflows
82
127
77
65
5
62
Internal equity and financing transactions
–
–
-2,162
-7,340
2,162
7,340
Cash flow from financing activities
-10,752
-8,391
-10,932
-12,654
180
4,263
Effect of foreign exchange-rate changes on cash and cash equivalents
311
-471
290
-395
21
-76
Cash and cash equivalents at end of year
14,516
15,972
11,525
13,117
2,991
2,855
thereof cash and cash equivalents classified as assets held for sale at end of year
5
10
1
10
4
–
1 The previous year’s figures have been corrected in accordance with IAS 8. Further information is included in Note 3 of the Consolidated Financial Statements in the chapter Notes to the Consolidated Financial Statements.
Annual Report 2024 | Mercedes-Benz Group
64
Profitability, Liquidity and
Capital Resources, and Financial Position
Free cash flow of the industrial business
The free cash flow of the industrial business is regard-
ed as a key performance indicator for the Mercedes-
Benz Group. The free cash flow of the industrial busi-
ness is derived from the cash flows from operating and
investing activities. The following table also shows
the reconciliation to the adjusted free cash flow of the
industrial business.
Free cash flow of the industrial business
2024
2023
24/23
In millions of euros
Change
Cash flow from
operating activities
17,489
19,101
-1,612
Cash flow from
investing activities
-8,439
-7,029
-1,410
Change in marketable
debt securities and
similar investments
700
-229
+929
Right-of-use assets
-430
-328
-102
Other adjustments
-168
-199
+31
Free cash flow of the
industrial business
9,152
11,316
-2,164
Legal proceedings (and related
measures)
269
447
-178
Restructuring measures
–
101
-101
M&A transactions
–
-144
+144
Adjusted free cash flow of the
industrial business
9,421
11,720
-2,299
The cash flows from acquisitions and sales of market-
able debt securities and similar investments included in
cash flow from investing activities are deducted, as
those securities are allocated to liquidity and changes
in them are thus not a part of the free cash flow of the
industrial business. On the other hand, effects in con-
nection with the recognition and measurement of right-
of-use assets, which result from lessee accounting and
are largely non-cash items, are included in the free
cash flow of the industrial business. Other adjustments
relate to effects from the financing of the Group’s own
dealerships and effects from internal deposits within
the Group. In addition, the calculation of the free cash
flow of the industrial business includes the cash flows
to be shown under cash flow from financing activities
in connection with the acquisition or disposal of
interests in subsidiaries without loss of control.
In 2024, the free cash flow of the industrial business
amounted to €9.2 billion and was thus slightly lower
than the previous year’s figure of €11.3 billion.
The decrease in the free cash flow of the industrial
business by €2.2 billion to €9.2 billion compared to the
previous year is characterized in particular by a decline
in profit before income taxes of the industrial business
adjusted for non-cash effects. This was partly offset by
lower income taxes paid than in the previous year.
Furthermore, higher investments in intangible assets
and property, plant and equipment had a negative
effect on the free cash flow of the industrial business.
In contrast, there was a positive effect in the vehicles
on operating leases from the operating lease portfolio
in the industrial business, whereas the effect in the
prior year was negative.
During the reporting period, a further positive effect
resulted from the development of the working capital,
mainly due to a reduction of inventories compared
to an increase in inventories in the same period of the
previous year. This was offset by a decrease in trade
payables, which had increased in the prior year.
In the previous year, the free cash flow was also im-
pacted by higher payments resulting from the settle-
ment of civil and environmental claims made by several
US authorities in 2020 in connection with emission
control systems used in certain diesel vehicles as well
as payments in connection with restructuring
measures.
Annual Report 2024 | Mercedes-Benz Group
65
Profitability, Liquidity and
Capital Resources, and Financial Position
The adjustments from legal proceedings include
payments by the industrial business in connection with
ongoing governmental and legal proceedings and
related measures taken with regard to Mercedes-Benz
diesel vehicles. The adjustments from restructuring
measures included payments made in connection with
the personnel-cost-optimization programmes in the
previous year. In the previous year, the adjustments
from M&A transactions encompassed the cash inflow
from the purchase price payment for the sale of shares
in Mercedes-Benz Grand Prix Ltd. The adjusted free
cash flow of the industrial business amounted to a total
of €9.4 billion (2023: €11.7 billion).
Free cash flow of the Mercedes-Benz Group
In 2024, the free cash flow of the Mercedes-Benz
Group resulted in a cash inflow of €9.4 billion (2023:
€6.7 billion). The increase in the free cash flow of the
Mercedes-Benz Group was mainly due to the signifi-
cantly smaller increase in the leasing and sales-
financing business of Mercedes-Benz Mobility com-
pared to the previous year. This was partially offset
by a decrease in the free cash flow of the industrial
business in comparison to the prior year.
Cash flow from financing activities of the
Mercedes-Benz Group
A cash outflow of €10.8 billion (2023: €8.4 billion)
resulted from the cash flow from financing activities
(see condensed statement of cash flows) during the
reporting period. The higher cash outflow relative to
the same period of the prior year is primarily due to the
payments of €4.8 billion (2023: €1.9 billion) made in
connection with the share buyback programmes. This
was partly offset by higher net refinancing compared to
the previous year.
CFBIT and cash conversion rate of the
automotive segments
The CFBIT of the automotive segments is derived
from the EBIT and the change in net assets, and also
includes additions to the right-of-use assets. The line
Other was primarily affected by dividend payments
from equity-method investments, payments for the
settlement of payables and provisions recognized in
previous years through profit or loss, and the adjust-
ment of non-cash income and expense included in
EBIT.
The following table shows the reconciliation from EBIT
for Mercedes-Benz Cars and Mercedes-Benz Vans
to the CFBIT of the corresponding segment. The recon-
ciliation from CFBIT to adjusted CFBIT and the
adjusted cash conversion rate are also shown.
Mercedes-Benz Cars achieved an adjusted cash con-
version rate of 1.0 (2023: 0.9) and Mercedes-Benz Vans
an adjusted cash conversion rate of 1.0 (2023: 1.0).
Reconciliation from EBIT to adjusted CFBIT
Mercedes-Benz Cars
Mercedes-Benz Vans
2024
2023
2024
2023
In millions of euros
EBIT
8,460
14,224
2,932
3,138
Change in working
capital
-470
-1,095
-43
-340
Net financial
investments
134
514
61
-29
Net investments in
property, plant and
equipment and
intangible assets
-7,636
-7,453
-1,173
-725
Depreciation and
amortization/
impairments
6,138
6,125
520
420
Other
2,337
21
408
353
CFBIT
8,963
12,336
2,705
2,817
Legal proceedings
(and related
measures)
132
251
133
198
Restructuring
measures
–
92
–
3
M&A transactions
–
-144
–
–
Adjusted CFBIT
9,095
12,535
2,838
3,018
Adjusted EBIT
8,677
14,252
2,825
3,063
Adjusted cash
conversion rate1
1.0
0.9
1.0
1.0
1 The adjusted cash conversion rate is the ratio of adjusted CFBIT to adjusted EBIT.
Annual Report 2024 | Mercedes-Benz Group
66
Profitability, Liquidity and
Capital Resources, and Financial Position
As well as being calculated on the basis of the dis-
closed cash flows from operating and investing
activities, the free cash flow of the industrial business
can also be calculated on the basis of the cash flows
before interest and taxes (CFBIT) of the automotive
segments. The reconciliation from the CFBIT of the
automotive segments to the free cash flow of the
industrial business includes the sum of receipts and
payments of income taxes and interest of the industrial
business. The other reconciling items primarily com-
prise eliminations between the segments and items
that are allocated to the industrial business but for
which the automotive segments are not responsible.
Reconciliation from CFBIT to the free cash flow of the industrial
business
2024
2023
In millions of euros
CFBIT Mercedes-Benz Cars
8,963
12,336
CFBIT Mercedes-Benz Vans
2,705
2,817
Income taxes paid/refunded
-3,894
-4,807
Interest paid/received
629
324
Other reconciling items
749
646
Free cash flow of the industrial business
9,152
11,316
Net liquidity and net debt
As the following table shows, the net liquidity of the
industrial business is calculated as the total amount
as shown in the statement of financial position of cash,
cash equivalents and the marketable debt securities
and similar investments included in liquidity manage-
ment, less the nominal amounts of financing liabilities.
Net liquidity of the industrial business
31 December
2024
2023
24/23
(adjusted)
In millions of euros
Change
Cash and cash equivalents
11,525
13,117
-1,592
Marketable debt securities
and similar investments
6,874
5,948
+926
Liquidity
18,399
19,065
-666
Financing liabilities1
13,437
12,899
+538
Liabilities from refinancing
internal dealerships
-59
-169
+110
Market valuation and
currency hedges
for financing liabilities
-360
-726
+366
Financing liabilities
(nominal)
13,018
12,004
+1,014
Net liquidity
31,417
31,069
+348
1 The presentation of financing liabilities has been adjusted (see Note 1 of the
Consolidated Financial Statements in the chapter Notes to the Consolidated Financial
Statements).
To the extent that the Group’s internal refinancing of
the financial services business is provided by the com-
panies of the industrial business, this amount is de-
ducted by an elimination in the financing liabilities in
the calculation of the net debt of the industrial busi-
ness. This led to negative financing liabilities in the
industrial business in both the reporting year and the
prior year, so that the financing liabilities are shown
in the table Net liquidity of the industrial business with
a positive effect on net liquidity.
Since 31 December 2023, the net liquidity of the
industrial business increased by €0.3 billion to
€31.4 billion. The increase is mainly due to the positive
free cash flow of the industrial business. Other positive
effects resulted in particular from cash-effective
transactions with companies of the financial services
business. This was partially offset by the dividend
payment made to the shareholders of Mercedes-Benz
Group AG and by payments in the context of the share
buyback programmes.
Net debt at Group level, which primarily results from
refinancing the leasing and sales-financing business,
increased compared with 31 December 2023 by
€3.5 billion to €90.9 billion. The derivation of net debt
is shown in the following table. After taking exchange-
rate effects into account, the cash and cash equiva-
lents have decreased by €1.5 billion since 31 December
2023.
Annual Report 2024 | Mercedes-Benz Group
67
Profitability, Liquidity and
Capital Resources, and Financial Position
An insignificant portion of these funds is restricted due
to foreign exchange controls (see Note 1 and Note 29 of
the Consolidated Financial Statements in the chapter
Notes to the Consolidated Financial Statements). Total
liquidity, which also includes marketable debt securi-
ties and similar investments, decreased by 0.6 billion
to €22.2 billion.
Net debt of the Mercedes-Benz Group
31 December
2024
2023
24/23
(adjusted)
In millions of euros
Change
Cash and cash equivalents
14,516
15,972
-1,456
Marketable debt securities
and similar investments
7,730
6,858
+872
Liquidity
22,246
22,830
-584
Financing liabilities1
-112,825
-109,517
-3,308
Market valuation and
currency hedges
for financing liabilities
-359
-720
+361
Financing liabilities
(nominal)
-113,184
-110,237
-2,947
Net debt
-90,938
-87,407
-3,531
1 The presentation of financing liabilities has been adjusted (see Note 1 of the
Consolidated Financial Statements in the chapter Notes to the Consolidated Financial
Statements).
Contingent liabilities and other financial obligations
At 31 December 2024, the best estimate for
contingent liabilities was €2.8 billion (2023:
€2.6 billion).
In the context of its ordinary business activities, the
Group has also entered into other financial obli-
gations in addition to the liabilities shown in the
Consolidated Statement of Financial Position at
31 December 2024. These financial obligations result
from contractual commitments to acquire intangible
assets; property, plant and equipment; equipment on
operating leases and irrevocable loan commitments.
Detailed information on contingent liabilities and
other financial obligations is provided in Note 31 of the
Consolidated Financial Statements in the chapter
Notes to the Consolidated Financial Statements.
Refinancing
The funds raised by the Mercedes-Benz Group in the
year 2024 primarily served to refinance the leasing
and sales-financing business. For that purpose, the
Mercedes-Benz Group made use of a broad spectrum
of various financing instruments in various currencies
and markets. They include bank loans, commercial
paper in the money market, bonds, promissory-note
loans and the securitization of receivables in the
financial services business (asset-backed securities).
Various issuance programmes are available for raising
longer-term funds in the capital market. They include
the Euro Medium Term Notes programme (EMTN) with
a total volume of €70 billion, under which Mercedes-
Benz Group AG and several subsidiaries can issue
bonds in various currencies. Other local capital-market
programmes exist, which are significantly smaller than
the EMTN programme. Capital-market programmes
allow flexible, repeated access to the capital markets.
The situation in the bond markets in the reporting year
was significantly influenced by factors such as inflation
and the volatility of interest rates as well as decisions
by central bank.
Annual Report 2024 | Mercedes-Benz Group
68
Profitability, Liquidity and
Capital Resources, and Financial Position
In the reporting period, the Group covered its refinanc-
ing requirements through the issuance of bonds and
other means. As can be seen in the following table they
include so-called benchmark issuances (syndicated
bonds with a high nominal volume) by Mercedes-Benz
Finance North America LLC in the US-dollar area and
Mercedes-Benz International Finance B.V. in the euro
area.
Benchmark issuances
Issuer
Volume
Month of
issuance
Maturity
Mercedes-Benz Finance
North America LLC
USD 1,350 million
01/2024
01/2026
USD 800 million
01/2024
01/2027
USD 850 million
01/2024
01/2029
USD 750 million
01/2024
01/2034
USD 1,500 million
08/2024
07/2026
USD 700 million
08/2024
08/2027
USD 850 million
08/2024
08/2029
USD 450 million
08/2024
08/2034
USD 600 million
11/2024
11/2026
USD 1,250 million
11/2024
11/2027
USD 600 million
11/2024
11/2029
Mercedes-Benz
International Finance B.V.
EUR 850 million
01/2024
07/2027
EUR 850 million
01/2024
01/2032
EUR 850 million
05/2024
09/2027
EUR 1,150 million
05/2024
11/2030
The Mercedes-Benz Group also issued commercial
paper in 2024.
In addition, asset-backed securities (ABS)
transactions with a total financing volume equivalent
to €14.0 billion (2023: €10.4 billion) were carried out
during the reporting period. The ABS transactions were
conducted in Germany, the United States, Great Britain,
China, Australia, Japan, Canada and Italy and include
both new and extended financing transactions.
Bank credit was also another important source of
refinancing in 2024. These loans were provided by
globally active banks as well as by banks operating
nationally.
In June 2024, the syndicated credit line of €11 billion
was renewed in the same amount with a consortium of
banks. The syndicated credit line had not been utilized
as of the reporting date.
At 31 December 2024, the total of financing liabilities
shown in the Consolidated Statement of Financial
Position amounted to €112.8 billion (2023:
€109.4 billion). Those are mainly denominated in the
following currencies: 39% in euros, 32% in US dollars
and 10% in Chinese renminbi.
The carrying amounts of the main refinancing
instruments and the volume-weighted average
interest rates are shown in the following table.
Refinancing instruments
Average interest rates
Carrying amounts
31 December
31 December
2024
2023
2024
2023
(adjusted)
In %
In millions of euros
Notes/bonds and
liabilities from
ABS transactions1
3.70
3.46
81,085
71,807
Liabilities
to financial
institutions1
5.05
4.57
26,315
25,473
Deposits in the
direct
banking business1
4.15
2.19
1,557
5,773
1 The presentation of financing liabilities has been adjusted (see Note 1 of the
Consolidated Financial Statements in the chapter Notes to the Consolidated
Financial Statements).
Detailed information on the amounts and terms of the
main items of financing liabilities is provided in Note 25
and Note 33 of the Consolidated Financial Statements
in the chapter Notes to the Consolidated Financial
Statements. Note 33 of the Notes to the Consolidated
Financial Statements also provides information on the
maturities of the other financial liabilities.
Annual Report 2024 | Mercedes-Benz Group
69
Profitability, Liquidity and
Capital Resources, and Financial Position
Credit ratings
In the year 2024, the credit rating of Mercedes-Benz
Group AG remained unchanged with all the agencies
we have engaged to provide ratings as of 31 December
2024. In the course of the year, S&P Global Ratings
(S&P), Moody’s Ratings (Moody’s) and Morningstar
DBRS (DBRS) confirmed their long-term and short-term
credit ratings for the Group. At the end of 2024,
therefore, the outlook for Mercedes-Benz Group was
assessed as “stable” by the three agencies.
The Group’s strong single A rating once again sup-
ported our refinancing on the international money and
capital markets.
Credit ratings
End of 2024
End of 2023
Long-term credit rating
S&P
A
A
Moody’s
A2
A2
DBRS
A
A
Short-term credit rating
S&P
A-1
A-1
Moody’s
P-1
P-1
DBRS
R-1 (low)
R-1 (low)
For the ESG rating, agencies such as Morgan Stanley
Capital International (MSCI ESG), Sustainalytics,
Institutional Shareholder Services (ISS ESG ) and CDP
(formerly Carbon Disclosure Project) in particular are
important players on the capital market and serve
as an additional decision-making aid for financial
institutions in the sustainability-oriented investment
process.
The ESG rating agencies MSCI ESG, Sustainalytics and
ISS ESG rank the Mercedes-Benz Group among the
top companies rated in the automotive sector. In the
reporting year, the Mercedes-Benz Group was once
again given a low-risk rating by Sustainalytics and an
A-rating by MSCI ESG. The Mercedes-Benz Group
received a C+-rating with prime status from ISS ESG.
Additionally, the Mercedes-Benz Group once again
participated in the CDP Climate Questionnaire and the
CDP Water Questionnaire during the reporting year.
Annual Report 2024 | Mercedes-Benz Group
70
Profitability, Liquidity and
Capital Resources, and Financial Position
Financial position
At €265.0 billion, the Group’s balance sheet total was
at the same level as in the previous year (2023:
€263.0  billion); the exchange-rate effects amounted to
€3.7 billion.
Condensed Consolidated Statement of Financial Position
Mercedes-Benz Group
Industrial Business
Mercedes-Benz Mobility
31 December
31 December
31 December
2024
2023
2024
2023
2024
2023
(adjusted)
(adjusted)
In millions of euros
Assets
Intangible assets
19,436
17,593
18,877
17,022
559
571
Property, plant and equipment including right-of-use assets
26,537
26,090
26,210
25,797
327
293
Equipment on operating leases
45,220
41,712
14,698
14,445
30,522
27,267
Receivables from financial services1
87,867
89,019
-119
-81
87,986
89,100
Equity-method investments
12,786
13,104
12,461
12,896
325
208
Inventories1
26,234
26,486
25,786
26,126
448
360
Trade receivables
6,973
7,281
6,418
6,585
555
696
Cash and cash equivalents
14,511
15,962
11,524
13,107
2,987
2,855
Marketable debt securities and similar investments
7,730
6,858
6,874
5,948
856
910
Other financial assets
5,888
7,939
-10,436
-5,680
16,324
13,619
Other assets
11,668
10,183
3,393
1,005
8,275
9,178
Assets held for sale
160
795
73
795
87
–
Total assets
265,010
263,022
115,759
117,965
149,251
145,057
1 The previous year’s figures have been corrected in accordance with IAS 8. Further information is included in Note 3 of the Consolidated Financial Statements in the chapter Notes to the Consolidated Financial Statements.
Annual Report 2024 | Mercedes-Benz Group
71
Profitability, Liquidity and
Capital Resources, and Financial Position
Mercedes-Benz Group
Industrial Business
Mercedes-Benz Mobility
31 December
31 December
31 December
2024
2023
2024
2023
2024
2023
(adjusted)
(adjusted)
(adjusted)
In millions of euros
Equity and liabilities
Equity
93,630
92,816
80,268
79,802
13,362
13,014
Provisions
15,972
16,390
15,218
15,565
754
825
Financing liabilities1
112,798
109,431
-13,399
-12,985
126,197
122,416
Trade payables1
11,312
12,705
10,104
11,502
1,208
1,203
Other financial liabilities1
5,561
5,999
3,053
3,230
2,508
2,769
Contract and refund liabilities
11,246
10,391
10,935
10,084
311
307
Other liabilities1
14,445
15,066
9,599
10,543
4,846
4,523
Liabilities held for sale
46
224
-19
224
65
–
Total equity and liabilities
265,010
263,022
115,759
117,965
149,251
145,057
1 For a more suitable presentation, reclassifications have been carried out between the balance sheet items. The reclassifications are described in Note 1 of the Consolidated Financial Statements in the chapter Notes to the Consolidated Financial Statements.
Annual Report 2024 | Mercedes-Benz Group
72
Profitability, Liquidity and
Capital Resources, and Financial Position
Current assets accounted for 38% of the balance
sheet total, which is slightly below the prior-year level
of 40%. Current liabilities accounted for 28% of the
balance sheet total, which is below the prior-year level
of 32%.
Balance sheet structure Mercedes-Benz Group
In billions of euros
Assets
Equity and
liabilities
                                   
Non-current
assets
Current assets
thereof liquidity
Equity
Non-current
liabilities1
Current
liabilities1
265
263
265
263
2023
2024
1 The previous year’s figures have been corrected in accordance with IAS 8. Further
information is included in Note 3 of the Consolidated Financial Statements in the
chapter Notes to the Consolidated Financial Statements.
Before eliminations between segments, Mercedes-Benz
Mobility accounted for €149.3 billion (2023:
€145.1 billion) of the balance sheet total. Intra-Group
eliminations between the industrial business and
Mercedes-Benz Mobility regarding the balance sheet
are allocated to the industrial business. The reported
size of the industrial business is determined by gen-
erally subtracting the unconsolidated balance sheet
total of Mercedes-Benz Mobility from the consolidated
balance sheet total of the Group. Consequently, intra-
Group matters relating to the relationship between
the industrial business and Mercedes-Benz Mobility
are generally allocated to Mercedes-Benz Mobility
and included in its balance sheet. This method of pre-
sentation reduces the balance sheet total of the
industrial business. Hence the share of Mercedes-Benz
Mobility’s balance sheet total in the Consolidated
Statement of Financial Position is shown as being
higher than would be the case if Mercedes-Benz
Mobility were presented on a consolidated basis.
Annual Report 2024 | Mercedes-Benz Group
73
Profitability, Liquidity and
Capital Resources, and Financial Position
Assets
The intangible assets of €19.4 billion (2023:
€17.6 billion) particularly include €17.2 billion of
capitalized development costs (2023: €15.1 billion). Of
the development costs, a share of €15.6 billion (2023:
€14.0 billion) was attributable to the Mercedes-Benz
Cars segment and €1.6 billion (2023: €1.1 billion) to
the Mercedes-Benz Vans segment. Development
costs capitalized in the reporting year amounted to
€4.1 billion (2023: €3.8 billion) and represent 43%
(2023: 38%) of the Group’s total research and devel-
opment expenditure. The increase in capitalized devel-
opment costs is mainly attributable to development
work for the platform generations geared towards
electric mobility.
Property, plant and equipment of €26.5 billion (2023:
€26.1 billion) were at the prior-year level.
Equipment on operating leases and receivables from
financial services rose to a total of €133.1 billion
(2023: €130.7 billion) as a result of the increase in the
operating lease portfolio, particularly in the United
States and Europe, which overcompensated for the
decrease in the finance lease portfolio mainly in China.
Adjusted for currency translation effects, there was a
decrease of €0.3 billion. At 50%, the leasing and sales-
financing business as a proportion of balance sheet
total was at the prior year level.
Equity-method investments decreased to €12.8 billion
(2023: €13.1 billion). Investments accounted for using
the equity method comprise in particular the carrying
amounts of our investments in Daimler Truck Holding
AG and Beijing Benz Automotive Co., Ltd.
Inventories decreased from €26.5 billion to
€26.2 billion. The share of balance sheet total remains
at the prior year level of 10%. The decrease of
€0.3 billion relates mainly to finished goods, spare
parts and products held for resale.
At €7.0 billion, trade receivables were slightly lower
than the prior-year-figure of €7.3 billion.
Compared to 31 December 2023, cash and cash
equivalents decreased by €1.5 billion to €14.5 billion.
Marketable debt securities and similar investments
increased compared with 31 December 2023 from
€6.9 billion to €7.7 billion as part of the liquidity
management. Those assets include the debt instru-
ments that are allocated to liquidity, most of
which are traded in active markets. They generally
have an external rating of A or better.
Compared to 31 December 2023, other financial
assets consisting mainly of derivative financial
instruments, equity and debt instruments, shares in
non-consolidated subsidiaries, and loans and other
receivables from third parties, decreased from
€7.9 billion to €5.9 billion. The decrease is mainly due
to the reduction in the positive market values of
derivative financial instruments.
The other assets increased to €11.7 billion (2023:
€10.2 billion) particularly due to the positive develop-
ment of assets from defined benefit pension plans.
Further other assets include deferred taxes and tax
refund claims.
The assets held for sale of €0.2 billion relate to the
retail activities in Poland as part of the disposal of
sales companies and retail activities in other European
countries as well as the planned disposal of the
financing portfolio in Austria.
Annual Report 2024 | Mercedes-Benz Group
74
Profitability, Liquidity and
Capital Resources, and Financial Position
Equity and liabilities
Compared to 31 December 2023, the Group’s equity
increased from €92.8 billion to €93.6 billion. The
share of balance sheet total remains at the prior year
level of 35%. The slight increase in equity was due
to the positive Group result, while opposing effects
arose from the dividend of €5.5 billion paid to the
shareholders of Mercedes-Benz Group AG and the
acquisition of treasury shares of €4.7 billion as part
of the share buyback programmes. The shares
repurchased in 2024 and 2023 were cancelled at the
end of the reporting year. Equity attributable to the
shareholders of Mercedes-Benz Group AG increased
accordingly to €92.6 billion (2023: €91.8 billion).
The Group’s equity ratio of 33.8% was slightly above
the prior-year level of 33.2%; the equity ratio for the
industrial business was 65.8% (2023: 63.0%). It is
necessary to take into account the fact that the equity
ratios at the end of 2023 and 2024 have been adjusted
for the paid and proposed dividend payments
respectively.
Provisions decreased slightly to €16.0 billion from
the previous year (2023: €16.4 billion). At 6%,
they remained at the prior-year level of the balance
sheet total.
Financing liabilities of €112.8 billion were above the
€109.4 billion of the previous year. Of the financing
liabilities, 56% relate to bonds, 23% were liabilities to
financial institutions, 16% liabilities from ABS trans-
actions and 1% were deposits in the direct banking
business. The increase is mainly due to increased bond
volumes and ABS transactions in North America. This
was offset by a decline in deposits from the direct
banking business in connection with the disconti-
nuation of the retail deposit business with private
customers by the end of 2024. The financing liabilities
available on 31 December 2024 relate primarily to the
refinancing requirements of the leasing and sales-
financing business.
Trade payables decreased compared to 31 December
2023 from €12.7 billion to €11.3 billion.
Other financial liabilities amounted to €5.6 billion
(2023: €6.0 billion). They mainly comprise liabilities
from residual-value guarantees, from payroll
accounting, from derivative financial instruments and
deposits received. The decrease in other financial
liabilities is mainly attributable to lower liabilities from
derivative financial instruments, the carrying amount
of which declined due to interest and exchange-rate
developments.
The contract and refund liabilities of €11.2 billion
were above the €10.4 billion of the previous year. They
include in particular obligations from sales transactions
that are within the scope of IFRS 15 as well as deferred
revenue from service and maintenance contracts and
extended warranties. The increase is mainly due to
obligations from sales transactions.
Other liabilities of €14.4 billion (2023: €15.1 billion)
primarily include deferred taxes, tax liabilities and pre-
paid expenses. The decrease was primarily attributable
to lower income tax liabilities.
Further information on the assets presented in the
statement of financial position and on the Group’s
equity and liabilities is provided in the Consolidated
Statement of Financial Position, the Consolidated
Statement of Changes in Equity, and the related notes
of the Consolidated Financial Statements.
Annual Report 2024 | Mercedes-Benz Group
75
Profitability, Liquidity and
Capital Resources, and Financial Position
Net assets
The following table shows the derivation of net assets
for the segments Mercedes-Benz Cars and Mercedes-
Benz Vans. They relate to the operating assets and
liabilities for which the automotive segments are
responsible.
Derivation of net assets of the automotive segments
Mercedes-Benz Cars
Mercedes-Benz Vans
31 December
31 December
2024
2023
2024
2023
(adjusted)
In millions of euros
Intangible assets, mainly development costs
17,048
15,537
1,823
1,476
Property, plant and equipment including right-of-use assets
23,849
23,894
2,332
1,907
Inventories
22,836
23,226
2,981
3,011
Trade receivables
5,382
5,504
1,030
1,080
Other segment assets
23,250
25,274
3,244
3,012
Segment assets
92,365
93,435
11,410
10,486
thereof assets held for sale
52
657
15
98
Trade payables1
8,848
10,124
1,260
1,379
Other segment liabilities1
42,136
41,544
8,542
7,853
Segment liabilities
50,984
51,668
9,802
9,232
thereof liabilities held for sale
17
102
3
18
Net assets
41,381
41,767
1,608
1,254
1 For a more suitable presentation, reclassifications have been carried out between the balance sheet. The reclassifications are described in Note 1 of the Consolidated Financial Statements in the chapter Notes to the Consolidated Financial Statements.
Mercedes-Benz Group AG (condensed version in
accordance with the German Commercial Code)
In addition to reporting on the Mercedes-Benz Group,
the Annual Financial Statements of Mercedes-Benz
Group AG for 2024 are explained below.
The Annual Financial Statements of Mercedes-Benz
Group AG are compiled in accordance with the
provisions of the German Commercial Code (HGB) and
the provisions of the German Stock Corporation Act
(AktG). The Consolidated Financial Statements are
prepared in accordance with the International Financial
Reporting Standards (IFRS), as adopted by the
European Union (EU). This results in some differences
with regard to recognition and measurement methods,
primarily in connection with provisions, financial
instruments, the leasing business and deferred taxes.
The Annual Financial Statements of Mercedes-Benz
Group AG, for which PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft has issued
an unqualified audit opinion, can be viewed on the
Mercedes-Benz Group website at 🌐 group.mercedes-
benz.com/investors/reports-news/annual-
reports/2024 and will be published in the company
register.
The economic situation of Mercedes-Benz Group AG
mainly depends on the development of its subsidiaries.
Mercedes-Benz Group AG participates in the operating
profits and losses of its subsidiaries through dividend
distributions and profit-and-loss transfers.
Net profit is the key performance indicator for
Mercedes-Benz Group AG.
Profitability
Net profit amounted to €8.6 billion, which was signifi-
cantly below the figure of €12.1 billion recorded in the
previous year. The expectations stated in the Outlook
for the previous year could not be achieved. This
was due in particular to the financial income/expense,
which was significantly worse than expected. Negative
developments in unit sales and negative net pricing
effects in subsidiaries also resulted in lower earnings
than originally expected.
Condensed statement of income of
Mercedes-Benz Group AG
2024
2023
In millions of euros
Revenue
1,395
1,415
Cost of sales
-1,382
-1,400
General administrative expenses
-644
-779
Other operating income
68
20
Operating profit/loss
-563
-744
Financial Income
10,584
15,630
Income taxes
-1,449
-2,788
Net profit
8,572
12,098
Transfer to other retained earnings
-4,286
-6,049
Cancellation of open deduction of
calculated value of treasury shares
-83
–
Acquisition and cancellation
of treasury shares
-4,916
–
Offset against other retained earnings
4,999
–
Distributable profit
4,286
6,049
Mercedes-Benz Group AG generated revenue of
€1.4 billion, primarily from the provision of services to
companies of the Group (2023: €1.4 billion).
Cost of sales amounted to €1.4 billion (2023:
€1.4 billion) and primarily comprises expenses incurred
for the services provided to companies of the Group.
General administrative expenses amounted to
€0.6 billion (2023: €0.8 billion).
Financial income decreased by €5.0 billion to
€10.6 billion. The decrease in the financial income
with respect to the previous year is primarily due
to lower income from investments in subsidiaries
and associated companies. This was the result in
particular of lower profit transfers from subsidiaries
and lower dividends from associated companies.
The income tax expense amounted to €1.4 billion
(2023: €2.8 billion). The decrease is due to the decline
in taxable operating profit within the tax group.
Financial position
Total assets of €76.1 billion were below the level of
the previous year (2023: 80.4 billion).
Condensed statement of financial position of
Mercedes-Benz Group AG
At 31 December
2024
2023
In millions of euros
Assets
Non-current assets
39,637
40,630
Receivables, securities and other assets
29,719
32,945
Cash and cash equivalents
6,552
6,592
Current assets
36,271
39,537
Prepaid expenses
189
217
Total assets
76,097
80,384
Equity and liabilities
Share capital
3,070
3,070
Calculated value of treasury shares
–
-83
Capital reserve
11,480
11,480
Retained earnings
20,956
21,106
Distributable profit
4,286
6,049
Equity
39,792
41,622
Provisions for pensions and similar
obligations
256
330
Other provisions
1,833
2,275
Provisions
2,089
2,605
Trade payables
227
246
Other liabilities
33,989
35,904
Liabilities
34,216
36,150
Deferred income
–
7
Total equity and liabilities
76,097
80,384
Non-current assets decreased by €1.0 billion to
€39.6 billion over the course of the year as a result of
the decline in financial assets.
Receivables, securities and other assets decreased
compared with 31 December 2023 by €3.2 billion to
€29.7 billion. This is the result of the decrease in
receivables from subsidiaries of €4.4 billion, which in
turn was caused by lower receivables from profit
transfers. In contrast, the other assets increased by
€1.2 billion, in particular by taking up fixed-term
deposits of €0.8 billion.
Equity decreased by €1.8 billion to €39.8 billion in the
reporting year. This decrease was a result of the
dividend payment of €5.5 billion to the shareholders of
Mercedes-Benz Group AG and the share buyback
programmes finalized in the fiscal year. The purchase
price of the treasury shares acquired as part of the
share buyback programmes of €6.8 billion (thereof in
2023: €1.8 billion) was offset against retained earnings
which may be freely disposed of. This also includes
the calculated value of the treasury shares acquired in
the 2023 financial year of €0.1 billion, which was openly
deducted from the share capital as of 31 December
2023. As a result of the cancellation without capital
reduction, this open deduction for these shares no
longer applies. Disclosures pursuant to Section 160
Subsection 1 No. 2 of the German Stock Corporation
Act (AktG) are contained in the Annual Financial State-
ments of Mercedes-Benz Group AG in accordance
with the statutory requirements. After cancellation
of treasury shares without capital reduction on
13 December 2024, Mercedes-Benz Group AG no longer
holds any treasury shares as of 31 December 2024.
Equity, in contrast, increased due to fiscal year’s net
profit amounting to €8.6 billion, of which €4.3 billion
was transferred to retained earnings pursuant to
Section 58 Subsection 2 of the German Stock Corpo-
ration Act (AktG). The equity ratio as of the balance
sheet date was 52.3% (2023: 51.8%).
Provisions decreased by €0.5 billion to €2.1 billion.
This was mainly due to the decrease in provisions for
contingent losses resulting from derivative financial
instruments as well as lower provisions for taxes.
Liabilities decreased by €1.9 billion to €34.2 billion.
This change is primarily the result of the redemption of
bonds amounting to €1.5 billion and the decrease in
liabilities to subsidiaries of €0.5 billion, which in turn
was caused by lower intra-Group financial liabilities.
Liquidity and capital resources
The Statements of Cash Flows of Mercedes-Benz
Group AG according to HGB include the following
exceptions, which deviate from DRS 21: dividends from
subsidiaries as well as intra-Group offsetting of ser-
vices from corporate functions are presented in Cash
flow from operating activities even when they are off-
set by means of cash pooling procedures. The same
applies to capital increases and capital repayments
from subsidiaries being presented in Cash flow from
investing activities. An offsetting recognition of cash
pooling procedures takes place in Cash flow from
financing activities.
Cash and cash equivalents remained unchanged year-
on-prior year at €6.6 billion and were influenced by the
following developments:
Cash flow from operating activities resulted in a net
cash outflow of €0.0 billion in the reporting year (2023:
€0.7 billion). The cash outflow was particularly caused
by income tax payments and was almost compensated
for by dividends from subsidiaries and associated com-
panies. The lower cash outflow compared to the pre-
vious year can be attributed to lower tax payments.
Cash flow from investing activities resulted in a
cash outflow of €0.4 billion in 2024 (2023: €0.1 billion).
The change is explained by the purchase and sale of
securities and fixed-term deposits under liquidity
management resulting in a cash outflow of €1.1 billion
(2023: Net inflow of €0.1 billion). In contrast, higher
cash inflows from repayments of equity and sales of
subsidiaries and associated companies arose in the
reporting year.
Cash flow from financing activities showed a cash
inflow of €0.4 billion in the reporting period (2023:
cash outflow of €0.1 billion). The cash inflow resulted
from the payments of subsidiaries under central
financial and liquidity management. In the opposite
direction, cash outflows from share repurchases and
from redemption of external financing liabilities
increased compared to the previous year. The cash
flow from financing activities includes the dividend
payment to the shareholders of Mercedes-Benz Group
AG in the amount of €5.5 billion.
Outlook
The financial position, cash flows and profitability
of Mercedes-Benz Group AG depend on the business
development and the performance of its operating
subsidiaries, in whose development it participates
through profit-and-loss transfer agreements and
dividend distributions.
Due to the interrelations between Mercedes-Benz
Group AG and the companies of the Group, the
statements in the chapter Outlook also reflect our
expectations for the parent company.
For 2025, Mercedes-Benz Group AG expects a net
profit that is slightly below the level of the reporting
year. This is mainly due to an expected lower financial
income.
Risks and opportunities
The business development of Mercedes-Benz Group
AG mainly depends on the development of its world-
wide subsidiaries and is therefore – through the profit
and loss contributions from subsidiaries and associated
companies – fundamentally subject to the same risks
and opportunities as is the business development of
the Group.
Mercedes-Benz Group AG generally participates in the
risks of its subsidiaries and associated companies in
line with the percentage of its respective equity inter-
est. The Group’s risks and opportunities are described
in the Risk and Opportunity Report.
Risks may additionally arise from relations with sub-
sidiaries and associated companies in connection
with statutory or contractual liability obligations (in
particular with regard to financing), from impairments
of financial assets and from impairments of financial
receivables from subsidiaries and associated
companies.
Overall Assessment of the Financial Year
Mercedes-Benz Group
The profitability, liquidity and capital resources, and
financial position of the Mercedes-Benz Group in
2024 were influenced by a subdued macroeconomic
environment and tough competition. The forecast
revenue, which had been expected to be at the
previous year’s level at the beginning of the year,
was adjusted during the year and was slightly
below the prior-year figure at the end of the year.
In the past year, the Group achieved an EBIT that
was significantly lower than in the previous year. At the
beginning of the year, an EBIT slightly below the
previous year’s level was expected. The negative net
pricing effects and the slight decrease in sales in
conjunction with the unfavourable product and market
mix influenced this development and had already led to
an adjustment of the forecast during the year.
As expected, the free cash flow of the industrial
business in 2024 was slightly below the very high prior-
year figure.
Mercedes-Benz Cars
Despite improved product availability, the weaker
overall economic conditions and intense competition
had a negative impact, so that unit sales and revenue
were slightly below the previous year’s level. At the
beginning of the year, unit sales and revenue were still
forecast to be at the previous year’s level.
Unit sales of electrified vehicles fell to a share of
18.5%, particularly as a result of the highly competitive
market environment. At the beginning of the year, a
share of electrified vehicles of between 19 and 21% was
expected.
At the beginning of the year, the segment had expected
an adjusted return on sales of between 10 and 12%.
The deteriorating macroeconomic environment, par-
ticularly in China, in the second half of the year, led to
an adjusted return on sales of 8.1%. This confirmed
the estimate from the third quarter of the year. In the
third quarter of 2024, a range between 7.5 and 8.5%
was expected.
The adjusted cash conversion rate of 1.0 was within the
range forecast at the beginning of the year.
At the beginning of the year, investments in property,
plant and equipment were expected to be significantly
higher than the previous year’s level. Through effi-
ciency measures, investments in property, plant and
equipment were maintained at the previous year’s
level.
Research and development expenditure was also
slightly below the previous year’s level, mainly due
to cost-saving initiatives. At the beginning of the
year, research and development expenditure was still
forecast to be at the previous year’s level.
Mercedes-Benz Vans
Mercedes-Benz Vans can look back on another
successful year.
The drop in demand for Mercedes-Benz vans resulted
in significantly lower unit sales and revenue slightly
below the prior year. Unit sales had already been
expected to be slightly below the previous year’s level
at the start of the year; revenue was expected to be at
the same level as the previous year.
At the beginning of the year, a share of electrified
vehicles of between 6 and 8% was expected. During
the year, the expected share of electrified vehicles was
adjusted due to falling demand in Europe and stood at
4.8% worldwide at the end of the year.
At the beginning of the year, an adjusted return on
sales of between 12 and 14% was expected. Thanks to a
convincing product substance, stable pricing, a very
advantageous product mix, comprehensive initiatives
to reduce costs, and an increase in productivity, an
adjusted return on sales of 14.6% was achieved. This
was within the range of 14 to 15% that had already been
increased during the year. This underlines the strategy
of focusing on profitable growth in the premium
segment.
The adjusted cash conversion rate was also at 1.0,
mainly due to a positive development in working
capital. This put it within the range of 0.8 to 1.0, which
had already been raised during the year.
As expected, investments in property, plant and
equipment and research and development expenditure
were significantly above the previous year due to
investments in the new Van Architecture.
Mercedes-Benz Mobility
In a challenging market environment, Mercedes-Benz
Mobility closed 2024 with an adjusted return on equity
of 8.7%. Influenced by a lower interest margin as a
result of interest rate developments and increased
competition in the financial services sector as well as
increased credit risk costs, the result was below the
original forecast, but within the range of 8.5% to 9.5%
adjusted during the year.
New business at Mercedes-Benz Mobility remained
slightly below the previous year’s level. The original
forecast of a slight increase in new business could
not be met in view of developments on the sales side
and the increased competition in China.
At the beginning of the year, the contract volume was
expected to be at the previous year’s level. Due to
positive exchange rate effects, the value was slightly
above the previous year’s level.
As forecast, revenue at the end of 2024 was at the
previous year’s level.
Comparison between the figures forecast for 2024 and their actual development
Forecast for 2024
In-year adjustments
Actual development 2024
Mercedes-Benz Group
Revenue
At the prior-year level
Q3: Slightly below the prior-year level
€145,594 million
-4%
Slightly below the prior-year level
EBIT
Slightly below the prior-year level
Q3: Significantly below the prior-year level
€13,599 million
-31%
Significantly below the prior-year level
Free cash flow of the industrial business
Slightly below the prior-year level
Q3: Significantly below the prior-year level
€9,152 million
-19%
Slightly below the prior-year level
Mercedes-Benz Cars
Unit sales
At the prior-year level
Q3: Slightly below the prior-year level
1,983,403 vehicles
-3%
Slightly below the prior-year level
Share of electrified vehicles (xEV)
19–21%
Q2: 19–20%
Q3: 18–19%
18.5%
Revenue
At the prior-year level
Q3: Slightly below the prior-year level
€107,761 million
-4%
Slightly below the prior-year level
Adjusted return on sales
10–12%
Q2: 10–11%
Q3: 7.5–8.5%
8.1%
Adjusted cash conversion rate
0.8–1.0
1.0
Investments in property, plant and equipment
Significantly above the prior-year level
3,392 million
+1%
At the prior-year level
Research and development expenditure
At the prior-year level
8,744 million
-4%
Slightly below the prior-year level
Mercedes-Benz Vans
Unit sales
Slightly below the prior-year level
405,610 vehicles
-9%
Significantly below the prior-year level
Share of electrified vehicles (xEV)
6–8%
Q2: 5–7%
Q3: 4–5%
4.8%
Revenue
At the prior-year level
Q3: Slightly below the prior-year level
€19,320 million
-5%
Slightly below the prior-year level
Adjusted return on sales
12–14%
Q2: 14–15%
14.6%
Adjusted cash conversion rate
0.6–0.8
Q3: 0.8–1.0
1.0
Investments in property, plant and equipment
Significantly above the prior-year level
571 million
+63%
Significantly above the prior-year level
Research and development expenditure
Significantly above the prior-year level
1,012 million
+16%
Significantly above the prior-year level
Mercedes-Benz Mobility
New business
Slightly above the prior-year level
Q1: At the prior-year level
Q2: Slightly below the prior-year level
59,486 million
-4%
Slightly below the prior-year level
Contract volume
At the prior-year level
138,095 million
+2%
Slightly above the prior-year level
Revenue
At the prior-year level
€25,083 million
-2%
At the prior-year level
Adjusted return on equity
10–12%
Q2: 8,5–9,5%
8.7%
Takeover-Relevant Information and Explanation
Report pursuant to Section 315a and Section 289a of the German Commercial Code (HGB)
Composition of share capital
The issued share capital of Mercedes-Benz Group AG
amounted to approximately €3,070 million as of
31 December 2024. It is divided into 962,903,703
registered no-par-value shares, each of which com-
putationally accounts for approximately €3,19 of the
share capital. Pursuant to Section 67 Subsection 2 of
the German Stock Corporation Act (AktG), rights and
duties relating to the Company exist from the shares
only for those persons and entities entered in the
register of shareholders. With the exception of treasury
shares, from which the Company does not have any
rights, all shares confer equal rights to their holders.
The rights and obligations arising from the shares
are derived from the provisions of applicable law, in
particular Sections 12, 53a ff., 118 ff. and 186 of the
German Stock Corporation Act (AktG). Each share of
Mercedes-Benz Group AG confers the right to one
vote and, if applicable, with the exception of any new
shares potentially not entitled to dividends, to an equal
portion of the profits in accordance with the dividend
payout approved by the Annual General Meeting. The
only exceptions here are the treasury shares held
by the company. There were no treasury shares held by
the company at 31 December 2024.
Restrictions on voting rights and on the transfer
of shares
The Company does not have any voting rights or other
rights from treasury shares. In the cases described
in Section 136 of the German Stock Corporation Act
(AktG), the voting rights are excluded by law.
Shares of Mercedes-Benz Group AG acquired by
employees under the employee share programme are
subject to a lock-up period until the end of the second
year following the year of acquisition. Eligible partici-
pants in the Performance Phantom Share Plans (PPSPs)
of Executive Level 1 and eligible members of the Board
of Management are obliged by the Plans’ terms and
conditions and by the Stock Ownership Guidelines to
acquire the Company’s shares with a part of their Plan
income or out of their own funds up to a defined target
volume. Eligible participants from Executive Level 1 are
obliged to hold these shares for the duration of their
employment at the Group. For eligible members of the
Board of Management, the required retention period
has been extended to two years after the end of their
contract (with effect from 1 January 2023).
Provisions of applicable law and of the articles
of association concerning the appointment and
dismissal of members of the Board of Management
and amendments to the articles of association
Members of the Board of Management are appointed
and dismissed on the basis of Sections 84 and 85 of
the German Stock Corporation Act (AktG) and Sec-
tion 31 of the German Codetermination Act (MitbestG).
In accordance with Section 84 of the German Stock
Corporation Act (AktG), the members of the Board of
Management are appointed by the Supervisory Board
for a maximum period of office of five years. The rules
of procedure of the Supervisory Board stipulate
that the initial appointment of members of the Board
of Management is generally limited to three years.
Reappointment or the extension of a period of office is
permissible, in each case for a maximum of five years.
In 2022, the Supervisory Board also adopted a flexibly
structured further shortening of the appointment
period in the case of appointments and reappoint-
ments of individuals 58 years of age and older at the
time their term of office begins.
Pursuant to Section 31 of the German Codetermination
Act (MitbestG), the Supervisory Board appoints the
members of the Board of Management with a majority
comprising at least two thirds of its members’ votes. If
no such majority is obtained, the Mediation Committee
of the Supervisory Board has to make a suggestion
for the appointment within one month of the vote by
the Supervisory Board in which the required majority
was not reached. The Supervisory Board then appoints
the members of the Board of Management with a
majority of its own members’ votes. If no such majority
is obtained, voting is repeated and the Chair of the
Supervisory Board then has two votes. The same
procedure applies for dismissals of members of the
Board of Management.
In accordance with Article 5 of the articles of associa-
tion, the Board of Management has at least two
members. The number of members is decided by the
Supervisory Board. Pursuant to Section 84 Subsec-
tion 2 of the German Stock Corporation Act (AktG), the
Supervisory Board can appoint a member of the Board
of Management as the Chairperson of the Board of
Management. If a required member of the Board of
Management is lacking, an affected party can apply in
urgent cases for that member to be appointed by
the court pursuant to Section 85 Subsection 1 of the
German Stock Corporation Act (AktG). Pursuant to
Section 84 Subsection 4 of the German Stock Cor-
poration Act (AktG), the Supervisory Board can
revoke the appointment of a member of the Board of
Management as the Chairperson of the Board of
Management if there is an important reason to do so.
Pursuant to Section 179 of the German Stock Corpo-
ration Act (AktG), amendments to the articles of asso-
ciation require a resolution of the General Meeting and,
in accordance with Section 181 Subsection 3 of the Ger-
man Stock Corporation Act (AktG), such changes take
effect upon being entered in the commercial register.
Amendments to the articles of association that only
affect the wording can be decided upon by the Super-
visory Board in accordance with Article 7 Subsection 2
of the articles of association. The General Meeting has
also passed resolutions expressly authorizing the Super-
visory Board to amend the wording of the articles of
association in accordance with the use of the Approved
Capital 2023 and the Conditional Capital 2020, as well
as subsequent to the expiration of the authorization,
use, and conversion/option periods in each case.
Unless otherwise required by applicable law or the
articles of association, resolutions of the General
Meeting are passed pursuant to Section 133 of the
German Stock Corporation Act (AktG) and pursuant
to Article 16 Sentences 1 and 2 of the articles of
association with a simple majority of the votes cast
and, if required, with a simple majority of the share
capital represented. Pursuant to Article 16 Sentence 3
of the articles of association, the dismissal of a share-
holder-elected member of the Supervisory Board
requires a majority of at least three quarters of the
votes cast. Pursuant to Section 179 Subsection 2
of the German Stock Corporation Act (AktG), any amend-
ment to the purpose of the Company requires a three-
quarters majority of the share capital represented at
the General Meeting; no use is made in the articles
of association of the possibility to stipulate a larger
majority of the share capital.
Authorization of the Board of Management
to issue or buy back shares
The Annual General Meeting held on 3 May 2023
authorized the Board of Management to increase the
share capital by up to a total of €1.0 billion in the
period until 2 May 2028 with the approval of the Super-
visory Board against cash and/or non-cash contribu-
tions (Approved Capital 2023). The authorization
enables the exclusion of shareholders’ subscription
rights under certain conditions and within defined
limits subject to the consent of the Supervisory Board.
Under these defined conditions, subscription rights can,
among others, be excluded in the event of a capital
increase against non-cash contributions for the purpose
of an acquisition, and in the case of a capital increase
against cash contributions if the issue price of new
shares is not significantly below the market price at the
time of issue.
The total number of shares issued against cash and/or
non-cash contributions under this authorization with
the exclusion of shareholders’ subscription rights may
not exceed 10% of the share capital at the time when
this authorization takes effect.
This limit is to include shares which (i) are issued or
sold during the period of this authorization with the
exclusion of subscription rights in direct or analogous
application of Section 186 Subsection 3 Sentence 4 of
the German Stock Corporation Act (AktG) and which (ii)
are or can or must be issued to service bonds with
conversion or option rights or conversion or option
obligations, provided that the bonds are issued after
this authorization takes effect with the exclusion
of shareholders’ subscription rights with analogous
application of Section 186 Subsection 3 Sentence 4 of
the German Stock Corporation Act (AktG).
Approved Capital 2023 was not utilized within the
reporting period.
By resolution of the Annual General Meeting on 8 July
2020, the Board of Management was authorized, with
the consent of the Supervisory Board, to issue during
the period until 7 July 2025 convertible bonds and/or
bonds with warrants or a combination of those instru-
ments (commercial paper) in a total nominal amount of
up to €10 billion with a maximum term of ten years, and
to grant the owners/lenders of those bonds conversion
or option rights to new, registered shares of no par
value in the Company with a corresponding amount of
the share capital of up to €500 million, in accordance
with the terms and conditions of those convertible
bonds or bonds with warrants. The bonds may be
issued in exchange for consideration in cash, but also
for consideration in kind, in particular for interests in
other companies. The respective terms and conditions
may also provide for mandatory conversion or an
obligation to exercise the option rights. The bonds can
be issued once or several times, wholly or in instal-
ments, or simultaneously in various tranches. They can
also be issued by subsidiaries of the Company
pursuant to Section 15 ff. of the German Stock
Corporation Act (AktG).
Among other things, the Board of Management was
also authorized under certain circumstances, within
certain limits and with the consent of the Supervisory
Board, to exclude shareholders’ subscription rights
to the bonds. Subscription rights can be excluded
under these defined conditions, inter alia when bonds
are issued in exchange for non-cash contributions,
particularly within the framework of a merger or acqui-
sition and when bonds are issued in exchange for cash
contributions if the issue price is not significantly
below the theoretical market price of the bonds at the
time of the issuance.
Any issuance of bonds with the exclusion of subscrip-
tion rights may only be carried out under the authoriza-
tion if the arithmetical proportion of the share capital
attributable to the total of the new shares to be issued
on the basis of such a bond does not exceed 10% of
the share capital at the time when this authorization
takes effect or – if this value is lower – at the time
when it is exercised. If, during the period of the
authorization until it is exercised, use is made of other
authorizations to issue or sell shares in the Company or
to issue rights enabling or requiring subscription to
shares in the Company and subscription rights are
excluded, this is to be counted towards the
aforementioned 10% limit.
In order to service the debt of the convertible bonds
and/or bonds with warrants issued as a result of the
authorization, the Annual General Meeting of 8 July
2020 also approved a conditional increase in the share
capital of up to €500 million (Conditional Capital
2020).
No use was made of this authorization to issue
convertible and/or warrant bonds during the reporting
period.
By a further resolution of the General Meeting on 8 July
2020, the Board of Management was authorized, with
the consent of the Supervisory Board, to acquire the
Company’s own shares until 7 July 2025 for all legal
purposes in a volume of up to 10% of the share capital
at the time of the resolution of the Annual General
Meeting or – if this amount is lower – at the time when
the authorization is exercised. With the consent of
the Supervisory Board, the shares can be used, with
the exclusion of shareholders’ subscription rights, for,
among other things, corporate mergers and acquisi-
tions, or can be sold for cash to third parties at a price
that is not significantly below the market price at the
time of the sale. The acquired shares can also be used
to service debt on convertible bonds and/or bonds
with warrants, or can be issued to employees of the
Company and employees and members of executive
bodies of subsidiaries pursuant to Section 15 ff. of the
German Stock Corporation Act (AktG). The Company’s
own shares can also be cancelled.
During the period of the authorization, the total of the
Company’s own shares used with the exclusion of
shareholders’ subscription rights may not exceed 10%
of the share capital at the time when the authorization
takes effect or – if this amount is lower – at the time
when it is exercised. If, during the period of the authori-
zation until it is exercised, use is made of other
authorizations to issue or sell shares in the Company
or to issue rights enabling or requiring subscription
to shares in the Company and subscription rights are
excluded, this is to be counted towards the afore-
mentioned 10% limit.
In a volume of up to 5% of the share capital existing at
the time of the resolution of the Annual General
Meeting, the Board of Management was authorized, with
the consent of the Supervisory Board, to acquire the
Company’s own shares also with the application of
derivative financial instruments (put or call options, for-
wards or a combination of these financial instruments).
The terms of the derivatives may not exceed 18 months
and must be terminated at the latest on 7 July 2025.
The authorization to buy back shares was used both in
the prior year and in the reporting period. In two buy-
back programmes, the company purchased a total
of 106,933,744 treasury shares from March 3, 2023 to
August 1, 2024 and from May 10, 2024 to November 29,
2024, corresponding to almost 10% of the share
capital. The purchased treasury shares were cancelled
on December 13, 2024 without reducing the share
capital. It is planned to propose a renewed buyback
authorization to the 2025 Annual General Meeting.
Material agreements subject to change of control
Mercedes-Benz Group AG has concluded various mate-
rial agreements, as listed below, that include clauses
regulating the possible event of a change of control, as
can occur, among others, as a result of a takeover bid:
– A non-utilized syndicated credit line for a total
amount of €11 billion, which the lenders are entitled
to terminate if (i) Mercedes-Benz Group AG
becomes a subsidiary of another company, or (ii)
Mercedes-Benz Group AG becomes controlled
either individually or jointly by one or more persons
acting together. For the purposes of the syndicated
credit line, subsidiary in relation to a company
means another company (i) that is controlled
directly or indirectly by the first-mentioned
company, (ii) of which more than 50% of the
subscribed share capital (or other equity) is held
directly or indirectly by the first-mentioned
company, or (iii) which is a subsidiary of another
subsidiary of the first-mentioned company. Control
for the purposes of the syndicated credit line
means (i) the right to determine the affairs of a
company, (ii) the right to control the composition of
the managing board or similar bodies, or (iii) the
right to control the composition of the Supervisory
Board (if elected by the shareholders).
– A master cooperation agreement on wide-ranging
strategic cooperation with Renault S.A., Renault-
Nissan B.V. and Nissan Motor Co., Ltd., as well as
with Mitsubishi Motors Corporation. In the case
of a change of control of one of the parties to the
agreement, each of the other parties has the right
to terminate the agreement. A change of control
as defined by the master cooperation agreement
occurs if a third party or several third parties acting
jointly acquire, legally or economically, directly or
indirectly, at least 50% of the voting rights in the
company in question or are authorized to appoint a
majority of the members of its managing board.
Under the master cooperation agreement, several
cooperation agreements were concluded between
Mercedes-Benz Group AG on the one side and
Renault and/or Nissan on the other, which provide
for the right of termination for a party to the agree-
ment in the case of a change of control of another
party. With the exception of the master cooperation
agreement, the aforementioned cooperation agree-
ments were transferred from the former Daimler AG
to Mercedes-Benz AG in 2019.
– An agreement with BAIC Motor Co., Ltd. related to
a jointly held company for the production and
distribution of cars of the Mercedes-Benz brand in
China, by which BAIC Motor Co., Ltd. is given the
right to terminate the agreement or exercise a put
or call option in the case that a third party acquires
one third or more of the voting rights in Mercedes-
Benz Group AG.
– An agreement between Mercedes-Benz Group AG,
BMW AG and Audi AG related to the acquisition of
the companies of the HERE Group and the associ-
ated establishment of There Holding B.V. In the
event of a change of control of one of the parties to
the agreement, the agreement obliges the party in
question to offer its shares in There Holding B.V. to
the other parties to the agreement (shareholders).
A change of control of Mercedes-Benz Group AG
occurs if one person gains control over Mercedes-
Benz Group AG, whereby control is defined as
(i) having control of more than 50% of the voting
rights, (ii) being able to control more than 50% of
the voting rights eligible to vote at the General
Meetings on all or nearly all matters, or (iii) the right
to determine the majority of the members of the
Board of Management or of the Supervisory Board.
A change of control also occurs if competitors of
the HERE Group or certain possible competitors of
the HERE Group in the technology industry acquire
a shareholding of at least 25% of Mercedes-Benz
Group AG. If none of the other parties acquire these
shares, the agreement gives them the right to
dissolve There Holding B.V.
– An agreement between Mercedes-Benz Group AG
and BMW AG which contains basic provisions for
joint ventures between Mercedes-Benz Mobility
Services GmbH and group companies of BMW AG in
the field of mobility services (one joint venture each
in the areas of ride hailing and charging as well as a
joint venture that is structured as a holding for the
aforementioned joint ventures). A change of control
is defined as the acquisition by a third party of
more than 50% of the voting rights or shares, or the
conclusion of a control agreement over Mercedes-
Benz Group AG by a third party. In the event of
a change of control, the contract includes mecha-
nisms that can lead to sole ownership by one of
the shareholders (shoot-out process).
Outlook
The statements made in the chapter Outlook are based
on the Mercedes-Benz Group’s planning for 2025,
which was approved by the Board of Management with
the agreement of the Supervisory Board. This planning
is based on the premises set by the company regarding
the overall economic conditions and the development
of the automotive markets. These are estimates by the
Group that are based on analyses by various renowned
economic research institutes, international organiza-
tions and industry associations, as well as on internal
market analyses by the Group’s sales companies.
The premises regarding the overall economic condit-
ions and the development of the automotive
markets continue to be characterized by exceptional
uncertainty. In addition to unexpected macroeconomic
developments, geopolitical and trade policy events
in particular can create uncertainty and burdens for the
global economy and the business development of
the Mercedes-Benz Group.
These include the Middle East conflict, the Russia-
Ukraine war and possible other regional crises. In
addition, the ongoing tensions between the United
States and China, a possible deterioration in relations
between the EU and China and the future development
of the relationship between the EU and the United
States pose uncertainties. Trade conflicts and in par-
ticular additional tariffs and sanctions could signifi-
cantly affect global trade flows and corporate activities.
Further disruptions to supply chains and, in particular,
availability bottlenecks for critical components remain
significant risk factors. Sharply rising energy and raw
material prices, higher than expected inflation rates
and interest rates, possible distortions in the financial
markets and a pronounced weakening of economic
activity can also have an impact on the development of
the global economy and the automotive markets.
The following outlook is based on the current CO2
legislation of the European Union.
The risks and opportunities that may arise from
deviations from the developments in the global
economy and the automotive markets forecast below
are described in the Risk and Opportunity Report.
Through the continuous planning process, the Group
ensures that opportunities that arise can be exploited
and unexpected risks can be responded to accordingly,
thus allowing expectations for business performance
to be adjusted to the current forecasts regarding the
development of the automotive markets.
The world economy and
automotive markets
The world economy
For 2025, the Group assumes that global economic
growth will be roughly at the same level as the previous
year. This applies equally to growth in industrial
countries and emerging markets.
In the Eurozone, against the backdrop of the ongoing
industry recession and a lack of new orders in the
manufacturing sector, economic development is ex-
pected to remain weak, particularly in the first half of
the year. In contrast, the recovery in private consump-
tion should continue in view of rising real incomes.
Further interest rate cuts by the European Central Bank
over the course of the year should support growth.
However, economic output for the year as a whole is
likely to be only slightly higher than in the previous
year.
In the United States, the outlook will be largely
determined by the (economic) policy decisions of the
new government. Overall, the economy should once
again prove to be quite robust, supported by monetary
easing in conjunction with an expansive fiscal policy.
However, these measures should result in sustained
price pressure. For the year as a whole, the Mercedes-
Benz Group expects slightly weaker growth for the
US economy than in the previous year.
The Chinese economy is likely to continue to be held
back by continued consolidation in the real estate
sector and subdued demand in 2025. However,
monetary easing combined with an expansion of fiscal
support measures should ensure that growth only
weakens slightly year-on-year.
Given these developments, world economic growth
is again expected to be in the range of 2.5 to 3.0% this
year.
Automotive markets
These subdued macroeconomic conditions are likely to
continue to dampen growth in the global automotive
markets. Accordingly, customer demand in important
sales markets is likely to remain rather subdued this
year.
Against this background, the global car market as well
as the major sales markets in Europe, the United States
and China are expected to be on the same level as in
the previous year. In the Chinese market, particularly
in the premium and luxury segment, price competition
is likely to be very intense and the sales situation
for many foreign competitors is likely to remain tense.
For important van markets, the growth outlook for
2025 is rather cautious overall. In Europe, the market
segment for mid-size and large vans is likely to remain
at the previous year’s level. The market volume for the
small vans segment in Europe is expected to decline
slightly. The US market for large vans is expected to
reach the same level as last year. In China, the market
segment for mid-size vans should grow significantly
thanks to new vehicle models in the market.
Outlook for the
key performance indicators
Mercedes-Benz Group
The Mercedes-Benz Group expects the Group’s
revenue to decrease slightly in 2025, in line with the
expectations of the automotive divisions. For the
Mercedes-Benz Mobility segment, the Group expects
revenue to increase slightly.
In a market environment that remains challenging, the
Group expects EBIT to be significantly below the
previous year’s level based on the development of the
segments.
For 2025, the Mercedes-Benz Group assumes that the
free cash flow of the industrial business will be signifi-
cantly below the previous year’s level. In addition to
the declining EBIT development, the main driver is the
planned increase in investments in property, plant
and equipment in the automotive segments, which are
significantly above the previous year’s level.
Mercedes-Benz Cars
In a continuing challenging macroeconomic environ-
ment, Mercedes-Benz Cars expects unit sales in
2025 to be slightly below the previous year’s level.
The share of electrified vehicles (xEV) in total unit sales
is expected to increase slightly and range between
20 and 22%.
With falling costs in the supply chains, which are, how-
ever, offset by increased depreciation due to product
launches and a lower contribution from the coopera-
tion with BBAC, Mercedes-Benz Cars expects an
adjusted return on sales of between 6 and 8% based
on the forecast sales development. Taking into account
potential tariffs between the United States and Europe
of up to 10%, the adjusted return on sales without
taking mitigating actions into account would be up to
1 percentage point lower than currently expected.
The adjusted cash conversion rate for Mercedes-Benz
Cars is expected to be in a range between 0.9 and 1.1 in
2025.
Mercedes-Benz Cars expects a significant increase in
investments in property, plant and equipment in 2025.
The main drivers are investments in the new vehicle
architectures geared towards electromobility as well
as in the expansion of digitalization and automated
driving. Research and development expenditure
in 2025 are expected to be at the same level as the
previous year.
Mercedes-Benz Vans
Mercedes-Benz Vans expects unit sales in 2025 to be
slightly below the previous year’s level due to macro-
economic uncertainties. The share of electrified
vehicles (xEV) in total unit sales is expected to increase
to 8 to 10%.
Positive effects result from the continued high level
of cost discipline, while advance payments for the
new Van Architecture as well as expenses for burdens
resulting from not fully achieving the CO2 targets have
a negative impact. In total, this results in a planned
adjusted return on sales of between 10 and 12%.
The adjusted cash conversion rate for the Mercedes-
Benz Vans division is expected to be in a range of
0.5 to 0.7 due to high advance expenditure for the
announced new vehicle generation.
As a result, Mercedes-Benz Vans expects a significant
increase in investments in property, plant and
equipment in 2025. Mercedes-Benz Vans also expects
a significant increase in research and development
expenditure in 2025. The main topics in research and
development are the new vehicle generation, auto-
mated driving and digitalization.
Mercedes-Benz Mobility
The adjusted return on equity is expected to be in a
range between 8 and 9% in 2025. The forecasted slight
decline compared to the prior year is mainly driven by
a higher equity base due to investments in the expan-
sion of the charging infrastructure.
Dividend
In line with a sustainable dividend policy, the
Mercedes-Benz Group sets the dividend based on a
distribution ratio of 40% of the previous year’s net
profit attributable to Mercedes-Benz Group share-
holders. The future free cash flow from the industrial
business is also taken into consideration when setting
the dividend.
At the Annual General Meeting to take place on 7 May
2025, the Board of Management and the Supervisory
Board will propose the payment of a dividend of €4.30
per share entitled to a dividend for the year 2024
(2023: €5.30). This corresponds to a total distribution
of €4.1 (2023: €5.5) billion.
Overall statement
on future development
In view of the continuing challenging market environ-
ment, the company’s resilience is to be further
strengthened. To this end, the comprehensive “Next
Level Performance” programme was launched in 2024,
which includes several work packages. On the one
hand, the target is to create a uniform and, above all,
outstanding customer experience. On the other hand,
the global markets are to be opened up even better
and the quality of sales increased on the basis of a
strong product portfolio. In addition, costs are to be
sustainably reduced in the coming years and structures
and processes are to be further streamlined. An
initiative has also been launched to anchor the will to
achieve top performance even more firmly in the
corporate culture of the Mercedes-Benz Group.
With the new CLA, a product offensive at Mercedes-
Benz Cars will start in 2025. Mercedes-Benz Vans is
also continuing to develop its product portfolio and is
setting the course for the market launch of the new
Van Architecture in 2026. With the MB.OS operating
system, the Group is focusing on digitalization and
artificial intelligence. Advances in safety and auto-
mated driving such as the DRIVE PILOT underline the
Group’s innovative strength.
By focusing on the upper end of all product categories
or segments in which the company is represented and
by consistently focusing on profitable growth, the
Group expects to successfully master the coming years
of transformation.
Outlook for the key performance indicators
2024 reporting year
Forecast for 2025
Mercedes-Benz Group
Revenue
€145,594 million
Slightly below the prior-year level
EBIT
€13,599 million
Significantly below the prior-year level
Free cash flow of the industrial business
€9,152 million
Significantly below the prior-year level
Mercedes-Benz Cars
Unit sales
1,983,403 vehicles
Slightly below the prior-year level
Share of electrified vehicles (xEV)
18.5%
20–22%
Adjusted return on sales
8.1%
6–8%
Adjusted cash conversion rate
1.0
0.9–1.1
Investments in property, plant and equipment
€3,392 million
Significantly above the prior-year level
Research and development expenditure
€8,744 million
At the prior-year level
Mercedes-Benz Vans
Unit sales
405,610 vehicles
Slightly below the prior-year level
Share of electrified vehicles (xEV)
4.8%
8–10%
Adjusted return on sales
14.6%
10–12%
Adjusted cash conversion rate
1.0
0.5–0.7
Investments in property, plant and equipment
€571 million
Significantly above the prior-year level
Research and development expenditure
€1,012 million
Significantly above the prior-year level
Mercedes-Benz Mobility
Adjusted return on equity
8.7%
8–9%
Risk and Opportunity Report
The Mercedes-Benz Group is exposed to a large
number of risks that are directly linked with the busi-
ness activities of Mercedes-Benz Group AG and its
subsidiaries or that result from external influences. The
Group understands a risk as the danger that events,
developments or actions will prevent the Group or one
of its segments from achieving its targets. The risks
include both monetary and non-monetary risks.
At the same time, it is important to identify opportu-
nities in order to safeguard and enhance the competi-
tiveness of the Mercedes-Benz Group. The Group
defines an opportunity as the possibility, due to events,
developments or actions, of safeguarding or surpassing
the planned targets of the Group or of a segment.
In order to identify business risks and opportunities at
an early stage and to assess and manage them actively,
a functional risk and opportunity management system
is a central element of corporate Governance for the
Mercedes-Benz Group. Risks and opportunities are not
offset.
Risk and opportunity
management system and
internal control system
Overview of the control and
monitoring system
The Mercedes-Benz Group as a whole pursues the
three-line model of the Institute of Internal Auditors
(IAA) to ensure an integrated control and monitoring
system.
The operating units in the form of the individual
segments, Group functions, organizational units and
Group companies form the first line. Their task is to
ensure the implementation of external and internal
guidelines, and they are responsible for the implemen-
tation of controls, operational risk management and
risk management processes in their respective units.
In the second line, the risk management system, the
accounting-related internal control system, the Com-
pliance Management System, Group Security and
Global Cyber & Information Security act as governance
functions.
They define the corresponding minimum requirements
and standards for methods, processes and systems
for use in the first line and set the framework for co-
operation. Their tasks also include regular reporting to
the Board of Management and the Supervisory Board.
They also support the first line in the corresponding
implementation.
In the third line, Corporate Audit monitors the appro-
priateness and effectiveness of the implemented
processes and the governance functions of the first
and second lines through independent and risk-
oriented audits. It monitors whether the statutory
conditions and the Group’s internal policies concerning
the control and risk management system of the Group
are adhered to and the associated processes are
appropriately designed. If required, measures are ini-
tiated and implemented in cooperation with the
respective management and the appropriateness and
effectiveness are monitored.
The Group Risk Management Committee (GRMC) is
responsible for ensuring the continuous improvement
of the risk management system and the internal control
system (including the Compliance Management System)
and their appropriateness and effectiveness with regard
to the Group’s risk situation and the scope of the
business activities. It is chaired by the members of the
Board of Management of Mercedes-Benz Group AG
responsible for Finance & Controlling/ Mercedes-Benz
Mobility and Integrity, Governance & Sustainability. In
addition, the GRMC was composed as of 31 December
2024 of representatives from Mercedes-Benz Group
Finance, the Legal Affairs department, the Compliance
unit, Corporate Security, Global Cyber & Information
Security and the member responsible for finance of the
Board of Management at Mercedes-Benz Mobility AG.
The Corporate Audit department contributes material
findings on the internal control and risk management
system.
The Board of Management, Audit Committee and
Supervisory Board of Mercedes-Benz Group AG are
informed regularly and as needed about potential
significant control weaknesses, the appropriateness
and effectiveness of the implemented controls
and the risk situation. The Audit Committee and the
Supervisory Board of Mercedes-Benz Group AG
are responsible for monitoring the internal control
and risk management system, including its appro-
priateness and effectiveness.
Supervisory Board/Audit Committee
Board of Management
Group Risk Management Committee (GRMC)
1st line:
Operational units
2nd line:
Governance functions
Segments,
HQ functions,
organizational units
and entities
Risk Management System
Internal Control System (ICS)*
Compliance Management System
Corporate Security
Global Cyber & Information Security
Ensuring compliance with external
and internal requirements by
performance of controls
Definition of requirements
and support of the 1st line
during implementation
* Internal control system with regard to the accounting process (ICS).
Annual Audit
3rd line:
Independent audit
Corporate Audit
Performance of
independent audits
External auditors audit the system for the early
identification of risks, which is integrated in the risk
management system, for its general suitability to
identify, assess, manage and monitor risks threatening
the existence of the Group. In addition, in the context
of the audit of the consolidated financial statements,
they report to the Audit Committee and the Super-
visory Board of Mercedes-Benz Group AG on any
significant weaknesses that have been recognized in
the accounting-related internal control and risk
management system.
Risk and opportunity management
system
The risk management system is intended to system-
atically and continually identify, assess, control,
monitor and report on risks threatening the Mercedes-
Benz Group’s existence and other material risks
jeopardizing the Group’s success, in order to support
the achievement of corporate targets and to enhance
risk awareness at the Group.
The opportunity management system at the
Mercedes-Benz Group is based on the risk management
system. The objective of opportunity management is to
recognize the possible opportunities arising in business
activities resulting from positive developments at an
early stage, and to use them in the best possible way
for the Group by taking appropriate measures. By
taking advantage of opportunities, planned targets
should be met or exceeded.
The risk and opportunity management system is based
on the internationally recognized COSO-Enterprise-
Risk-Management-framework. It is integrated into the
value-based management and planning system of the
Mercedes-Benz Group and is a fixed component of the
overall planning, management and reporting process
in the companies, segments and corporate functions.
The responsibility for operational risk management and
for the risk management processes is borne by the first
line and thus by the segments, corporate functions,
organizational units and companies. They report on the
specific risks and opportunities to the next-higher level
unit on a regular basis. Significant unexpected risks
must be reported immediately. Risks and opportunities
are managed within the Group by means of measures
taken by the units responsible. The profitability of a
measure is assessed before its implementation.
The possible impact and probability of occurrence of
all risks and opportunities and the related measures
that have been initiated are continually monitored. This
information is passed on to Group Risk Management
for reporting to the Board of Management, the Audit
Committee and the Supervisory Board.
As part of the planning process, risks and opportunities
are recorded within an observation horizon of generally
five years. Matters that have already been fully taken
into account in planning or for which a provision has
been recognized are not considered in connection with
the risk management process. In addition, strategic
risks and opportunities are also taken into account in
the risk management process.
The Risk and Opportunity Report relates to risks and
opportunities that could have a significant influence
on the profitability, liquidity and capital resources, and
financial position of the Mercedes-Benz Group in the
year 2025. The assessment of individual risks and oppor-
tunities takes place on the basis of their probability of
occurrence and possible impact on the Mercedes-Benz
Group. Multiplying the probability of occurrence by the
possible impact results in the expected value, which
forms the basis for the classification in risk and oppor-
tunity categories. In principle, the quantification of
risks and opportunities in this report is carried out by
summarizing the expected values of the individual risks
and opportunities in categories. The assessment of the
level of risks and opportunities takes into account both
planned and already effective risk-reducing measures
(net view) and is considered in relation to EBIT, unless
otherwise indicated.
Risk and opportunity management is based on the prin-
ciple of completeness. This means that all identified
risks and opportunities are incorporated into the risk
management process via the operating units of the seg-
ments as well as the corporate departments. The scope
of consolidation for risk and opportunity management
generally corresponds to the scope of the Consolidated
Financial Statements.
In order to assess the Group’s risk-bearing capacity
for the 2025 financial year, the potential effects of
the risks on earnings are analysed using a Monte Carlo
simulation (confidence level: 99%). The risks are
compared with the reported equity of the Mercedes-
Benz Group as a risk cover.
In identifying sustainability-related risks and
opportunities, Mercedes-Benz Group AG is guided by
the topics identified by the materiality assessment
in the chapter Sustainability Statement in the section
Identification of material impacts, risks and
opportunities and thus includes the strategic focus
areas of sustainability. Sustainability-related risks
and opportunities are understood to be conditions,
events or developments related to the sustainability
dimensions of environment, social and governance,
the occurrence of which may have a potential impact
on the Mercedes-Benz Group’s profitability, liquidity
and capital resources, and financial position, as well as
on its reputation.
Climate-related risks and opportunities in connec-
tion with the recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD) are also
identified and assessed as part of the risk management
process. Further information can be found in the
chapter Sustainability Statement in the section Special
considerations for identification of material climate-
related impacts, risks and opportunities.
Internal control system
The Mercedes-Benz Group’s internal control system
encompasses, in addition to the accounting-related
internal control system, controls for further business
processes. There are also internal controls for Group-
wide processes of Corporate Security, Global Cyber &
Information Security, and the Group-wide Compliance
Management System. Sustainability-related aspects
are part of the internal control system (e.g. within the
Compliance Management System).
Moreover, an independent and risk-oriented review
of the structure and processes of the internal control
system is carried out by Corporate Audit within the
framework of various process audits.
The security risk management of Corporate Security is
integrated into the internal control system of the
Mercedes-Benz Group. The aim is to identify and
evaluate security-relevant risks at the company’s global
locations on the basis of a risk-oriented view and to
control them by means of mitigating measures. To
this end, Corporate Security implemented internal
controls for various security-related issues. These
include the areas of property security, fire protection
and crisis management and serve to protect the lives
and physical integrity of people and to protect
company assets, business processes and company
knowledge.
The Global Cyber & Information Security division
operates an Information Security Management
System (ISMS) with the aim of adequately protecting
important information and critical IT services. The ISMS
is based on internationally recognized standards and
is continuously developed further. Operationally, the
ISMS is supported by proactive and reactive measures.
Proactive operational measures include, in particular,
training and concepts to inform and raise awareness
among employees and functionaries, a comprehensive
set of information security rules and technical and
organizational measures to secure critical IT infrastruc-
tures, IT systems and applications. One focus of the
reactive operational measures is the Cyber Intelligence
& Response Center, which is staffed around the clock
to defend against cyberattacks and deal with cyber-
security incidents.
The Compliance Management System, which has an
interface to the risk management system, is aligned
with the risk situation of the Mercedes-Benz Group and
aims to promote rule-compliant behaviour within the
company. The Compliance Management System makes
a significant contribution to the integration of com-
pliance into our operating business units and their
processes. Further information on the Compliance
Management System of the Mercedes-Benz Group can
be found in the chapter Sustainability Statement.
1 The information on the appropriateness and effectiveness of the internal control and risk management system that is not part of the Management Report is information that is not the subject of the audit.
The internal control system with regard to the
accounting process has the objective of ensuring the
appropriateness and effectiveness of accounting and
financial reporting. It is designed in line with the inter-
nationally recognized framework for internal control
systems of the Committee of Sponsoring Organizations
of the Treadway Commission (COSO Internal Control –
Integrated Framework), is continually developed
further, and is an integral part of the accounting and
financial reporting processes in the segments, cor-
porate functions, organizational units and companies.
The system includes principles and procedures as well
as preventive and detective controls.
The appropriateness and effectiveness of the internal
control system with regard to the accounting process is
systematically evaluated. It begins with a risk analysis
and a control definition with the aim of identifying
significant risks for the accounting and financial report-
ing processes in the main legal entities and corporate
functions. The necessary controls are then defined and
documented in accordance with Group-wide guide-
lines. In order to assess the effectiveness of the
controls, tests are carried out regularly on the basis of
random samples. These form the basis for a self-
assessment of whether the controls are appropriately
designed and effective. The results of this self-
assessment are documented and reported in a Group-
wide IT system. Identified control weaknesses are
eliminated, taking into account their potential impact.
The selected legal entities and corporate functions
confirm the effectiveness of the internal control system
with regard to the accounting process at the end of
the annual cycle. The Board of Management and the
Audit Committee of the Supervisory Board are regularly
informed about significant control weaknesses and the
effectiveness of the control mechanisms.
Appropriateness and effectiveness
of the internal control
and risk management system 1
Continuous monitoring of the processes and systems
of the internal control and the risk management system
is in effect to resolve identified weaknesses in the
financial year and ensure continuous improvement of
the processes and systems. As a result of the complex
process landscape and the high rate of change of the
legal requirements, the maturity of the internal control
system with regard to the sustainability-relevant
aspects in particular is not yet on the level of the
accounting-related internal control system. As of the
reporting date, taking into account the scope of the
business operations and the risk situation of the com-
pany, in all material respects there are no indications
of an overall inappropriateness or ineffectiveness
of the internal control and risk management system.
The effectiveness of any risk management and control
system is subject to inherent limitations. No system –
even if it has been assessed as appropriate and
effective – can guarantee that all risks that actually
occur will be detected in advance or that all process
violations will be excluded under all circumstances.
Risks and opportunities
The following section describes risks and opportunities
that could have a significant influence on the profit-
ability, liquidity and capital resources, and financial
position of the Mercedes-Benz Group in the year 2025.
In general, the reporting of risks and opportunities not
covered in the Outlook takes place in relation to the
individual segments Mercedes-Benz Cars, Mercedes-
Benz Vans and Mercedes-Benz Mobility. If no segment
is explicitly mentioned, the risks and opportunities
described relate to all the segments. Based on the
expected value, the reported risks and opportunities
per category are aggregated into the levels “low”,
“medium” and “high” for the Mercedes-Benz Group.
Additional information on risks and opportunities
related to sustainability is provided in the Sustainability
Statement.
Quantification of the risks and opportunities based on the
expected value for each category
Level
Expected value
Low
< €500 million
Medium
≥ €500 million to €1 billion
High
≥ €1 billion
The following table shows the specific classification of
the aggregated risks and opportunities in the respec-
tive categories based on the above-mentioned interval
limits. In addition to the risks and opportunities
described below, risks and opportunities that are not
yet known or classified as not material can also
influence profitability, liquidity and capital resources,
and financial position in the future.
Risks and opportunities Mercedes-Benz Group
Classification of he expected
value for the year 2025
Classification of the expected
value for the year 2024
Category
Risk
Opportunity
Risk
Opportunity
Industry and business risks and opportunities
General market risks and opportunities
High
Medium
High
High
Risks and opportunities relating to the legal and political framework
High
Low
High
Low
Procurement market risks and opportunities
High
Low
High
Low
Company-specific risks and opportunities
Risks and opportunities from research and development
Medium
Low
Medium
Low
Production risks and opportunities
Low
Low
Low
Low
Risks and opportunities from purchasing and logistics
High
Low
High
Low
Information technology risks and opportunities
Medium
Low
Medium
Low
Personnel risks and opportunities
Low
Low
Low
Low
Risks and opportunities related to equity investments and cooperations with
partnerships
Medium
Low
Medium
Low
Financial risks and opportunities
Exchange-rate risks and opportunities
Low
Low
Low
Low
Interest-rate risks and opportunities
Low
Low
Low
Low
Credit risks
Low
–
Low
–
Country risks
Medium
–
Medium
–
Risks and opportunities from access to capital markets1
Low
Low
Low
–
Risks and opportunities from changes in credit ratings
Low
Low
Low
Low
Risks and opportunities relating to pension plans
Medium
Medium
Medium
Medium
Legal and tax risks and opportunities
Legal risks
High
–
High
–
Tax risks and opportunities
Low
Low
Medium
Low
1 Name of the category changed as of 31 December 2024. Previous name: Risks of restricted access to capital markets.
Industry and business risks
and opportunities
General market risks and opportunities
The risks and opportunities for the economic develop-
ment of automotive markets are strongly affected
by the cyclical situation of the global economy. The
assessment of market risks and opportunities is linked
to forecasts about the overall economic conditions
and the development of the automotive markets
in which the Mercedes-Benz Group is active. These
assumptions are described in detail in the chapter
Outlook. The possibility of markets developing better
or worse than in the internal forecasts and assump-
tions, or of changing market conditions, generally
exists for all segments of the Group.
Possible declines in vehicle sales may be caused in
particular by a worse-than-expected macroeconomic
environment for the Mercedes-Benz Group and in
the context of geopolitical, trade policy or economic
uncertainties. In addition to weaker economic growth
overall, factors such as high energy prices, high
inflation and interest rates, and volatile exchange rates
may lead to market uncertainty or a loss of purchasing
power and have a negative impact on demand in the
automotive sector. In addition, the structure of the
planned sales programme could develop less favour-
ably than assumed in the forecast.
The market success of alternative drive systems is
greatly influenced not only by customer acceptance
but also by regional market conditions such as the
battery-charging infrastructure, state support and tax
conditions. A lower-than-expected market acceptance
of electric vehicles can lead to risks in the develop-
ment of unit sales and have a negative impact on
earnings. This could also endanger the achievement of
specific CO2 targets. Industrial policy measures to
strengthen local value creation in various countries, as
well as government purchase incentives for locally
produced electric vehicles, can result in competitive
disadvantages and declining vehicle sales in the
respective markets. The development of markets, unit
sales and inventories are continually analysed and
monitored by the automotive segments; if necessary,
specific marketing and sales programmes are
implemented.
Volatilities with regard to market developments can
also lead to the overall market or regional conditions
for the automotive industry developing better than
assumed in the internal forecasts and premises, thus
resulting in business opportunities in the market.
Opportunities may also arise from an improvement
in the competitive situation or a more positive devel-
opment of demand. The utilization of opportunities
is supported by sales and marketing campaigns.
Compared to the prior year, the opportunities have
decreased from “high” to “medium” due to the
challenging market environment.
The launch of new products by competitors, more
aggressive pricing policies and less effective pricing for
products can lead to increasing competitive and price
pressure in the segments and have a negative impact
on profitability. According to the situation, product-
specific and possibly regionally different measures are
taken. Depending on the region and the current market
situation, these include continuous market monitoring
and, if necessary, pricing strategies or sales promotion
measures.
In connection with the sale of vehicles, the Mercedes-
Benz Group offers customers a wide range of financing
and leasing options. The resulting risks for the
Mercedes-Benz Mobility segment are mainly due to
borrowers’ worsening creditworthiness, so receivables
might not be recoverable in whole or in part because of
customers’ inability to fulfill their contractual payment
obligations (default or credit risk). The Mercedes-Benz
Mobility counteracts credit risks by means of credit-
worthiness checks on the basis of standardized scoring
and rating methods, the collateralization of receivables,
and effective risk management with a firm focus on
monitoring both internal and macroeconomic leading
indicators.
One of Mercedes-Benz Mobility’s objectives is to
minimize risks from maturity mismatches from both an
interest and liquidity perspective. This is achieved by
matching refinancing to the terms of the financing
agreements. Actively managed financing strategies are
used to optimize refinancing costs. Opportunities
and risks are determined in particular by interest rate
developments and their influence on the interest
margin.
In connection with leasing agreements, risks and
opportunities also arise due to the development of the
used vehicle markets. These result when the market
value of a leased vehicle at the end of the agreement
term differs from the residual value that was originally
calculated and forecast on the basis of specific
assumptions at the time the agreement was concluded
and used as a basis for the leasing instalments.
Residual-value management processes have been
defined to counteract these risks relating to vehicles’
residual values. Depending on the region and the
current market situation, the measures taken generally
include continuous market monitoring as well as, if
required, price-setting strategies or sales promotion
measures designed to regulate vehicle inventories. The
quality of market forecasts is verified by comparisons
of internal and external sources, and, if required, the
determination of residual values is adjusted and further
developed with regard to methods, processes and
systems.
Risks and opportunities relating to the legal
and political framework
Risks and opportunities from the legal and political
framework have a considerable influence on the
Mercedes-Benz Group’s future business success.
Regulations concerning vehicles’ emissions, fuel
consumption, safety and certification, as well as tariff
aspects and taxes in connection with the sale or
purchase of vehicles or vehicle parts, play an important
role. Geopolitical and trade tensions can also have a
significant impact on the business activities of an
international company such as the Mercedes-Benz
Group.
The Mercedes-Benz Group constantly monitors the
development of the legal and political framework and
attempts to anticipate foreseeable requirements and
long-term objectives at an early stage in the product
development process. In particular, changes in the
legal and political framework at short notice can be
associated with additional costs or higher investments.
Legal limits on the fuel consumption and/or CO2
emissions of car fleets exist in many markets, although
the target values differ from market to market. Non-
compliance with regulations applicable in the various
markets might result in significant penalties and
reputational harm, and might even mean that vehicles
with conventional drive systems in particular could not
or could no longer be registered in the relevant
markets. The Mercedes-Benz Group counteracts this
risk through the transformation towards electric
mobility and the associated realignment of its product
portfolio as well as the use of balancing mechanisms
(pooling, credits). In addition, these targets are taken
into account in production and sales planning.
Political tensions and the associated danger of
geopolitical conflicts continue to be high and are
associated with far-reaching risks for the business
development of the Mercedes-Benz Group. Ongoing
tensions between the United States and China, a
possible deterioration in relations between the EU and
China and the future development of relations between
the EU and the United States, the possible further
intensification of the conflict in the Middle East and
further development of the war between Russia and
Ukraine, the flare-up of further regional conflicts and
an escalation in the entire South China Sea could lead
to renewed problems in supply chains, even higher
energy prices, further pressure on inflation rates,
additional sanctions and a further deterioration in the
growth outlook.
Individual countries may attempt to defend and
improve their competitiveness in the world’s markets
by increasingly resorting to interventionist and
protectionist measures. In particular, a spiral of tariff
increases could pose a risk to the competitiveness
of the Mercedes-Benz Group. Furthermore, existing
incentives for alternative drive systems may expire
and have a negative impact on the earnings of the
Mercedes-Benz Group. In order to avoid or reduce
these risks, higher localization shares may be
necessary in certain countries.
Procurement market risks and opportunities
Risks and opportunities relating to procurement arise
for the automotive segments in particular from
fluctuations in prices of commodities, raw materials
and energy.
For 2025, there are still risks from inflation-related
increases in raw material and energy prices, which
could lead to higher procurement costs. Furthermore,
intense competition for specific raw materials in
the course of the introduction of new technologies can
lead to increasing costs or possible shortages in
the supply chain. Raw-material markets can always
be impacted by uncertainties and political crises –
combined with possible supply bottlenecks – as well
as by volatile demand for specific raw materials.
Rising raw-material prices may have a negative impact
on the profitability of the vehicles sold and thus lead
to lower earnings in the respective segment. In order
to counteract possible loss of revenue, the Mercedes-
Benz Group continuously monitors the development
of raw-material and energy prices and is in close touch
with suppliers. In addition to active cost management,
technical measures are being developed in close
cooperation with suppliers in order to continuously
optimize product costs.
Company-specific risks
and opportunities
Risks and opportunities from research and
development
Technical developments and innovations are of key
importance for the safe and sustainable mobility of the
future. The transformation towards electric mobility
and the comprehensive digitalization of vehicles has
resulted in ambitious development targets and the
market launch of new technologies. In addition to the
resulting opportunities, decisions in favour of certain
technologies and the continuously growing scope of
emission, consumption and safety requirements, e.g.
data-security, to be met are associated with risks.
There are risks that vehicles cannot be developed
within the planned time frame, in the appropriate
quality or at the targeted profitability. This is particu-
larly the case with regard to electric mobility and
increasing digitalization as well as software in the
vehicle architecture. This could delay the planned
market launch of new vehicle models or facelifts.
There is also a risk that certain digital functions could
be launched on the market later than planned.
The Mercedes-Benz Group counters these risks by
continuously and systematically monitoring the
product development process for all vehicle projects.
In 2020, Mercedes-Benz Group AG and Mercedes-Benz
USA, LLC (MBUSA) reached agreements with various US
authorities to settle civil and environmental claims
regarding emission control systems of certain diesel
vehicles, which have taken legal effect. If the obliga-
tions from the settlements are not complied with, there
will be the risk that cost-intensive measures will have
to be taken and/or significant stipulated penalties will
become due.
Production risks and opportunities
Due to the increasing technical complexity and the
goal of maintaining and constantly enhancing quality
standards for the vehicles of the Mercedes-Benz
Group, both risks and opportunities can arise in the
automotive segments in connection with the launch
and manufacture of products. With regard to pro-
duction capacity utilization, there may be risks due
to disruptions in the supply of parts or technical
interruptions in the production. The consequences of
underutilized production facilities in the automotive
segments can lead to inefficient use of resources and
higher unit costs. Furthermore, damage to the plant
infrastructure caused by extreme weather events or
natural disasters can lead to disruptions in production.
To reduce related risks, associated processes are
continually evaluated and improved.
Warranty and goodwill cases could arise if the quality
of the products or the parts installed in the products
does not meet requirements despite appropriate
quality assurance processes, if regulations are not fully
complied with, or if support cannot be provided in the
required form in the event of problems and product
maintenance. The Mercedes-Benz Group recognizes
provisions for warranty and goodwill cases.
Nevertheless, it cannot be ruled out that recalls and
field measures will lead to additional expenses.
Possible claims in connection with such risks are
examined and, if necessary, the appropriate service
measures are initiated for the affected products.
Risks and opportunities from purchasing
and logistics
Possible interruptions in global supply chains,
especially those caused by bottlenecks for electronic
components and other important intermediate goods,
can cause bottlenecks at Mercedes-Benz Cars and
Mercedes-Benz Vans. Lack of availability and quality
problems with certain vehicle parts can lead to
production downtimes and cause additional costs that
result in negative effects on profitability. Mercedes-
Benz Cars and Mercedes-Benz Vans analyse these risks
on an ongoing basis. Supplier management is under-
taken for the prevention of risks with the aim of
ensuring the quantity and quality of the components
required to produce the vehicles. In addition, in the
aforementioned situations, the Mercedes-Benz Group
examines whether claims can be asserted against
suppliers.
The risk that suppliers increasingly run into financial
difficulties has continued to rise. The reasons for this
are the tense economic environment and uncertainties
in connection with high commodity, raw-material and
energy prices, as well as the lack of availability of
supplier parts. As a result, production stoppages are
possible along the entire supply chain and could
prevent vehicles from being completed and delivered
to customers on time. Supplier risk management aims
to identify potential financial bottlenecks at suppliers
at an early stage and to initiate suitable countermeas-
ures in order to avoid supply disruptions.
Due to the transformation to electric mobility and
the outsourcing of important components, there is also
a risk that these will not be available on time in the
planned quantity and required quality; this could delay
the start of production of new series. Risks may also
arise from uncertainties in the planned quantities. This
could have negative effects on profitability.
Possible human rights violations in increasingly
complex supply chains pose a risk for the Mercedes-
Benz Group. Certain national laws prohibit the import
of goods that are linked to forced labour, for example.
Countries with corresponding laws could impose
import restrictions or sanctions on companies that are
linked to human rights violations within their supply
chain. Possible import bans could lead to supply
bottlenecks, higher costs and production delays. To
counteract this risk, the Mercedes-Benz Group is
continuously working to create the greatest possible
transparency to protect human rights in the upstream
value chain and to implement appropriate preventive
measures. The Mercedes-Benz Group has developed a
risk-based approach to ensuring human rights due
diligence, the Human Rights Respect System (HRRS).
Further information can be found in the chapter Sus-
tainability Statement in the section Management IRO’s.
The risk that input factors such as certain raw
materials, components or technologies can no longer
be imported into a country due to geopolitical
tensions represents an increasing threat to the
Mercedes-Benz Group. Such risks are particularly pro-
nounced when global supply chains for these input
factors depend on a few key producers. If geopolitical
conflicts, sanctions or trade wars destabilize inter-
national trade relations, this can lead to significant
supply bottlenecks, higher costs and production delays
for the Mercedes-Benz Group.
1 This section provides information related to the risk of possible cyberattacks resulting from the increasing digitalization and networking of vehicles that meet disclosure requirements in connection with European Sustainability Reporting Standards (ESRS) (see the chapter
Consumers and end-users in the Social information of the Sustainability Statement).
Natural disasters can also have a significant impact on
the increasingly complex supply chains by disrupting
the delivery of raw materials or intermediate products.
The supplier risk management of the Mercedes-Benz
Group actively manages this risk through a flexible
supply network in order to mitigate supply interrup-
tions as far as possible.
Information technology risks and opportunities 1
The systematically pursued digitalization strategy
enables the Mercedes-Benz Group to utilize new
opportunities to increase customer utility and the value
of the company. Nonetheless, the high degree of
penetration of all business units by information tech-
nology (IT) also harbours risks for our business and
production processes and the units’ products and
services. Extensive changes in the existing system
landscape, for example the focus on strategic partner-
ships for the transformation of the IT infrastructure,
can also lead to risks.
The ever-growing threat from cybercrime and the
spread of aggressive malicious code brings risks that
can affect the availability, integrity and confidentiality
of information and IT-supported operating resources.
Despite extensive precautions, in the worst-case
scenario this can lead to a temporary interruption of
IT-supported business processes with severe negative
effects on the Group’s earnings. In addition, the loss
or the misuse of sensitive data may lead to a loss of
reputation. In particular, stricter regulatory
requirements such as the EU General Data Protection
Regulation and related legislation may, among other
things, give rise to claims by third parties and result in
costly regulatory requirements and penalties with an
impact on earnings.
Due to the growing requirements concerning the
confidentiality, integrity and availability of data, the
Mercedes-Benz Group has implemented various
preventive and corrective measures so that the related
risks are minimized. For example, the Group reduces
potential disruptions to operational processes in
computer centres by mirroring data, decentralizing data
storage, maintaining off-site data backups and con-
figuring IT systems for high availability. Emergency
plans are continuously updated and employees are
trained and regularly made aware. The internal IT
security framework is based on international standards.
New regulatory requirements for cybersecurity and
cybersecurity management systems are taken into
account when further developing internal processes
and specifications. Specific threats are analysed and
countermeasures are coordinated at a globally active
Cyber Intelligence & Response Centre. The protection
of products and services against the danger of hacking
and cybercrime is continually further developed.
Due to the increasing digitalization and networking of
vehicles, there is also a risk that possible vulnerabilities
in the vehicle software or in the back end could be
exploited. This can subsequently lead to damage or
changes to vehicle functionalities and data. To counter-
act this risk, the Mercedes-Benz Group permanently
monitors the threat landscape, identifies possible vulner-
abilities and provides over-the-air security updates.
Personnel risks and opportunities
Competition for highly qualified staff in selected job
profiles and management is still very intense in the
industry and the regions in which the Mercedes-Benz
Group operates. The Group’s future success also
depends on the extent to which it succeeds in recruit-
ing, integrating and retaining specialist employees
over the long term. The established human resources
instruments take such personnel risks into consider-
ation. One focus of human resources management is
the targeted personnel development and further
training of the workforce. Among other things, em-
ployees benefit from a wide range of training
opportunities and the transparency created within
the framework of performance management. In order
to remain successful as a company, the way we
work together and our leadership culture undergo
continuous development.
Besides the demographic development, the digital
transformation also requires that the company
continues to adapt to changes. With regard to technical
developments, the Mercedes-Benz Group is taking
measures such as securing a qualified next generation
of specialists and managers. This requirement is
addressed through various measures, including
targeted qualification. The Mercedes-Benz Group
counters economic, market and competitive
fluctuations by means of established time and
flexibility instruments in order to react appropriately to
the situation.
Risks and opportunities related to equity
investments and cooperations with partnerships
Cooperation with partners in shareholdings and
partnerships is of key importance to the Mercedes-
Benz Group – among other things, in the transformation
towards electric mobility, the associated charging
infrastructure and comprehensive digitalization.
Cooperation and investments also make up an
important pillar in connection with the provision of
mobility solutions. Especially with new technologies,
these shareholdings and partnerships help us utilize
synergies and improve cost structures in order to
respond successfully to the competitive situation in the
automotive industry.
The Mercedes-Benz Group generally participates in
the risks and opportunities of shareholdings in line with
its equity interest, and is also subject to share-price
risks and opportunities if such companies are listed on
a stock exchange.
The remeasurement of a holding can lead to risks and
opportunities for the segment to which it is allocated.
Furthermore, ongoing business activities, especially the
integration of employees, technologies and products,
can result in risks. In addition, further financial
obligations or an additional financing requirement can
arise. The shareholdings are subject to a monitoring
process so that, if required, decisions can be promptly
made on whether or not measures can be taken to
support or ensure profitability. The recoverable value
of investments in shareholdings is also regularly
monitored.
Financial risks and opportunities
Exchange-rate risks and opportunities
The Mercedes-Benz Group’s global orientation means
that its business operations and financial transactions
are connected with risks and opportunities related to
fluctuations in currency exchange rates. This applies in
particular to fluctuations of the euro against the US
dollar, Chinese renminbi, British pound and other
currencies such as those of growth markets. An
exchange-rate risk or opportunity arises in business
operations primarily when revenue is generated in a
currency different from that of the related costs
(transaction risk). Regularly updated currency risk
exposures are successively hedged with suitable
financial instruments (predominantly currency
forwards) in accordance with exchange-rate
expectations, which are continually reviewed, whereby
both risks and opportunities are limited. Any over-
collateralization caused by changes in exposure is
reversed by suitable measures without delay.
Exchange-rate risks and opportunities also exist in
connection with the translation into euros of the net
assets, revenues and expenses of the companies of the
Group outside the Eurozone (currency translation risk);
these risks are not hedged.
Interest-rate risks and opportunities
Changes in interest rates can create risks and
opportunities for business operations as well as for
financial transactions. The Mercedes-Benz Group
employs a variety of interest rate-sensitive financial
instruments to manage the cash requirements of
its business operations on a day-to-day basis. Most of
these financial instruments are held in connection
with the financial services business of Mercedes-Benz
Mobility. Interest-rate risks and opportunities arise
when fixed-interest periods are not congruent between
the asset and liability sides of the balance sheet. By
means of refinancing coordinated with the terms of the
financing agreements, the risk of maturity mismatch is
minimized from both an interest-rate and a liquidity
perspective. Remaining interest-rate risks are managed
with the use of derivative financial instruments. The
funding activities of the industrial business and
the financial services business are coordinated at the
Group level. Derivative interest-rate instruments
such as interest-rate swaps are used to achieve the
desired interest-rate maturities and asset/liability
structures (asset and liability management).
Credit risks
Credit risk describes the risk of financial loss resulting
from a counterparty failing to meet its contractual
payment obligations. Credit risk encompasses both the
direct risk of default and the risk of a deterioration of
creditworthiness as well as concentration risks.
The Group is exposed to credit risks which result
primarily from its financial services activities and from
the operations of its vehicle business. The risks from
leasing and sales financing are dealt with in the General
market risks and opportunities section.
Credit risks also arise from the Group’s liquid assets.
Should defaults occur, this would adversely affect the
Group’s profitability, liquidity and capital resources,
and financial position. The limit methodology for liquid
funds deposited with financial institutions has been
continuously further developed in recent years. In
connection with investment decisions, priority is placed
on the borrower’s very high creditworthiness and on
balanced risk diversification. Most liquid assets are held
in investments with an external rating of A or better.
Country risks
Country risk describes the risk of financial loss
resulting from changes in political, economic, legal or
social conditions in the respective country, for example
due to sovereign measures such as expropriation or a
ban on currency transfers. The Mercedes-Benz Group is
exposed to country risks that primarily result from
cross-border financing or collateralization for subsidi-
aries or customers, from investments in subsidiaries
and shareholdings, and from cross-border trade
receivables. Country risks also arise from cross-border
cash deposits at financial institutions. The Group
addresses these risks by setting country limits
(e.g. for hard-currency portfolios of Mercedes-Benz
Mobility companies). The Mercedes-Benz Group also
has an internal rating system that divides all countries
in which it operates into risk categories.
Risks and opportunities from access
to capital markets
Liquidity risks arise when a company is unable to fully
meet its financial obligations. In the normal course
of business, the Mercedes-Benz Group uses bonds,
commercial paper and securitized transactions, as well
as bank loans in various currencies, primarily with
the aim of refinancing its leasing and sales-financing
business. An increase in the cost of refinancing would
have a negative impact on the competitiveness and
profitability of the financial services business to the
extent that the higher refinancing costs cannot be
passed on to customers; a limitation of the financial
services business would also have negative con-
sequences for the vehicle business. Access to capital
markets in individual countries may be limited by
government regulations or by a temporary lack
of absorption capacity. In addition, pending legal
proceedings as well as the Group’s own business policy
considerations and developments may temporarily
prevent the Group from covering any liquidity require-
ments by means of borrowing in the capital markets.
Contractually agreed credit lines are available as
refinancing instruments.
Risks and opportunities from changes
in credit ratings
Risks and opportunities exist in connection with
potential downgrades or upgrades to credit ratings by
the rating agencies, and thus to the Mercedes-Benz
Group’s creditworthiness. Downgrades could have a
negative impact on the Group’s financing if such a
downgrade leads to an increase in the costs for
external financing or restricts the Group’s ability to
obtain financing. A credit rating downgrade could also
discourage investors from investing in Mercedes-Benz
Group AG or from purchasing bonds issued by
Mercedes-Benz Group AG or another company of the
Group.
Risks and opportunities relating to pension plans
The companies of the Mercedes-Benz Group grant
defined-benefit pension commitments as part of
pension plans, which are largely covered by plan
assets, as well as healthcare commitments to a small
extent. The balance of pension obligations less plan
assets constitutes the carrying amount or funded
status of those employee benefit plans. The measure-
ment of pension obligations and the calculation of net
pension expense are based on certain assumptions.
Even small changes in those assumptions, in particular
a change in the discount rates or changed inflation
assumptions, have a negative or positive effect on
funded status and Group equity in the current year, and
lead to a change in the periodic net pension expense
in the following year. The fair value of plan assets
is determined to a large degree by developments in the
capital markets. Unfavourable or favourable
developments, especially relating to share prices and
fixed-interest securities, reduce or increase the carry-
ing value of plan assets. Risk management for the plan
assets takes place through broad diversification of
investments, the selection of various asset managers
on the basis of quantitative and qualitative analyses,
and the ongoing monitoring of returns and risks. The
structure of pension obligations is taken into con-
sideration during the determination of the investment
strategy for the plan assets in order to reduce
fluctuations of the funded status.
Legal and tax risks and opportunities
The Group continues to be exposed to legal and
tax risks. It recognizes provisions for such risks if and
to the extent it is probable that the Group will be
held liable and the amount of the obligations can be
reasonably estimated.
Legal risks
Regulatory risks
The automotive industry is subject to extensive
governmental regulations worldwide. Laws in various
jurisdictions govern, among other things, occupant
safety and the environmental impact of vehicles,
including emissions levels, fuel economy and noise, as
well as the emissions of the plants where vehicles
or parts thereof are produced. Furthermore, regulation,
particularly in the European Union, governs the
communication regarding sustainability topics (environ-
mental, social or governance topics), whereby the
complexity of such regulation is continuously increas-
ing. The introduction of certain new regulations may
be associated with uncertainties relating to their inter-
pretation. In the event that regulations applicable
in the different regions are not complied with, this
can result in significant penalties, damages claims,
reputational harm and/or the exclusion from tenders
or, in the case of regulations applicable to vehicles,
the inability to certify vehicles in the relevant markets.
The cost of compliance with these regulations is
considerable, and in this context, the Mercedes-Benz
Group continues to expect a significant level of costs.
1 This section provides information on risks associated with compliance with laws and regulations that meet disclosure requirements in connection with the European Sustainability Reporting Standards (ESRS)
(see the chapter Governance information in the Sustainability Statement).
Risks from legal proceedings in general
Mercedes-Benz Group AG and its subsidiaries are
confronted with various legal proceedings and claims
as well as governmental investigations and orders
(legal proceedings) on a large number of topics, includ-
ing vehicle safety, emissions, fuel economy, financial
services, dealer, supplier and other contractual
relationships, intellectual property rights (especially
patent infringement lawsuits), warranty claims,
environmental matters, antitrust matters (including
actions for damages) as well as investor litigation.
Product-related litigation involves, among other things,
claims alleging faults in vehicles. Some of these claims
are asserted by way of class actions. If the outcome of
such legal proceedings is detrimental to the Mercedes-
Benz Group or such proceedings are settled, the
Group may encounter substantial financial burdens,
e.g. from damages payments or service actions, recall
campaigns, monetary penalties or other costly actions.
Some of these proceedings and related settlements
may also have an impact on the company’s reputation
and/or lead to the exclusion from tenders.
Risks from legal proceedings in connection
with diesel exhaust gas emissions – governmental
proceedings 1
The activities of various authorities worldwide in
connection with diesel exhaust emissions of Mercedes-
Benz vehicles, which were already reported in the past,
are partly ongoing, as described below. These activities
particularly relate to test results, the emission control
systems used in Mercedes-Benz diesel vehicles and/or
the interactions of the Mercedes-Benz Group with
the relevant authorities as well as related legal issues
and implications, including, but not limited to, under
applicable environmental, consumer protection and
antitrust laws.
In the United States, Mercedes-Benz Group AG and
Mercedes-Benz USA, LLC (MBUSA) reached agreements
in 2020 with various authorities to settle civil environ-
mental claims regarding the emission control systems
of certain diesel vehicles. These agreements have
become final and effective. The failure to meet certain
of the agreements’ obligations may trigger stipulated
penalties.
As already reported, in 2016, the U.S. Department of
Justice (DOJ) requested that the Mercedes-Benz Group
conduct an internal investigation. The Mercedes-Benz
Group conducted such an internal investigation in
cooperation with the DOJ’s investigation. In March
2024, the DOJ informed the Mercedes-Benz Group that
based on the information available to it, it had closed
its investigation; thus, the DOJ will not bring any
criminal charges against the Mercedes-Benz Group. In
addition, further US state authorities have opened
investigations pursuant to both local environmental
and consumer protection laws and have requested
documents and information.
In Canada, the environmental regulator Environment
and Climate Change Canada (ECCC) is conducting an
investigation in connection with diesel exhaust
emissions based on the suspicion of potential
violations of, amongst others, the Canadian
Environmental Protection Act as well as potential
undisclosed Auxiliary Emission Control Devices and
defeat devices.
The Mercedes-Benz Group cooperates with the
investigating authorities.
In Germany, between 2018 and 2024, the Federal
Motor Transport Authority (KBA) issued subsequent
auxiliary provisions for the EC type approvals of certain
Mercedes-Benz diesel vehicles, and ordered mandatory
recalls, different technical remedial actions as well as,
in some cases, stops of the first registration. In each of
those cases, it held that certain calibrations of speci-
fied functionalities are to be qualified as impermissible
defeat devices. Mercedes-Benz has a contrary legal
opinion on this question and has filed timely objections
against the KBA’s administrative orders and deter-
minations mentioned above. Insofar as the KBA has
not remedied the objections, Mercedes-Benz has
filed lawsuits with the competent administrative court.
Irrespective of such objections and the lawsuits that
are now pending, the Mercedes-Benz Group continues
to cooperate fully with the KBA. The remedial actions
requested by the KBA were developed by the
Mercedes-Benz Group and assessed and approved by
the KBA. The necessary recalls were initiated. Insofar
as remedial actions relate to cooperation engines,
the Mercedes-Benz Group has commissioned the
development of the remedial actions. It cannot be
ruled out that under certain circumstances, software
updates may have to be reworked, or further delivery
and registration stops may be ordered or resolved
by the company as a precautionary measure, also with
regard to the used-car, leasing and financing busi-
nesses. In the course of its regular market supervision,
the KBA routinely conducts further reviews of
Mercedes-Benz vehicles and asks questions about
technical elements of the vehicles. In addition, the
Group continues to be in a dialogue with the respon-
sible authorities to conclude the analysis of the diesel-
related emissions matter and to further the update
of affected customer vehicles.
In addition to the aforementioned authorities,
authorities of various foreign states, particularly the
South Korean Ministry of Environment and the South
Korean competition authority (Korea Fair Trade
Commission) are conducting various investigations
and/or procedures in connection with diesel exhaust
emissions. In this context, these South Korean
authorities have made determinations and imposed
sanctions against Mercedes-Benz which Mercedes-
Benz has appealed. In the same context, national
antitrust authorities of various countries are also con-
ducting investigations, including the Brazilian anti-
trust authority, which opened an antitrust proceeding
against Mercedes-Benz and some other car manufac-
turers in July 2024.
The Mercedes-Benz Group continues to fully cooperate
with the authorities and institutions. However, regard-
ing the proceedings and processes still in progress,
the Mercedes-Benz Group cannot at this time make any
statement to their outcome. Irrespective of such
cooperation and in light of the past developments as
well as ongoing court proceedings it cannot be ruled
out that one or more authorities worldwide will take
further investigative and enforcement actions and
measures relating to the Mercedes-Benz Group and/or
its employees. Also, they could reach the conclusion
that other passenger cars and/or vans with the brand
name Mercedes-Benz or other brand names of the
Mercedes-Benz Group did not comply with certain
regulatory requirements and particularly were equipped
with impermissible defeat devices. Likewise, authorities
could take the view that certain functionalities and/or
calibrations were not proper and/or were not properly
disclosed. It cannot be ruled out that the Mercedes-
Benz Group will become subject to significant
additional fines and other sanctions, measures and
actions. Additionally, further delays in obtaining
regulatory approvals necessary to introduce new or
recertify existing vehicle models could occur. The
occurrence of the aforementioned events in whole or in
part could cause significant collateral damage including
reputational harm. Further, due to negative allegations
or findings with respect to technical or legal issues by
one of the various governmental agencies, other
agencies – or also plaintiffs – could also adopt such
allegations or findings. Thus, a negative allegation or
finding in one proceeding carries the risk of being able
to have an adverse effect on other proceedings, also
potentially leading to new or expanded investiga-
tions or proceedings, including lawsuits.
In addition, the ability of the Mercedes-Benz Group to
defend itself in proceedings could be impaired by con-
cluded proceedings and their underlying allegations as
well as by unfavourable results or developments in any
of the information requests, inquiries, investigations,
orders, legal actions and/or proceedings discussed
above.
Risks from legal proceedings in connection
with diesel exhaust gas emissions – civil court
proceedings
Consumer class actions were filed against Mercedes-
Benz Group AG in Israel in 2019 and, since 2020, in the
United Kingdom, the Netherlands, Portugal, and since
2022 in Australia against Mercedes-Benz Group AG and
further Group companies. The plaintiffs inter alia assert
that the Mercedes-Benz Group had used devices that
impermissibly impair the effectiveness of emission
control systems in reducing nitrogen oxide (NOX)
emissions and which cause excessive emissions from
vehicles with diesel engines. Furthermore, they claim
that the Mercedes-Benz Group deceived consumers in
connection with advertising statements for  Mercedes-
Benz diesel vehicles. The proceedings in England
and Wales consist of several individual lawsuits that
have been consolidated into a class action. A class
action lawsuit is also pending in Scotland. In these
proceedings, allegedly injured parties must actively
register for the enforcement of claims (opt-in). The
plaintiffs in the consumer class action in England and
Wales also allege, amongst others, anti-competitive
behaviour relating to technology for the treatment of
diesel exhaust emissions.
In Germany, a large number of customers of Mercedes-
Benz diesel vehicles have filed lawsuits for damages
or rescission of sales contracts based on similar
allegations. In particular, they refer to the KBA’s recall
orders mentioned above. Although the number of
pending lawsuits is declining, a future increase cannot
be ruled out. Various preliminary proceedings on legal
issues related to diesel exhaust emissions are pending
before the European Court of Justice. It cannot be
ruled out, that the outcome of such proceedings may
have a negative effect on, inter alia, the Mercedes-Benz
Group. Following a decision of the European Court of
Justice in the first quarter of 2023, the German Federal
Court of Justice ruled in the second quarter of 2023
that vehicle purchasers are entitled to claim damages
against the manufacturer if it intentionally or negli-
gently used an inadmissible defeat device. Based on
similar allegations, the Federation of German Consumer
Organizations (Verbraucherzentrale Bundesverband
e.V.) filed a model declaratory action (Musterfest-
stellungsklage) against Mercedes-Benz Group AG with
the Stuttgart Higher Regional Court in 2021. Such an
action seeks a ruling that certain preconditions of
alleged consumer claims are met. In March 2024, the
Stuttgart Higher Regional Court largely granted the
model declaratory action. Mercedes-Benz Group AG
and, in respect of the dismissed claims, also the
plaintiff have appealed against the decision to the
Federal Court of Justice.
Mercedes-Benz Group AG and the respective other
affected companies of the Group regard the pending
lawsuits set out above as being without merit and
continue to defend themselves against them.
In addition, investors from Germany and abroad have
filed lawsuits for damages with the Stuttgart Regional
Court alleging the violation of disclosure requirements
(main proceedings) and also raised out-of-court claims
for damages. Mercedes-Benz Group AG regards these
lawsuits and out-of-court claims as being without merit
and defends itself against them. In 2021, the Stuttgart
Higher Regional Court initiated model case proceedings
under the German Act on Model Case Proceedings in
Disputes under Capital Markets Law (KapMuG) (model
case proceedings). Multiple investors have used the
possibility to register claims in a considerable amount
with the model case proceedings in order to suspend
the period of limitation. Mercedes-Benz Group AG is of
the view to have duly fulfilled its disclosure obligations
under capital markets law and defends itself against
the investors’ allegations also in these model case
proceedings.
If court proceedings have an unfavourable outcome for
the Mercedes-Benz Group, the Group may encounter
substantial financial burdens, e.g. from damages pay-
ments, remedial works or other cost-intensive measures.
Court proceedings can also have an adverse effect on
the reputation of the Group.
Furthermore, the ability of the Mercedes-Benz Group
to defend itself in the court proceedings could be
impaired by the settlements of the diesel-related law-
suits in the United States and in Canada, as well as
by unfavourable allegations, findings, results or devel-
opments in any of the governmental or other court
proceedings discussed above.
Risks from other legal proceedings
In 2021, individual persons associated with Deutsche
Umwelthilfe e.V. (DUH) filed a lawsuit before the
Stuttgart Regional Court against Mercedes-Benz AG.
They claim injunctive relief, demanding that Mercedes-
Benz AG refrain from distributing passenger cars with
combustion engines after November 2030 and reduce
its respective sales prior to this point in time. The
dismissal of the claim in the first instance was
confirmed by the Higher Regional Court of Stuttgart in
2023, and the plaintiffs’ appeal was dismissed as
manifestly unfounded. The plaintiffs have lodged an
appeal to the German Federal Court of Justice against
the denial of leave to appeal. Mercedes-Benz AG will
continue to defend itself against the plaintiffs’
allegations.
As legal proceedings are fraught with a large degree
of uncertainty, it is possible that the provisions recog-
nized for them may prove to be insufficient in some
cases after their final procedural resolution. As a result,
substantial additional expenditures may arise. This
also applies to legal proceedings for which the Group
has seen no requirement to recognize a provision.
It cannot be ruled out that the regulatory risks and
risks from legal proceedings discussed above, individ-
ually or in the aggregate, may materially adversely
impact the profitability, liquidity and capital resources,
and financial position of the Group or any of its
segments.
Although the final result of any legal proceeding may
influence the Group’s earnings and cash flows in any
particular period, the Mercedes-Benz Group believes
that any resulting obligations are unlikely to have a
sustained effect on the Group’s financial position.
Further information on legal proceedings is provided in
Note 30 of the Notes to the Consolidated Financial
Statements.
Tax risks and opportunities
Mercedes-Benz Group AG and its subsidiaries operate
in many countries worldwide and are therefore subject
to numerous different statutory provisions and tax
audits. Tax risks and opportunities can affect the
profitability, liquidity and capital resources, and
financial position of the Group. Additionally, there are
minor tax risks to the operating result.
Any changes in legislation and jurisdiction, as well as
different interpretations of the law by the fiscal author-
ities, especially in the field of cross-border transactions,
may be subject to considerable uncertainty. It is
therefore possible that the provisions recognized will
not be sufficient, which could have negative effects on
the Group’s net profit and cash flows.
Positive effects on the Group’s net profit and cash
flows are also possible as a result of retroactive
legislation, future court rulings or changes in the
opinions of the tax authorities.
Any changes or interventions by the fiscal authorities
are continuously monitored by the tax department and
measures are taken if required. The monitoring,
management and avoidance of tax risks is supported
by a Tax Compliance Management System (Tax CMS).
In addition, if future taxable income is not earned or is
too low, there is a risk that the tax benefit from loss
carryforwards and tax-deductible temporary
differences may not be recognized or may no longer be
recognized in full; this could have a negative impact on
net profit. However, there is an accounting opportunity
that tax benefits currently not recognized in full may be
utilized or recognized in future years and could thus
also have a positive impact on the Group’s net profit.
Compared to the prior year, the risks have decreased
from “medium” to “low”, as some tax risks related to
the hive-down of the Mercedes-Benz Cars and
Mercedes-Benz Vans divisions and the Daimler Trucks
and Daimler Buses divisions into legally independent
units in 2019 have been partially eliminated.
Overall assessment of the
risk and opportunity situation
The overall view of the Group’s risk and opportunity
situation is the sum of the described individual risks
and opportunities in all risk and opportunity categories.
As part of the “Next Level Performance” (NLP)
programme, the Mercedes-Benz Group has set itself
ambitious targets to meet the diverse challenges in the
automotive industry. If the programme measures
adopted in the divisions do not take effect within the
planned time frame or to the full extent, this could
have negative impacts on the profitability, liquidity and
capital resources, and financial position. The effects
described can be reflected in all areas of the company.
In addition to the risks described, unforeseeable
events can have a negative impact on the business
activities and thus on the Mercedes-Benz Group’s
profitability, liquidity and capital resources, and
financial position and its reputation and non-financial
key figures as well as on society and the environment.
No risks were recognizable – neither on the reporting
date nor at the time of preparing the Consolidated
Financial Statements – that either alone or in
combination with other risks could endanger the
continued existence of the Group.
Sustainability Statement
General information
Basis of preparation of the
sustainability reporting
The Sustainability Statement includes the sustainability
reporting for the Mercedes-Benz Group and Mercedes-
Benz Group AG. For the Mercedes-Benz Group, it is
prepared on a consolidated basis and simultaneously
meets the requirements for the Sustainability State-
ment according to the Directive (EU) 2022/2464 of the
European Parliament and of the Council of December
14, 2022 (Corporate Sustainability Reporting Directive,
CSRD) and the European Sustainability Reporting
Standards (ESRS) as well as the requirements for the
non-financial reporting obligations according to
Sections 315b to 315c of the German Commercial Code
(HGB) (Non-Financial Group Declaration). For the
Mercedes-Benz Group AG, it is prepared in accordance
with the provisions of Sections 289b – 289e HGB for
the Non-Financial Declaration.
The information pursuant to Article 8 of Regulation
2020/852 (Taxonomy Regulation) for the Mercedes-
Benz Group is included in the chapter Environmental
information.
The ESRS, as well as the Taxonomy Regulation and the
delegated acts issued in connection with it, as well as
the respective supplementary interpretation documents
of the EU Commission, contain formulations and terms
that are subject to considerable uncertainty as to inter-
pretation. Due to the risk that vague legal terms can
be interpreted differently, the legal conformity of the
interpretation is subject to uncertainty.
The Mercedes-Benz Group’s Sustainability Statement
was prepared on the basis of the scope of consolida-
tion of the Mercedes-Benz Group’s Consolidated
Financial Statements. Further information can be found
in Note 4 of the Consolidated Financial Statements.
The Mercedes-Benz Group has not identified any appli-
cation of operational control within the meaning of
the ESRS beyond the Consolidated Group.
Based on the scope of the double materiality assess-
ment, further information on this can be found
under Identification of material impacts, risks and
opportunities in this chapter, the Mercedes-Benz
Group’s Sustainability Statement covers the entire
value chain. In the reporting, this is summarized in
three stages, analogous to the materiality assessment:
upstream value chain, own business activities and
downstream value chain of the Mercedes-Benz Group.
The value chain is described in the chapter Corporate
Profile under Overview. Reporting on policies, actions
and targets as well as metrics with regard to the up-
stream and downstream value chain is limited to relevant
available information, such as data available to the
Mercedes-Benz Group and publicly accessible informa-
tion. The Mercedes-Benz Group plans to continue to
integrate relevant available information on the upstream
and downstream value chain related to material
impacts, risks and opportunities into its reporting.
The Mercedes-Benz Group involves its stakeholders in
identifying the material sustainability-related impacts,
risks and opportunities of its business activities along
its value chain and takes their interests into account
when defining its strategic sustainability priorities.
Further information on this can be found in this chapter
Strategy under Interests and views of stakeholders.
The responsibilities of the Board of Management as the
executive management body of the Mercedes-Benz
Group, including with regard to strategies, policies and
actions as well as the provision of the corresponding
resources, are explained in the section Governance
under Tasks and responsibilities of the Board of Manage-
ment and Supervisory Board as well as sustainability
matters they address. Additions or more specific
classifications are presented at the relevant points in
the report.
The effectiveness of the Mercedes-Benz Group’s
actions and policies is tracked based on the reported
targets and the development of the relevant key figures
to achieve the goals. The corresponding key figures
are validated and verified using internally defined
processes. In addition, they are audited exclusively by
the externally appointed auditor. If no quantitative
targets are specified, the effectiveness is tracked using
internally defined indicators, processes and evalua-
tions. The Mercedes-Benz Group continuously reviews
the effectiveness of its actions in order to prevent
potential impacts on the environment and society and
to mitigate or minimize the actual negative impacts on
the environment and society. The actions presented
are basically already being implemented on an ongoing
basis. Actions that will be implemented at a specific
point in time or in the future are explained separately
in the text.
The Mercedes-Benz Group has set quantitative targets
where concrete and verifiable metrics can be deter-
mined. In principle, the 2024 reporting year represents
the basis for progress reports. If there are deviations in
company-specific information, these are shown
accordingly in the report. Company-specific targets are
oriented on the strategic direction of the Group.
Furthermore, exclusively the target to reduce CO2
emissions in production (Scope 1 and 2) is based on
scientific evidence.
Estimations of the upstream and downstream
value chain
Greenhouse Gas (GHG) Scope 3 emissions were partly
determined using indirect sources or sector average
data. The basis for the preparation and the resulting
degree of accuracy are indicated accordingly. Metrics
for disclosure requirement ESRS E1-6 can be found in
the chapter Climate change under Greenhouse gas
emissions.
Time horizons
Sustainability reporting is generally based on the time
horizons defined by law. Accordingly, the short-term
time horizon was set at one year, the medium-term at
two to five years and the long-term at more than five
years.
Deviations arise with regard to the climate scenario
analysis. This analysis is based on internal (e.g.
“Ambition 2039”) and international goals (e.g. the Paris
Agreement on climate change) as well as recognized
scenarios and evaluates the impacts of climate change
up to 2030 for medium-term adaptations and up to
2050 for long-term adaptations.
Disclosures stemming from other legislation
In addition to the sustainability reporting of the
Mercedes-Benz Group in accordance with the ESRS,
the requirement for the combined Non-Financial Group
Declaration in accordance with the provisions of
Sections 315b, 315c HGB in conjunction with Sections
289b – 289e HGB and for the Non-Financial Declaration
of Mercedes-Benz Group AG in accordance with the
provisions of Sections 289b – 289e HGB are met, so
that the Sustainability Statement as a whole represents
the combined Non-Financial Declaration for the
Mercedes-Benz Group and Mercedes-Benz Group AG.
The relevant content is presented in the chapter
Combined Non-Financial Declaration of the Mercedes-
Benz Group and Mercedes-Benz Group AG.
Covered disclosure requirements
The disclosure requirements according to ESRS
covered in this Sustainability Statement are shown in
the appendix List of disclosure requirements. Further-
more, information that is provided by reference outside
the Sustainability Statement is disclosed accordingly.
Statement on due diligence
Core elements of due
diligence
Paragraphs in the Sustainability Statement
Disclosure requirements
a) Embedding due diligence
in governance, strategy and
business model
General information > Governance > Roles and responsibilities of the Board of Management and the Supervisory Board and addressed sustainability
matters
ESRS 2, GOV-2
General information > Governance > Integration of sustainability-related performance in incentive schemes
ESRS 2, GOV-3
General information > Strategy > Material impacts, risks and opportunities (IROs)
Environmental information > Material impacts, risks and opportunities and their interaction with strategy and business model
Social information > Material impacts, risks and opportunities and their interaction with strategy and business model
Governance information > Material impacts, risks and opportunities and their interaction with strategy and business model
ESRS 2, SBM-3
b) Engaging with affected
stakeholders in all key due 
steps of the due diligence.
General information > Governance > Roles and responsibilities of the Board of Management and the Supervisory Board and addressed sustainability
matters
ESRS 2, GOV-2
General information > Strategy > Interests and views of stakeholders
ESRS 2, SBM-2
General information > Strategy > Identification of material impacts, risks and opportunities
ESRS 2, IRO-1
Environmental information > Policies
Social information > Policies
Social information > Stakeholder engagement (Own workforce, Workers in the value chain, Affected Communities, Consumers and end-users)
Social information > Remediation of negative impacts and channels to raise concerns (Own workforce, Workers in the value chain, Affected Communities,
Consumers and end-users)
Governance information > Corporate culture
ESRS 2, MDR-P; E1-2; E2-1; E3-1; E4-2;
E5-1; S1-1, S1-2, S1-3; S2-1, S2-2, S2-3;
S3-1, S3-2, S3-3; S4-1, S4-2, S4-3; G1-1
c) Identifying and assessing
adverse impacts
General information > Strategy > Identification of material impacts, risks and opportunities
ESRS 2, IRO-1
General information > Strategy > Material impacts, risks and opportunities (IROs)
Environmental information > Material impacts, risks and opportunities and their interaction with strategy and business model
Social information > Material impacts, risks and opportunities and their interaction with strategy and business model
Governance information > Material impacts, risks and opportunities and their interaction with strategy and business model
ESRS 2, SBM-3
d) Taking action to address
those adverse impacts
Environmental information > Actions
Environmental information > Climate Change > Transition plan for climate change mitigation
Environmental information > Biodiversity and ecosystems > Consideration of biodiversity and ecosystems in strategy and business model
Social information > Actions
Governance information > Corporate culture; Compliance with laws and regulations; Prevention and detection of corruption and bribery; Reporting of legal
and rule violations; Political influence and the representation of interests
ESRS 2, MDR-A; E1-1, E1-3; E2-2; E3-2;
E4-1, E4-3; E5-2; S1-4; S2-4; S3-4; S4-4;
G1-1, G1-3, G1-5
e) Tracking the effectiveness
of these efforts and
communication
Environmental information > Metrics
Social information > Metrics
Governance information > Prevention and detection of corruption and bribery; Political influence and the representation of interests
ESRS 2, MDR-M; E1-5, E1-6, E1-7, E1-8;
E2-4, E2-5; E3-4; E4-5; E5-4, E5-5; S1-6,
S1-7, S1-8, S1-9, S1-10, S1-14, S1-16, S1-17;
S2-4; S3-4; S4-4; G1-4, G1-5
Environmental information > Targets
Social information > Targets
ESRS 2, MDR-T; E1-4; E2-3; E3-3; E4-4;
E5-3; S1-5; S2-5; S3-5; S4-5
Governance
The role of the administrative,
management and supervisory bodies
The German Stock Corporation Act stipulates a dual
management system for Mercedes-Benz Group AG,
which provides for a strict separation of personnel and
functions between the Board of Management as the
management body and the Supervisory Board as
the supervisory body (two-tier board). The Board of
Management manages the company, while the Super-
visory Board monitors and advises the Board of
Management.
Composition of the Board of Management
and the Supervisory Board
The Board of Management of Mercedes-Benz Group AG
consists of eight members as of 31 December 2024.
The Supervisory Board consists of 20 members in
accordance with the German Co-determination Act.
Half of these are elected by the shareholders at the
Annual General Meeting and half by the employees
of the company’s German operations. The ten workers’
representatives (50%) are made up of seven em-
ployees of the company and three representatives of
trade unions. These trade unions are represented in
Mercedes-Benz Group AG itself or in another company
whose employees participate in the election of the
Supervisory Board members of Mercedes-Benz Group AG.
Independence of the Supervisory Board
According to the definition of independent board
member in Table 2 of Annex II to Delegated Regulation
(EU) 2023/2772 (ESRS), a Supervisory Board member is
considered independent if they do not have any inter-
est, position, association or relationship which, in the
view of a reasonable and informed third party, is likely
to unduly influence decision-making or to cause bias.
The concept of independence in the German Corporate
Governance Code (DCGK) is almost equivalent in terms
of content. It is based on the absence of a personal or
business relationship that could give rise to a signifi-
cant and not merely temporary conflict of interest.
Unlike the ESRS, DCGK only applies its recommenda-
tions on the independence of Supervisory Board
members to the shareholder representatives.
According to the independence review carried out by
the Supervisory Board of Mercedes-Benz Group AG,
100% of the shareholder representatives are inde-
pendent within the meaning of the German Corporate
Governance Code as well as the Corporate Sustain-
ability Reporting Directive (CSRD) and ESRS as of
31 December 2024. There are different opinions on
whether the status of workers’ representatives alone
precludes independence; a reliable opinion has not yet
been developed on the new legal situation under CSRD
and ESRS. Therefore, as a precautionary measure, the
workers’ representatives on the Supervisory Board are
not considered independent in this context. Under this
premise, 50% of all Supervisory Board members of
Mercedes-Benz Group AG are independent.
Diversity of the Board of Management
and the Supervisory Board
In the 2024 financial year, the eight-member Board
of Management of Mercedes-Benz Group AG was
composed of 37.5% women and 62.5% men. As of
31 December 2024, the Supervisory Board consists
of 40% women and 60% men.
The overall requirement profiles for the Board of
Management and the Supervisory Board approved by
the Supervisory Board of Mercedes-Benz Group AG
also include diversity aspects, e.g. in relation to age,
internationality, and educational and professional
background. Further information on the overall require-
ment profiles with diversity concepts and competency
profiles for the reporting period 2024 and on their
adjustment with effect from 1 January 2025 can be
found in the chapter Declaration on Corporate
Governance.
In fulfilment of the criteria of the overall requirements
profile for the Board of Management applicable for the
reporting period, as of 31 December 2024, 100% of
the eight-member Board of Management are of inter-
national origin or have international experience. 87.5%
were 62 years of age or younger at the start of their
current term of office and 50% were 57 years of age or
younger at that time. 37.5% of the Board of
Management members have a technical training or
professional background.
In fulfilment of the criteria of the overall requirement
profile for the Supervisory Board of the Mercedes-Benz
Group AG applicable for the reporting period, as of
31 December 2024, 100% were 72 years old or younger
at the time of their election or re-election for a full
term of office, and 80% were 62 years old or younger
at that time. In addition, a broad spectrum of educa-
tional and professional backgrounds is represented on
the Supervisory Board.
Experience of the Board of Management
and the Supervisory Board
All members of the Board of Management of Mercedes-
Benz Group AG demonstrate their familiarity with the
sector, products and geographical locations that are
relevant to the company through their individual skills
and experience from many years of work for the com-
pany, including at its international locations. China is
represented by a separate executive division managed
from China. Further information on the areas of
responsibility and CVs of the Board of Management
members are available on the website of Mercedes-
Benz Group AG at 🌐 www.group.mercedes-benz.com/
BoM
The members of the Supervisory Board of Mercedes-
Benz Group AG are all familiar with the sector in which
the company operates. By law, the Supervisory Board
includes at least two financial experts. In addition, the
Supervisory Board has defined a total of ten areas of
expertise that are particularly relevant to the company
in the requirements profile applicable in the reporting
period. These areas of expertise include the product-
relevant areas of digitalization/IT, industry and sales/
brand, and sustainability. Further information can be
found in the chapter Declaration on Corporate
Governance under Qualification matrix of the
Supervisory Board members.
The international experience of the shareholder
representatives on the Supervisory Board of Mercedes-
Benz Group AG during the reporting period extends to
the regions particularly relevant to the company:
Germany, Europe, America, Asia-Pacific (especially
China).
In a specially designed onboarding programme, new
members of the Supervisory Board have the
opportunity to meet members of the Board of
Management and senior executives responsible for
specific subjects for a bilateral exchange and to gain an
overview of the company’s products, among other
things. The product strategy and its implementation,
the further development of the product portfolio and
individual large product projects are recurring topics in
the ongoing work of the Supervisory Board.
The CVs of the Supervisory Board members are
available as further information on the website of
Mercedes-Benz Group AG at 🌐 www.group.mercedes-
benz.com/supervisory-board.
Expertise to oversee sustainability matters
The Board of Management and the Supervisory Board
of Mercedes-Benz Group AG determine the
sustainability-related expertise of their members by
taking into account the experience gained in the
respective mandate, by looking at CVs and by self-
disclosures. Knowledge and/or experience in the area
of sustainability are also taken into account in the
overall requirements profile for the Supervisory Board.
This requirement – like the other criteria in the require-
ments profile – should be taken into account in the
Supervisory Board’s nominations for the election of
shareholder representatives by the Annual General
Meeting.
The Group Sustainability Committee (GSC) and the
Sustainability Competence Office (SCO) are available to
the Board of Management of Mercedes-Benz Group AG
as internal experts.
Furthermore, the Board of Management and the
Supervisory Board have the option to consult external
experts from the sustainability dimensions of
environment, social and governance.
In addition, sustainability-related topics are an integral
part of the training and continuing education measures
that the Supervisory Board members undertake inde-
pendently with the support of the company.
Web-based training courses are also available for
members of the Board of Management – as for all other
managers.
The Advisory Board for Integrity and Sustainability also
provides impetus for the Group’s sustainability work.
Its members are independent experts from the fields of
environmental and social policy, transport and mobility
development, and human rights and ethics. The
Advisory Board supports the Mercedes-Benz Group in a
constructive and critical manner on issues of integrity,
sustainability and corporate responsibility. It meets
several times a year under the leadership of the Board
of Management member responsible for Integrity,
Governance & Sustainability. In addition, bilateral
discussions and an annual exchange with the members
of the Supervisory Board and the Board of Manage-
ment take place several times a year.
The Board of Management and the Supervisory Board
draw on internal and, where appropriate, external
expertise on sustainability to address strategically
relevant sustainability issues and the associated
impacts, risks and opportunities.
Tasks and responsibilities of the Board of
Management and the Supervisory Board
and the sustainability matters they address
The management task of the Board of Management
of Mercedes-Benz Group AG includes setting up appro-
priate and effective internal control, risk, compliance
management and internal audit systems in view of the
scope of the company’s business activities and the
company’s risk situation. These and comparable
independent systems or frameworks are subject to
ongoing monitoring in order to eliminate identified
weaknesses and to continuously improve the pro-
cesses and systems. The systems and processes also
address issues related to sustainability, among other
things.
For the 2024 financial year, the Mercedes-Benz Group
conducted out a methodologically redesigned materi-
ality assessment in accordance with the requirements
of the CSRD and ESRS in order to identify material
sustainability-related impacts, risks and opportunities.
These can be found in the chapter General information
under Material impacts, risks and opportunities. The
newly identified material sustainability-related short
and medium term risks and opportunities were
transferred to the risk management system after the
assessment was completed. In addition, the Mercedes-
Benz Group is reviewing the further development of the
processes and systems with regard to the holistic
consideration of the sustainability-related impacts,
risks and opportunities.
The Supervisory Board of Mercedes-Benz Group AG
has anchored the cross-departmental control and
coordination function for sustainability management
within the Board of Management in the Integrity,
Governance & Sustainability division. Responsibility for
managing department-specific sustainability issues
remains with the respective Board of Management
areas. Taking into account the Supervisory Board’s
specifications on the structure of the executive
divisions (business unit and/or functional business
unit), the Board of Management determines the
distribution of business within the Board of Manage-
ment. Without prejudice to the overall responsibility
of the Board of Management, each Board member
manages their executive division under their own
responsibility within this framework. This also includes
identifying, addressing and tracking the main sustain-
ability-related impacts, risks and opportunities in the
respective department. In addition, the available
resources should be allocated and the corresponding
financial means for sustainability matters should be
channeled within the framework of Mercedes-Benz
Business Planning. Certain projects with potentially
fundamental or material importance, including from a
strategic sustainability perspective, require the
approval of the entire Board of Management.
The Supervisory Board’s monitoring and advice of the
Board of Management also includes sustainability
issues. The Board of Management regularly informs the
Supervisory Board about the implementation of the
sustainable business strategy.
The Audit Committee of the Supervisory Board dis-
cusses the effectiveness and functionality of the inter-
nal control and risk management system, the internal
audit system and the Compliance Management System
with the Board of Management at least once a year.
The Group Sustainability Committee (GSC) meets
quarterly under the leadership of the member of the
Board of Management of Mercedes-Benz Group AG
responsible for Integrity, Governance & Sustainability
in her role as Sustainability Coordinator. The GSC
manages sustainability issues in line with the targets,
metrics and actions decided by the Board of Manage-
ment across departments, divisions and regions.
Members include the member of the Board of Manage-
ment appointed as Chief Technology Officer and also
for Development and Procurement, the Chief Com-
pliance Officer, who also holds the role of the Group’s
Human Rights Officer, the Chief Environmental and
Energy Officer, the Head of External Affairs and
representatives of relevant functional areas and all
divisions.
The members of the GSC are responsible for the
implementation of sustainability topics in their respec-
tive divisions or specialist areas.
The GSC informs the Board of Management and the
Supervisory Board of Mercedes-Benz Group AG at least
twice a year on current sustainability topics of strategic
relevance. This includes significant impacts, risks and
opportunities as well as the development of the sus-
tainable business strategy and associated metrics.
In the Sustainability Coordination Meeting (SCM), the
Sustainability Competence Office (SCO) – a department
consisting of sustainability experts within the division
Integrity, Governance & Sustainability – enters into
dialogue with representatives from all relevant board
departments and specialist areas. The SCM meets
several times a quarter under the leadership of the
SCO. The SCO, in turn, advises and supports the
specialist areas in the further development of the
sustainable business strategy, the implementation of
regulatory requirements on sustainability, the inte-
gration of relevant ESG criteria in the Group’s govern-
ance and core processes, as well as sustainability-
related requirements from the Board of Management
or GSC.
The Group Risk Management Committee (GRMC) is
responsible for the continuous remediation and
assessment of the appropriateness and effectiveness
of the risk management system and the internal control
system (including the Compliance Management
System) measured against the scope of the Group’s
business activities and risk situation. It is led by the
members of the Board of Management of Mercedes-
Benz Group AG responsible for Finance & Controlling/
Mercedes-Benz Mobility and Integrity, Governance &
Sustainability. In addition to these, as of 31 December
2024, the GRMC includes representatives from
Mercedes-Benz Group Finance, the Legal Department,
the Compliance Department, Group Security, Global
Cyber & Information Security, and the member of the
Board of Management of Mercedes-Benz Mobility AG
responsible for Finance. Corporate Audit contributes
key findings on the internal control and risk
management system.
The GRMC informs the Board of Management about
material risks and opportunities as well as actions
that arise for Mercedes-Benz Group AG from the risk
management process. This also includes the material
risks and opportunities related to sustainability. The
Supervisory Board is informed about the Group’s risk
situation at least quarterly. In addition, the Supervisory
Board examines at least once a year the key sustain-
ability-related risks and opportunities for the Group
identified in the materiality assessment, as well as the
ecological and social impacts of the Group’s activities.
During the reporting year, the GSC, the Board of
Management and the Supervisory Board were informed
about all sustainability-related material impacts, risks
and opportunities. The list of material sustainability-
related impacts, risks and opportunities can be found
in the chapter General information under Material
impacts, risks and opportunities.
Detailed information on the material impacts, risks and
opportunities and their management will continue to
be provided, among other things, as part of the annual
sustainability reporting process.
Integration of sustainability-related performance
in incentive schemes
Sustainability matters are of great importance to the
Mercedes-Benz Group and are a central component of
the sustainable business strategy. Against this back-
ground, the Supervisory Board has also implemented a
performance criterion in the Board of Management’s
remuneration in the form of the sustainability targets.
In addition to financial targets, the variable remunera-
tion of the Board of Management and the executives
of the other management levels one to three and parts
of level four includes short-term transformation targets
for CO2 emissions (related to the use phase of the
products), safety innovations and stakeholder engage-
ment. It also includes long-term sustainability targets
for the proportionate unit sales of plug-in hybrids
(PHEV) and all-electric vehicles (BEV), the review of
high-risk production materials and diversity and
inclusion. Furthermore, the variable remuneration
includes non-financial targets relating to customers,
employees and integrity.
The Mercedes-Benz Group describes its remuneration
system taking sustainability aspects into account,
including climate-related considerations in the
remuneration of the Board of Management, in the
remuneration report. The information is available at the
following link 🌐 group.mercedes-benz.com/board-of-
management/remuneration under Principles of Board
of Management remuneration and Remuneration
components of the Board of Management in financial
year 2024. Here you will find a description of the
remuneration system and the sustainability-related
performance criteria that provide incentives at Board
of Management and executive level for the sustainable
management of the Mercedes-Benz Group.
Responsibility for determining
the remuneration system
The Supervisory Board of Mercedes-Benz Group AG
decides on a remuneration system for the members of
the Board of Management. The Supervisory Board
must present this remuneration system in the Annual
General Meeting in case of material changes, but at
least every four years. The remuneration of the
individual members of the Board of Management is
determined by the Supervisory Board in accordance
with the remuneration system approved in the Annual
General Meeting.
The remuneration of executives is determined by the
Board of Management. However, the Supervisory Board
ensures that the remuneration system of the Board of
Management and the executives set the same
incentives.
Internal controls and
risks of sustainability reporting
The Mercedes-Benz Group’s Corporate Audit
department supports compliance with relevant laws
and regulations, internal guidelines and regulations by
reviewing internal controls and processes.
To reduce the risk of misrepresentation of information
in sustainability reporting, the Mercedes-Benz Group
has implemented actions, including
– process descriptions, procedural instructions and
training for employees responsible for data
collection and reporting,
– internal audits and reviews as well as
– regulatory requirements on how estimates are to be
collected.
The main risks with regard to sustainability reporting
include
– non-compliance with regulatory sustainability
standards and regulations,
– misinformation or omissions in reporting,
– incorrect data collection and processing as well as
– inaccuracies and inconsistencies in reporting of 
estimated values in reporting.
These risks have been identified in accordance with
the process for identifying significant risks and oppor-
tunities. Further information can be found in the
chapter General information under Identification of
material impacts, risks and opportunities. To counter-
act this, the Mercedes-Benz Group checks the
information presented in its sustainability reporting
using a multi-stage process, from data collection at
company level to qualitative information on objectives
and actions, and finally approval by those responsible
for the functions. This process is intended to help the
Mercedes-Benz Group determine and report its
sustainability performance in accordance with
regulatory requirements.
In addition, sustainability reporting goes through the
same regulatory process as financial reporting, which
includes approvals from top management committees
up to the Supervisory Board.
Furthermore, the Sustainability Statement will be made
available to employee representatives via the General
and Group Works Council for review and comment
before publication.
Identification of material impacts,
risks and opportunities
The Mercedes-Benz Group carried out a materiality
assessment for the 2024 financial year in accordance
with the requirements of the CSRD and ESRS. In this
way, the Group determined the material impacts of its
business activities on the environment and society
along the entire value chain as well as material
sustainability-related risks and opportunities for the
Mercedes-Benz Group. The sustainability-related
impacts, risks and opportunities, as well as their
materiality, were recorded and assessed with the
involvement of all relevant departments and divisions,
as well as important external stakeholders. The
Sustainability Competence Office (SCO) managed this
process. The materiality assessment is updated
annually and methodically further developed in the
coming years in line with regulatory requirements. The
assessment covers the Mercedes-Benz Group,
including its three divisions Mercedes-Benz Cars,
Mercedes-Benz Vans and Mercedes-Benz Mobility.
Definition of the assessment framework
The basis of the assessment is a list of ESRS topics,
which has been supplemented by company-specific
topics. In addition to available primary data such as the
greenhouse gas balance or internal data on procure-
ment countries, a large number of secondary data was
used to create this ESG topic list and to determine and
assess the associated impacts, risks and opportunities.
These include scientific studies, NGO reports, reports
from ESG rating agencies and media reports. The
identification of company-specific topics is based on a
desk analysis that took into account the results of the
Mercedes-Benz Group’s previous materiality assess-
ment as well as established frameworks such as the
Sustainability Accounting Standards Board (SASB), the
GRI standards and the UN Sustainable Development
Goals (UN SDGs), ESG ratings, regulatory developments
and industry trends. For the assessment of environ-
mental impacts, risks and opportunities own business
activities and sites were considered as well as it’s own
assets in addition to the risk assessment.
The Mercedes-Benz Group based its materiality
assessment on its entire value chain. This took into
account both direct business relationships and indirect
suppliers as well as other relevant players in the value
chain. Particular attention was paid to those regions
and processes in the value chain which, according to
the findings of the Mercedes-Benz Group’s existing due
diligence processes, are particularly risky. Local
conditions were also included in the assessment by
localizing the impacts, risks and opportunities wherever
possible. The value chain of the Mercedes-Benz Group
is described in the chapter Corporate Profile under
value chain. For the materiality assessment, the value
chain was broken down as follows: upstream value
chain, own business activities and downstream value
chain.
Upstream value chain
The upstream value chain includes the procurement of
production materials (including high-risk materials),
non-production materials and services. The Mercedes-
Benz Group took into account, among other things,
the results of the previous raw material analysis. This
evaluates critical raw materials using indices in a
standardized procedure. The indices used include a
country risk assessment based on the Global Risk
Map of the Responsible Minerals Initiative as well as
additional factors such as direct procurement or
small-scale mining.
Own business activities
The own business activities include all internal pro-
cesses and employees of the Mercedes-Benz Group,
from product development and production to
marketing and the sale of vehicles and services. Since
the Mercedes-Benz Group operates globally, the
assessment prioritized the regions in which the most
employees are employed. Information from the
Compliance Management System (CMS) was also used.
The materiality assessment is based on the consoli-
dated Group, which corresponds to the scope of the
sustainability reporting. Information on the materiality
assessment can be found in the chapter General
information under Basis for preparation of the
sustainability reporting. This scope also applies to the
topics of corporate policy and corporate culture.
Downstream value chain
The downstream value chain includes the use of
Mercedes-Benz vehicles by customers. When the
vehicles have reached the end of their life, their
components can be remanufactured, recycled or
ultimately disposed of. Since it is up to the customers
to decide where they have their vehicles serviced
and where they resell their vehicles, the assessment
focused in particular on industry-specific impacts
and risks related to maintenance, recycling and dis-
posal processes.
When assessing the impacts, operating leases are
equated with the sale of vehicles and are thus assigned
to the downstream value chain.
Process to identify material impacts
Based on the value chain and the ESG topic list defined
in the first step, the Sustainability Competence Office
(SCO) developed an inventory of negative and positive
impacts of the Mercedes-Benz Group’s business
activities on the environment and society. For this
purpose, data available in the Group, secondary data
obtained through research and the expert knowledge
of the specialist departments were taken into account.
Experts from the relevant specialist departments of the
Mercedes-Benz Group then qualitatively assessed the
identified sustainability-related impacts. They assessed
the impacts either for a short-term (one year), medium-
term (two to five years) or long-term (over five years)
time horizon. To do this, they used a three-level scale
(low/medium/high) to assess the severity and like-
lihood of occurrence. The severity for negative impacts
is determined by evaluating the parameters of scale,
scope and irremediability specified by the ESRS, while
for positive impacts it is determined only by scale and
scope. The Group selected the materiality threshold so
that impacts rated as high with regard to severity are
always material and impacts rated as medium with a
high probability of occurrence are also considered
material. In addition, the Group identified company-
specific actions to reduce risks and impacts.
Internal and external experts discussed the preliminary
results of the assessment of sustainability-related
impacts in topic-specific focus groups. Expert
interviews and an online survey also supplemented the
results. The participants in the stakeholder engagement
process were selected based on the relevant
stakeholders, the key topics, the various stages of the
value chain and the most important markets and
regions for the Mercedes-Benz Group. The specialist
departments reviewed the stakeholder statements and
took them into account in the final assessment of the
actual and potential negative and positive impacts on
the environment and society.
Process to identify material risks and opportunities
Sustainability-related risks and opportunities are
understood to be conditions, events or developments
related to the sustainability dimensions of environ-
ment, social and governance, the occurrence of which
may have a potential impact on the Mercedes-Benz
Group’s profitability, liquidity and capital resources and
financial position, as well as on its reputation.
The defined ESG topic list was also initially used to
determine the sustainability-related risks and
opportunities. The developed risk and opportunity
inventory was then drawn from various sources. Firstly,
the Mercedes-Benz Group took into account the
sustainability-related risks and opportunities already
recorded in the risk management system. Secondly,
it recorded risks and opportunities resulting from
the identified sustainability-related impacts of the
Mercedes-Benz Group along the value chain and in
connection with dependencies on ecological and social
resources. Other sources included a media analysis and
an environmental analysis of regulatory developments,
NGO positions, capital market expectations and
competitors. The inventory was further enriched with
the help of the expert knowledge of the specialist
departments. The identified sustainability-related risks
and opportunities were then assessed with the
participation of the specialist departments and
representatives of Group Risk Management. The same
time horizons were considered as for the impacts.
For the risks and opportunities already quantitatively
assessed in the risk management system, the Group
used the existing assessment, among other things in
relation to EBIT, and set a quantitative materiality
threshold. The Group assessed risks and opportunities
that cannot be quantified at this point in time, as well
as reputational risks and opportunities, qualitatively. To
do so, it used a three-stage scale (low/medium/high) to
assess the possible extent and likelihood of
occurrence. The Group selected the materiality
threshold in line with the impacts. Sustainability-
related risks and opportunities are generally handled
like all other risks and opportunities in the Group.
Stakeholder validation
The results of the materiality assessment were verified
with selected stakeholders. Information from dialogues
with focus groups, consisting of internal and external
stakeholders, e.g. from science, NGOs or civil society
and interviews with international experts from a wide
range of disciplines, further enriched the results. The
internal experts checked the impacts and the risk and
opportunity inventory for completeness based on the
information obtained on the framework conditions and
expectations of the stakeholders and, where necessary,
adjusted individual assessments of impacts, risks and
opportunities. The new short and medium term
material risks and opportunities related to sustain-
ability identified in the course of the materiality
assessment were transferred to the risk management
system after the assessment was completed. In
addition, the Mercedes-Benz Group is reviewing the
further development of the processes and systems
with regard to the overall view of the sustainability-
related impacts, risks and opportunities.
Special considerations for identification of material
impacts, risks and opportunities with regard to
environmental pollution, water consumption and
resource use
As part of the overarching materiality assessment, the
Mercedes-Benz Group considered the impacts on
environmental pollution, water consumption and
resource use along the value chain, taking into account
its activities and plans, and verified the results of the
materiality assessment with selected stakeholders.
Special considerations for identification of material
climate-related impacts, risks and opportunities
As part of the overarching materiality assessment,
the Mercedes-Benz Group has analysed the impacts on
climate change, taking into account its activities
and plans, and has considered its greenhouse gas
emissions along the value chain.
The Group has also carried out a climate-specific
scenario analysis with the aim of better understanding
and assessing the identified risks and opportunities
along the value chain. The analysis process is explained
below.
The analysis was based on the risk and opportunity
dimensions defined by the Task Force on Climate-
related Financial Disclosures (TCFD) and differentiated
between transitory and physical climate risks.
Transitory climate risks are related to the transition to
a low-carbon economy and result from changing
political conditions, technological developments and
changing markets. Physical risks arise from climatic
changes.
The fundamental climate-related assumptions
regarding the transition to electric vehicles and the
associated uncertainties are also considered in the
Consolidated Financial Statements. A reconciliation
of the material climate risks with the results of the
scenario analysis is carried out.
Climate-related transition risks
Using climate scenarios, relevant transition events for
the Mercedes-Benz Group were identified, validated
by assessments from internal experts, and aligned with
the Group’s strategic direction and supplemented
accordingly – including changes in demand and prices,
new technologies and market expectations as well as
political changes. In the climate scenario analysis,
the potential impacts of transition events on individual
business areas and activities were qualitatively
assessed to identify possible risks and evaluate the
necessary adjustments to align with the transition to a
climate-neutral economy. The analysis covers the key
stages of the value chain: supply chain, development
and production as well as sales of passenger cars and
light commercial vehicles.
For the analysis, which was updated in the reporting
year, the climate scenarios Net Zero Emissions by 2050
Scenario (NZE) and Stated Policies Scenario (STEPS)
of the International Energy Agency (IEA) were used,
among others, to map a range of possible transforma-
tion paths in a uniform, globally applicable and cross-
sectoral scenario framework.
The NZE scenario outlines a rigorous path for the
global energy sector to achieve net-zero CO₂ emissions
globally by 2050, taking into account technical,
economic and regulatory feasibility. It aims to limit the
global temperature increase by 2100 to 1.5°C relative
to pre-industrial levels with at least a 50% probability.
The STEPS scenario projects expected emission
reductions based on current political commitments and
announced actions by governments, resulting in
significantly higher warming.
The analysis evaluates the impacts of climate change
up to 2030 for short-term adaptations and for mid-
and long-term developments up to 2050. These time
horizons were chosen to capture the longer-term
nature of the transition events and developments
examined and to cover the observation periods of
important international goals, such as the Paris Climate
Agreement. The short- and medium-term time horizon
is based on the Group’s strategic planning.
Climate-related physical risks
To analyse the impacts of changing climatic conditions,
in addition to the SSP2-4.5 scenario from the Inter-
governmental Panel on Climate Change (IPCC), a
scenario with high emissions (SSP5-8.5 scenario),
which corresponds to a warming of approximately 4°C
by the year 2100, was particularly used. The assess-
ment included acute (e.g. floods) and chronic (e.g.
persistent changes in temperature and precipitation)
consequences of climate change. The considered time
periods of 2030, 2040, and the long-term trend
beyond are based, among other factors, on the lifespan
of assets. The analysis for the company’s own business
activities was carried out on the basis of location
coordinates. The focus was on the production sites, as
these are central to the assets and business activities
of the Mercedes-Benz Group in the context of climate-
related physical risks. In the next step, adaptation
1 Based on the financial relevance for the Mercedes-Benz Group.
measures at the locations were identified, which were
selected based on the analysis results. Additionally,
when evaluating suppliers regarding natural hazards,
the vulnerability to production disruptions due to
extreme weather events was considered. These
analysis results were incorporated into the supplier
selection processes, and, where necessary, measures
were taken.
The results of the scenario analysis are described in
the chapter Climate change under Material impacts,
risks and opportunities.
Special considerations for identification
of material biodiversity-related impacts,
risks and opportunities
In addition to the overarching materiality assessment
along the entire value chain, the Mercedes-Benz Group
analysed potential impacts and dependencies of its
own business activities and those of the most relevant
suppliers 1 in relation to biodiversity and ecosystems
based on the Exploring Natural Capital Opportunities,
Risks and Exposure (ENCORE) database. The depend-
encies on ecosystem services are rated on a scale from
1 (very low) to 5 (very high). For own business activities,
a threshold of 3 (medium) and higher was set, while
for the supply chain, a threshold of 4 (high) and higher
was applied. This enables a science-based assessment
of natural capital values and drivers of environmental
change in accordance with the Natural Capital Protocol
(Natural Capital Coalition, 2016) and the Intergovern-
mental Science-Policy Platform on Biodiversity and
Ecosystem Services (IPBES). To determine possible
dependencies of corporate activities on ecosystem
services, the Mercedes-Benz Group used, among other
things, the Common International Classification
of Ecosystem Services (CICES). For the classification
of company activities and purchased production
resources, the Global Industry Classification Standard
(GICS) is used.
The Group examined biodiversity-related risks
and opportunities during the overarching materiality
assessment. Transition risks, physical risks and
systemic risks were considered. In addition, the Group
used the analysis results from the ENCORE tool and a
pilot study on the life cycle analysis of the Mercedes-
Benz EQS450+ (energy consumption combined: 19.9 –
16.4 kWh/100 km | CO₂ emissions combined: 0 g/km |
CO₂ class: A) using the ReCiPe method. The Mercedes-
Benz Group carried out a scenario analysis as a basis
for assessing the biodiversity-related risks and
opportunities. The methodology of the scenario analysis
is based on the recommendations of the Taskforce
on Nature-related Financial Disclosures (TNFD). The
analysis relates to the Group’s internal planning
horizons and is based on the time horizons of inter-
national targets such as the Kunming-Montreal
Biodiversity Framework and the Paris Climate
Agreement.
The comprehensive investigation of the sites has
revealed that there are locations near biodiversity-
sensitive areas. This analysis also showed that none of
these sites have negative impacts on the surrounding
biodiversity-sensitive areas.
The Group counteracts the identified impacts
and risks and, where necessary, takes the necessary
remediation. This is described in the chapter
Biodiversity and ecosystems under Actions.
1 Net carbon-neutral means that carbon emissions that are not avoided or reduced at Mercedes-Benz are compensated for by certified offsetting projects.
Aggregation and Presentation
For those ESG topics (subtopics or sub-subtopics) for
which either at least one material impact or at least
one material risk or opportunity has been identified,
the Mercedes-Benz Group discloses the sustainability
information required by the ESRS.
The process and results of the materiality assessment
were presented to the Group Sustainability Committee
(GSC). In addition, the Board of Management and the
Supervisory Board of the Mercedes-Benz Group AG
were informed about the process and results of the
materiality assessment.
Strategy
Strategy, business model and value chain
The Mercedes-Benz Group acts on the basis of the
sustainable business strategy that the Board of
Management of the Mercedes-Benz Group has adopted
with the involvement of the Supervisory Board. In
doing so, the Mercedes-Benz Group takes into account,
among other things, relevant regulatory requirements,
the expectations of external and internal stakeholders
and global trends – along the entire value chain of its
business activities. Basic information on the business
strategy, the business model and the value chain can
be found in the chapter Corporate Profile under
Business model. Information on the employees of the
Mercedes-Benz Group can be found in the chapter
Own workforce under Characteristics of the employees
of the Mercedes-Benz Group.
In the reporting year, the Mercedes-Benz Group used a
comprehensive, multi-stage analysis process to revise
the strategic sustainability topics that the Group wants
to focus on. This analysis process took into account the
perspectives of all relevant stakeholder groups: cus-
tomers, investors, employees, business partners, NGOs
and society as a whole. With the six sustainability focus
areas, the Mercedes-Benz Group addresses topics
that are essential for the environment, society and the
company. The six identified focus areas are as follows:
Decarbonization
One of the most important strategic goals of the
Mercedes-Benz Group is “Ambition 2039”. By 2039, the
entire Mercedes-Benz new vehicle fleet is to be net
carbon-neutral 1 across all stages of the value chain and
the entire life cycle. The Mercedes-Benz Group sees
the electrification of its vehicles as the most important
lever. The pace of the transformation is determined
by market conditions, the infrastructure and consumer
behaviour.
Resource Use and Circularity
The Mercedes-Benz Group wants to decouple resource
consumption from the growth of its production output
and is focusing on optimising the use of resources and
creating a closed loop along the entire value chain
of its vehicles. The aim is to increase the proportion of
secondary materials and reduce the consumption of
energy, water and waste generated in operations at its
locations.
People
With the “Sustainable People Plan”, the Mercedes-Benz
Group wants to shape the upcoming changes as part of
the transformation in a responsible, socially acceptable
and future-oriented manner. As an attractive employer,
the Group focuses on the further development of its
employees, on flexible working conditions, a trusting
culture of cooperation as well as a safe working
environment.
Human Rights
Respect for human rights is of central importance to
the Mercedes-Benz Group. The Group is committed
to ensuring that human rights are respected along
the value chain, in its own Group companies, among
partners and suppliers. With the Human Rights Respect
System (HRRS), the Mercedes-Benz Group has
developed an approach to systematically address the
topic of human rights. Due to the complexity of the
supply chains and the large number of raw materials
and materials in the products, the Group takes a risk-
based and strategic approach to procurement.
Digital Trust
With the focus area of Digital Trust, the Mercedes-Benz
Group is meeting the complex challenges of digital
transformation. The Group’s ambition is to build and
expand trust in its digital products and services in
order to enable competitive digital business.
Traffic Safety
The Mercedes-Benz Group wants to pioneer accident-
free driving and is developing automated driving while
taking social and ethical aspects into account.
Responsible Business conduct forms the basis
For the Mercedes-Benz Group, a corporate culture
based on responsibility is an essential basis for
entrepreneurial activity and an integral part of its
sustainable business strategy. This includes, in
particular, integrity, compliance, partnerships and
interaction with stakeholder groups.
Interests and views of stakeholders
The Mercedes-Benz Group attaches great importance
to the exchange with its stakeholders. This exchange
enables the Mercedes-Benz Group to better under-
stand the concerns of its stakeholders. This enables
the Group to look at its sustainability commitment
from different perspectives, identify new trends and –
where appropriate – take information into account
strategically.
Stakeholders are people or groups who are affected
by the activities of the Mercedes-Benz Group, have
expectations of the Mercedes-Benz Group or are the
target group of this reporting. The primary stakeholders
of the Mercedes-Benz Group are therefore customers,
investors and employees, business partners and
society as a whole. Furthermore, the Mercedes-Benz
Group regularly exchanges information with civil
society groups such as NGOs. The Group also maintains
contact with associations, trade unions, the media,
analysts, municipalities, residents of the Group’s
locations and people from science and politics.
The Mercedes-Benz Group has defined clear
responsibilities and communication channels for
exchanging ideas with stakeholders across the Group
and has established specific dialogue formats. The
different formats are coordinated by the Integrity,
Governance & Sustainability division and other areas
such as External Affairs.
Among other things, the Mercedes-Benz Group
organizes annual Sustainability Dialogues, conducts
stakeholder surveys, specialist conferences and
thematic dialogues – for example in the form of
workshops or via the Advisory Board for Integrity and
Sustainability. It also monitors current public
discussions and informs itself about associated
expectations by participating in industry-specific and
cross-industry networks and initiatives. In addition, the
Mercedes-Benz Group evaluates studies and other
scientific publications and conducts its own media
analyses. In addition to the dialogue it initiates, this
helps the Group to recognize developments and
stakeholder expectations at an early stage.
The Mercedes-Benz Group involved its stakeholders in
determining the material impacts, risks and opportun-
ities and thus also took stakeholder interests into
account when refocusing the strategic focus topics of
sustainability. Information on this can be found in the
chapter General information under Strategy, business
model and value chain. The Mercedes-Benz Group
plans to take the changes that arise in the regular cycle
of the materiality assessment according to CSRD and
ESRS into account in future updates of its strategic
focus areas of sustainability. Basic information on the
materiality assessment is described in the chapter
General information under Identification of material
impacts, risks and opportunities.
Sustainability Dialogue
An important dialogue format is the Sustainability
Dialogue, which has been held annually in the Stuttgart
area (Germany) since 2008. The event enables stake-
holders from different areas to exchange ideas with
members of the Board of Management of Mercedes-
Benz Group AG and the extended management, who
participate in individual working groups of the Sustain-
ability Dialogue. The results of the discussions are then
reported to the Group Sustainability Committee (GSC).
In addition, the members of the Board of Management
and the Supervisory Board have a direct exchange with
the Advisory Board for Integrity and Sustainability to
consider possible strategic considerations. For this
purpose, those responsible for the respective focus
areas of sustainability take part in the meetings with
the Advisory Board for Integrity and Sustainability and
discuss the stakeholders’ input. The Mercedes-Benz
Group considers the findings from the Stakeholder
Dialogue to be valuable feedback.
In addition, the Sustainability Dialogue was held in
Dresden (Germany), New Delhi (India), Beijing (China)
and New York City (USA) during the reporting year.
Furthermore, the Sustainability Dialogues Employee
Day was held in Stuttgart (Germany), where interested
employees of the Mercedes-Benz Group were able to
obtain information and exchange ideas on sustain-
ability topics and current projects of the Group.
Following both dialogue events, various Sustainability
Dialogue Working Groups, in which the Board of
Management also regularly participates, discussed the
stakeholders’ recommendations and summarized the
most important findings. The Group published the
results on its website and included them in the 2025
dialogue events.
Advisory Board for Integrity and Sustainability
An important source of inspiration for the Group’s
sustainability work is the Advisory Board for Integrity
and Sustainability since 2012. Its members are
independent external experts from science, civil
society and business, including experts in the fields of
environmental and social policy, transport and mobility
development, as well as human rights and ethics. The
Advisory Board members provide the Mercedes-Benz
Group with constructive and critical advice on issues of
integrity, sustainability and corporate responsibility.
The Advisory Board meets several times a year under
the leadership of the Board of Management member
for Integrity, Governance & Sustainability. Furthermore,
additional bilateral discussions and an annual exchange
with the members of the Supervisory Board and the
Board of Management take place several times a year.
During the revision of the sustainable business strategy
in the year 2024, the Group obtained feedback from
the Advisory Board in several rounds and integrated
this into the process.
ESG conference
At the ESG Conference, which has been taking place
since 2022, the Mercedes-Benz Group presents
progress and plans regarding sustainability topics to its
investors and analysts from the capital market.
Sustainability initiatives and associations
The Mercedes-Benz Group is part of various
sustainability initiatives and networks. This enables it
to exchange ideas directly with people from politics,
business and non-governmental organizations that are
committed to sustainable development. This includes
in particular the UN Global Compact (UNGC), which the
Mercedes-Benz Group supported in April 2023 as a
founding member of the new association UN Global
Compact Network Germany e.V. The Mercedes-Benz
Group is also particularly involved in econsense –
Forum Nachhaltige Entwicklung der Deutschen Wirt-
schaft e.V. (Sustainable Development of German
Business) and the World Business Council for Sustain-
able Development. The voluntary commitments
that the Mercedes-Benz Group has made with these
endeavours also serve as guardrails for political
advocacy.
Representation of interests
With responsible political advocacy, the Mercedes-
Benz Group seeks dialogue with representatives of
governments, policy and authorities at its locations
worldwide. In addition, it engages with other interest
groups on topics such as transformation and de-
carbonization – including politically or socially engaged
groups, opinion leaders, experts, citizens, representa-
tives of the business world and NGOs. Together with
stakeholders, the Mercedes-Benz Group accompanies
the opinion-forming process at national and inter-
national levels in order to advance sustainable busi-
ness goals and the transformation of the automotive
industry. In addition, the Group discusses relevant
future issues such as biodiversity and the circular
economy with them, which go beyond the core auto-
motive topics, and incorporates the results into its
strategy where appropriate.
Employee survey
The Mercedes-Benz Group regularly conducts a Group-
wide employee survey. The results are made available
anonymously across the Group. The survey is an
important tool for obtaining a comprehensive picture of
the mood of employees regarding their employer.
The questionnaire includes questions on commitment
and working conditions, strategy, diversity, integrity
and sustainability. The last survey took place in 2023.
Detailed information on the employee survey can be
found in the chapter Own workforce under Employee
representation and engaging with own workforce.
Dialogue on human rights
The Mercedes-Benz Group attaches great importance
to further developing and implementing the Human
Rights Respect System (HRRS) together with external
stakeholders. It is particularly important for the Group
to exchange ideas with potentially affected stake-
holders and their representatives in order to identify
human rights risks and develop suitable actions. As
part of the annual Sustainability Dialogue, the Human
Rights Working Group discussed the effectiveness
review of the supply chain in the reporting year. The
aim of the Human Rights Working Group at the
Sustainability Dialogue is to incorporate feedback and
expertise from external stakeholders into the further
development of the Human Rights Respect System.
The Group also exchanges information with represen-
tatives of the General Works Council of Mercedes-Benz
Group AG and the World Employee Committee on the
results of the risk assessment for Group companies.
The Mercedes-Benz Group systematically involves
potentially affected stakeholders in the review of its 24
raw materials identified as critical in order to identify
human rights and environmental risks and implement
suitable actions. More information on this can be found
in the chapter Workers in the value chain under
Actions. Regional and local NGOs represent an impor-
tant interest group here, as they provide a more
accurate picture of the situation on the ground and are
aware of the concerns of those potentially affected. In
addition, trips to bauxite and aluminium mining areas,
including Brazil and Guinea, took place in the reporting
year. Through the on-site visits, the Mercedes-Benz
Group establishes contact with those potentially
affected or their representatives and involves them in
the design of actions. The Mercedes-Benz Group is also
committed to greater participation of those potentially
affected, for example the local population in audits by
standard systems or in the strategic sustainability
partnership with Norsk Hydro. Detailed information on
the partnership with Norsk Hydro can be found in the
chapter Biodiversity and ecosystems under Actions.
Material impacts,
risks and opportunities
For the reporting year, the Mercedes-Benz Group
conducted the materiality assessment in accordance
with the CSRD guidelines and the ESRS requirements
for the first time. Basic information on this is described
in the section Identification of material impacts, risks
and opportunities in this chapter.
In addition, the Mercedes-Benz Group refocused its
strategic sustainability priorities in 2024. More detailed
information on the focus areas can be found in the
section Strategy under Strategy, business model and
value chain in this chapter. In doing so, it examined
the resilience of the strategy and business model to
current and future challenges. This also included the
short, medium and long-term material impacts, risks
and opportunities identified according to CSRD and
ESRS. The Mercedes-Benz Group plans to take into
account the changes that arise in the regular cycle of
the materiality assessment according to CSRD and
ESRS in future updates to its strategic sustainability
focus areas.
The assessment of materiality has resulted in the
following material impacts, risks and opportunities for
the Mercedes-Benz Group.
Material impacts, risks and opportunities
Direction of effect
Climate change
Climate change consequences along the value chain
actual negative impact
Contribution towards transition to e-mobility through electrification of vehicles1
potential positive impact
Development Partnerships
actual positive impact
CO2 emissions along the value chain
actual/potential negative impact2
Fleet emissions1
risk
Purchase prices for sustainable materials1
risk
Increased power generation from renewable energies
actual positive impact
Energy consumption along the value chain
actual negative impact
Volatile energy prices1
risk
Pollution
Air emissions in the upstream value chain and own production
actual negative impact
Water emissions in the upstream and downstream value chain1
potential negative impact
Ground contamination in the upstream value chain1
potential negative impact
Use of substances of concern and very high concern in the upstream and downstream value chain1
potential negative impact
Release of microplastics in the upstream and downstream value chain1
actual negative impact
Water and marine resources
Reduced water availability along the value chain
actual negative impact
Impairment of water quality in the upstream and downstream value chain1
potential negative impact
Biodiversity and ecosystems
Impairment of biological diversity due to CO2 emissions and pollution along the value chain
actual negative impact
Impairment of biological diversity due to changes in land and fresh/marine water use in the upstream value chain1
actual negative impact
Impairment of biological diversity in the upstream value chain1
actual negative impact
Spread of invasive alien species in the upstream value chain and the use phase of vehicles1
potential negative impact
Resource use and circular economy
Resource consumption along the value chain
actual negative impact
Recycling of vehicles1
potential positive impact
Waste generation along the value chain
actual negative impact
1 These impacts and risks are not material in the value chain of the own business activities.
2 The actual or potential impact depends on the value chain position.
In 2024, there were no material current financial
effects from these risks and opportunities on the
profitability, liquidity and capital resources, and
financial position. From these risks and opportunities,
no significant risk of a material adjustment to the
assets and liabilities reported in the Consolidated
Financial Statements was identified for 2025.
Material impacts, risks and opportunities
Direction of effect
Own workforce
Qualification and further development of employees due to transformation
actual positive impact
Remuneration of workforce
actual positive impact
Attractive working conditions for employees (work-life balance)
actual positive impact
Changes in workplace profiles and work processes due to transformation
actual negative impact
Impairment of health and safety
actual negative impact
Changes in workplace profiles and work processes due to transformation
risk
Work-related accidents and injuries of employees
risk
Impact of skills shortage due to demographic trends and qualification requirements
risk
Financial risk associated with collective bargaining, strikes and formation of trade unions or employee
representative bodies
risk
Impairment of equal opportunities of employees
actual negative impact
Promoting diversity and equal opportunities
actual positive impact
Potential child labour in the event of ineffective implementation of compliance processes
potential negative impact
Potential forced labour in the event of ineffective implementation of compliance processes
potential negative impact
Workers in the value chain
Impairment due to long working hours1
actual negative impact
Inadequate remuneration in the upstream value chain1
potential negative impact
Restrictions on employees’ freedom of association1
potential negative impact
Restrictions on employees’ collective bargaining rights1
potential negative impact
Impairment of health and safety1
actual negative impact
Impairment of equal opportunities for employees1
potential negative impact
Potential child labour in the upstream value chain1
potential negative impact
Potential forced labour in the upstream value chain1
potential negative impact
Impairment due to lack of access to drinking water and sanitary facilities1
potential negative impact
Capital market-related investment losses related to incidents of human rights violations1
risk
Human rights violation in supply chains1
risk
1 These impacts and risks are not material in the value chain of the own business activities.
Material impacts, risks and opportunities
Direction of effect
Affected communities
Impairment of water quality and sanitary facilities in affected communities1
potential negative impact
Limitation of land rights of affected communities1
potential negative impact
Endangerment of human rights activists1
potential negative impact
Limitation of rights of indigenous peoples1
potential negative impact
Consumers and end-users
Development Partnerships
actual positive impact
Single cases of impairment of personal rights
actual negative impact
Individualized and digital products, services and offers1
opportunity
Cyberattacks
risk
Contribution to overall traffic safety1
actual positive impact
Reduced safety of vehicle users and other road users due to product defects1
actual negative impact
Traffic safety as brand/company Unique Selling Proposition (USP)1
opportunity
Business conduct
Positive corporate culture through alignment with corporate principles
actual positive impact
Potential non-compliance with laws and regulations
risk
Regulatory investigations on diesel engines
risk
Money-laundering risks due to third party circumvention of sanctions (strawmen)
risk
Single cases of corruption and bribery
potential negative impact
Alleged cases of corruption
risk
Promoting and accelerating the transition towards decarbonization through electrified vehicles
actual positive impact
Deceleration of the transition towards decarbonization through electrified vehicles for economic reasons
actual negative impact
1 These impacts, risks and opportunities are not material in the value chain of the own business activities.
1 Net carbon-neutral means that carbon emissions that are not avoided or reduced at Mercedes-Benz are compensated for by certified offsetting projects.
Environmental information
Climate change
Material impacts, risks and opportunities and
their interaction with strategy and business model
The Mercedes-Benz Group has identified its material
impacts, risks and opportunities related to climate
change mitigation in accordance with the requirements
of the ESRS. These are described in the chapter
General information under Special considerations for
identification of material climate-related impacts, risks
and opportunities and presented in the table below.
As a player in the transport sector, the Mercedes-Benz
Group supports the Paris Climate Agreement. The
Group is convinced of the targets of the agreement and
has confirmed decarbonization as a core strategic
element and one of the most important sustainability
focus areas. The ambition of the Mercedes-Benz Group
is: by 2039, the entire Mercedes-Benz new vehicle fleet
is to be net carbon-neutral 1 along the entire value chain
and over the vehicles’ entire life cycle. In addition to
decarbonizing the supply chain, the Mercedes-Benz
Group sees the electrification of its vehicle fleet as an
important lever. Mercedes-Benz Cars and Mercedes-
Benz Vans are taking the necessary steps to go all-
electric. The Mercedes-Benz Group actively supports
its customers in switching to emission-free mobility
through electric vehicles and green charging options.
The pace of transformation is determined by market
conditions, the infrastructure and consumer behaviour.
Mercedes-Benz Cars and Mercedes-Benz Vans plans to
be in a position to cater to different customer needs,
whether it’s an all-electric drivetrain or an electrified or
a high-tech combustion engine, if necessary until well
into the 2030s. To this end, production has been set
up to be flexible in terms of drive systems. To further
develop its product portfolio, the Mercedes-Benz
Group is making use of efficiencies between new and
existing model series.
Another lever with regard to the “Ambition 2039” is the
decarbonization of production. In order to consistently
reduce CO2 emissions at its own locations, the
Mercedes-Benz Group relies on the purchase of green
electricity, the expansion of renewable energies
and the implementation of a sustainable heat supply.
Information on the analysis of the resilience of the
Group’s strategic sustainability focus areas with regard
to material impacts, risks and opportunities can
be found in the chapter General information under
Material impacts, risks and opportunities.
Climate change – material impacts, risks and opportunities
Direction of action
Time horizon
Localization
Value chain position
Climate change adaption
Impacts
Climate change consequences along the value chain
negative
short-term
local, regional
Climate change mitigation
Impacts
Contribution towards transition to e-mobility through electrification of vehicles
positive
long-term
global
Development Partnerships
positive
short-, medium- & long-term
global
CO2 emissions along the value chain
negative
short-term
global
Risks
Fleet emissions1
medium-term
regional
Purchase prices for sustainable materials1
medium- and long-term
global
Energy
Impacts
Increased power generation from renewable energies
positive
short-term
local
Energy consumption along the value chain
negative
short-term
local, regional, global
Risks
Volatile energy prices1
short-, medium- & long-term
global
1 Climate-related transition risks.
VU  =  Value chain upstream
OA  =  Own business activity
VD  =  Value chain downstream
=  actual
 
=  potential
   
=  ESRS compliant target filed
In addition to the overarching materiality assessment,
the Mercedes-Benz Group has carried out a climate-
specific scenario and resilience analysis. The climate
scenarios are described in the chapter General
information under Identification of material impacts,
risks and opportunities.
Building on the results of the scenario analysis on
transitory risks and opportunities, the resilience
analysis examined the interactions with the current
strategy and business model of the Mercedes-Benz
Group. This included the horizons of 2030 and 2050, as
well as the coverage of the value chain in accordance
with the scenario analysis. For this purpose, actions
already implemented and planned were collected and
qualitatively assessed in terms of their effectiveness
over the time horizons. The Group’s ability to imple-
ment mitigation and adaptation strategies was
examined. For this purpose, several guided interviews
were conducted with internal experts using a method-
ology based on the scenario analysis.
The climate scenario and resilience analysis produced
the following results:
Technological development
The climate scenarios predict that the share of electric
vehicles in the global sales market will increase signi-
ficantly by 2030 and will make up the vast majority
by 2050. The speed and scope of the transition vary
between the scenarios; in the case of the NZE scenario,
it will already be well advanced by 2030. This develop-
ment affects both passenger cars and light commercial
vehicles. It therefore implies the requirement for the
Mercedes-Benz Group to be able to flexibly adapt its
product range, production facilities and the upstream
value chain.
Market
Due to global transformation and digitalization, the
demand for more sustainable materials such as CO2-
reduced steel and battery raw materials is increasing –
especially in the ambitious NZE scenario.
Commodity markets are volatile, particularly against
the backdrop of ongoing geopolitical tensions and
global bottlenecks. Rising demand and commodity
speculation could further increase the level and
volatility of the prices of these materials in the medium
and long terms.
Regulation and political parameters
Increasing regulatory requirements can lead to
technical or financial challenges. Regulations on vehicle
emissions and fuel consumption play an important role
in this – for example, the EU’s CO2 emission standards
for passenger cars and light commercial vehicles.
Physical climate risks
In the context of physical climate risks, particularly a
scenario with high emissions (SSP5-8.5 scenario),
shows potential risks from changing climatic condi-
tions. The Group considers site-specific legal
requirements and communicates these regulations for
construction projects as part of mandatory training.
These requirements are the basis for planning new
buildings, renovations and extensions. For example,
statically relevant factors such as necessary wind and
snow loads are considered. In addition, preventive
measures are initiated for climatic influences such as
flooding, heat, heavy rain and lightning.
Assessment of resilience
The Mercedes-Benz Group is addressing the identified
challenges on both strategic and operational level.
The most important lever of the product strategy over
the medium and long term is the electrification of the
vehicle fleet. This not only makes it possible to meet
ambitious fleet targets in the correspondingly regulated
markets, but also serves to achieve the climate change
mitigation goals set by the Mercedes-Benz Group as
part of its “Ambition 2039”. Further information on the
strategic integration of decarbonization can be found
under Transition Plan for climate change mitigation in
this chapter and for responsibilities and data trans-
parency as well as monitoring, in the chapter Climate
change mitigation in the downstream value chain
under Policies.
Thanks to early investments in flexible manufacturing
and the use of a state-of-the-art production system,
the Group can manufacture all-electric vehicles in
volume production and serve the market with various
drive technologies.
1 Net carbon-neutral means that carbon emissions that are not avoided or reduced at Mercedes-Benz are compensated for by certified offsetting projects.
2 Scope 1: direct emissions from sources that are directly responsible or controlled by the Group.
3 Scope 2: indirect emissions from purchased energy, such as electricity or district heating, which is generated externally but consumed by the Group.
The Group assumes that the global share of electric
vehicles and plug-in hybrids in new car sales will reach
up to 50% in the second half of this decade. The pace
of the transformation will be determined by market
conditions, the infrastructure and consumer behaviour.
Further information can be found in the chapter
Climate change mitigation in the downstream value
chain under Actions.
As part of this adaptation of the product portfolio and
means of production, extensive investments are
necessary. Further information can be found in the
chapter EU Taxonomy.
To ensure the supply of sustainable materials, several
approaches are being pursued, including active and
strategic involvement of key suppliers and partner-
ships. Further information can be found in the chapter
Climate change mitigation in the upstream value chain
under Actions. The Mercedes-Benz Group systemati-
cally and actively addresses the transition of the
energy mix to renewable energy sources required for
the decarbonization of its business activities,
both within the Group and throughout the supply chain.
Further information can be found in the chapter
Climate change mitigation in the upstream value chain
as well as the chapter Climate change mitigation in own
business activities under Purchase of green electricity
and expansion of renewable energies.
Overall, the Mercedes-Benz Group has the capabilities
to adapt its strategy and business model to the
identified challenges of climate change, provided that
these fall within the considered scenario framework.
Transition plan for climate change mitigation
Decarbonization is one of the focus areas in the
sustainable business strategy. With “Ambition 2039”,
the Mercedes-Benz Group is pursuing the goal of net
carbon neutrality 1 in the new vehicle fleet from 2039
across all stages of the value chain and the entire life
cycle and is transforming its products and services
accordingly.
The transition plan for climate change mitigation
developed by the Mercedes-Benz Group outlines the
steps to achieve the short- and long-term targets on
the way to net carbon neutrality1. It describes how the
Group’s organization, strategy and processes are
aligned with the challenges of the transformation and
the targets of the Paris Climate Agreement.The Board
of Management approved the refocused strategic focus
areas of sustainability in the reporting year with the
involvement of the Supervisory Board and is therefore
responsible for implementing them. More detailed
information can be found in the chapter General
information under Strategy, business model and value
chain.
The members of the Supervisory Board contribute
to the Mercedes-Benz Group’s transformation plan
with their expertise in global transformation in other
industrial sectors and, in this way, support manage-
ment in meeting the challenges ahead.
The Mercedes-Benz Group supports the Paris Climate
Agreement. In 2020, the Mercedes-Benz Group joined
the climate change mitigation promise “The Climate
Pledge” and committed to meeting the targets of the
Paris Climate Agreement ten years earlier than
specified in the agreement. In addition, the Group is a
member of the “Transform to Net Zero” initiative, thus
reaffirming its ambition to improve the framework
conditions for decarbonizing the economy and society
worldwide.
The medium-term emission reduction target (Scope 1 2
and 2 3) by Mercedes-Benz Cars and Mercedes-Benz
Vans was scientifically validated as 1.5°C-aligned by the
external Science Based Targets initiative (SBTi) in 2019.
They committed to reducing absolute Scope 1 and
Scope 2 emissions in the production plants by 50% by
2030 compared to 2018. This target was already
achieved in 2022, which is why the Mercedes-Benz
Group plans to reduce CO₂ emissions in the production
plants (Scope 1 and Scope 2) by 80% by 2030
compared to 2018.
1 Scope 3: All (not included in scope 2) indirect emissions that occur in the value chain of the Group, including both upstream and downstream emissions.
2 See table Mercedes-Benz Group greenhouse gas emissions – Scope 1, Scope 2 and Scope 3, category 11.
The SBTi has published interim guidance for the
transport sector, which is valid until a final 1.5°C
compliant reduction path for the automotive industry
(sector-based decarbonization approach) is developed.
The Mercedes-Benz Group is reviewing the criteria and
requirements of the corresponding transitional
arrangement.
To implement its climate targets, the Mercedes-Benz
Group identified the supply chain, logistics, production,
and the use phase of its vehicles as a lever for
decarbonizing its business model. Decarbonizing the
supply chain focuses on sourcing production materials
that are net carbon-neutral. For global logistics, the
Group relies on an optimal transport mix of road, rail,
air, and water freight. Through process optimization,
the Group aims to avoid and reduce CO₂ emissions. The
Group uses renewable energies in production. A large
proportion of the Mercedes-Benz Group’s Scope 3 1
emissions arise during the use phase of the vehicles 2
(locked-in emissions), which includes fuel and electri-
city production (well-to-tank) and driving operation
(tank-to-wheel). To reduce these emissions, the Group
is focusing on fully electrifying the vehicle fleet,
charging with green electricity, and optimization
battery technology.
Mercedes-Benz Cars and Mercedes-Benz Vans
anticipate that the global share of electric cars and
plug-in hybrids in new car sales will reach up to 50% in
the second half of this decade. The pace of trans-
formation is determined by market conditions, the
infrastructure and consumer behaviour.
Information on the Group’s strategy, organization and
processes as well as actions and results can be found
in the following sections.
The implementation status of the transition plan is
reflected in the CO2 emission values, which can be
found in the Metrics section of this chapter, and the
share of electrified vehicles in the unit sales (xEV
share) of the Mercedes-Benz Group, which can be
found in the chapter Business development.
Information on sustainable investments by the
Mercedes-Benz Group is reported in the chapter EU
Taxonomy. Due to the volatile developments, the
Mercedes-Benz Group is not currently categorising
its forward-looking information on sustainable
investments.
In the reporting year, the Mercedes-Benz Group had
no information on non-compliance with the exclusion
criteria in connection with the EU Paris-aligned
Benchmarks.
Ambition and targets
External and internal sustainability requirements at the
Mercedes-Benz Group are anchored in a target system
approved by the Board of Management. The Group
reviews the targets and their achievement annually.
The production-related targets are broken down at
plant level in a standardized process.
The Mercedes-Benz Group uses internal processes to
monitor the progress and effectiveness of its policies
and actions. The Group also collects relevant metrics,
which are published in the Metrics section of this
chapter. The Group uses the reported metrics to
internally measure the impact of the policies described.
1 Net carbon-neutral means that carbon emissions that are not avoided or reduced at Mercedes-Benz are compensated for by certified offsetting projects.
2 Compared to 2020.
3 The levers for decarbonizing its business model are described by the Mercedes-Benz Group in the transition plan.
4 Scope 1: direct emissions from sources that are directly responsible or controlled by the Group.
5 Scope 2: Indirect emissions from purchased energy, such as electricity or district heating, which is generated externally but consumed by the Group. The target is based on the market-based approach.
6 The year 2018 was selected as the base year during the SBTi validation in 2019. The SBTi recommended choosing the most recent year for which data are available. In 2018, Scope 1 emissions amounted to 650,000 metric tons of CO2 and Scope 2 emissions amounted to 1,040,000
metric tons of CO2. The reduction of Scope 2 emissions makes the greater contribution to achieving the target. Scope 1 and Scope 2 emissions in the reporting year, see table “Further information on greenhouse gas emissions Scope 1 and Scope 2”.
7 The set reduction target, to reduce CO2 emissions in its own plants (Scope 1 and 2) by 50% compared to 2018 by 2030 was confirmed by the SBTi as 1.5°C-aligned in line with the Paris Climate Agreement. Since this target was already achieved in 2022, the Mercedes-Benz Group
aims to further reduce CO2 emissions in production (Scope 1 and Scope 2) and has increased its reduction target to minus 80%. Actions taken to achieve the target are described in the chapter “Climate change mitigation in own business activities”.
8 Status in the reporting year: according to plan.
9 Revision of target system, adjustment of base year from 2013/14 to 2023, degree of tension maintained/increased.
10 In 2023, the specific energy consumption in production at Mercedes-Benz Cars was 2.97 MWh/vehicle.
11 In 2023, the specific energy consumption in production at Mercedes-Benz Vans was 2.26 MWh/vehicle.
12 Mercedes-Benz Cars: plug-in hybrids and all-electric vehicles, Mercedes-Benz Vans: all-electric vehicles.
13 The transformation is determined by the market conditions, the infrastructure and the consumer behaviour.
Overarching ambition
– “Ambition 2039”: Create a net carbon-neutral 1
Mercedes-Benz new vehicle fleet along the entire
value chain and over the entire life cycle.
– The market conditions, the infrastructure and the
consumer behaviour determine the course of the
transformation. The Group aims to reduce CO2
emissions per passenger car in the new vehicle fleet
up to 50% across all stages of the value chain over
the entire lifecycle within the next decade 2.
Lever 3 upstream value chain
– All production materials procured by Mercedes-
Benz Cars and Mercedes-Benz Vans are net carbon-
neutral by 2039.
– Mercedes-Benz Cars and Mercedes-Benz Vans:
Reduce CO2 emissions in logistics by 60% by 2039
compared to 2021.
Lever own business activities: Production
– Target: Reduce CO2 emissions in production (Scope
1 4 and 2 5) by 80% by 2030 compared to 2018 6, 7, 8.
– Target: Increase the share of renewable energies in
production to 100% by 20398.
– Milestone: Increase the share of renewable
energies to cover energy consumption to 70% at
Mercedes-Benz Cars and to 80% at Mercedes-
Benz Vans by 20308.
– Target: Mercedes-Benz Cars – Reduce the specific
energy consumption in production per vehicle by
36% by 2030 compared to 20238, 9, 10.
– Target: Mercedes-Benz Vans – Reduce the specific
energy consumption in production per vehicle by
16% by 2030 compared to 20238, 9, 11.
Lever downstream value chain
– Increase the share of electrified vehicles 12 in
the respective new car fleets of Mercedes-Benz
Cars and Mercedes-Benz Vans to up to 50% in
the second half of the decade 13.
1 Net carbon-neutral means that carbon emissions that are not avoided or reduced at Mercedes-Benz are compensated for by certified offsetting projects.
Climate change mitigation in the
upstream value chain
Policies
The Mercedes-Benz Group pursues the approach of
avoiding, reducing, or, where possible, preventing
negative environmental impacts in the upstream value
chain.
Decarbonization of the supply chain
With its “Ambition 2039”, the Mercedes-Benz Group
is striving for a net carbon-neutral 1 new vehicle fleet
across all stages of the value chain and the entire life
cycle. The decarbonization of the supply chain plays
an important role in this.
For future model series and vehicle architectures,
suppliers of Mercedes-Benz Cars and Mercedes-Benz
Vans must meet CO2 reduction targets and implement
appropriate actions. This applies in particular to
suppliers of components and focus materials such as
steel, aluminium, polymers, or battery cells, as these
are CO2 and energy intensive to manufacture. To
promote suppliers and business partners in the
transformation, Mercedes-Benz Cars and Mercedes-
Benz Vans use three instruments:
– In the “Ambition Letter”, which is contractually
mandatory for all new contracts, the suppliers of
Mercedes-Benz Cars and Mercedes-Benz Vans
guarantee that from 2039 they will only supply
products that are net carbon-neutral.
– Mercedes-Benz Cars and Mercedes-Benz Vans have
integrated target values for CO2 emissions into
their award criteria. The focus is on CO2-intensive
components and materials. The targets not only
affect direct suppliers; they also apply to the
upstream extraction of raw materials and the
production of components.
– In addition, Mercedes-Benz Cars and Mercedes-
Benz Vans are working with selected partners to
reduce CO2 emissions in the supply chain through
innovative technologies. The focus is on the
production of important components such as
battery cells or body-in-white components.
The right battery technologies and access to raw
materials are crucial for the expansion of electro-
mobility. The Mercedes-Benz Group purchases battery
cells and modules from various partners on the global
market in order to have access to the latest
technologies on the market and to supply the global
Mercedes-Benz production network.
The Group is committed to expanding strategic
partnerships with direct suppliers whose own
production is net carbon-neutral and who have
ambitious carbon reduction targets.
Transformation at the suppliers
The Responsible Sourcing Standards (RSS) are the
central contractual document for sustainability
requirements for suppliers and represent the guard
rails of supply chain management. They contain
minimum requirements in the areas of environmental
due diligence, climate change mitigation, resource
conservation, biodiversity, deforestation and water,
among others. In line with the German Supply Chain
Due Diligence Act (LkSG), the Mercedes-Benz Group
sets out clear sustainability requirements and more
far-reaching expectations for suppliers with the RSS,
which go beyond the legal requirements.
In addition to these minimum requirements, the RSS
sets out expectations and presents a non-binding
perspective for the coming years. These form the basis
for strategy dialogues. The RSS is therefore an impor-
tant tool for conveying the Mercedes-Benz Group’s
ambitious targets into the complex supply chains. The
ambition is to raise awareness among suppliers beyond
the legal requirement and to motivate them to make
greater efforts in the area of sustainability.
Suppliers who supply Mercedes-Benz Cars and
Mercedes-Benz Vans with production materials must
have a certified environmental management system
(ISO 14001 or the Eco-Management and Audit Scheme
(EMAS)). The same requirement also applies, on a risk-
based basis, to suppliers of non-production materials
and services.
1 Net carbon-neutral means that carbon emissions that are not avoided or reduced at Mercedes-Benz are compensated for by certified offsetting projects.
The Mercedes-Benz Group has been applying the RSS
since 2023, thereby tightening its sustainability
requirements. They define minimum requirements and
expectations for Tier 1 suppliers and contractually
oblige them to comply with the requirements and to
communicate them to upstream value chains. As
a central contractual document for sustainability
requirements, they are used internationally.
Supplier management
The Board of Management of the Mercedes-Benz
Group AG is responsible for defining CO2 targets for
the supply chain and for reviewing them.
Representatives from purchasing, corporate environ-
mental protection and component development
are working to implement the strategic direction for
reducing CO2 emissions in the supply chain in close
cooperation with suppliers of CO2-intensive materials
and production.
The implementation of concrete actions to reduce CO2
emissions is discussed directly with suppliers.
Progress in reducing CO2 emissions in the supply
chain is reported at regular intervals to the Group
Sustainability Committee (GSC).
Decarbonization of logistics
On the way to net carbon-neutral 1 transport logistics,
the Group is committed to avoiding and reducing the
CO2 emissions generated in the global transport
network for Mercedes-Benz Cars and Mercedes-Benz
Vans.
Actions
The following actions contribute to CO2 reduction
in the supply chain and logistics, which represent two
levers for decarbonizing the business model.
CO2-reduced production materials
To reduce CO2 in the supply chain, Mercedes-Benz Cars
and Mercedes-Benz Vans are focusing on materials and
components that have high carbon emissions. These
include steel, aluminium, certain plastics and battery
cells. Quantitative interim targets for CO2 emissions in
the supply chains were derived from the results of
the supplier discussions and the target values were
integrated into the award criteria. Mercedes-Benz Cars
and Mercedes-Benz Vans consistently use CO2
specifications as key criteria when awarding contracts
for the Mercedes-Benz Modular Architecture (MMA) as
well as for the Mercedes-Benz Electric Architecture
(MB.EA) and Mercedes-Benz Van Architecture. The first
vehicles based on these architectures will come onto
the market from 2025.
Battery
The battery is the single component of an electric
vehicle with the highest carbon footprint. Mercedes-
Benz Cars and Mercedes-Benz Vans have agreed with
their strategic partners to purchase battery cells from
net carbon-neutral production. Since 2019, net carbon-
neutral production has been a key requirement for
direct suppliers of battery cells when awarding con-
tracts. In order to achieve this, ambitious quantitative
reduction targets for the CO2 emissions of battery cells
have been set. The aim is to consistently reduce CO2
emissions and, where possible, completely avoid them.
In addition, both segments continue to negotiate with
actors across the entire supply chain, including
electrode producers, refineries and mines. In addition
to respecting human rights, the increased use of
renewable energy is a key requirement.
To ramp up EV mass production, both the right battery
technology partners and access to raw materials are
needed. The Mercedes-Benz Group basically has a
strategy for all raw materials that are sourced directly
and indirectly that secures long-term needs and
mitigates supply risks in the long term. In order to
prevent the risks of global supply chain disruptions,
among other things, the Group also pursues a local-for-
local approach with several suppliers.
Steel
When manufacturing an electric vehicle, steel accounts
for up to 20% of total CO₂ emissions. Mercedes-Benz
AG intends to purchase over 200,000 metric tons of
CO₂-reduced steel annually from suppliers for its own
press plants this decade.
Mercedes-Benz AG works with steel suppliers and
supports them in their transformation. The availability
of CO2-reduced steel and thus the construction of
industrial direct reduction plants and smelting units are
important prerequisites for decarbonizing the steel
supply chain and thus reducing the carbon footprint of
Mercedes-Benz vehicles.
The Mercedes-Benz Group has entered into various
partnerships worldwide to enable the procurement of
CO2-reduced steel in the long term. Selected partners
guarantee to supply the Mercedes-Benz Group with
specified quantities of CO2-reduced steel during con-
tractually agreed periods. This steel will be used for
manufacturing vehicles.
Aluminium
Since 2023, the aluminium manufacturer Hydro (Norsk
Hydro ASA, Norway) has been supplying the foundry at
the Untertürkheim plant (Germany) with CO₂-reduced
aluminium. The carbon footprint is almost 70% lower
than that of the material used on average in Europe.
After a successful test phase, the low-CO₂ aluminium
was integrated into the series production of selected
models. As part of its technology partnership with
Hydro, Mercedes-Benz Group AG aims to use
aluminium with a carbon footprint that is up to 90%
lower than the European average in 2024 in its vehicles
by 2030.
In addition, Mercedes-Benz Group AG has continued to
work with its suppliers on decarbonizing the aluminium
supply chain for production in Europe and amended
existing supply contracts accordingly. At least a third of
the primary aluminium used in Europe for upcoming
electric models from 2025 onwards is to be produced
using renewable energies. This can lead to a CO₂
reduction of up to 50% compared to conventionally
produced aluminium used in Europe.
Data transparency
To evaluate suppliers regarding their corporate
strategies and targets for climate change mitigation as
well as specific CO2 emissions, Mercedes-Benz Cars
and Mercedes-Benz Vans work with CDP (formerly
Carbon Disclosure Project). Since 2019, suppliers have
been presenting their environmental impacts and
climate change mitigation efforts in the CDP Supply
Chain questionnaire, thereby promoting data
transparency.
The Mercedes-Benz Group is a founding member of
the Catena-X cooperation project. The ambition is
to enable secure, sovereign and standardized data
exchange across all participants in the automotive
value chain. Catena-X is intended to support the
Mercedes-Benz Group, among other things, in checking
whether and to what extent suppliers comply with
specified sustainability requirements. From the raw
material mines to recycling, the data chain is to be
supplemented with CO2 data from each company, thus
enabling a product-specific carbon footprint with the
highest possible proportion of primary data.
Logistics
Shifting the transport volume to rail can make a signi-
ficant contribution to avoiding CO2. The Mercedes-Benz
Group therefore takes the approach of transporting
vehicles by rail, among other things. In addition to
avoiding air freight, the Group and transport service
providers rely on the use of Sustainable Aviation Fuel
(SAF). In order to reduce CO2 emissions in sea trans-
port as well, the Mercedes-Benz Group is working
closely with its transport service providers and is using
biofuels as a bridging technology with them. In the
reporting year, the Group was able to implement sev-
eral projects with various transport service providers.
1 The Mercedes-Benz Group verifies this for every electricity contract worldwide through certificates of origin.
2 All considered locations in the respective reporting year of the Sustainability Statement.
3 Net carbon-neutral means that carbon emissions that are not avoided or reduced at Mercedes-Benz are compensated for by certified offsetting projects.
Climate change mitigation in own business activities
Policies
The Mercedes-Benz Group has set itself the goal of
reducing CO2 emissions across its entire business
activity and, if possible, avoiding them. This includes
all Mercedes-Benz locations worldwide.
To this end, the Mercedes-Benz Group relies on the
purchase of green electricity, the expansion of renew-
able energies, the implementation of a sustainable
heat supply and the optimization of energy efficiency
at its own locations.
The Mercedes-Benz Group’s locations obtain 100% 1 of
their external electricity from renewable energies. In
Germany, the Mercedes-Benz Group currently relies on
a mix of solar, wind and hydropower for external
electricity procurement.
When supplying heat to the production sites, the
reduction of CO2 emissions from fossil sources is being
pushed forward. The Group is relying, for example, on
the use of heat pumps powered by green electricity,
district heating, waste heat, geothermal energy and
bioenergy as well as the electrification of production
processes.
To convey the policies to stakeholders, the Mercedes-
Benz Group relies on dialogues on climate change
mitigation. Further information on the different formats
used by the Mercedes-Benz Group to enter into
dialogue with its stakeholders is described in the
chapter Strategy under Interests and views of
stakeholders.
CO2 compensation
All locations 2 of the Mercedes-Benz Group have been
operating net carbon-neutral 3 since 2022 in terms
of Scope 1 and Scope 2. Since 2022, all Scope 1 and 2
emissions from these locations that could not pre-
viously be avoided have been compensated for by
carbon offsets from qualified climate change mitigation
projects. Since 2023, the net neutrality also includes
other greenhouse gases that are stated in CO2
equivalents.
The Mercedes-Benz Group aims for high quality in its
compensation projects and continuously develops
its compensation portfolio. According to the IPCC, the
global climate targets cannot be achieved through
reduction actions alone. In addition, CO2 must also be
removed from the atmosphere. The Mercedes-Benz
Group has therefore been expanding its portfolio to
include CO2 removal projects since 2023.
Responsibilities and organization of
production sites
The Board of Management of the Mercedes-Benz
Group AG is responsible for implementing the environ-
mental protection requirements (air pollution control,
water protection, avoiding soil and groundwater
pollution, biodiversity, sustainable use of resources).
The Group management is responsible for strategic
control and coordination.
The Group has more than 30 production sites world-
wide, each of which is subject to different regional and
national laws. Environmental protection in production
is controlled and coordinated across all business areas
for the regions of Germany/Europe, North-/South
America/-Africa and Asia by three committees. In the
committees, environmental protection managers can
network across the Group and plants and exchange
information on legislation, processes and innovations.
In addition, binding internal standards and procedures
are developed there worldwide.
Monitoring process of Mercedes-Benz sites
The Mercedes-Benz Group systematically collects the
most important environmental and energy data from
its locations to monitor the reduction targets and for
reporting purposes. This data is evaluated worldwide in
a central environmental data information system. The
Mercedes-Benz Group uses this data to check the
extent to which the climate and environmental targets
for the plants are being achieved. The corresponding
environmental protection measures aimed at achieving
the objectives are documented in an internal database
and their effectiveness is systematically monitored.
Group-wide environmental and energy management
The Mercedes-Benz Group has established and certi-
fied an environmental management system in accord-
ance with ISO 14001 at its own locations worldwide in
order to ensure efficient, high-quality and environ-
mentally friendly production. Selected locations in
Germany and the two European production locations in
Kecskemét (Hungary) and Vitoria (Spain) are also EMAS
registered organizations. In addition, the German
production locations have had energy management
systems in accordance with ISO 50001 since 2012,
which the Group has recertified every three years.
Outside Germany, the Mercedes-Benz Group operates
ISO 50001 systems at some locations, for example in
Kecskemét (Hungary), Jawor (Poland), Sebes (Romania),
Vitoria (Spain) and Pune (India). The individual divisions
and production locations control the careful use of
resources. They set overarching and location-specific
targets and report on these to the responsible
management. This approach is derived from the system
of targets that was adopted by the Board of
Management of the Mercedes-Benz Group AG as part
of the sustainable business strategy.
With its environmental and energy management
systems, the Mercedes-Benz Group ensures, among
other things, clear responsibilities and a transparent,
standardized implementation of internal and external
environmental protection and energy efficiency
requirements.
The effectiveness of the management systems is
checked by external assessors as part of the certifi-
cation (ISO 14001, ISO 50001) and validation (EMAS)
as well as in the environmental area via internal
environmental risk assessments (environmental due
diligence process). If relevant risks or deficiencies are
identified in the areas of waste management, emissions
to air, wastewater discharges and soil/groundwater
pollution as well as in the handling of environmentally
hazardous substances, the Group records, prioritizes
and reduces or eliminates these.
The environmental due diligence process has been
applied across the Group since 1999, both internally at
all production sites that are majority-owned by the
Group and at externally operated contract and licensed
manufacturing facilities. Every five years, the Group
inspects and evaluates the environmental risk of
its production sites using a standardized process. The
results are reported to the respective plant and
management teams so that optimizations can be made
where necessary. The Group also checks annually to
what extent the recommendations for risk minimization
have been implemented at the sites.
Actions
The following actions contribute to reducing CO2 in
production, which represents a lever for decarbonizing
the business model. By purchasing green electricity
and expanding renewable energy at its own sites,
the Mercedes-Benz Group has already been able to
significantly reduce CO2 emissions in production.
To further reduce CO2 emissions, the Mercedes-Benz
Group is focusing on sustainable heat supply measures
and optimizing energy efficiency.
Expansion of renewable energies
The Mercedes-Benz Group is planning to expand and
install photovoltaic systems (PV systems) at its
locations worldwide. PV systems have already been
installed at ten production locations, and PV systems at
three additional locations are nearing completion. In
addition, potential new locations for PV systems are
continuously being evaluated.
Another focus of the Group’s energy strategy is
expanding the portfolio to include wind energy from
onshore and offshore wind farms. In the offshore
sector, the Group has concluded a power purchase
agreement (PPA) with an energy supplier for the supply
of electricity from the Windanker wind farm in the
Baltic Sea. This will secure the Mercedes-Benz AG 140
MW of renewable electricity from 2027, covering
around 30% of its electricity needs in Germany. In
September 2022, the Mercedes-Benz Group began
planning to install a wind farm on its test site in
Papenburg, northern Germany. In the coming years,
around 20 wind turbines with an output of around
120 MW are to be built on the site as part of a PPA with
a German energy park developer. This will cover up
to 20% of Mercedes-Benz AG’s annual electricity needs
in Germany.
When planning project implementation and the eco-
logically sustainable use of the land, the Mercedes-
Benz Group works closely with the relevant local
authorities and interest groups. The expansion of its
own production facilities also increases independence
from volatile energy prices.
Heat supply
The Mercedes-Benz Group is taking various actions to
further reduce the use of fossil fuels in heat supply and
thereby further reduce CO2 emissions. Surface geo-
thermal energy is already being used at the production
sites in Rastatt and Kamenz (both Germany). Several
production sites in Germany receive district heating
with varying proportions of renewable energy.
Immendingen (Germany) and Jawor (Poland) receive
heat from biomass heating plants. In the future, heat
pumps powered by green electricity are also to be put
into operation at the sites in Kecskemét (Hungary) and
Tuscaloosa (USA). There are also plans to use produc-
tion waste heat and electrify production processes.
In addition, interdisciplinary teams across sites are
examining how renewable heat generation can be
further expanded.
Energy efficiency and consumption
The Mercedes-Benz Group is taking various measures
to reduce its CO2 emissions in production by optimizing
energy efficiency and reducing energy consumption.
The Group sensitizes its workforce to energy saving in
order to raise awareness and actively shape sustain-
ability issues – including publicly visible tips, training
courses and initiatives. The Mercedes-Benz Group also
pays attention to high energy efficiency when purchas-
ing new production facilities and renovating buildings.
The focus is on the controls of all technical equipment
and components as well as transparent measurement
of consumption values. Another important criterion is
that the production facilities can be switched off during
breaks and when not in production and can also be
operated efficiently under partial load.
Further actions to increase energy efficiency include
the efficient control of energy supply and building
technology systems. The Mercedes-Benz Group uses
new technologies to further optimize existing energy-
intensive processes. For example, the Group has thus
begun energetically optimizing production facilities
during series operation using a data-driven approach
to make the process more demand-oriented and,
consequently, more energy-efficient.
In addition, the Group uses heat recovery systems in
building ventilation systems, for example, in order to
utilize waste heat from the buildings and thus consume
less energy.
In order to identify and exploit further savings poten-
tial, the Mercedes-Benz Group measures and evaluates
key energy consumption. Transparency regarding
energy procurement and consumption is created by
innovative energy management software implemented
across the Group. The software records and analyses
consumption for locations and buildings as well as for
individual systems.
CO2 compensation
Remaining greenhouse gas emissions from Mercedes-
Benz locations arise in particular from the natural
gas-powered combined heat and power plants that
generate electricity and heat. To compensate for
remaining emissions, the Mercedes-Benz Group invests
in climate change mitigation projects. The portfolio
includes, among other things, offset projects for CO2-
reduced drinking water treatment in Nigeria and Kenya.
These not only avoid greenhouse gas emissions, they
also promote sustainable, social and ecological
development in the project countries in many ways.
Additional information on the quality criteria is
presented in this chapter under Metrics.
Furthermore, the Mercedes-Benz Group supports the
development of CO2 removal solutions with high quality
and integrity. Since the reporting year 2023, the Group
has been making an annually increasing contribution
to a high-quality biochar project and has since been
expanding its portfolio of CO2 removal projects, among
other things, through nature-based solutions.
1 Net carbon-neutral means that carbon emissions that are not avoided or reduced at Mercedes-Benz are compensated for by certified offsetting projects.
Climate change mitigation in the
downstream value chain
Policies
The Mercedes-Benz Group sees the complete electri-
fication of its product range as the most important
contribution to decarbonizing the use phase of its
vehicles.
CO2 emissions are not only generated during the
manufacture of components for all-electric vehicles,
but also during the generation of charging current. All-
electric vehicles are more climate-friendly the more
charging current comes from renewable sources.
Against this background, the Green Charging initiative
is a further step on the way to net carbon-neutral 1
mobility: With it, the Mercedes-Benz Group enables its
customers to charge their vehicles with green
electricity. Green electricity certificates ensure that an
equivalent amount of electricity from renewable
energies is fed into the power grid for the charging
processes.
Responsibilities and data transparency
The Board of Management of the Mercedes-Benz
Group AG is responsible for setting and reviewing
strategic targets, including reducing CO2 emissions.
Within the Board of Management, responsibility
for climate change mitigation is distributed among
several divisions and Board members.
The CO2 Product Strategy department is responsible
for ensuring that demanding consumption and portfolio
actions to meet CO2 fleet regulations are implemented
early and in the most cost-effective way possible.
During the operational period, the sales department is
responsible for managing the achievement of CO2
targets.
An interdisciplinary team of environmental experts and
specialists in purchasing, development, logistics,
production, strategy and sales is working on the net
carbon neutrality1 of the new car fleet by 2039. The
team monitors CO2 emissions across all stages of the
value chain, manages reduction actions and creates the
necessary transparency within the Group.
Monitoring
In order to be able to assess how environmentally
friendly a vehicle is, Mercedes-Benz Cars creates life
cycle assessments as part of a 360° environmental
check. The resulting CO2 emissions and other
environmental impacts are systematically analysed
along the entire value chain of a vehicle.
The Mercedes-Benz Group uses internal performance
assessments to evaluate the effectiveness of the
actions it intends to take to achieve its “Ambition
2039” targets. To this end, it conducts internal audits at
departmental level several times a year.
In order to be able to comprehensively record and
control the CO2 contribution of the individual areas,
data transparency over the entire life cycle is the key
lever. For this purpose, the Mercedes-Benz Group has
developed an internal monitoring tool for CO2
calculation. It makes it possible to accurately depict
climate-relevant emissions and track progress towards
the CO2 targets down to the component level. At the
same time, the fleet level can also be considered.
Further development through exchange
and initiatives
The Mercedes-Benz Group relies on dialogue on
the topic of climate change mitigation. At the annual
Sustainability Dialogue, it maintains an intensive
exchange with environmental institutes and non-
governmental organizations (NGOs). Politicians, the
general public and other stakeholders provide the
Mercedes-Benz Group with ongoing feedback on how
the Group’s own sustainability targets are perceived
and assessed. Further information on the different
formats used by the Mercedes-Benz Group to enter
into dialogue with its stakeholders is described in
the chapter Strategy under Interests and views of
stakeholders.
Actions
The following actions contribute to reducing CO2
emissions during the use phase of the vehicles, which
represents a lever for decarbonizing the business
model.
Electrification of Mercedes-Benz Cars and
Mercedes-Benz Vans
The Mercedes-Benz Group sees the electrification of its
vehicles as the greatest lever for decarbonization. The
information on operating expenses and investments for
the reporting year with regard to the Taxonomy-aligned
shares for the economic activity 3.3 “manufacture
of low-carbon technologies for transport” of the
Mercedes-Benz Group is presented in the chapter EU
Taxonomy. The research and development expenses of
the Taxonomy-aligned shares of the “manufacture of
low-carbon technologies for transport” are expected
to remain at a similar level as in previous years. In
order to take into account the different customer
requirements and market developments, the
Mercedes-Benz Group has positioned itself as flexible
with respect to drive systems over the next few years.
Due to the volatile developments, the Mercedes-Benz
Group is currently not specifying its forward-looking
statements regarding the manufacture of low-carbon
technologies for transport in more detail.
Electrified product range at Mercedes-Benz Cars
The Mercedes-Benz Group has the ambition to further
expand its range of electric vehicles in all model
variants and vehicle types. The commitment to
research and development is correspondingly strong.
The Group has been offering all-electric vehicles since
2018. The electric G-Class was presented in the
reporting year, bringing the Mercedes-Benz Cars
portfolio to ten all-electric models in 2024. At the same
time, highly efficient and low-emission combustion
engines and plug-in hybrids (Plug-in-Hybrid Electric
Vehicle – PHEV) complement the product portfolio and
thus also make an important contribution to the
decarbonization of transport. In the second half of the
decade, all newly introduced vehicle architectures are
to be electrified. In 2025, the Mercedes Modular
Architecture (MMA), which focuses on electromobility,
is to be introduced for vehicles from the Entry
segment. Mercedes-Benz Cars plans to introduce two
further all-electric architectures in the Top-End and
Core segments in 2026: the Mercedes-Benz Electric
Architecture (MB.EA) and AMG Electric Architecture
(AMG.EA) (BEV architecture generations).
Concept CLA Class – the electric and efficient future
of Mercedes-Benz
During the reporting period, the Group developed the
Mercedes-Benz Modular Architecture (MMA) – an
architecture primarily geared towards electric vehicles
that has been specifically designed for a vehicle family
consisting of four models with different body variants.
The Concept CLA Class offers a near-production
preview of what will be possible in the future in terms
of efficiency and electric range. The projected range
(WLTP) of the Concept CLA Class is expected to be
more than 750 km and the expected energy consump-
tion around 12 kWh/100 km. The technology that can
achieve these values is based on the findings of the
VISION EQXX technology programme. Within the pro-
gramme, actions were identified that can further
reduce previous energy losses. The new drivetrain,
based on the VISION EQXX, from the battery to the
wheels, can achieve an efficiency of up to 93% on
long-distance journeys.
Plug-in hybrids
Plug-in hybrids are also an important bridging
technology on the way to an all-electric future. The
combination of electric drive and combustion engine
enables temporarily local CO2 emission-free driving.
The drive – consisting of an electric motor and high-
voltage battery – can enable purely electric ranges that
are sufficient for the majority of daily journeys. Around
40 model variants in the portfolio enable electric
ranges of up to 130 km according to WLTP.
1 Net carbon-neutral means that carbon emissions that are not avoided or reduced at Mercedes-Benz are compensated for by certified offsetting projects.
Electrification at Mercedes-Benz Vans
The Mercedes-Benz Group is also convinced of the
ecological and economic advantages of all-electric
vans in the van business and has firmly anchored its
claim to leadership in electromobility in its strategy.
Mercedes-Benz Vans is thus also setting the course
for an all-electric future.
From 2026, all newly developed mid-size and large
all-electric vans from Mercedes-Benz Vans are to
be based on the modular, flexible and scalable Van
Architecture.
This enables a clear differentiation between privately
positioned vans in the luxury segment and commer-
cially positioned vans in the premium segment.
All model series are already systematically electrified.
Customers and upfitters can choose an all-electric van
in every segment, whether for commercial or private
use.
The eSprinter
With today’s second generation eSprinter, which is
produced in a net carbon-neutral 1 manner, Mercedes-
Benz Vans is implementing its electrification strategy
and underscoring its claim to “Lead in Electric Drive”.
Efficiency and sustainability were important goals in
the further development of the electric drivetrain.
For the first time, the division used a highly efficient
permanent magnet synchronous motor (PSM) and
an electric rear axle in an all-electric van. The eSprinter
allows for higher payloads with a permissible total
weight of up to 4.25 t and offers a greater variety of
variants for the first time. The cell chemistry of the
installed high-voltage battery is based on lithium iron
phosphate (LFP), which means that cobalt and nickel
are not required. Active thermal management ensures
highly effective energy transfer in different system
states.
The second-generation eSprinter rolled off the pro-
duction line in Düsseldorf (Germany) for the first time
in December 2023, with the Charleston (USA) and Lud-
wigsfelde (Germany) plants following in the reporting
year.
Public charging with Mercedes-Benz
Mercedes me Charge is the Mercedes-Benz Group’s
own digital charging service for public charging and is
available exclusively to Mercedes-Benz drivers. With
a Mercedes me Charge charging contract, Mercedes-
Benz drivers can charge at various charging station
operators. By the end of 2024, over 2 million AC and
DC charging points from more than 1,600 charging
station operators worldwide were integrated into the
Mercedes me Charge charging network.
In order to improve the framework conditions for
electric vehicles, the Group is also setting up its own
global Mercedes-Benz Charging Network in North
America, Europe, China and other core markets, which
is open to drivers of all brands. Mercedes-Benz
customers enjoy special benefits when charging at
Mercedes-Benz fast-charging parks via the Mercedes
me Charge charging service integrated in the vehicles,
e.g. a reservation function to reduce waiting times.
With its own global fast-charging network, the
Mercedes-Benz Group is setting new standards for the
fast, convenient and green charging of electric vehicles.
Around 10,000 fast-charging points are to be created
worldwide by the end of the decade.
Green Charging
The Mercedes-Benz Group enables its customers to
charge with green electricity using Mercedes me Charge.
“Green Charging” is an integral part of Mercedes me
Charge in Europe, Canada and the United States. If no
electricity from renewable energy sources is available
at the respective charging station, “Green Charging”
uses green electricity certificates, which ensure that an
equivalent amount of electricity from renewable
energies is fed into the power grid for charging pro-
cesses. These are green electricity certificates from
certified energy generation plants that were commis-
sioned less than six years ago. “Green Charging”
therefore contributes to the further expansion of
renewable energies.
“Green Charging” is also an integral part of the
Mercedes-Benz Charging Network. The Mercedes-Benz
Group wants to enable all drivers of electric vehicles
to charge with green electricity. This is preferably
done via green electricity supply contracts wherever
possible or through the use of green electricity
certificates.
Joint ventures for more fast-charging networks in
Europe, the United States and China
The Mercedes-Benz Group has co-founded the
joint ventures IONITY, IONNA and IONCHI to build
high-performance fast-charging networks for
electric vehicles in Europe, North America and China.
With the IONITY joint venture, the Mercedes-Benz
Group is involved in the development of a fast-charging
network in Europe. At the end of 2024, almost 5,000
IONITY fast-charging points were in operation. These
charging points with up to 350 kW are integrated into
the Mercedes me Charge charging service and enable
fast and convenient charging.
In North America, the Mercedes-Benz Group is involved
with the joint venture IONNA. Together with seven
other leading automobile manufacturers, a network of
at least 30,000 charging points is planned along the
most important routes and urban centres.
In China, the Mercedes-Benz Group is working with
BMW to expand the charging infrastructure. The joint
venture IONCHI aims to have a charging network of at
least 1,000 stations with around 7,000 fast-charging
points by the end of 2026. These should be publicly
accessible and available to all vehicle brands, with
Mercedes-Benz and BMW offering exclusive functions
such as Plug & Charge and reservation.
In all regions, the aim is to operate the joint venture
charging networks exclusively with renewable energy in
order to create a sustainable and environmentally
friendly charging experience.
Smart charging solutions for the home
For many drivers, their own home is the preferred
charging point. On the way to an all-electric future, the
Mercedes-Benz Group is therefore consistently working
on expanding the charging ecosystem with innovative
solutions for the home. In future, electric vehicles and
the energy grid will be intelligently networked in order
to increase the proportion of renewable energies.
With smart charging solutions for private households,
customers can reduce their CO2 emissions and costs or
increase their independence. Mercedes-Benz vehicles
can therefore support two key factors for a successful
energy transition: Reduced electricity costs motivate
customers to specifically charge electricity from
renewable energies and thus actively contribute to the
transformation. At the same time, intelligent control of
charging processes can optimize the distribution of
electricity from renewable energies by using generated
wind and solar power specifically to charge electric
vehicles depending on capacity utilization. In future,
this can reduce both grid bottlenecks and the shut-
down of overproduction of renewable energy sources
in regional electricity distribution networks.
Saving energy with the Eco Coach
The Mercedes-Benz Eco Coach is an app with individual
energy-saving tips for users of plug-in hybrid and
electric vehicles. The app analyses personal driving and
charging behaviour and provides personalized tips on
how to reduce the carbon footprint and increase the
durability of the vehicle battery. The app is available in
ten European countries. From the reporting year 2024,
the Eco Coach app supports users in Germany by
providing charging recommendations or challenges to
carry out their charging process in time windows when
the highest possible proportion of renewable energy is
available.
Metrics
Energy consumption
The Mercedes-Benz Group regularly evaluates and
assesses the main energy sources, purchases and
consumption. The Mercedes-Benz Group records all
energy data worldwide using a data tool and uses it to
determine its energy consumption and own generation.
Invoices from suppliers provide the necessary data
basis. If no invoices are available, the company’s own
measurements are used. The locations are responsible
for fully identifying and documenting the relevant
energy measuring points. In individual cases, the loca-
tions’ energy data managers use expert estimates
based on experience from previous years or projec-
tions with reference to current energy meter data and
unit developments if invoices or measurements are not
available at the end of the year. Conversion factors
come from utility bills and common calculation
standards (e.g. EU emissions trading) or recognized
databases (IEA – International Energy Agency) and
are specified by the company headquarters.
For its production-related targets (energy and CO2
emissions), the Mercedes-Benz Group calculates the
energy consumption of its production sites without
fuels, as fuel consumption is primarily caused by
activities outside of production (including company
vehicles, test benches). Therefore, the specific energy
consumption and CO2 emissions (measured per vehicle
produced) on which the production-related targets are
based are also reported without fuels. Furthermore,
the Mercedes-Benz Group reports the amount of non-
renewable energy produced at its sites and transferred
to third parties. The Mercedes-Benz Group aims to
indicate that a portion of the non-renewable energy
produced by the Mercedes-Benz Group is consumed by
third parties, for example, as part of municipal district
heating supply.
Total energy consumption (in GWh)
2024
Fuel consumption from coal and coal products
0
Fuel consumption from crude oil and petroleum
products
413
Fuel consumption from natural gas
2,407
Fuel consumption from other fossil sources
10
Consumption of purchased or acquired electricity, heat,
steam, or cooling from fossil sources
460
Energy consumption from fossil sources
3,290
Share of fossil sources in total energy consumption
(%)
55.6
Energy consumption from nuclear sources
0
Share of consumption from nuclear sources in total
energy consumption (%)
0
Fuel consumption from renewable sources
33
Consumption of purchased or acquired electricity, heat,
steam, and cooling from renewable sources
2,551
Consumption of self-generated non-fuel renewable
energy
42
Energy consumption from renewable sources
2,626
Share of renewable sources in total energy
consumption (%)
44.4
Total energy consumption
5,916
Energy production1 (in GWh)
2024
Non-renewable energy production
1,217
Renewable energy production
57
Total energy production
1,274
1 Production of electricity and heat at own sites for further use in plants and transfer to
third parties.
The analysis of the net revenue included the climate-
intensive sectors of the production of low-carbon
technologies for transport (economic activity CCM 3.3
of the EU Taxonomy), the production of automotive
and mobility components (economic activity CCM 3.18
of the EU Taxonomy), the infrastructure enabling low-
carbon road transport and public transport (economic
activity CCM 6.15 of the EU Taxonomy) and the sale of
second-hand goods (economic activity CE 5.4 of the EU
Taxonomy).
Total energy consumption per net revenue in high climate impact
sectors (in MWh/million euros)
2024
Total energy consumption per net revenue
48.6
Reconciliation of net revenues from climate-intensive sectors to the
Group’s revenues in million euros
2024
Net revenue from activities in high climate impact
sectors used to calculate energy intensity
121,640
Net revenue (other)
23,954
Total net revenue1
145,594
1 The net revenue refers to Revenue in the Consolidated Statement of Income/Loss.
Further information on energy consumption (in GWh)
– company-specific
2024
Energy consumption in production1
4,296
Transfer of non-renewable energy production to third
parties
144
1 Without fuels.
Energy consumption in production1 per vehicle (in MWh/vehicle)
– company-specific
2024
Mercedes-Benz Cars
2.65
Mercedes-Benz Vans
2.31
1 Without fuels.
Gross greenhouse gas emissions
The Mercedes-Benz Group calculates and documents
its greenhouse gas emissions in Scope 1 to Scope 3 in
accordance with the Corporate Accounting and
Reporting Standard 2004 and the Corporate Value
Chain Standard 2011 of the Greenhouse Gas (GHG)
Protocol initiative.
Scope 1
The Mercedes-Benz Group’s direct greenhouse gas
emissions from the combustion of fuels, heating oil,
natural gas and liquefied petroleum gas are calculated
using constant CO2 emission factors in accordance
with the IPCC Guidelines for National Greenhouse Gas
Inventories and other sources such as the German
Emissions Trading Authority and the German Federal
Environment Agency.
Scope 2
The Mercedes-Benz Group calculates the indirect
greenhouse gas emissions from district heating,
electricity and hydrogen from external generation on a
temporal and regional basis. CO2 accounting is carried
out using the “market-based” accounting approach.
The basis is the GHG Protocol initiative’s guideline for
determining Scope 2 emissions published in 2015. For
the market-based accounting approach, the Mercedes-
Benz Group collects the CO2 emission factors of the
local electricity and district heating tariffs or electricity
and district heating suppliers at its locations world-
wide. Where these and information on residual mix are
not available, the current average emission factor
published for the respective country according to the
International Energy Agency (IEA) or the United States
Environmental Protection Agency (EPA) for the United
States continues to be used for electricity, and the
respective country-specific authority information is
used for district heating. In the reporting year, more
than 90% of the green electricity was sourced through
physical green electricity contracts, with the remainder
obtained through green electricity certificates. In
addition, CO2 emissions are reported using the
“location-based” method, which only includes the
country-specific CO2 emission factors.
Scope 1 and 2 – Further greenhouse gas emissions
In its balances, the Mercedes-Benz Group takes into
account other greenhouse gases in addition to the
greenhouse gas CO2 under Scope 1 and 2. These green-
house gas emissions are disclosed in summary form
in CO2 equivalents in addition to the main greenhouse
gas CO2. The CO2 equivalents in Scope 1 are deter-
mined using the global warming potentials (GWP) and
the emission factors according to the IPCC.
Scope 1 and 2 – Biogenic emissions
In its balances, the Group separately reports the
biogenic Scope 1 and Scope 2 CO2 emissions from the
use of renewable energies (biomass, biogas, district
heating, etc.) in addition to the fossil CO2 emissions
under Scope 1 and 2. In Scope 1, these are calculated
using constant CO2 emission factors in accordance with
the World Business Council for Sustainable Develop-
ment (WBCSD) or the German Emissions Trading
Authority (DEHSt). The biogenic Scope 2 CO2 emissions
are determined based on the biogenic energy
purchases per site. The biogenic CO2 emission factors
are provided by the Federal Office for Economic Affairs
and Export Control.
The basis for calculating the amount of CO2 emissions
is the energy consumption of the respective energy
sources. Further information can be found in the
chapter Climate change mitigation in the downstream
value chain under Metrics.
Scope 3
For the indirect greenhouse gas emissions that occur in
the upstream and downstream value chain, the Group
takes into account other greenhouse gases in addition
to CO2 and reports the biogenic CO2 emissions
separately.
The GHG Protocol distinguishes a total of 15 Scope 3
categories. Emissions are determined on the basis of
extensive methodological considerations and complex
calculations. The reported Scope 3 categories are
selected after an assessment of their significance.
At 75%, the majority of the Mercedes-Benz Group’s
reported Scope 3 emissions arise in the use phase, i.e.,
during fuel and electricity production (well-to-tank) and
during the operation of its products (tank-to-wheel).
The Mercedes-Benz Group calculates these emissions
based on, among other things, global unit sales figures
and the average standardized CO₂ fleet value of the
annual new vehicle fleet. Using a model approach that
includes all vehicle segments, an annual mileage of
20,000 km is assumed. The assumed operating life is
ten years. In total, the mileage based on this
calculation amounts to 200,000 km per vehicle. Details
can be found under Category 11 – Use of sold products.
Further indirect emissions from the supply chain
(Purchased goods and services, Category 1) or in con-
nection with the recycling of vehicles (Category 12) are
calculated using vehicle-specific life cycle assessments
in accordance with ISO 14040/44. The supply chain
accounts for around 17% of indirect Scope 3 emissions.
The assumptions for calculating greenhouse gas
emissions for the Scope 3 categories are described
below. For each category, the scope of the recorded
emissions and the method used are specified, along
with the underlying data basis. For Scope 3 greenhouse
gas emissions, 12 out of the 15 categories are con-
sidered in the calculation scope. 19% of Scope 3 green-
house gas emissions are attributed to categories that
are based on data provided by suppliers or other
partners in the value chain. Of these, 0.5% are cal-
culated using primary data. The remaining Scope 3
greenhouse gas emissions are determined based on
measured activity data. For the calculation of vehicle-
specific greenhouse gas emissions, an internal
calculation tool was used.
Category 1 – Purchased goods and services
– Scope: Greenhouse gas emissions from the
materials and components required to produce the
vehicles
– Method: “average-data” method according to the
GHG Protocol
– Database: Sales figures 2024, component and
material information (vehicle parts lists/IMDS),
life cycle assessment database LCA for Experts
(Sphera Solutions GmbH; Version 2024.2)
Category 2 – Capital goods
– Scope: Greenhouse gas emissions primarily from
activities in civil engineering, building construction,
as well as production machinery and facilities
– Method: “spend-based” method according to the
GHG Protocol
– Data basis: Asset additions and emission factors
weighted by group-wide expenditures (planned
values) from the Exiobase database
Category 3 – Fuel and energy-related activities
(not included in Scope 1 or Scope 2)
– Scope: Greenhouse gas emissions that arise during
the production and provision of energy sources and
are not included in Scope 1 and 2.
– Method: “average-data” method according to the
GHG Protocol
– Data basis: Consumption data from the central
energy management system and emission factors
from data from the German Federal Environment
Agency and the International Energy Agency (IEA)
Category 4 – Upstream transportation
and distribution
– Scope: Greenhouse gas emissions from transport
services for logistics to the upstream point of sale
– Method: “distance-based” method according to the
GHG Protocol; the shipment data is available for the
period from January to December, with the
exception of the shipment data for inbound sea
logistics, which is transmitted with a one-quarter
delay. Therefore, an estimate is used for inbound
sea logistics for Q4/2024. The shipment data for
outbound logistics is available for the months of
January to November and is extrapolated for the
month of December.
– Data basis: Shipment data, emission factors for
inbound logistics road/rail/air/foreign plants as well
as for outbound logistics road/rail/sea from GLEC
Framework V3.0, emission factors for inbound sea
logistics from Clean Cargo, ISO 14083
Category 5 – Waste generated in operations
– Scope: Greenhouse gas emissions from the dis-
posal and recovery of waste from own production
facilities
– Method: “waste-type-specific” method, according to
GHG Protocol
– Data basis: Group-wide waste volumes and
industry-average emission factors from the life
cycle assessment database LCA for Experts
(Version 2024.2)
Category 6 – Business travelling
– Scope: Greenhouse gas emissions from air and
rail travel and rental car journeys of all employees
of the Mercedes-Benz Group
– Method: “distance-based” method according to the
GHG Protocol
– Data basis: Flight data from internal travel
management system and emission factor from the
Department for Environment, Food & Rural Affairs
(DEFRA); rental car traffic through the kilometres
driven with a vehicle class-specific emission factor;
train traffic through the kilometres covered and the
corresponding emission factor from the Transport
Emission Model TREMOD, Federal Environmental
Agency
Category 7 – Employee commuting
– Scope: Greenhouse gas emissions from private and
public transport of all employees of Mercedes-Benz
Group
– Method: “average-data” method according to the
GHG Protocol
– Data basis: Number of working days (Europe includ-
ing home office quota) with statistical commuting
distances (Federal Ministry for Housing, Urban
Development and Building; Statista) and their dis-
tribution across modes of transport (Agora Ver-
kehrswende, Statista), associated emission factors
from TREMOD (German Environment Agency UBA)
and the U.S. Environmental Protection Agency (EPA)
Category 8 – Upstream leased assets
– This category was assessed as not significant in a
significance analysis and is therefore not reported.
Category 9 – Downstream transportation
– This category was assessed as not significant in a
significance analysis and is therefore not reported.
Category 10 – Processing of sold products
– Scope: Greenhouse gas emissions from further
processing of sold Mercedes-Benz Vans chassis
(e.g., by upfitters)
– Method: “average-data” method according to GHG
Protocol; the greenhouse gas emissions from the
additional processing activities of the upfitters are
accounted for based on the additional mass,
analogous to Category 3.1.
– Data basis: Sales figures Vans 2024, component
and material information (vehicle parts lists/IMDS,
Vans), Regulation (EU) 2019/631, life cycle
assessment database LCA for Experts (Version
2024.2)
Category 11 – Use of sold products
– Scope: Well-to-wheel greenhouse gas emissions
from all vehicles in the new car fleet with a mileage
of 200,000 km
– Method: The well-to-tank greenhouse gas emissions
are based on the electricity/fuel production paths
of the respective markets. The CO2 reduction
contribution through green charging for the new car
fleet is determined by combining two market-
specific approaches. Customer charging amounts at
public charging points are recorded via the
Mercedes me Charge service. If renewable energy is
not yet demonstrably available at these points,
green electricity certificates ensure that an
equivalent amount of electricity from renewable
sources is fed into the grid. The charging amounts
recorded for the new vehicle fleet in 2024 are
scaled up for the assumed usage period of ten
years. An exception is the Benelux region, where a
flat-rate calculation of the expected charging
amounts for the assumed usage period of ten years
is performed for the new vehicle fleet from the
factory. Here too, green electricity certificates
ensure that an equivalent amount of electricity from
renewable sources is fed into the grid. The CO2
reduction contribution for Mercedes-Benz Cars in
2024 is about 0.13 t CO2/vehicle. The tank-to-
wheel greenhouse gas emissions are based on the
weighted average CO2 fleet values, taking into
account the currently applicable driving cycles in
the respective EU, China and US markets. Other
greenhouse gas emissions are taken into account
using certified emission values.
– Data basis: certified consumption and emission data
(tank-to-wheel) and the life cycle assessment
database LCA for Experts (Version 2024.2) for well-
to-tank
Category 12 – End-of-life treatment of sold products
– Scope: Greenhouse gas emissions from recovery
and disposal of vehicles at the end of their
operating life (includes dismantling, the shredding
process, and the downstream treatment of the
shredder light fraction (cut-off approach))
– Method: “average-data” method according to GHG
Protocol. Consideration of materials at the end of
life according to the cut-off approach.
– Data basis: vehicle-specific weight information and
life cycle assessment end-of-life model with
emission factors from the life cycle assessment
database LCA for Experts (Version 2024.2)
Category 13 – Downstream leased assets
– This category was assessed as not significant in a
significance analysis and is therefore not reported.
Category 14 – Franchises
– Scope: Greenhouse gas emissions from energy
consumption of independent retailers
– Method: “average-data” method according to GHG
Protocol
– Data basis: Average energy consumption of the
company’s own sales operations (recorded in
Scope 1 and 2) was applied to the global franchise
locations, the respective regional electricity mix
according to IEA was used.
Category 15 – Investments
– Scope: Greenhouse gas emissions from investments
(equity investments) in associated companies and
joint ventures with significant influence
– Method: Consideration of Scope 1 and Scope 2
emissions of the respective company according to
investment share
– Data basis: Internal investment management
system, published information on Scope 1 and 2
emissions of the companies, if this information is
not available, the greenhouse gas emissions of the
remaining companies are extrapolated based on
their book values.
Mercedes-Benz Group greenhouse gas emissions – Scope 1, Scope 2 and Scope 31
2024
Greenhouse gas emissions – Scope 1
Greenhouse gas emissions – Scope 1 (in million t CO2e)
0.6
Percentage of Scope 1 greenhouse gas emissions from regulated emission trading schemes
(in %)
77.4
Greenhouse gas emissions – Scope 2 (in million t CO2e)
Greenhouse gas emissions – Scope 2 – location-based
1.0
Greenhouse gas emissions – Scope 2 – market-based
0.1
Greenhouse gas emissions – Scope 32 (in million t CO 2 e)
Greenhouse gas emissions – Scope 3
128.9
Category 1 – Purchased goods and services
21.9
Category 2 – Capital goods
2.9
Category 3 – Fuel and energy-related activities (not included in Scope 1 or Scope 2)
0.4
Category 4 – Upstream transportation and distribution
2.3
Category 5 – Waste generated in operations
0.1
Category 6 – Business travelling
0.1
Category 7 – Employee commuting
0.2
Category 8 – Upstream leased assets
–
Category 9 – Downstream transportation
–
Category 10 – Processing of sold products
0.1
Category 11 – Use of sold products
97.0
Category 12 – End-of-life treatment of sold products
1.0
Category 13 – Downstream leased assets
–
Category 14 – Franchises
2.5
Category 15 – Investments
0.4
Total greenhouse gas emissions – Scope 1, 2 and 3 (in million t CO2 e)
Total greenhouse gas emissions – location-based
130.5
Total greenhouse gas emissions – market-based
129.6
1 The table contains the applicable columns for the Mercedes-Benz Group according to ESRS.
2 Including the unit sales of the Beijing Benz Automotive Co., Ltd, an associate valued at-equity. (BBAC) and the joint venture Fujian
Benz Automotive Co., Ltd. (FBAC).
Biogenic CO2 emissions Scope 1, Scope 2 and Scope 3 (in million t CO2)
2024
Total biogenic CO2 emissions
7.23
Biogenic emissions – Scope 1
0.008
Biogenic emissions – Scope 2
0.002
Biogenic emissions – Scope 3
7.22
Greenhouse gas emissions Scope 1, 2 and 31 per net revenue2 in t CO2 e/million euros
2024
Greenhouse gas emissions (location-based) per net revenue
896
Greenhouse gas emissions (market-based) per net revenue
890
1 Including the unit sales of the Beijing Benz Automotive Co., Ltd, an associate valued at-equity. (BBAC) and the joint venture Fujian
Benz Automotive Co., Ltd. (FBAC).
2 Net revenue refers to Revenue in the Consolidated Statement of Income/Loss.
In addition to ESRS required reporting at Group level, the company-specific greenhouse gas emissions for Scope 1, 2 and selected Scope 3 categories along the vehicle value
chain are reported separately for the Mercedes-Benz Cars and Mercedes-Benz Vans divisions. This serves to assess the projected CO2 lifecycle emissions of the annual new
vehicle fleet in comparison to the previous year.
Mercedes-Benz Cars greenhouse gas emissions – Scope 1, Scope 2 and Scope 31 emissions in the Cars value chain – company-specific
Absolute CO2e emissions
(in million t CO2e)
Absolute CO2 emissions
(in million t CO2)
Specific CO2 emissions per car                         
(in t CO2/vehicle)
2024
2024
2024
Greenhouse gas emissions – Scope 1 and 2 in production2 – market-based
0.3
0.3
0.2
Greenhouse gas emissions – Scope 3
95.5
88.2
43.9
Category 1 – Purchased goods and services
18.3
16.8
8.4
Category 4 – Upstream transportation and distribution
2.0
2.0
1.0
Category 11 – Use of sold products (WtW)
74.4
68.6
34.2
Category 12 – End-of-life treatment of sold products
0.8
0.8
0.4
Total greenhouse gas emissions – Scope 1, 2 and 3
Total of Cars value chain
95.9
88.5
44.2
1 Including the unit sales of the Beijing Benz Automotive Co., Ltd, an associate valued at-equity (BBAC).
2 Without fuels.
Mercedes-Benz Vans greenhouse gas emissions – Scope 1, Scope 2 and Scope 31 emissions in the Vans value chain – company-specific
Absolute CO2e emissions
(in million t CO2e)
Absolute CO2 emissions
(in million t CO2)
Specific CO2 emissions per van                         
(in t CO 2/vehicle)
2024
2024
2024
Greenhouse gas emissions – Scope 1 and 2 in production2 – market-based
0.1
0.1
0.3
Greenhouse gas emissions – Scope 3
26.8
24.4
60.1
Category 1 – Purchased goods and services
3.6
3.3
8.2
Category 4 – Upstream transportation and distribution
0.3
0.3
0.8
Category 10 – Processing of sold products
0.1
0.1
0.3
Category 11 – Use of sold products (WtW)
22.5
20.4
50.3
Category 12 – End-of-life treatment of sold products
0.2
0.2
0.5
Total greenhouse gas emissions – Scope 1, 2 and 3
Total of Vans value chain
26.9
24.5
60.4
1 Including the unit sales of the Fujian Benz Automotive Co., Ltd, a joint venture valued at-equity (FBAC).
2 Without fuels.
*Data have been audited with reasonable assurance.
1 M1 = Passenger cars.
2 N1 = Light commercial vehicles.
3 Partially, internal unit sales data is used as official registration numbers are not available from all EU countries.
Further information on greenhouse gas emissions Scope 1 and
Scope 2 (in 1,000 tCO2e) – company-specific
2024
Total greenhouse gas emissions Scope 1 and 2 –
market-based
684
Thereof CO2 emissions in production1
423
Thereof CO2 emissions from self-generated non-
renewable energy transferred to third parties 2
29
1 Without fuels.
2 These CO2 emissions are caused from final energy that is produced by the Mercedes-
Benz Group but not consumed by itself.
CO2 emissions of the new vehicle fleet in Europe*
Mercedes-Benz CO2 emissions on average passenger cars and light
commercial vehicles in Europe (in g/km) – company-specific
2024
Passenger cars
1031,2
Light commercial vehicles
2041
1 Internal value.
2 Taking into account the vehicles of the joint venture smart Automobile Co., Ltd. in the
Mercedes-Benz CO2 pool.
The average CO2 emissions of the Mercedes-Benz new
car fleet (categories: M1 1 + N1 2) in Europe (European
Union, Norway and Iceland) are calculated using the
legal regulations based on internal data 3. Based on the
vehicle-specific CO2 emissions according to WLTP from
the Certificate of Conformity (CoC), the average CO2
emissions of all vehicles are determined. The regis-
tered vehicles in the calendar year are decisive for this.
Deviations from the final, official value of the EU
are possible, as registration data for determining the
average CO2 emissions may not be available for all
European countries.
CO2 emissions of the new vehicle fleet in the United
States*
Mercedes-Benz greenhouse gas figures passenger cars, light-duty
trucks and medium-duty vehicles in the US (in g CO2/mi)
– company-specific
2024
Passenger cars
1801
Light-duty trucks
2651
Medium-duty vehicles
4131
1 Internal value.
In the United States, various federal standards regulate
the limitation of greenhouse gas emissions and fuel
consumption. These include the Greenhouse Gas
Emission (GHG) Standard and the Corporate Average
Fuel Economy (CAFE) Standard for Light Duty Vehicles
(passenger cars and light-duty trucks), as well as the
Greenhouse Gas Emission (GHG) Standard and the Fuel
Efficiency (FE) Standard for Medium Duty Vehicles.
To calculate greenhouse gas emissions and fuel
consumption, the production figures for each model
year are taken into account.
Based on certified values, the average CO2 emissions
and fuel consumption are determined. The combined
emissions (combined fuel economy) determined from
various cycles for test groups are calculated in the
US as part of a self-certification process in accordance
with legal requirements. These values are randomly
verified by the Environmental Protection Agency (EPA).
For Light Duty Vehicles (passenger cars and light-duty
trucks), additional legal flexibilities such as off-cycle
credits are applied. These are particularly efficient
technologies that reduce CO2 emissions and fuel con-
sumption in real-world customer use and can be
credited in addition to the certified CO2 and
consumption values.
Some data may not be finalized at the time of
publication and are therefore based on assumptions.
For this reason, slight deviations from the final
regulatory report are possible.
* Data have been audited with reasonable assurance.
1 All considered locations in the respective reporting year of the Sustainability Statement.
2 Net carbon-neutral means that carbon emissions that are not avoided or reduced at Mercedes-Benz are compensated for by certified offsetting projects.
CO2 emissions of the new vehicle fleet in China*
Mercedes-Benz fleet consumption passenger cars (imported) in
China (in l/100 km) – company-specific
2024
Passenger cars
8.381,2
1 Internal value.
2 Value with off-cycle technologies.
In China, domestically produced and imported cars are
calculated separately according to fleet consumption
(Corporate Average Fuel Consumption – CAFC). For
Mercedes-Benz China (MBCL), which does not produce
any vehicles in China itself, the value of the import
fleet is therefore relevant.
Based on the certification values according to WLTC
available at the MN level (Model Name), the average
consumption is determined using the imported
quantities. Additionally, legal flexibilities such as off-
cycle credits are applied. These are particularly effi-
cient technologies that reduce consumption in cus-
tomer operation and can be credited in addition to the
certified consumption values. Some data are not yet
final at the time of publication and are therefore based
on assumptions. For this reason, slight deviations from
the official value of the authorities are possible.
CO2 compensation and removals
The Mercedes-Benz Group aims to reduce greenhouse
gas emissions in its own business activities and
throughout the entire value chain.
The greenhouse gas emissions that cannot be avoided
even after significant reduction at the locations 1
operated by the Mercedes-Benz Group (Scope 1 and
Scope 2) have been offset by qualified climate change
mitigation projects since 2022.
Beyond its own locations, the entire Mercedes-Benz
new vehicle fleet is to be net carbon-neutral 2 across
all stages of the value chain and the entire life cycle
by 2039. The Mercedes-Benz Group intends to
compensate for the emissions that cannot be avoided
at that time through offset projects that meet high-
quality standards.
The Mercedes-Benz Group attaches great importance
to the integrity and quality of the offset projects. All
projects must comply with international accounting
requirements and the quality requirements of the Gold
Standard (high-quality certification standard developed
under the leadership of WWF and with the Federal
Ministry for Environment) or other high-quality
standards. In addition, the Mercedes-Benz Group has
the project quality and the calculation methodology for
new compensation projects verified in advance by an
independent third party in order to identify potential
accounting errors and negative impacts, such as on
the environment and society in the project countries,
at an early stage in the interest of risk minimization.
The project implementation is further monitored
continuously through ongoing communication with the
project providers.
The Mercedes-Benz Group’s offset portfolio is also
being continuously developed. Since 2023, the focus
has been gradually shifting from conventional offset
projects that reduce emissions to carbon removal. Both
technological and biological removal solutions play a
role here.
Offsetting emissions through carbon credits is an
additional contribution by the Mercedes-Benz Group
to climate change mitigation that does not negatively
affect the level of ambition or the fulfilment of the
reduction targets in any way. Greenhouse gas
emissions and corresponding reduction targets are
tracked and reported independently of compensation
actions. There is no crediting of CO2 compensation
towards greenhouse gas emissions or target
achievement.
The required quantity of emission certificates (carbon
credits) is determined and verified using a data tool
based on the reported Scope 1 and Scope 2 emissions.
The corresponding quantity is then deleted in external
registers. Detailed information is determined based on
the project data, documented in an internal database
and verified.
Carbon credits cancelled in the reporting year
2024
Total amount (in 1,000 t CO2e)
684
Share of removal projects1 (in %)
3
Share of reduction projects (in %)
97
Recognised quality standard: Gold Standard (in %)
97
Recognised quality standard: Puro.Earth (in %)
0.3
Recognised quality standard: Verified Carbon Standard
(in %)
2.7
Share issued from projects in the EU (in %)
0
Share that qualifies as a corresponding adjustment
under Article 6 of the Paris Climate Agreement (in %)
0
1 Thereof 90% from biogenic and 10% from technological sinks.
Carbon credits planned to be cancelled in the future1
(in 1,000 t CO2e)
Total amount until 2032
4,507
1 Based on contractual agreements.
Internal carbon pricing
To evaluate internal decision-making processes, the
Mercedes-Benz Group uses internal carbon pricing
systems.
In product development (the focus is on efficiency
measures in vehicle projects), the Mercedes-Benz
Group takes into account different fleet emissions
regulations depending on the region. For example, if
the legally defined EU fleet limit of 95 g CO2/km is
exceeded in the EU, the Mercedes-Benz Group must
pay penalties to the EU of €95 per vehicle sold for each
gram. For vehicles and regions where fleet emission
regulations apply, around 61 million tons of the green-
house gas emissions of the Mercedes-Benz Group in
2024 (Scope 1, 2 and 3) are attributable to vehicle
operation (tank-to-wheel), which corresponds to about
47%.
In its own production, the Group takes into account the
CO2 emission rights of the EU emissions trading system
for energy-related projects (e.g., plant supply, energy
production, and new energy consumers), which is a key
climate policy instrument in Europe. In the reporting
year, the price for exchange-traded EU emission rights
was between €50 and €80/t CO2. Currently, approxi-
mately 269 kilotons of CO2 emissions caused by the
Mercedes-Benz Group in Scope 1 and 2 are covered
under the EU Emissions Trading System, which corres-
ponds to about 52%. In addition to these emission
trading prices, CO2 prices from the German Fuel
Emissions Trading System (€45 per ton of CO2 in 2024)
are also considered as far as applicable for the project.
1 Incl. substances of concern and substances of very high concern according to ESRS.
Pollution
Material impacts, risks and opportunities and
their interaction with strategy and business model
The Mercedes-Benz Group has identified its material
impacts, risks and opportunities related to environ-
mental pollution in accordance with the requirements
of the ESRS. These are described in the chapter
General information under Identification of material
impacts, risks and opportunities and presented in the
table below.
Pollutant emissions can enter the air, water and soil
along the entire value chain, for example, when primary
raw materials are extracted in the upstream value
chain and products are used in the downstream value
chain. In the company’s own business operations, for
example, emissions to air can arise from production
processes.
The Mercedes-Benz Group aims to avoid environmental
damage along the value chain and to ensure that
hazardous substances 1 are handled responsibly. On this
basis, the Mercedes-Benz Group aims to decrease
pollutant emissions in production and formulates
minimum requirements for its suppliers. More detailed
information on the structure of the supply chain can be
found in the chapter General information under
Strategy, business model and value chain. Furthermore,
all business partners are required to adhere to legal
and Group-specific requirements and standards for
environmental protection.
Information on the analysis of the resilience of the
Group’s strategic sustainability focus areas with regard
to the material impacts, risks and opportunities can be
found in the chapter General information under
Material impacts, risks and opportunities.
Pollution – material impacts, risks and opportunities
Direction of action
Time horizon
Localization
Value chain position
Impacts
Pollution of air
Air emissions in the upstream value chain and own production
negative
short-term
local, regional, global
Pollution of water
Water emissions in the upstream and downstream value chain
negative
short-term
regional, global
Pollution of soil
Ground contamination in the upstream value chain
negative
short-term
local
Substances of concern and of very high concern
Use of substances of concern and very high concern in the upstream and downstream value chain
negative
short-term
local, regional
Microplastics
Release of microplastics in the upstream and downstream value chain
negative
short-term
regional, global
VU  =  Value chain upstream
OA  =  Own business activity
VD  =  Value chain downstream
=  actual
 
=  potential
   
=  ESRS compliant target filed
Policies
Environmental protection along the value chain
The Mercedes-Benz Group aims to reduce or com-
pletely avoid pollutant emissions along the entire value
chain, decrease the release of microplastics into the
environment, and to ensure a responsible handling of
hazardous substances.
In the upstream value chain, the contractual conditions
in the supplier management of the Mercedes-Benz
Group also cover the aspects of pollutant emissions
(e.g., to air, water and soil) and hazardous substances.
The monitoring and responsibilities for higher-level
policies in the supply chain and production also relate
to the reduction of environmental pollution. Together
with the overarching supplier management, aspects of
environmental protection are described in the chapter
Climate change mitigation in the upstream value chain
under Policies.
In its own business activities, the Mercedes-Benz
Group regularly conducts training courses on environ-
mental protection at its locations. Important topics
include immission and water protection, wastewater
treatment, emergency management in the event of
environmentally relevant operational disruptions, and
the environmentally friendly planning of facilities and
workplaces.
The Mercedes-Benz Group determines the content, the
frequency and the participants of the various, partly
mandatory environmental training courses depending
on tasks and the function of the employees within the
Group, the location conditions and the current legal
requirements.
The Mercedes-Benz Group takes various technical and
organizational measures to prevent environmental
pollution at its locations. The company implements
certified environmental management systems and
establishes internal guidelines and standards, as well
as internal control, maintenance, and monitoring
measures. During recurring internal environmental risk
assessments at production sites, the Mercedes-Benz
Group takes extensive control and protection
measures.
Reduction of emissions to air in production
Emissions to air are generated at the Mercedes-Benz
Group’s production sites. Reducing these emissions is
an ongoing task and challenge for plant and facility
planning as well as for daily operations.
Depending on the pollutant, the limits and require-
ments for emissions are regulated by law. These limits
serve as a benchmark for the production plants and
the product development of the Mercedes-Benz Group.
Of particular importance for automobile production
are the volatile organic compounds (VOCs), which are
released during vehicle painting, for example. The
Mercedes-Benz Group has developed a standardized
method for VOC data collection, which enables almost
uniform collection at all Mercedes-Benz production
sites and makes it easier to measure progress in
reducing VOCs.
The responsibilities within the Group for emissions
to air and the monitoring are described in the chapter
Climate change mitigation in own business activities
under Policies.
Reduction of particulate emissions and
microplastics while driving
In the reporting year, the new EU emissions standard
Euro 7 (EU7), which for the first time sets limits for
particle emissions from brake wear, came into force.
The introduction of these limits is intended to reduce
the fine particulate matter produced during braking.
The EU has additionally committed through EU7 to
establish a limit for tyre wear, which is intended to help
reduce the release of microplastics into the environ-
ment. In order to comply with future limits, the Group
is constantly developing its technologies in this area.
Actions
Environmental protection in the supply chain
The Group-wide Responsible Sourcing Standards (RSS)
are an important instrument for the transformation of
the supply chain. The topic of environmental protection
and hazardous substance-related aspects are anchored
in them and must be passed on by partners to their
supply chains. Further cross-topic information on
the RSS and the protection of water resources can be
found in the chapter Climate change mitigation in the
upstream value chain under Policies and Water and
marine resources under Actions.
The Mercedes-Benz Group expects its suppliers to
keep their use of chemicals and hazardous substances
as low as possible and to reduce the generation of
hazardous waste in production processes as much as
possible. Critical hazardous substances should be
replaced by less critical substitutes. Suppliers are
required to also incorporate these requirements into
their own supply chain.
According to the RSS, suppliers must identify and label
all chemicals and hazardous substances that are stored
or processed or that arise during production. Suppliers
must avoid hazards posed by these substances,
such as air and soil pollution, water pollution and other
harmful impacts, as far as technically possible.
Reduction of emissions to air in production
In order to further reduce VOC emissions at the
Group’s own production sites, the Mercedes-Benz
Group is modernizing and optimizing old paint shops.
At the Kecskemét plant in Hungary, the Mercedes-Benz
Group started an operational trial with a new exhaust
air purification technology to reduce VOC emissions in
the clear coat line. The method used enables the
breakdown of VOCs at room temperature, with the goal
of achieving this with significantly lower energy
consumption compared to similar thermal processes.
Reduction of particulate emissions while driving
The Mercedes-Benz Group is investigating the actual
values of the fine dust quantities that arise during
driving due to the abrasion of the wheel brakes. It is
analysing the effect of possible technical measures to
reduce the brake abrasion of its own vehicles.
In hybrid or all-electric vehicles, brake dust emissions
can already be increasingly reduced, since a significant
proportion of the deceleration in these vehicles is due
to energy recovery (recuperation).
In addition, the Mercedes-Benz Group is working with
tire manufacturers and scientific institutes to
investigate the causes of tyre wear depending on tyre
properties, road surface conditions and driving
behaviour. With the help of these studies, the Group is
constantly developing its technologies in order to
enable its future compliance with the limit values
currently being developed.
Metrics
Emissions to air
The Mercedes-Benz Group regularly evaluates and
assesses the emissions to air recorded at its locations.
The Group records its emissions to air worldwide using
an internal data management system. The metrics are
determined at location level and based on a
methodology specified across the Group.
VOCs (volatile organic compounds) are a key metric for
emissions to air at the production sites. The sites have
two Group-wide methods available to measure this
(direct and indirect measurement of VOC emissions).
With the direct method, the emitted VOC quantities
are recorded as part of a summary assessment. The
indirect method, on the other hand, describes the
recording of all solvent-containing material brought to
the site. All solvent quantities that are not emitted (e.g.,
burned, disposed of, recovered, etc.) are accordingly
subtracted from the amount of solvent brought in. The
selection of the appropriate method for calculating
VOC emissions depends on the specific conditions at
the site.
The Group determines further metrics for emissions to
air (e.g., NOx, SO2, dust) as an annual load depending
on the legal measurement obligations based on site-
specific measurements of the concentration and
volume flow. If annual data for individual parameters
are not yet available at the time of collection, an
extrapolation based on the previous year’s data is
performed. Additionally, for the parameter zinc, expert
estimates are applied.
Emissions to air (in t)
2024
Solvents – VOC
3,296
Nitrogen oxides – NOx
207
Zinc – Zn
2
Water and marine resources
Material impacts, risks and opportunities and
their interaction with strategy and business model
The Mercedes-Benz Group has identified its material
impacts, risks and opportunities related to water and
marine resources in accordance with the requirements
of the ESRS. These are described in the chapter
General information under Identification of material
impacts, risks and opportunities and presented in the
table below.
Water is an indispensable resource for the environment
and society. It is therefore essential to secure water
resources as a basis for health, ecosystems and the
economy and to prevent pollution.
The Mercedes-Benz Group is aware of its responsibility
and has anchored the issue of water consumption
as an important element in the focus area of Resource
Use and Circularity. Additional information can be
found in the chapter General information under
Strategy, business model and value chain. The Group
has the ambition to conserve water resources through
efficient use and to avoid water pollution through
comprehensive prevention. Innovative solutions such
as wastewater treatment and water recycling are part
of the strategy. Suppliers are contractually obliged
to meet minimum requirements for water protection
and quality as well as the handling of water resources.
Information on the analysis of the resilience of the
Group’s strategic sustainability focus areas with regard
to the material impacts, risks and opportunities can be
found in the chapter General information under
Material impacts, risks and opportunities.
Water and marine resources – material impacts, risks and opportunities
Direction of action
Time horizon
Localization
Value chain position
Impacts
Water consumption and withdrawal
Reduced water availability along the value chain
negative
short-term
regional
Wastewater discharge
Impairment of water quality in the upstream and downstream value chain
negative
short-term
local, regional
VU  =  Value chain upstream
OA  =  Own business activity
VD  =  Value chain downstream
=  actual
 
=  potential
   
=  ESRS compliant target filed
1 In 2023, Mercedes-Benz Cars’ water consumption was 4.03 m3/vehicle.
2 This is a voluntary target set by the Mercedes-Benz Group, which applies to all of the Group’s own production sites.
3 Revision of target system, adjustment of base year from 2013/2014 to 2023, level of tension maintained/increased.
4 Status in the reporting year: according to plan.
5 In 2023, the water consumption of Mercedes-Benz Vans was 3.32 m3/vehicle.
Policies
The Mercedes-Benz Group aims to reduce water
consumption at its locations, to contribute to more
sustainable water management along the value chain
and further reduce water withdrawal, especially in
areas of high-water stress. The overarching strategy is
described in this chapter under Material impacts, risks
and opportunities and their interaction with strategy
and business model.
Upstream value chain
The contractual terms and conditions in the supplier
management of the Mercedes-Benz Group also
cover the aspects of water protection and quality. In
accordance with the Responsible Sourcing Standards
(RSS), suppliers are obliged to comply with these
requirements and communicate them to the further
supply chain.
Further information regarding the requirements for
suppliers, the responsibilities within the Group
for the implementation of these requirements and the
monitoring of these processes are described in
the chapter Climate change mitigation in the upstream
value chain under Policies.
Water consumption at own locations
The Mercedes-Benz Group wants to reduce water
consumption at its locations – for example, through
recycling, i.e., the repeated treatment and use of water
for production purposes. It has also decided to no
longer use drinking water for the main production
processes in the production plants. If possible within
the site-specific conditions, rainwater and surface
water should be used. The responsibilities within the
Group for the implementation of sustainable water use
in production and the monitoring of the policies are
described in the chapter Climate change mitigation in
own business activities under Policies.
Targets
The Mercedes-Benz Group uses internal processes to
monitor the progress and effectiveness of its policies
and actions relating to water. The Group also collects
the metrics described below. The Group uses the
reported metrics to measure the internal impact of the
policies described. In order to review its management
approach and the targets it has set and to adapt them
if necessary, the Mercedes-Benz Group relies on dia-
logues with external stakeholders and uses the results
obtained. Detailed information on these dialogues can
be found in the chapter Climate change under Policies.
– Mercedes-Benz Cars has set itself the goal of
reducing water consumption per vehicle by 50% by
2030 compared to 2023 1, 2, 3, 4.
– Mercedes-Benz Vans has set itself the goal of
reducing water consumption per vehicle by 19% by
2030 compared to 20232, 3, 4, 5.
Actions
Upstream value chain
The sustainability requirements for suppliers are
anchored in the Responsible Sourcing Standards (RSS).
Basic information on these contractual conditions can
be found in the chapter Climate change mitigation in
the upstream value chain under Policies and in the
chapter Workers in the value chain under Policies.
Suppliers of the Mercedes-Benz Group must therefore,
among other things, check the environmental com-
patibility of water discharges and soil degradation and
take suitable preventive actions. In this way, the Group
counteracts the contamination of surface or ground-
water in product procurement and production.
Furthermore, the Mercedes-Benz Group expects its
suppliers in regions affected by water scarcity not
to further increase the existing water stress or water
risk and not to endanger access to clean and sufficient
water for the population.
When it comes to battery procurement, the Mercedes-
Benz Group requires new suppliers to source cobalt,
lithium, nickel, natural graphite and manganese in the
long term from mines that have been audited by the
Initiative for Responsible Mining Assurance (IRMA). The
IRMA criteria also include requirements for water
consumption. If the supplier uses water in mineral
processing, it must identify related challenges and
opportunities at local and national levels and mitigate
negative impacts on the water resource through
appropriate actions.
With the Responsible Lithium Partnership, the
Mercedes-Benz Group is committed to the responsible
use of one of the world’s largest lithium reserves in the
Chilean Salar de Atacama. With the joint action plan,
the partners in the partnership have agreed to protect
the water resources of the catchment area and manage
them more sustainably.
Water footprint analysis
In order to assess the importance of water as a
resource over the life cycle of a Mercedes-Benz
vehicle, the Mercedes-Benz Group analysed the water
footprint of selected model vehicles with an external
partner. To do this, the Group examined the life cycle
phases of a vehicle model and the critical production
process steps in the supply chain. The focus was on
materials such as lithium, aluminium and copper, which
have a high water requirement during production.
Various reduction scenarios were identified. The Group
is currently evaluating the results of the water footprint
analysis in order to derive concrete actions.
Closed water and cooling loops in production
For cooling in production, the Mercedes-Benz Group
has started replacing open cooling towers with closed
and hybrid cooling systems. Treating and reusing
wastewater is a major lever for the Mercedes-Benz
Group to reduce water consumption. It therefore
recycles water in order to reduce its water require-
ments and thus water withdrawal.
In June 2023, the Group launched a pilot project in
wastewater recycling at the Sindelfingen site (Germany)
together with the municipal sewage treatment plant to
replace the drinking and well water used in production
with treated municipal wastewater. In the reporting
year, the site was able to save 165,000 m³ of drinking
and well water. Another pilot test at the Mettingen
plant (Germany) confirmed that the almost closed cycle
saves considerable amounts of water. From 2028, all
production and sanitary wastewater at the site is to be
treated using a wastewater recycling installation and
fed into the existing industrial water network. The same
action is currently being tested for the Untertürkheim
and Bremen plants (Germany).
Water risk assessment
The Mercedes-Benz Group evaluates all locations
worldwide in terms of their location in water stress and
water risk areas. To do this, the Group uses the Water
Risk Filter of the World Wide Fund for Nature (WWF)
and the Aqueduct Water Risk Atlas assessment tool of
the World Resources Institute (WRI). The water risks
identified through the analyses are known at the
locations and extensive wastewater recycling actions
have been implemented, for example, for watering
green spaces. In addition, there are actions at all
locations for wastewater treatment and discharge,
water recycling, preventing contamination of
groundwater and rainwater, and flood protection.
1 Water discharge also includes irrigation of green spaces.
Metrics
Water consumption
In accordance with the requirements of the CSRD and
the associated ESRS, the Group also calculates the
total water consumption from water withdrawal minus
water discharge 1.
In addition, the Mercedes-Benz Group follows its own
calculation method in line with its targets, in accord-
ance with its objectives, which follows the calculation
method mentioned above (water consumption = water
withdrawal – water return). This relates to high-quality
water types consumed by the Mercedes-Benz Group,
such as drinking water, surface water, well water
or rainwater. This approach does not allow for the
deduction of lower quality water types (such as
wastewater) from water consumption.
In both cases, the Mercedes-Benz Group regularly
evaluates and assesses the main water withdrawal
points, discharge routes and consumption. The
Mercedes-Benz Group records all water data worldwide
using a data tool and uses this to determine its water
consumption. The results are reported in consolidated
form. The data basis for this is invoices from suppliers.
If no invoices are available, the company’s own
measurements are used. The locations are responsible
for fully identifying and documenting the relevant
water measuring points. In individual cases, the water
data managers at the locations use expert estimates
based on experience from previous years or projec-
tions based on current water meter data and unit
quantity developments if invoices or measurements
are not available or not available in time by the end
of the year.
In order to balance water consumption in water risk
areas, including areas of high-water stress, the
Mercedes-Benz Group analyses all locations worldwide
with regard to overall water risk and baseline water
stress using the Aqueduct Water Risk Atlas of the
World Resources Institute (WRI).
According to the Aqueduct Water Risk Atlas, total water
risk measures all water-related risks by aggregating all
selected indicators from the categories of physical
quantity, quality, and regulatory and reputational risk.
Baseline water stress reflects the ratio of total water
withdrawal to available renewable surface and
groundwater supplies. Water withdrawal includes
domestic, industrial, irrigation, and livestock purposes.
Higher values indicate more competition among users.
Water consumption in own operations (in 1,000 m3) –
Calculation in accordance with ESRS
2024
Water consumption
2,0911
Water consumption in areas at water risk2
994
Water recycled and reused
1463
Water stored
04
1 More than 90% of the data required to calculate the water consumption is based on
the invoice and measured values. For the rest, extrapolations and best estimates are
used.
2 Including areas of high-water stress
3 More than 95% are based on best estimates.
4 Water storage according to ESRS does not take place at Mercedes-Benz locations.
Water consumption per net revenue1 (in m³/millions of euros) –
Calculation in accordance with ESRS
2024
Water consumption per net revenue
14.4
1 The net revenue refers to Revenue in the Consolidated Statement of Income/ Loss.
Further information on water consumption (in 1,000 m3) –
company-specific
2024
Mercedes-Benz calculation method
Water consumption in own operations
7,471
thereof in production
6,238
Water consumption in production per vehicle (in m³/vehicle) –
company-specific
2024
Mercedes-Benz calculation method
Mercedes-Benz Cars
3.79
Mercedes-Benz Vans
3.56
Biodiversity and ecosystems
Material impacts, risks and opportunities and their
interaction with strategy and business model
The Mercedes-Benz Group has identified its material
impacts, risks and opportunities related to biodiversity
and ecosystems in accordance with the requirements
of the ESRS. These are described in the chapter
General information under Special considerations for
identification of material biodiversity-related impacts,
risks and opportunities and presented in the table
below.
Biological diversity and the services provided by eco-
systems are an indispensable foundation for society
and the environment. This makes it all the more impor-
tant to protect natural habitats. Economic activities
along the value chain can have an influence on this.
As a player in the automotive industry, the Mercedes-
Benz Group is aware of its role in protecting natural
resources, biodiversity and ecosystems. The Mercedes-
Benz Group uses the sustainable focus area of the
sustainable business strategy Resource Use and
Circularity to manage the responsible use of resources
across the Group. Further information can be found in
the chapter General information under Strategy,
business model and value chain.
Through the conscious use of natural resources,
impacts that may occur with regard to biodiversity
along the value chain, such as land-use change and the
spread of invasive species, are to be reduced.
For its own business activities, the Mercedes-Benz
Group considers the proximity of its locations to
biodiversity-sensitive areas. These are already taken
into account when selecting locations and when
planning locations. The Group also takes biodiversity-
relevant aspects into account in construction projects
and checks the need for an environmental impact
assessment (EIA). These assessments, when necessary,
also include consultations with affected communities
to ensure that their concerns and perspectives are
taken into account. Additionally, biodiversity-sensitive
areas are considered in internal due diligence
processes to ensure that impacts on biodiversity are
identified and addressed at an early stage.
Suppliers are contractually obligated to comply
with minimum requirements regarding biodiversity and
deforestation-free supply chains. More detailed
information on the structure of the supply chain can be
found in the chapter Climate change.
Information on the analysis of the resilience of the
Group’s strategic sustainability priorities with regard to
material impacts, risks and opportunities can be found
in the chapter General information under Material
impacts, risks and opportunities.
Biodiversity and ecosystems – material impacts, risks and opportunities
Direction of action
Time horizon
Localization
Value chain position
Contribution to direct influencing factors to the loss of biodiversity
Impacts
Impairment of biological diversity due to CO2 emissions and pollution along the value chain
negative
short-term
local, regional, global
Impairment of biological diversity due to changes in land and fresh/marine water use in the upstream value chain
negative
short-term
regional
Impairment of biological diversity in the upstream value chain
negative
short-term
regional
Spread of invasive alien species in the upstream value chain and the use phase of the vehicles
negative
short-term
regional
VU  =  Value chain upstream
OA  =  Own business activity
VD  =  Value chain downstream
=  actual
 
=  potential
   
=  ESRS compliant target filed
Consideration of biodiversity and ecosystems in
strategy and business model
In addition to the materiality assessment, the
Mercedes-Benz Group has separately determined the
resilience of its strategy and business model with
regard to biodiversity and ecosystems. Detailed infor-
mation on the scope, key assumptions and stakeholder
involvement in the materiality assessment is described
in the chapter General information under Material
impacts, risks and opportunities and in the section
Special considerations for identification of material
biodiversity-related impacts, risks and opportunities of
this chapter.
In the resilience analysis, the Mercedes-Benz Group
assessed its ability to respond to and adapt to external
influences and crises related to biodiversity risks in the
upstream value chain and its own business activities
based on the scenario analysis. This includes the ability
to manage risks associated with the loss of biodivers-
ity, including the ability to respond and adapt to
transition risks, physical and systemic risks. As part of
the materiality assessment, transition risks, physical
risks, and systemic risks were examined, with no
significant risks identified for biodiversity and eco-
systems. For the scenario analysis, relevant risks were
selected. Since only transition risks were identified
as relevant, these were chosen and discussed in the
scenario analysis.
The Mercedes-Benz Group analysed the status quo and
took into account all existing risk mitigation or adapta-
tion actions. Building on the resilience analysis, stake-
holders were mapped for each risk. This provides
an overview of possible stakeholders who can be con-
sulted in engagement programmes. The resilience
analysis has shown that the Mercedes-Benz Group
possesses the capabilities to adapt its strategy and
business model to the identified challenges related
to biodiversity and ecosystems.
Policies
The preservation of biodiversity plays an important role
for the Mercedes-Benz Group. In addition to direct
impacts on biodiversity along the value chain, indirect
impacts can also affect biodiversity and ecosystems
through, for example, emissions to air and water and
resource use.
The Mercedes-Benz Group therefore pursues the
ambition to protect and promote biodiversity and eco-
systems. The Group has developed policies and actions
to deal with these impacts, which are described in the
chapters Climate change, Pollution, Water and marine
resources and Resource use and circular economy. The
policies and actions mitigate and minimize the direct
and indirect impacts of the Mercedes-Benz Group
along the value chain. In doing so, possible social con-
sequences associated with these impacts can also be
addressed.
The Mercedes-Benz Group follows the mitigation
hierarchy by reducing or avoiding environmental
impacts where possible and compensating where
necessary.
The Group is committed to the three fundamental
objectives of the International Convention on Biological
Diversity (CBD) and the Kunming-Montreal Biodiversity
Framework: conservation of biological diversity,
sustainable use of biodiversity and equitable sharing of
benefits arising from the use of genetic resources.
Furthermore, the Mercedes-Benz Group urges its
partners through the RSS to minimize the additionally
required land use and degree of sealing, or to take due
diligence measures to support the long-term protection
of these natural ecosystems.
Supplier management and
protection against illegal deforestation
The contractual conditions for suppliers of the
Mercedes-Benz Group also set requirements for the
protection of biodiversity. The Responsible Sourcing
Standards (RSS) expect, among other things, that
suppliers avoid environmental damage and take due
diligence measures to protect biodiversity. This
includes, among other things, that suppliers take
appropriate due diligence measures to support the
long-term protection of natural ecosystems, including
the protection of natural and cultural values, if there
are risks for the conversion of natural forests or other
natural ecosystems. In addition, the Group requires its
suppliers to set up an environmental management
system in accordance with ISO 14001 or EMAS, through
which biodiversity-relevant activities must be identified
and monitored. This increases transparency in the
supply chain, which improves the traceability of
materials.
The Mercedes-Benz Group requires its suppliers not
to contribute to or profit from illegal deforestation
through their own business activities. In addition, it
contractually obliges its suppliers to take due diligence
measures to support the protection of natural forests
down the supply chain.
Detailed information regarding the requirements for
suppliers, the responsibilities within the Group for
the implementation of these requirements and the
monitoring of these processes can be found in the
chapter Climate change mitigation in the upstream
value chain under Policies.
Prevention of the spread of invasive species
The global exchange of goods can also inadvertently
transport plants and animals over long distances into
areas where they are not native. These invasive or alien
species can have negative impacts on biodiversity.
The Mercedes-Benz Group is driving forward its local-
for-local strategy to make its supply chain more
resilient and reduce transport routes. This approach
also helps prevent the spread of invasive or alien
species.
Promotion of biodiversity at the production sites
The Mercedes-Benz Group has the ambition to act in an
environmentally conscious manner at all locations and
to continuously improve its operational environmental
performance. This also includes preserving and pro-
moting biodiversity at the production sites.
As part of an internal environmental due diligence
process to assess environmental risks, the Group
creates location profiles for its production plants
worldwide. The Group takes into account, among other
things, the degree of sealing of the sites, the hydro-
geological situation and the classification of the area
according to the type of building use and the use in
the immediate vicinity. It also checks and documents
whether the site and the surrounding area are in
ecologically sensitive areas or protected zones. When
planning sites, the Group also takes into account the
land use for construction projects, which should
generally be kept as low as possible.
Some of the German plants of the Mercedes-Benz
Group evaluate their areas using the internally
developed biodiversity index (BIX). An internal guide-
line has been created for this purpose, which the sites
can use as a guide. This makes it possible to categorize
the areas based on their nature using an internal
evaluation matrix. This enables the sites to identify
their areas in terms of their potential and develop
actions to increase biodiversity and thus ecological
value.
Biodiversity aspects are part of the environmental
management assessment process at the individual
sites. Detailed information on responsibilities and
the monitoring of sustainability processes at the
production sites can be found in the chapter Climate
change mitigation in own business activities under
Policies.
Actions
Policy initiatives and partnerships to
promote biodiversity
In addition to its operational business activities, the
Group is involved in foundations such as the Global
Nature Fund as well as in various associations,
committees and sustainability initiatives. The Group
is also committed to the International Convention
on Biological Diversity (CBD) with a focus on the
conservation of biological diversity (genetic diversity,
species diversity, diversity of habitats), sustainable use
of biological diversity and a fair sharing of the benefits
arising from the use of genetic resources.
The Mercedes-Benz Group is a member of the Bio-
diversity in Good Company initiative (BiGC). By joining
the initiative, the Group wants to intensify its com-
mitment to greater sustainability and aims to promote
biodiversity, particularly in its supply chains, through
cooperation and knowledge exchange with other
companies.
Furthermore, the Mercedes-Benz Group AG and Hydro
(Norsk Hydro ASA, Norway) together with local NGOs
and partners signed a memorandum of understanding
on cooperation in the state of Pará, Brazil, during
the reporting year. Together they want to promote the
preservation of biodiversity in the Amazon region
in order to achieve progress for people and nature.
The programme will initially identify ways to curb
deforestation. In addition, contributions will be made
to the regeneration of nature.
Supplier management and
protection against illegal deforestation
The contractual terms in supplier management at the
Mercedes-Benz Group also cover aspects of biodiver-
sity and deforestation-free supply chains. Suppliers’
business activities must not contribute to or benefit
from the illegal conversion of natural ecosystems
or the endangerment of natural forests. In addition,
suppliers must implement due diligence measures to
support the protection of natural forests further down
the supply chain.
For battery-related contracts, the Group requires an
IRMA audit of mines for cobalt, lithium, nickel, graphite,
manganese and copper. Accordingly, the mine opera-
tors are required to assess possible impacts on bio-
diversity, ecosystems and protected areas near the
mining area, mitigate negative impacts and check the
effectiveness of the actions. Detailed information on
the IRMA audit is described in the chapter Water and
marine resources under Actions. The Mercedes-Benz
Group expects its suppliers to comply with the
established goals and measures and to pass on and
enforce these requirements with their own suppliers.
When dealing with impacts on biodiversity along the
supply chain, the Mercedes-Benz Group follows the
principle of “empowerment before withdrawal”.
Accordingly, the Group does not generally exclude
high-risk areas as sources of critical raw materials.
Rather, the approach aims to improve the situation on
site for people and the environment and to work
closely with relevant stakeholders in the raw material-
specific supply chains. The Mercedes-Benz Group
is thus guided by the recommendations of NGOs,
policymakers and other relevant interest groups.
The production of leather and the associated animal
husbandry, for example in Brazil, can have a negative
impact on biodiversity due to changes in land use. Only
around 5% of the leather used by the Mercedes-Benz
Group comes from Brazil. The Group already sources
more than half of this leather from companies that
make it possible to fully trace the hides back to the
farm where the cattle were born. The Mercedes-Benz
Group is also working on creating this transparency for
the other leather components from Brazil. To this end,
the Mercedes-Benz Group has signed a memorandum
of understanding with a local supplier and an
international organization in which they commit to
working together on solutions for deforestation-free
leather supply chains. Hides identified as critical are
excluded from further processing in Mercedes-Benz
Group products. Detailed information on the sourcing
of leather products is described in the chapter
Resource use and circular economy under Actions.
Biodiversity at the production sites
The Mercedes-Benz Group has developed internal
recommendations for action that serve as basic infor-
mation for improving land use and improving bio-
diversity at its German sites. These provide plants and
business units with practical advice on how they
can design their land in a way that is close to nature.
The Mercedes-Benz Group has already established
numerous actions in its production plants worldwide to
protect, preserve and improve biodiversity. For
example, nesting aids for native birds and insects have
been built and wild bee hotels have been set up. Some
locations have created green roofs, dry streams and
stone areas as habitats for cold-blooded animals as
well as rock gardens and flower meadows.
The German Nature and Biodiversity Conservation
Union (NABU) monitors and documents the implemen-
tation of actions to protect flora and fauna at the
German sites. The actions were decided individually
at the level of the factory sites and their management
and implemented in cooperation with the environmen-
tal protection, technical service and factory planning
departments.
The Group uses regular internal communication actions
to raise awareness among its employees about the
importance of biodiversity.
Protection of biodiversity during vehicle use
Based on the materiality assessment, the ENCORE tool
and life cycle assessment evaluations, the Mercedes-
Benz Group determined that climate change mitigation
and resource conservation are the relevant levers for
reducing a product-related biodiversity footprint. The
Mercedes-Benz Group addresses both levers through
concrete targets and actions in the areas of Climate
change and Resource use and circular economy.
Resource use and circular economy
Material impacts, risks and opportunities and
their interaction with strategy and business model
The Mercedes-Benz Group has identified its material
impacts, risks and opportunities related to resource
use and the circular economy in accordance with
the requirements of the ESRS. These are described in
the chapter General information under Identification
of material impacts, risks and opportunities and
presented in the table below.
The steadily increasing resource consumption world-
wide has negative impacts on the environment and
society. Extracting and processing primary raw
materials is often energy-intensive and can harm the
environment. The Mercedes-Benz Group has the
ambition to increasingly decouple resource consump-
tion from the growth of its production output and to
keep the consumption of primary resources as low as
possible. In this way, the Group wants to make a
contribution to promoting both economic growth and
sustainability. The Mercedes-Benz Group can only
achieve this by consistently conserving resources and
further closing the recycling cycles. The Mercedes-
Benz Group is also increasingly orienting itself towards
the principles of the circular economy.
In addition, the Mercedes-Benz Group formulates
minimum requirements for its suppliers in order to
counteract negative impacts on resource consumption
in the upstream value chain. The Responsible Sourcing
Standards require direct suppliers to adhere to speci-
fications for protecting the environment and resources,
for example, by providing information on the use
of sustainable materials. Additional information on the
structure of the supply chain can be found in the
chapter General information under Strategy, business
model and value chain and in the chapter Climate
change mitigation in the upstream value chain under
Policies.
The Mercedes-Benz Group aims to keep the amount of
waste generated in production as low as possible. To
this end, the total waste, including waste for disposal,
is to be steadily reduced.
The Mercedes-Benz Group manages the issue of
resources and recycling through the sustainable focus
area of Resource Use and Circularity. Further informa-
tion can be found in the chapter General information
under Strategy, business model and value chain.
Information on the analysis of the resilience of the
Group’s strategic sustainability focus areas with regard
to the material impacts, risks and opportunities
can be found in the chapter General information under
Material impacts, risks and opportunities.
Resource use and circular economy – material impacts, risks and opportunities
Direction of action
Time horizon
Localization
Value chain position
Resource inflows, including resource usage
Impacts
Resource consumption along the value chain
negative
short-term
global
Resource outflows in connection with products and services
Impacts
Recycling of vehicles
positive
medium-term
regional
Waste
Impacts
Waste generation along the value chain
negative
short-term
local, regional
VU  =  Value chain upstream
OA  =  Own business activity
VD  =  Value chain downstream
=  actual
 
=  potential
   
=  ESRS compliant target filed
Policies
Decoupling resource consumption from
growth
The Mercedes-Benz Group wants to increasingly
decouple its resource consumption from the growth of
its production output and keep the consumption of
primary resources as low as possible. Plastics, steel
and aluminium are particularly important materials for
this approach, as they are required in large quantities
in vehicle production and are particularly energy and
resource intensive.
The Mercedes-Benz Group is increasingly focusing on
the circular economy. With the aim of establishing a
design-for-circularity approach, durability, repairability,
reusability and recyclability are particularly taken into
account in the development of their vehicles and
components. When developing products, the Group
creates a recycling concept for each type of recycling
right from the start. To do this, it analyses all compo-
nents and materials and checks to what extent they are
suitable for the various stages of the recycling process.
The ambition of the Mercedes-Benz Group with regard
to its resource consumption and circular economy
is described in the section Material impacts, risks and
opportunities and their interaction with strategy and
business model.
Resource conservation along the value chain
Mercedes-Benz Cars and Mercedes-Benz Vans strive
to limit the amount of primary material and increasingly
reduce its proportion through the use of secondary
materials. For new Mercedes-Benz vehicles, the
Mercedes-Benz Group specifies a minimum proportion
of recycled material for each focus material in its
specifications.
1 A waste hierarchy defines the various approaches for handling waste and prioritizes them. The most important measures are those that are especially environmentally compatible.
Already during vehicle development, Mercedes-Benz
Cars and Mercedes-Benz Vans follow the “Design for
Environment” approach. During the conception phase,
experts from the specialist departments rethink the
composition of the materials, examine alternatives, use
recycled materials where possible and pay attention to
lightweight construction and recyclability. This should
make the vehicles more resource-efficient throughout
their entire life cycle. The Head of Development of
Mercedes-Benz Group AG is always involved in funda-
mental decisions regarding construction concepts,
manufacturing technologies and the use of materials.
To do this, it takes a variety of factors into account – in
addition to costs, resource-efficient technologies and
the use of alternative materials such as secondary
materials and renewable raw materials, this also
includes industrialisation options. In doing so, it
examines the extent to which development results can
be transferred to large-scale industrial production, for
example, with regard to the use of raw materials.
The Group assesses the resource efficiency of a vehicle
based on various factors. The Mercedes-Benz Group
takes into account, among other things, the medium
and long-term availability of raw materials, social
acceptance and the social and environmental impacts
and risks of the raw materials. In product development,
the Group uses material balances to assess and
compare different vehicles, components and tech-
nologies. The 360° Environmental Check of the vehicles
at Mercedes-Benz Cars also contributes to this, which
is described in the chapter Climate change mitigation in
the downstream value chain under Policies.
Together with its suppliers, the Mercedes-Benz Group
aims to continuously increase the proportion of
secondary materials in its vehicles. With the Respon-
sible Sourcing Standards (RSS), the Mercedes-Benz
Group defines environmental requirements in its
supplier contracts and requires information on the use
of secondary materials. In addition, the Group expects
its suppliers to choose to use secondary, bio-based
and renewable materials wherever possible and to
develop new sources of secondary raw materials. Basic
information on the contract terms and requirements
for suppliers as well as the responsibilities within the
Group for implementing these requirements can be
found in the chapter Climate change mitigation in the
upstream value chain under Policies and in the chapter
Workers in the value chain under Policies.
The Mercedes-Benz Group aims to keep the amount of
waste generated in production as low as possible and
to reduce it continuously, taking the waste hierarchy 1
into account. To this end, it aims to continuously
reduce total waste, including waste for disposal.
Basic information on the policy at the production
sites is also described in the chapter Climate change
mitigation in own business activities under Policies.
As an automobile manufacturer, the Mercedes-Benz
Group is responsible for ensuring that the Group’s end-
of-life vehicles, which have been handed over to
Mercedes-Benz AG’s collection network in Germany
free of charge by the last owner, are disposed of in an
environmentally friendly manner. The Group strives to
avoid vehicle waste and to promote the return, reuse
and recycling of vehicles and their components.
Identification of critical raw materials
Electromobility is changing the need for increased use
of specific raw materials such as cobalt and lithium.
The Mercedes-Benz Group analyses these raw
materials in comprehensive raw material assessments
in order to counteract potential human rights and
environmental risks. The Group is conducting intensive
research into substitution technologies for critical raw
materials. Suppliers are involved in these processes in
order to jointly pursue the strategic ambitions.
1 Voluntary goal.
2 Status in the reporting year: according to plan.
3 In 2023, the total amount of waste per vehicle in production was 401.2 kg/vehicle (cars) or 103.3 kg/vehicle (vans).
4 Revision of target system, adjustment of base year from 2018 to 2023, level of tension maintained/increased.
5 The voluntary target refers to the first level of the waste hierarchy (prevention).
6 In 2023, the waste for disposal per vehicle in production was 3.5 kg/vehicle (cars) or 9.1 kg/vehicle (vans).
Involvement in raw material initiatives
For the Mercedes-Benz Group, involvement in raw
material initiatives is an important tool for promoting
the responsible procurement of raw materials. The
Mercedes-Benz Group focuses on the resources
aluminium and steel.
The Mercedes-Benz Group has been a member of the
Aluminium Stewardship Initiative (ASI) since 2018. It
thus supports an independent certification system with
ethical, ecological and social aspects for the entire
aluminium value chain. The suppliers of the European
foundries and press shops of the Mercedes-Benz
Group only receive orders on the condition that all
production stages of the primary aluminium used, from
the mine to the rolling mill, are ASI-certified.
Since 2018, the Mercedes-Benz Group has also been
a member of the Responsible Steel Initiative, which
is developing a uniform certification scheme. This
includes requirements for the responsible use of re-
sources and addresses the greenhouse gas emissions
of the steel industry.
Targets
The Mercedes-Benz Group uses internal processes to
monitor the progress and effectiveness of its policies
and actions related to resource conservation. In order
to review its management approach and its set targets
and to adapt them if necessary, the Mercedes-Benz
Group relies on dialogues with external stakeholders
and uses the results obtained. Further information on
these dialogues can be found in the chapter Climate
change under Policies.
External and internal sustainability requirements at the
Mercedes-Benz Group are anchored in a target system
approved by the Board of Management of Mercedes-
Benz Group AG. The Group reviews the targets
annually.
The ambition of the Mercedes-Benz Group is to
decouple resource consumption from volume growth
by increasing the use of secondary material in their
vehicles. To this end, the Group has set itself a
corresponding goal, which was developed based on
a strategic planning scenario.
– Using secondary raw materials of 40% within the
next decade in line with the “Ambition 2039” 1, 2.
To achieve its goals, the Mercedes-Benz Group aims to
minimize the share of primary raw materials and use
circular-oriented materials, focusing on the Design-for-
Circularity approach for product design. Additionally,
the Mercedes-Benz Group is working on increasingly
using renewable raw materials.
To achieve the ambition of reducing waste generation
in production, the Mercedes-Benz Group has set
corresponding targets.
– Reduce the total amount of waste per vehicle in
production by 19% (Mercedes-Benz Cars) and
16% (Mercedes-Benz Vans) by 2030 compared to
20232, 3, 4, 5.
– Reduce the waste for disposal per vehicle in
production by 41% (Mercedes-Benz Cars) and 65%
(Mercedes-Benz Vans) by 2030 compared to
20232, 4, 5, 6.
To define and achieve its objectives, the Group follows
the waste hierarchy, according to which waste preven-
tion has first priority.
Actions
Secondary materials and renewable raw materials
The Mercedes-Benz Group relies on secondary
materials, such as recyclates, as well as on the use of
renewable raw materials in its vehicles. Mercedes-Benz
Cars and Mercedes-Benz Vans already use recycled
materials in all series-produced vehicles.
These include, for example, upholstery fabrics for the
interior, which are made from up to 100% recycled
PET, as well as leather-free equipment variants, which
consist of up to 73% recycled material. In collaboration
with Pyrum Innovations AG and BASF, a new type of
recycled plastic is being created through chemical
recycling of used vehicle tires. The Mercedes-Benz
Group is already using the innovative plastic in series
for various components and wants to continuously
use chemical recycling for other plastic components
in the vehicle. These secondary materials can help
to reduce CO₂ emissions in the manufacturing process
of the materials and reduce the primary resource
requirement.
In addition to secondary raw materials, the Mercedes-
Benz Group also relies on the use of natural fibres and
textiles to replace conventional plastics with renewable
raw materials. The Group already uses a wide range
of renewable raw materials such as hemp, kenaf, wool
and natural rubber.
Lightweight construction to reduce resource usage
The right materials as well as intelligent component
design and manufacturing technology can significantly
reduce the weight of a vehicle while maintaining high
safety and comfort standards. Lightweight construction
can therefore directly reduce the amount of material
needed to manufacture the vehicle. It should be noted
that in electric vehicles the eDrive system accounts for
the largest proportion of the weight, while in conven-
tionally powered cars the bodyshell is the heaviest. For
the body, the Mercedes-Benz Group is increasingly
working with aluminium alloys for external body parts
and reinforcement parts in order to optimize the weight
and functionality of the vehicle bodyshell.
Sustainable materials in the supply chain
As part of the Group-wide Responsible Sourcing
Standards (RSS), the Mercedes-Benz Group expects its
suppliers to continuously develop and scale recycling
technologies and to develop alternative sustainable
materials in order to ensure the highest possible use of
secondary materials in the product. The Mercedes-
Benz Group wants to respond to volatile purchasing
prices for sustainable materials through partnerships
and long-term supply contracts. More cross-topic
information on the RSS can be found in the chapter
Climate change mitigation in the upstream value chain
under Policies.
The Group is researching animal-free, resource-saving
alternatives to genuine leather. When the Mercedes-
Benz Group develops and selects these materials, it
ensures that the proportion of recycled material is as
high as possible or that renewable raw materials are
used instead of petroleum-based raw materials.
In selected models, Mercedes-Benz already offers
sustainably produced and processed leather, tanned
exclusively with plant-based, organic-mineral, or
alternative chrome-free tanning agents. This offering
will also be extended to models of the upcoming
vehicle architecture. For future model series, the
company aims to secure leather from producers
certified to the Gold Standard of the Leather Working
Group. This includes, among other things, the
requirement to reduce water, energy, and chemical
usage in the tanning process.
In addition, the Mercedes-Benz Group is working with
its suppliers to improve the environmental impact of
leather products. Partners must submit a life cycle
assessment for the entire value chain so that they can
take targeted actions to reduce the ecological footprint
of the leather. Information on the requirements for
suppliers regarding deforestation-free leather supply
chains can be found in the chapter Biodiversity and
ecosystems under Actions.
Contribution to circular economy
The overarching goal of the circular economy is to
preserve the value of products, components and
materials for as long as possible. The Mercedes-Benz
Group is also increasingly relying on actions that
promote the circular economy.
Reuse
The Mercedes-Benz Used Parts Centre (MB GTC) uses
components from Mercedes-Benz vehicles that are no
longer in use and sells them as used spare parts. Only
if the removed parts meet the strict quality require-
ments of the MB GTC are they offered for sale with the
same guarantee as a new part. Components that do
not meet the requirements of the MB GTC are recycled.
This allows valuable raw materials to be recovered and
kept in circulation, in particular copper from vehicle
cables, gold from control unit circuit boards or
platinum from catalytic converters.
Lithium-ion batteries also contain valuable raw
materials such as lithium or cobalt. For this reason, the
Mercedes-Benz Group is striving to reuse the battery
in the vehicle or to convert it for use in a stationary
energy storage system. The Group is gradually expand-
ing its solutions for remanufacturing and reuse
defective batteries to include newer battery genera-
tions. In this way, the Group is improving the environ-
mental footprint of electric vehicles and at the same
time contributing to a more sustainable energy
industry.
Recycling and recovery
Aluminium scrap plays a crucial role in reducing the
Mercedes-Benz Group’s primary resource require-
ments. To achieve this, the Group relies on innovative
recycling processes and cooperation with partners.
In partnership with aluminium manufacturer Hydro,
Mercedes-Benz Group AG has brought components for
the bodyshell made of CO2-reduced aluminium with
a minimum proportion of 25% post-consumer scrap
into series production.
Batteries are an important component in the transition
to climate-friendly electric mobility. The Mercedes-
Benz Group has the ambition to further increase the
recycling rate of batteries in order to use the raw
materials they contain in the long term. If a battery can
no longer be reprocessed or reused, it is recycled.
During the reporting year, Mercedes-Benz AG built its
own pilot factory for recycling lithium-ion battery sys-
tems at the Kuppenheim site (Germany). The ambition
is to achieve a recovery rate of more than 96%
with their integrated mechanical-hydrometallurgical
process. In the reporting year, it is the first facility
of its kind in Europe. While the mechanical process
sorts plastics, copper, aluminium and iron by type in
a complex, multi-stage process, the downstream
hydrometallurgical process deals with the so-called
black mass. In a multi-stage chemical process, the
valuable metals cobalt, nickel and lithium are extracted
individually. These recyclates are of battery quality and
are therefore suitable for the production of new
battery cells. The installation is being funded by the
German Federal Ministry for Economic Affairs and
Climate Action as part of a scientific research project.
Mercedes-Benz AG is also working with partners in
China and the United States to create a closed
materials cycle for batteries.
In a pilot project with TSR Recycling GmbH & Co. KG,
Mercedes-Benz AG wants to gain a better understand-
ing of the potential of post-consumer materials in
Europe. To this end, the partners have signed a memo-
randum of understanding that relates, among other
things, to the recovery of secondary raw materials
through urban mining. The focus is on steel, aluminium,
plastics, copper and glass. Together, the two com-
panies want to analyse the demand for secondary raw
materials and their sources and carry out an economic
assessment over the course of 2025.
The German retail organization’s workshop disposal
system Mercedes Recycling Management System
(MeRSy) collects and recycles workshop waste, includ-
ing vehicle parts, fluids and spare parts packaging that
arise during the maintenance or repair of vehicles.
For the environmentally friendly disposal of returned
Mercedes-Benz vehicles in line with the end-of-life
vehicle regulation, the Mercedes-Benz Group com-
missions partners with Germany-wide networks of
recognized collection points in order to ensure that the
vehicles are disposed of in an environmentally friendly
and legal manner. Recognized and certified dismantling
companies process the end-of-life vehicles and remove
1 Information exclusively for Mercedes-Benz Cars.
all fluids. During dismantling, the companies remove
components, substances and materials that are either
disposed of as pollutants or, in accordance with legal
requirements, are primarily reused or recovered. In
accordance with the legal requirements of the End-of-
Life Vehicle Ordinance, the dismantling companies are
obliged to take adequate precautions to ensure that
they do not impair the quality of the recyclable waste.
In addition, they must avoid endangering the
environment and comply with the relevant legal
regulations on environmental protection.
Reduction of waste volumes
In Europe, the Mercedes-Benz Group records waste
according to waste code numbers and disposes of it in
accordance with legal regulations. The Mercedes-Benz
Group works with licensed and regularly certified waste
disposal companies to ensure the professional disposal
of waste.
With the help of new and optimized production
processes and partnerships throughout the entire value
chain, the Mercedes-Benz Group reduces waste and
prepares it for reuse or recovery. Less than 1% of the
waste from Mercedes-Benz Cars had to be disposed of
in the reporting year.
For transparency regarding internal waste flows,
Mercedes-Benz AG implemented an IT and
measurement system at its German locations during
the reporting year. In addition to the waste code
numbers and the recording of waste types, the new
system offers the possibility of allocating waste
generated in operations according to the originator, i.e.
at the level of the areas of responsibility.
In addition, the Mercedes-Benz Group continues to
reduce waste such as offcuts, sands, rejects and
sludges through new or optimized production
processes.
The introduction of a resource cycle in Mettingen leads
to a saving of 20 metric tons of plastic caps per year.
Plastic caps, which protect the gearboxes from damage
or pollution, are now cleaned and reused instead of
being shredded.
Metrics
Resource inflows
The vehicles of the Mercedes-Benz Group are made of
materials such as steel, iron materials, light metals,
polymer materials and other materials. The Mercedes-
Benz Group uses natural resources, e.g. water, and
technical resources such as raw materials and vehicle
parts as well as property, plant and equipment for its
production processes. Information on the water used in
the Group’s own business activities can be found in the
chapter Water and marine resources under Metrics.
The total material inflow includes the vehicle-relevant
gross material usage, which consists of the materials
installed in the vehicle and the production-related
waste quantities. 1
The Group records the quantity structure for vehicle
materials via IMDS (International Material Data System)
and multiplies this by the number of units. The
information of the trim waste quantities are provided
via the internal disposal management.
The Group determines the secondary material content
by analysing supplier declarations in IMDS and surveys
of semi-finished product suppliers, taking into account
industry standard values provided by institutions.
Resource inflows Mercedes-Benz Group
2024
Total weight of products and technical and biological
materials used during the reporting period (in 1,000 t)
4,096
Share of certified biological materials (in %)
0
Weight of secondary materials (in 1,000 t)
711
Share of secondary materials (in %)
17.4
Quantities of waste
The waste generated by the Mercedes-Benz Group
primarily results from production waste quantities.
Significant waste streams in production include, for
example, scrap, sand, emulsions, rinsing solutions from
technical cleaning, household-like waste, and
packaging. These waste streams encompass metals
(e.g., steel/aluminium scrap) as well as non-metals
(e.g., plastics and textiles). Additionally, all other waste
generated by the Mercedes-Benz Group is recorded.
Waste (in 1,000 t)
2024
Hazardous waste: Preparation for reuse
0.2
Hazardous waste: Recycling
21.3
Hazardous waste: Other recovery
24.7
Total amount of hazardous waste diverted from
disposal
46.2
Non-hazardous: Preparation for reuse
2.7
Non-hazardous: Recycling
561.3
Non-hazardous: Other recovery
85.1
Total amount of non-hazardous waste diverted from
disposal
649.1
Total amount of waste diverted from disposal
695.3
Hazardous waste: Incineration
2.3
Hazardous waste: Landfill
8.8
Hazardous waste: Other disposal operations
2.6
Total amount of hazardous waste directed to
disposal
13.7
Non-hazardous: Incineration
1.5
Non-hazardous: Landfill
5.7
Non-hazardous: Other disposal operations
3.6
Total amount of non-hazardous waste directed to
disposal
10.9
Total amount of waste directed to disposal
24.6
Total amount of waste
720.0
thereof non-recycled waste1
134.4
thereof percentage of non-recycled waste in %
18.7
thereof radioactive waste
0
1 The definition of recycling is based on the requirements of the ESRS. This includes
the volumes under the category “Recycling” and the volumes under the category
“Preparation for Reuse”.
Further information on waste (in 1,000 t) – company-specific
2024
Total amount of waste
720.0
thereof in production
518.0
Waste in production per vehicle (in kg/vehicle) – company-specific
2024
Waste Mercedes-Benz Cars
Total amount of waste in production
367.5
thereof waste directed to disposal
2.4
Waste Mercedes-Benz Vans
Total amount of waste in production
88.6
thereof directed to disposal
8.1
The Mercedes-Benz Group regularly evaluates and
assesses the hazardous and non-hazardous waste it
generates in the waste categories specified by the
ESRS. The Mercedes-Benz Group records its amount of
waste generated worldwide using an internal data man-
agement system and reports the results in aggregated
form. The types of waste and the corresponding
quantities are assigned to the respective categories by
the locations. The quantities are mostly recorded using
direct interfaces in IT data collection systems or using
individual data collection tools at the locations. The
determination is based on weight data, either through
weighing at the sites or weighing data from the disposal
companies. For a small proportion, estimates are made,
particularly based on extrapolations.
EU Taxonomy
One of the important goals of the Commission Action
Plan on Financing Sustainable Growth in the context of
the European Green Deal is to divert capital flows to
sustainable investments. This is also the logic behind
the Regulation (EU) 2020/852 of the European Parlia-
ment and of the Council of 18 June 2020 on the
establishment of a framework to facilitate sustainable
investments, and amending Regulation (EU) 2019/2088
(hereinafter referred to as the “Taxonomy Regulation”)
that came into force in mid-2020. This regulation
governs the establishment of a standardized and
legally binding classification system that defines the
types of economic activities in the EU that are con-
sidered to be Taxonomy-aligned – and thus environ-
mentally sustainable with regard to six environmental
objectives established by the regulation:
– Climate change mitigation
– Climate change adaption
– Sustainable use and protection of water and
marine resources
– Transition to a circular economy
– Pollution prevention and control
– Protection and restoration of biodiversity and
ecosystems
Companies that are required to publish a Non-Financial
Declaration must also comply with the Taxonomy
Regulation. According to Article 8 of the Taxonomy
Regulation, the Taxonomy-aligned proportions of
revenue, capital expenditure and operating expenditure
accounted for by environmentally sustainable eco-
nomic activities are to be reported by companies on an
annual basis. An economic activity is classified as
Taxonomy-aligned if it is described in the delegated
acts for the Taxonomy Regulation, makes a substantial
contribution to an environmental objective, does not
significantly harm any other environmental objective
and meets the minimum standards that are based on
international frameworks.
For the environmental objectives climate change
mitigation and climate change adaptation, the
delegated acts of the EU (Commission Delegated
Regulation (EU) 2021/2139 and its supplement,
Commission Delegated Regulation (EU) 2023/2485,
which was adopted by the European Commission in
June 2023) contain descriptions of relevant economic
activities and technical screening criteria. In 2023, a
further delegated act of the EU (Commission Delegated
Regulation (EU) 2023/2486) containing economic
activities and technical screening criteria relevant for
the remaining environmental objectives was published.
Taxonomy-eligibility
Taxonomy-eligibility is assessed in an initial step. For
an economic activity to be Taxonomy-eligible, that
activity must be mentioned and explained in further
detail in the delegated acts for the Taxonomy Regula-
tion. The economic activities are identified by a
numbering system specified in the delegated acts.
The economic activities relevant to the Mercedes-Benz
Group in this context are to be found under the
environmental objectives climate change mitigation
and transition to a circular economy.
On the basis of the descriptions contained in the
delegated acts relating to climate change mitigation
((EU) 2021/2139 and (EU) 2023/2485), the following
Taxonomy-eligible economic activities have been
identified for the Group:
– Economic activity 3.3 encompasses manufacturing
of low-carbon technologies for transport in
connection with the production of cars and vans.
– Economic activity 3.18 encompasses manufacturing
of automotive and mobility components.
– Economic activity 6.5 encompasses leasing and
financing of low-carbon cars and vans.
– Economic activity 6.6 encompasses leasing and
financing of low-carbon commercial vehicles.
– Economic activity 6.15 encompasses infrastructure
for low-carbon road transport and public transport
(charging infrastructure).
Economic activity 3.3 relates to the manufacturing of
all vehicles. In a Commission Notice (2022/C 385/01)
published by the European Commission on 6 October
2022, the Commission stated that the term “low-
carbon” only relates to the assessment of Taxonomy-
alignment within the framework of the technical
screening criteria and is not relevant for reporting on
the Taxonomy-eligible economic activity 3.3. With
regard to car manufacturers in particular and as an
example, the document shows that the activity
“manufacture of low-carbon vehicles” also includes
vehicles with combustion engines. For the Mercedes-
Benz Group, this clarification by the European
Commission means that the manufacture of all Group
vehicles is to be classified as Taxonomy-eligible.
Economic activity 3.18 relates to the manufacturing of
all components that are sold to third parties. From the
Mercedes-Benz Group view, the clarification contained
in the Commission Notice (2022/C 385/01) on the term
“low-carbon” of economic activity 3.3 can also be
applied to the requirement contained in the description
of the activity 3.18 with regard to “essential for deliver-
ing and improving the environmental performance of
vehicles”. This requirement only relates to the assess-
ment of Taxonomy-alignment and is not relevant for
reporting on the Taxonomy-eligibility. As a result, all
components, including those for vehicles with
combustion engines, are classified as Taxonomy-
eligible. However, there is some uncertainty regarding
the Mercedes-Benz Group’s interpretation considering
the question 17 of the Draft Commission Notice,
published by the European Commission on 29 Novem-
ber 2024, and considering that the requirement
“essential for delivering and improving the environ-
mental performance of vehicles” is not relevant for
the reporting on the Taxonomy-eligibility.
Economic activity 6.5 concerns all passenger cars and
vans that are initially purchased from third parties and
subsequently subject to leasing and sales financing, as
well as the remarketing of these vehicles.
Economic activity 6.6 essentially covers the remaining
commercial vehicle portfolio of Mercedes-Benz
Mobility after the spin-off and hive-down of the
Daimler commercial vehicle business.
Economic activity 6.15 relates to the establishment and
operation of company-owned charging infrastructure
by means of high-power charging stations, which are
a prerequisite for zero tailpipe CO2 operation of zero-
emissions road transport.
Based on the descriptions contained in the delegated
act on the transition to a circular economy ((EU)
2023/2486), the Taxonomy-eligible economic activity
5.4 was identified for the Group. It includes the sale of
used vehicles purchased by the Mercedes-Benz Group
from third parties.
The individual economic activities are also to be
classified according to enabling activities and
transitional activities. An enabling activity is an
economic activity that makes a significant contribution
to one or more environmental objectives by directly
enabling other activities to also make a significant
contribution. At the Mercedes-Benz Group, this applies
to economic activities 3.3, 3.18 and 6.15. A transitional
activity, in contrast, is an economic activity for which
there is no technologically and economically feasible
low-carbon alternative, but which makes a substantial
contribution to climate change mitigation by supporting
the transition to a climate-neutral economy. This does
not apply to any economic activity at the Mercedes-
Benz Group, as only all-electric vehicles are taken into
account in the Taxonomy-aligned scope of the
economic activity 6.5.
According to the Commission Notice (2022/C 385/01)
that the European Commission published on 6 October
2022, the definition of an economic activity is charac-
terized by the achievement of revenues by products.
These do not exist with regard to the economic
activities in certain energy sectors listed in the supple-
ment to the delegated act (EU) 2022/1214 on climate
objectives at the Mercedes-Benz Group. In accordance
with the delegated act of the EU (Delegated Regulation
(EU) 2022/1214), we provide the required Template 1:
Template 1 Nuclear and fossil gas related activities
Row
Nuclear energy related activities
1.
The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of
innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel
cycle.
NO
2.
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to
produce electricity or process heat, including for the purposes of district heating or industrial processes such as
hydrogen production, as well as their safety upgrades, using best available technologies.
NO
3.
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce
electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen
production from nuclear energy, as well as their safety upgrades.
NO
Fossil gas related activities
4.
The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that
produce electricity using fossil gaseous fuels.
NO
5.
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/
cool and power generation facilities using fossil gaseous fuels.
NO
6
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation
facilities that produce heat/cool using fossil gaseous fuels.
NO
Taxonomy-alignment
In a further step, Taxonomy-alignment must be
assessed for Taxonomy-eligible economic activities.
Only Taxonomy-eligible activities can be considered as
environmentally sustainable activities, or as being
Taxonomy-aligned, provided they meet certain
technical screening criteria. Here, the fulfilment of
certain technical screening criteria with regard to the
relevant economic activities must make a substantial
contribution to an environmental objective defined by
the Taxonomy Regulation and, on the basis of defined
“do no significant harm” criteria (DNSH criteria), also
exclude the possibility of significant interference with
another environmental objective. It must also be
ensured that minimum standards are met with regard
to issues such as upholding human rights or combating
corruption (minimum safeguards).
Fulfilment of a substantial contribution
According to the delegated acts ((EU) 2021/2139 and
(EU) 2023/2485), for economic activities 3.3 and 6.5, all
vehicles below the limit value anchored in the technical
screening criteria of currently 50 g CO2/km per vehicle
(according to WLTP) make a substantial contribution to
the environmental objective climate change mitigation.
At the Mercedes-Benz Group, all-electric vehicles and
the majority of plug-in hybrid vehicles are below this
threshold. These vehicles are hereafter referred to as
“low-carbon vehicles”.
For the economic activity 3.18, according to the
delegated act (EU) 2023/2485, the components that
are essential for delivering and improving the environ-
mental performance of all-electric vehicles make a
substantial contribution to the environmental objective
climate change mitigation. In recital 9 of the delegated
act (EU) 2023/2485, components for vehicles are
mentioned that are decisive for the environmental
performance. From the perspective of the Mercedes-
Benz Group, only the components for all-electric
vehicles listed there make a substantial contribution to
the environmental objective climate change mitigation.
For economic activity 6.6, according to the delegated
acts ((EU) 2021/2139 und (EU) 2023/2485), essentially
only all-electric vehicles make a substantial contribu-
tion to the environmental objective climate change
mitigation.
For economic activity 6.15, according to the delegated
acts ((EU) 2021/2139 and (EU) 2023/2485), high-power
charging stations intended for the operation of vehicles
with zero tailpipe CO2 emissions make a substantial
contribution to the environmental objective climate
change mitigation.
For economic activity 5.4, according to the delegated
act (EU) 2023/2486, vehicles purchased from third
parties and sold as second-hand goods make a sub-
stantial contribution to the environmental objective
transition to a circular economy.
Do no significant harm
For the respective economic activities, compliance with
the DNSH criteria defined by the Taxonomy Regulation
was analysed in relation to the other environmental
objectives.
For economic activities 3.3 and 3.18, the fulfilment of
these criteria was verified at the level of low-carbon
vehicles and corresponding components as well as the
relevant production sites and processes.
For economic activity 6.5, the analysis of the criteria
was carried out on the basis of low-carbon vehicles in
the leasing and financing portfolio. In addition to the
Group’s own vehicles, the vehicle portfolio also
includes vehicles from other manufacturers. The latter
are shown as Taxonomy-eligible but not Taxonomy-
aligned, since the DNSH criteria could not be fulfilled.
This also essentially applies to the remaining commer-
cial vehicle portfolio after the spin-off and hive-down
of the Daimler commercial vehicles business reported
under economic activity 6.6.
Compliance with DNSH criteria for economic activity
6.15 was verified at the level of the fast-charging
stations.
As a result, the DNSH criteria are met for economic
activities 3.3, 3.18 and 6.15. For economic activity 6.5,
discounts are taken into account in the Taxonomy-
alignment of revenue and capital expenditure due to
the DNSH requirements of the environmental objective
pollution prevention and control for Mercedes-Benz
vehicles.
The analysis of the DNSH criteria for the economic
activity 5.4 was carried out on the basis of the pur-
chased used vehicles. Since the DNSH criteria could
not be fulfilled, the economic activity is reported as
Taxonomy-eligible but not Taxonomy-aligned.
The DNSH analysis of the individual environmental
objectives for economic activities 3.3, 3.18, 6.5 and 6.15
are explained below.
Climate change adaption
For the economic activities considered, the Appendix A
(Annex I) of the delegated act (EU) 2021/2139 requires
the carrying out of a climate risk and vulnerability
assessment.
A comprehensive analysis of the potential physical
climate risks for production sites was carried out,
which can be applied to economic activities 3.3, 6.5
and 3.18. Climate scenarios of the Intergovernmental
Panel on Climate Change (IPCC) and various time
horizons were taken into account. Based on the results,
adaptation measures at selected locations were
determined (see also the chapter Special
considerations for identification of material climate-
related impacts, risks and opportunities).
For economic activity 6.15, an analysis of potential
climate risks was carried out based on the specific
locations and manufacturer information of the charging
stations.
Sustainable use and protection of water and
marine resources
For economic activities 3.3 and 3.18, the requirements
have been implemented mainly on the basis of estab-
lished environmental management systems and the
internal environmental risk assessment (environmental
due diligence process). The company has established a
certified environmental management system in accord-
ance with ISO 14001 at its own production sites world-
wide. In addition, selected German and two other
European production sites are validated according to
EMAS. As part of the internal environmental risk
assessment, consolidated production sites are charac-
terized with regard to water-related aspects such as
discharge into water bodies, and recommendations for
risk minimization are determined, prioritized and
tracked. The Group also uses external data sources to
identify locations with potential water risks and water
stress (see also the chapter Water and marine
resources under Water risk assessment).
In order to analyse the water-related DNSH criteria in
relation to the charging infrastructure, the respective
sites were checked for economic activity 6.15 and the
manufacturer’s information on the charging stations
was used as a basis.
Transition to a circular economy
Depending on the economic activity, different
DNSH requirements are placed on the product, the
production or the charging infrastructure for the
transition to a circular economy.
In terms of the product, the Mercedes-Benz Group has
taken the concept of the circular economy into account
in product development from the outset and has set
itself the overarching goal of increasing the use of
secondary materials in vehicles. In addition, the DNSH
criteria for economic activity 6.5 are taken into account
by implementing the legal requirements for recyclabil-
ity and usability for passenger car models and light
commercial vehicles. In production, the Mercedes-Benz
Group keeps the amount of waste as low as possible in
accordance with the waste hierarchy. The aim is to
continuously reduce total waste, including waste for
disposal. For its own production sites worldwide, the
Mercedes-Benz Group has therefore set itself reduc-
tion targets for the total amount of waste and the
amount of waste for disposal per vehicle, among other
things. In addition, the topic of waste management is
also a component of the internal environmental risk
assessment and environmental management (see the
chapter Resource use and circular economy under
Resource conservation along the value chain).
For economic activity 6.15, the DNSH criteria regarding
the recovery and disposal of construction waste were
reviewed. In addition, existing requirements for
business partners were taken into account.
Pollution prevention and control
The DNSH criteria for economic activities 3.3 and
3.18 aim, partly through Appendix C (Annex I) of
the EU delegated act (EU) 2021/2139, to prevent the
manufacture, marketing and use of hazardous
substances.
The Mercedes-Benz Group aims to ensure safe and
legally compliant handling of hazardous substances
along the value chain. This is implemented in produc-
tion through internal hazardous substances manage-
ment in the form of specification, approval and control
processes, which subject the use of hazardous
substances to recurring substitution assessment and,
where use is necessary, enable the use of substances
under controlled conditions. For the products, sub-
stance bans and declaration requirements in accord-
ance with the Global Automotive Declarable Substance
List (GADSL) are monitored based on material informa-
tion from the International Material Data System
(IMDS) and formulated as a minimum requirement for
suppliers. In addition, the Mercedes-Benz Group sets
requirements for substitution assessments for Sub-
stances of Very High Concern (SVHC) and encourages
suppliers to embed these in their own supply chains.
For the DNSH requirements listed under Appendix C,
which go beyond the previous requirement of chemical
law, these approval and control processes are intended
to serve as the basis for evidence.
In the reporting year 2024, the new paragraph under
point f) of Appendix C (Annex I) of the delegated
act (EU) 2023/2485 is to be applied for the first time,
which expands the substances addressed in this
appendix. At present, there are interpretation uncer-
tainties regarding the scope of the necessary
processes and their corresponding implementation.
With regard to this new paragraph and point f),
additional internal analyses were carried out to identify
the presence of these addressed substances in
products and to examine their use considering, among
other things, technical requirements and economic
aspects.
For economic activity 6.5, the DNSH criteria refer to
compliance with various product-related requirements
provided for in EU regulations and directives. The
DNSH requirements are verified in a multistage test
procedure. As a result, a proportion of all-electric
vehicles remains in the corresponding leasing and
financing portfolio.
With regard to tyre requirements, in accordance with
applicable legislation and the notice published by the
EU Commission on 20 October 2023 (C/2023/267),
only those tyres corresponding to the two highest
rolling resistance classes available on the market and
at the same time the highest external rolling noise class
available on the market fulfil the DNSH requirements
for the respective vehicle. The European Product
Registry for Energy Labelling (EPREL) shall be used to
assess the relevant marketable classes. The time of
market placement of the all-electric vehicles in the
leasing and financing portfolio and a representative
period as well as the comparison of the contract term
with the expected useful life of the tyres were used for
the analysis of Mercedes-Benz vehicles. Compliance
with the noise requirements was also checked accord-
ing to the DNSH criteria. The proportion of vehicles
assessed as complying with the DNSH requirements is
applied worldwide to the leasing and financing
portfolio of all-electric vehicles in the reporting year
insofar as the corresponding data is available.
For economic activity 6.15, the locally applicable
requirements corresponding to the DNSH criteria, such
as noise and dust, were examined and supported by
corresponding specifications for business partners.
Protection and restoration of biodiversity
and ecosystems
To demonstrate compliance with the requirements for
economic activity 3.3 and 3.18, ecologically sensitive
areas and protection zones in the vicinity of sites has
been documented and taken into account as part of
the internal environmental risk assessment (environ-
mental due diligence process). On the other hand,
environmental impact assessments or comparable
assessments outside the EU are carried out when
building a new site or expanding existing sites, if legally
required. Furthermore, environmental management
systems have been established at our own production
sites (see also the chapter Biodiversity and ecosystems
under Promotion of biodiversity at the production
sites).
For the charging infrastructure (economic activity 6.15),
the locally applicable requirements in the construction
and approval process were used as a basis in
accordance with the DNSH requirements.
Fulfilment of minimum safeguards
An economic activity can only be classified as
environmentally sustainable in the sense of the
Taxonomy if it is also carried out in accordance with
certain minimum standards that are based on
international frameworks. Article 18 of the Taxonomy
Regulation cites the OECD Guidelines for Multinational
Companies, the United Nations Guiding Principles on
Business and Human Rights, including the fundamental
principles and rights from the eight core conventions
set out in the International Labour Organization’s
Declaration on Fundamental Principles and Rights at
Work, and the International Charter of Human Rights.
The Taxonomy Regulation itself does not further
specify the standards.
With its report from October 2022 (Final Report on
Minimum Safeguards), the Platform on Sustainable
Finance supports companies in interpreting the range
and scope of the minimum standards. This report
forms the basis for application and reporting at the
Mercedes-Benz Group. Central topic areas are human
and employee rights (see also the chapters Workforce
in the value chain, Affected communities and Own
workforce), the prevention of corruption and the pro-
motion of fair competition (see also the chapters
Corporate culture specifically Prevention and detection
of corruption and bribery and Antitrust Compliance).
The Mercedes-Benz Group sees itself as a responsible
company that strives to meet its global tax obligations
and to use public funding responsibly. In doing so,
the company also wants to fulfil its social and ethical
responsibilities.
The Group’s tax strategy follows the following
principles in particular:
– Through qualified and experienced experts and the
most efficient and reliable processes, systems,
methods and controls possible, the Mercedes-Benz
Group aims to ensure that the tax obligations of the
Group companies are fulfilled and integrity
standards are maintained.
– In accordance with the principle of being a “good
corporate tax citizen” (i.e. as a company, fulfilling its
responsibility as a taxpayer), the Mercedes-Benz
Group pursues legal, active and non-aggressive tax
planning based on operational reasons (“tax follows
business”). In addition, the Mercedes-Benz Group
strives to make its cooperation with the tax
authorities even more cooperative, transparent and
constructive. In doing so, it protects its legal
positions and represents its interests where it
considers this to be appropriate and legitimate.
With the aim of ensuring tax compliance across the
Group, the Mercedes-Benz Group established a Tax
Compliance Management System (Tax CMS). The Tax
CMS is a separate sub-area of the Group’s internal
Compliance Management System. A component of the
Tax CMS is active, consistent tax risk management
across the Group. Its task is to monitor and control
whether tax obligations are being met and to support
those responsible in this. It also serves to identify and
reduce tax risks in the Group and any associated
personal risks for the employees involved. It includes
numerous actions – for example, ongoing monitoring of
tax risks and their integration into the internal control
system and the Group-wide risk management process
in accordance with the risk management policy.
Essentially, proof of compliance is based on the
existence of appropriate Group-wide due diligence
processes and the absence of final court rulings due to
serious violations in the aforementioned areas.
Reporting on the Taxonomy-aligned proportions of
environmentally sustainable economic activities
The sections below present information on the pro-
portion of revenue, capital expenditure and operating
expenditure accounted for by environmentally sustain-
able economic activities at the Mercedes-Benz Group.
The individual figures for revenue, capital expenditure
and operating expenditure are precisely allocated to a
specific economic activity and environmental objective.
This avoids double counting.
The calculation of the relevant key figures is based on
the Consolidated Financial Statements in accordance
with IFRS. The totals (total A + B) in the Revenue and
Capital Expenditure tables correspond to the values of
the Consolidated Financial Statements audited with
reasonable assurance.
Revenue
2024
Criteria for a substantial contribution
DNSH criteria
2023
Economic activities
Code1
Revenue
Proportion of revenue
Climate change mitigation
Climate change adaption
Water and marine resources
Circular economy
Pollution
Biodiversity
Climate change mitigation
Climate change adaption
Water and marine resources
Circular economy
Pollution
Biodiversity
Minimum safeguards
Proportion of Taxonomy-aligned
(A.1) or Taxonomy-eligible (A.2)
revenue (adjusted)3
Category:
enabling activity
Category: transitional activity
in millions
of euros
in %
Y; N; N/EL2
Y; N; N/EL2
Y; N; N/EL2
Y; N; N/EL2
Y; N; N/EL2
Y; N; N/EL2
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
in %
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of low-carbon technologies for transport
CCM 3.3
17,868
12%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
13%
E
Manufacture of automotive and mobility components
CCM 3.18
155
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
E
Transport by motorbikes, passenger cars and light commercial vehicles
CCM 6.5
705
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
Infrastructure enabling low-carbon road transport and public transport
CCM 6.15
1
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
E
Revenue from environmentally sustainable activities (Taxonomy-
aligned) (A.1)
18,729
13%
100%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
14%
of which enabling activity
18,024
12%
100%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
13%
E
of which transitional activity
0
0%
0%
0%
0%
0%
0%
0%
0%
T
A.2 Taxonomy-eligible activities that are not environmentally
sustainable (not Taxonomy-aligned activities)
EL; N/EL2
EL; N/EL2
EL; N/EL2
EL; N/EL2
EL; N/EL2
EL; N/EL2
Manufacture of low-carbon technologies for transport
CCM 3.3
95,906
66%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
66%
Manufacture of automotive and mobility components
CCM 3.18
7,233
5%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
4%
Transport by motorbikes, passenger cars and light commercial vehicles
CCM 6.5
20,304
14%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
14%
Freight transport services by road
CCM 6.6
1,179
1%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
1%
Sale of second-hand goods
CE 5.4
477
0%
N/EL
N/EL
N/EL
EL
N/EL
N/EL
0%
Revenue from Taxonomy-eligible activities that are not
environmentally sustainable (not Taxonomy-aligned) (A.2)
125,099
86%
100%
0%
0%
0%
0%
0%
85%
A. Turnover of Taxonomy-eligible activities (A.1 + A.2)
143,828
99%
100%
0%
0%
0 %
0%
0%
99%
B. TAXONOMY NON-ELIGIBLE ACTIVITIES
Revenue of Taxonomy non-eligible activities
1,766
1%
1%
Total A + B
145,594
100%
100%
1 The Code constitutes the abbreviation of the relevant environmental objective to which the economic activity is eligible to make a substantial contribution. Climate change mitigation: CCM, circular economy: CE.
2 Description: Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective, N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective, N/EL – Not eligible, Taxonomy non-eligible activity for the
relevant environmental objective, EL – Eligible, Taxonomy-eligible activity for the relevant objective.
3 The previous year’s figures have been corrected in accordance with IAS 8. Further information is included in Note 3.     
The following table shows the scope of the Taxonomy-
eligibility and the Taxonomy-alignment for the revenue
by environmental objective:
Revenue proportion/total revenue 1
Taxonomy-
alignment per
objective
Taxonomy-
eligibility per
objective
Climate change mitigation (CCM)
13%
86%
Climate change adaption (CCA)
0%
0%
Water and marine resources (WTR)
0%
0%
Circular economy (CE)
0%
0%
Pollution prevention and control (PPC)
0%
0%
Biodiversity and ecosystems (BIO)
0%
0%
1 The Code constitutes the abbreviation of the relevant environmental objective to
which the economic activity is eligible to make a substantial contribution. Climate
change adaption: CCA, water and marine resources: WTR, pollution prevention and
control: PPC, biodiversity and ecosystems: BIO.
Taxonomy-eligibility of revenue
For the share of Taxonomy-eligible revenue (under A. in
the table Revenue), the Taxonomy-eligible revenue is
considered in relation to the total revenue of the
Group. In this process, the denominator takes into
account the consolidated revenue generated by Group
companies that are to be included in the calculations.
The revenue, as disclosed in the consolidated
statement of income, amounted to €145,594 million in
the reporting year (2023: €152,390 million) (see Note 5
in the Notes to the Consolidated Financial Statements).
The numerator was calculated by examining this
revenue to determine how much of it was generated in
connection with the manufacturing, the leasing or the
financing of vehicles; the manufacturing of compo-
nents, the operation of high-power charging stations;
or the sale of second hand-goods which were
purchased from third parties by the Mercedes-Benz
Group. This applies to almost all of the revenue
generated by the Mercedes-Benz Group. In the
previous year, sale of components to the associated
company Beijing Benz Automotive Co., Ltd. (BBAC) and
to the joint venture Fujian Benz Automotive Co., Ltd.
(FBAC) was reported under economic activity 3.3 as
Taxonomy-eligible and partially as Taxonomy-aligned
and sale of components to third parties was reported
as Taxonomy non-eligible. For a more appropriate
allocation, these revenues have been reported
separately under economic activity 3.18 since the
reporting year. The previous year’s figures have been
adjusted accordingly.
Taxonomy-alignment of revenue
In order to calculate the Taxonomy-aligned proportion
of economic activities 3.3 and 6.5 (under A.1 in the
table Revenue), revenue was examined to determine
whether it was generated with low-carbon vehicles in
order to assess whether a substantial contribution had
been made to climate change mitigation. Compliance
with the DNSH and minimum safeguards criteria was
also monitored.
For the major proportion of the revenue, in particular
from the new and used vehicle business and leasing
and sales financing activities, a direct attribution was
made of the revenue accounted for by low-carbon
vehicles. With regard to other revenue components,
especially revenue from the spare parts business and
service and maintenance contracts, or attribution of
discounts granted for large procurement volumes, it is
not possible to directly assign revenue to low-carbon
vehicles. In these cases, suitable allocations were
therefore used for the various revenue components.
These classifications are based on current revenues
and current or historical vehicle sales data for the fleet
that is currently on the market. In the reporting year,
the share of Taxonomy-aligned revenue decreased
from 14% to 13%. The main reason for this is the
decrease in unit sales of all-electric vehicles in impor-
tant markets. Unit sales in plug-in hybrids, on the
other hand, increased worldwide in 2024.
The revenues shown below are included as an
Breakdown of revenue
2024
2023 (adjusted)
Taxonomy-aligned
revenue
Total revenue
Proportion of
Taxonomy-aligned
revenue
Taxonomy-aligned
revenue
Total revenue1
Proportion of
Taxonomy-aligned
revenue
in millions of euros
in millions of euros
in %
in millions of euros
in millions of euros
in %
Revenue according IFRS 15
17,740
128,477
14%
20,223
136,159
15%
Other revenue
989
17,117
6%
800
16,231
5%
Total
18,729
145,594
13%
21,023
152,390
14%
1 The previous year’s figures have been corrected in accordance with IAS 8. Further information is included in Note 3.
aggregation across the various economic activities.
Capital expenditure
2024
Criteria for a substantial contribution
DNSH criteria
2023
Economic activities
Code1
Capital expenditure
Proportion of capital
expenditure
Climate change mitigation
Climate change adaption
Water and marine resources
Circular economy
Pollution
Biodiversity
Climate change mitigation
Climate change adaption
Water and marine resources
Circular economy
Pollution
Biodiversity
Minimum safeguards
Proportion of Taxonomy-aligned
(A.1) or Taxonomy-eligible (A.2)
capital expenditure
Category:
enabling activity
Category: transitional activity
in millions
of euros
in %
Y; N; N/EL2
Y; N; N/EL2
Y; N; N/EL2
Y; N; N/EL2
Y; N; N/EL2
Y; N; N/EL2
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
in %
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of low-carbon technologies for transport
CCM 3.3
5,769
24%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
21%
E
Transport by motorbikes, passenger cars and light commercial vehicles
CCM 6.5
1,287
5%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
3%
Infrastructure enabling low-carbon road transport and public transport
CCM 6.15
60
0%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0%
E
Capital expenditure from environmentally sustainable activities
(Taxonomy-aligned) (A.1)
7,116
30%
100%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
24%
of which enabling activity
5,829
25%
100%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
22%
E
of which transitional activity
0
0%
0%
0%
0%
0%
0%
0%
0%
T
A.2 Taxonomy-eligible activities that are not environmentally
sustainable (not Taxonomy-aligned activities)
EL; N/EL2
EL; N/EL2
EL; N/EL2
EL; N/EL2
EL; N/EL2
EL; N/EL2
Manufacture of low-carbon technologies for transport
CCM 3.3
3,292
14%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
19%
Transport by motorbikes, passenger cars and light commercial vehicles
CCM 6.5
13,212
56%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
57%
Capital expenditure from Taxonomy-eligible activities that are not
environmentally sustainable (not Taxonomy-aligned) (A.2)
16,504
70%
100%
0%
0%
0%
0%
0%
76%
A. Capital expenditure of Taxonomy-eligible activities (A.1 + A.2)
23,620
100%
100%
0%
0%
0%
0%
0%
100%
B. TAXONOMY NON-ELIGIBLE ACTIVITIES
Capital expenditure of Taxonomy non-eligible activities
0
0%
0%
Total A + B
23,620
100%
100%
1 The Code constitutes the abbreviation of the relevant environmental objective to which the economic activity is eligible to make a substantial contribution. Climate change mitigation: CCM.
2 Description: Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective, N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective, N/EL – Not eligible, Taxonomy non-eligible activity for the
relevant environmental objective, EL – Eligible, Taxonomy-eligible activity for the relevant objective.
The following table shows the scope of the Taxonomy-
eligibility and the Taxonomy-alignment for the capital
expenditure by environmental objective:
Proportion of capital expenditure/total capital expenditure1
Taxonomy-
alignment per
objective
Taxonomy-
eligibility per
objective
Climate change mitigation (CCM)
30%
70%
Climate change adaption (CCA)
0%
0%
Water and marine resources (WTR)
0%
0%
Circular economy (CE)
0%
0%
Pollution prevention and control (PPC)
0%
0%
Biodiversity and ecosystems (BIO)
0%
0%
1 The Code constitutes the abbreviation of the relevant environmental objective to
which the economic activity is eligible to make a substantial contribution. Climate
change adaption: CCA, water and marine resources: WTR, pollution prevention and
control: PPC, biodiversity and ecosystems: BIO.
Taxonomy-eligibility of capital expenditure
For the proportion of Taxonomy-eligible capital
expenditure (under A. in the table Capital expenditure),
the Taxonomy-eligible capital expenditure is
considered in relation to the total relevant capital
expenditure of the Group.
All additions to intangible assets, property, plant and
equipment and right-of-use assets as defined in
IFRS 16 in accordance with the statements of changes
in non-current assets as well as additions to equipment
on operating leases, including the additions to the
named assets as part of company acquisitions are
taken into account in the denominator. Equipment on
operating leases only takes into account vehicles
acquired by dealers from outside the Group. Goodwill
acquired is not taken into account here. If a divestment
is planned, capital expenditure on non-current assets is
only taken into account until the point in time at which
it was first classified as held for sale in accordance
with IFRS 5. The relevant additions to the assets to be
taken into account amounted to €23,620 million in
the reporting year (2023: €21,471 million) (see Notes 11,
12 and 13 in the Notes to the Consolidated Financial
Statements).
According to the Commission Notice (2022/C 385/01)
that the European Commission published on 6 October
2022, the definition of an economic activity is charac-
terized by the achievement of revenues by products. In
line with the Mercedes-Benz Group’s business model,
the numerator was therefore determined by examining
whether capital expenditure is made in connection with
the manufacturing of vehicles or components, the
establishment of the charging infrastructure or the
implementation of trans- port solutions for people and
goods. This applies to nearly all of our investments,
which are exclusively reported under the
environmental objective climate change mitigation.
Taxonomy-alignment of capital expenditure
To calculate the Taxonomy-aligned proportion of
economic activities (under A.1 in the table Capital
expenditure), capital expenditure was examined to
determine the extent to which it was associated with
low-carbon vehicles (economic activities 3.3 and 6.5)
and with high-power charging stations (economic
activity 6.15) in order to assess whether a substantial
contribution had been made to climate change
mitigation. The table Capital expenditure shows the
Taxonomy-aligned capital expenditure, aggregated
across all economic activities. Compliance with the
DNSH and minimum safeguards criteria was also
monitored.
When looking at the Taxonomy-aligned investments in
intangible assets (mainly in capitalized development
costs) and property, plant and equipment of the
Mercedes-Benz Group, the proportions of Taxonomy-
aligned capital expenditure are 69% and 64% (2023:
61% and 48%) respectively. However, the proportion of
Taxonomy-aligned capital expenditures is reduced due
to the inclusion of additions to equipment on operating
leases. As a result, this share only partially reflects our
investments in sustainable products. (See the table
Breakdown of capital expenditure).
All of the capital expenditure of the Mercedes-Benz
Group during the reporting year included in the
numerator relates to assets or processes in the context
of already existing technologies which are connected to
already existing Taxonomy-aligned economic activities
3.3, 6.5 and 6.15. From this reporting year onwards,
economic activity 6.15, for which a CapEx plan was
reported in the previous year, also falls under this cate-
gory, as it also generates revenues. For most of the
capital expenditure relating to the industrial business, a
direct attribution was made to all-electric vehicle pro-
jects. In the case of capital expenditure in low-carbon
plug-in hybrids and assets that are used to produce
both vehicles with combustion engines and low-carbon
vehicles, suitable allocations based on planned vehicle
sales figures for the respective model series or vehicle
platforms were used. Capital expenditure that is not
directly related to the manufacturing process was
allocated on the basis of the planned unit sales figures
for low-carbon vehicles. With regard to financial
services, it is possible to match the additions to equip-
ment on operating leases directly to low-carbon
vehicles. The percentage of Taxonomy-aligned capital
expenditure significantly increased compared to prior
year from 24% to 30%. The increase is primarily due
to higher capitalized development costs in connection
with the new architectures geared towards electro-
mobility.
Breakdown of capital expenditure
2024
2023
Taxonomy-aligned
capital expenditure
Total capital
expenditure
Proportion of
Taxonomy-aligned
capital expenditure
Taxonomy-aligned
capital expenditure
Total capital
expenditure
Proportion of
Taxonomy-aligned
capital expenditure
in millions of euros
in millions of euros
in %
in millions of euros
in millions of euros
in %
Intangible assets
3,170
4,626
69%
2,764
4,513
61%
thereof capitalized development costs
3,084
4,137
75%
2,653
3,812
70%
Property, plant and equipment
2,570
4,039
64%
1,768
3,718
48%
Right-of-use assets
105
456
23%
130
469
28%
Equipment on operating leases
1,271
14,499
9%
558
12,771
4%
Total
7,116
23,620
30%
5,220
21,471
24%
Operating expenditure
2024
Criteria for a substantial contribution
DNSH criteria
2023
Economic activities
Code1
Operating expenditure
Proportion of operating
expenditure
Climate change mitigation
Climate change adaption
Water and marine resources
Circular economy
Pollution
Biodiversity
Climate change mitigation
Climate change adaption
Water and marine resources
Circular economy
Pollution
Biodiversity
Minimum safeguards
Proportion of Taxonomy-aligned
(A.1) or Taxonomy-eligible (A.2)
operating expenditure
Category:
enabling activity
Category: transitional activity
in millions
of euros
in %
Y; N; N/EL2
Y; N; N/EL2
Y; N; N/EL2
Y; N; N/EL2
Y; N; N/EL2
Y; N; N/EL2
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
in %
E
T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of low-carbon technologies for transport
CCM 3.3
2,365
36%
Y
N/EL
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
32%
E
Operating expenditure from environmentally sustainable activities
(Taxonomy-aligned) (A.1)
2,365
36%
100%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
32%
of which enabling activity
2,365
36%
100%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
32%
E
of which transitional activity
0
0%
0%
0%
0%
0%
0%
0%
0%
T
A.2 Taxonomy-eligible activities that are not environmentally
sustainable (not Taxonomy-aligned activities)
EL; N/EL2
EL; N/EL2
EL; N/EL2
EL; N/EL2
EL; N/EL2
EL; N/EL2
Manufacture of low-carbon technologies for transport
CCM 3.3
4,263
64%
EL
N/EL
N/EL
N/EL
N/EL
N/EL
68%
Operating expenditure from Taxonomy-eligible activities that are
not environmentally sustainable (not Taxonomy-aligned) (A.2)
4,263
64%
100%
0%
0%
0%
0%
0%
68%
A. Operating expenditure of Taxonomy-eligible activities (A.1 + A.2)
6,628
100%
100%
0%
0%
0%
0%
0%
100%
B. TAXONOMY NON-ELIGIBLE ACTIVITIES
Operating expenditure of Taxonomy non-eligible activities
0
0%
0%
Total A + B
6,628
100%
100%
1 The Code constitutes the abbreviation of the relevant environmental objective to which the economic activity is eligible to make a substantial contribution. Climate change mitigation: CCM.
2 Description: Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective, N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective, N/EL – Not eligible, Taxonomy non-eligible activity for the
relevant environmental objective, EL – Eligible, Taxonomy-eligible activity for the relevant objective.
The following table shows the scope of the Taxonomy-
eligibility and the Taxonomy-alignment for the
operating expenditure by environmental objective:
Proportion of operating expenditure/total operating expenditure1
Taxonomy-
alignment per
objective
Taxonomy-
eligibility per
objective
Climate change mitigation (CCM)
36%
64%
Climate change adaption (CCA)
0%
0%
Water and marine resources (WTR)
0%
0%
Circular economy (CE)
0%
0%
Pollution prevention and control (PPC)
0%
0%
Biodiversity and ecosystems (BIO)
0%
0%
1 The Code constitutes the abbreviation of the relevant environmental objective to
which the economic activity is eligible to make a substantial contribution. Climate
change adaption: CCA, water and marine resources: WTR, pollution prevention and
control: PPC, biodiversity and ecosystems: BIO.
Taxonomy-eligibility of operating expenditure
For the share of Taxonomy-eligible operating
expenditure (see under A. in the table of Operating
expenditure), the Taxonomy-eligible operating
expenditure is compared to the relevant operating
expenditure of the Group.
The operating expenditure to be taken into account
in the denominator represents a metric determined
exclusively in the context of taxonomy reporting, as
it is a component of the individual functional costs.
Operating expenditure includes research and non-
capitalized development costs and other operating
expenditure. These items include costs from short-
term leasing contracts and expenditures from building
renovation measures as well as certain maintenance
and repair measures (essentially labour and material
costs as well as purchased services) relating to pro-
perty, plant and equipment according to the delegated
act (EU) 2021/2178.
In line with the approach used for investments, when
determining the numerator, the relevant operating
expenditure was also examined here to establish
whether it was related to the manufacture of vehicles.
This applies to the operating expenditure described.
Breakdown of operating expenditure
2024
2023
Taxonomy-aligned
operating
expenditure
Total operating
expenditure
Proportion of
Taxonomy-aligned
operating
expenditure
Taxonomy-aligned
operating
expenditure
Total operating
expenditure
Proportion of
Taxonomy-aligned
operating
expenditure
in millions of
euros
in millions of
euros
in %
in millions of
euros
in millions of
euros
in %
Research and non-capitalized
development costs
2,154
5,580
39%
2,089
6,230
34%
Other operating expenditure
211
1,048
20%
247
1,076
23%
Total
2,365
6,628
36%
2,336
7,306
32%
Taxonomy-alignment of operating expenditure
In order to calculate the Taxonomy-aligned proportion
of economic activities (under A.1 in the table Operating
expenditure), operating expenditure was examined
to determine the extent to which it was associated with
low-carbon vehicles to assess whether a substantial
contribution had been made to climate change mitiga-
tion. Compliance with the DNSH and minimum safe-
guards criteria was also monitored.
The operating expenditure shown below is included as
an aggregation across the various economic activities:
The research and non-capitalized development costs
can mostly be directly incorporated into the calculation
of the numerator on the basis of their allocation to
all-electric vehicle projects. For research and non-
capitalized development costs that cannot be directly
allocated (model series or vehicle architectures that
include both plug-in hybrids and pure combustion
vehicles), suitable allocations were made based on
expected future unit sales figures for the low-carbon
portion of the model series or vehicle architecture.
For the other components of the relevant operating
expenditure, no direct allocation to low-carbon
vehicles could be made either. The inclusion in the
numerator was based on suitable allocations of current
production volumes. The share of Taxonomy-aligned
operating expenditure increased from 32% to 36%.
The reason for the rise is essentially the increase
in the research and non-capitalized development
costs attributable to the low-carbon vehicles and a
simultaneous decrease in total research and non-
capitalized development costs.
Social information
Own Workforce
Material impacts, risks and opportunities and their
interaction with strategy and business model
The Mercedes-Benz Group has identified its material
impacts, risks and opportunities related to its own
workforce in accordance with the requirements of
ESRS. These are described in the chapter General
information under Identification of material impacts,
risks and opportunities and presented in the table
below.
In times of transformation, it is not just the right
business models, products, technologies and digital
solutions that are necessary. Equally important is a
workforce that embraces change, constantly expands
its skills and brings these into daily work with a
willingness to innovate and perform.
With electrification, digitalization and the increasing
use of powerful artificial intelligence (AI) systems, the
working world of employees at the Mercedes-Benz
Group is also changing. Work processes and structures
are changing just as fundamentally as tasks and
collaboration within the Group. The Mercedes-Benz
Group is meeting the challenges and requirements of
personnel transformation with a corresponding
sustainable personnel strategy – the Sustainable
People Plan.
With this sustainable HR strategy, the Mercedes-Benz
Group strives to shape the ongoing changes as part of
the transformation in a responsible, socially acceptable
and future-oriented manner. As an attractive employer,
the Group focuses on continuous professional and
personal development, flexible and modern working
conditions, and a trusting, diverse, and inclusive culture
of collaboration. A safe and healthy working
environment through holistic occupational health and
safety management for all employees forms the
foundation. The Mercedes-Benz Group also promotes
diversity and inclusion among its employees and is
committed to respect, openness, appreciation and
fairness.
The Mercedes-Benz Group takes responsibility for its
workforce and is committed to respecting human
rights. This is underpinned by the focus areas of People
and Human Rights in the sustainable business strategy.
Detailed information on this can be found in the
chapter General information under Strategy, business
model and value chain.
Information on the analysis of the resilience of the
Group’s strategic sustainability focus areas with regard
to material impacts, risks and opportunities can be
found in the chapter General information under
Material impacts, risks and opportunities.
Own workforce – material impacts, risks and opportunities
Direction of action
Time horizon
Localization
Value chain position
Working conditions
Impacts
Qualification and further development of employees due to transformation
positive
short-, medium- & long-term
regional
Remuneration of workforce
positive
short-, medium- & long-term
regional
Attractive working conditions for employees (work-life balance)
positive
short-, medium- & long-term
local
Changes in workplace profiles and work processes due to transformation
negative
short-, medium- & long-term
local
Impairment of health and safety
negative
short-, medium- & long-term
local
Risks
Changes in workplace profiles and work processes due to transformation
short-, medium- & long-term
local
Work-related accidents and injuries of employees
short-, medium- & long-term
local
Impact of skills shortage due to demographic trends and qualification requirements
short-, medium- & long-term
regional
Financial risk associated with collective bargaining, strikes and formation of trade unions or employee
representative bodies
short-, medium- & long-term
regional
 
Equal treatment and equal opportunities for all
Impacts
Impairment of equal opportunities for employees
negative
short-, medium- & long-term
local
Promoting diversity and equal opportunities
positive
short-, medium- & long-term
regional
Other work-related rights
Impacts
Potential child labour in the event of ineffective implementation of compliance processes
negative
short-, medium- & long-term
local
Potential forced labour in the event of ineffective implementation of compliance processes
negative
short-, medium- & long-term
local
VU  =  Value chain upstream
OA  =  Own business activity
VD  =  Value chain downstream
=  actual
 
=  potential
   
=  ESRS compliant target filed
Personnel strategy
The HR department of the Mercedes-Benz Group acts
as a business partner for the Group’s own business
units and is represented on the Board of Management
of Mercedes-Benz Group AG as the independent
division Human Relations (HR). Within this division
there is a decision-making and committee structure at
different management levels. The highest decision-
making body for coordination and control is the
HR Executive Committee. Among other things, the HR
strategy is approved there. This committee also forms
the highest level of responsibility for the policies
described in this chapter.
Just as the world is constantly changing due to tech-
nological, social, ecological and political developments,
the Mercedes-Benz Group is also continuously trans-
forming. This transformation requires change in all
areas. The HR department keeps an eye on trends and
developments that are important from a strategic
perspective, such as electrification, sustainability,
digitalization and artificial intelligence, and promotes
the necessary qualifications and appropriate
deployment of employees worldwide.
With the sustainable HR strategy, which was developed
in 2021, the HR department is actively shaping the
Group’s personnel change and empowering and sup-
porting the organization as a whole through the
transformation. The HR strategy consists of three
pillars: “Re-Shape”, “Re-Skill”, “Re-Charge”.
– With “Re-Shape”, the Group is shaping the future-
oriented personnel positioning with regard to
electromobility and digitalization.
– “Re-skill” is intended to ensure that employees are
equipped with the necessary know-how for future
activities and tasks.
– With “Re-Charge”, the Mercedes-Benz Group aims
to retain skilled workers in the Group and to recruit
new talents as an attractive employer by offering
modern and flexible working conditions and an
inclusive and trusting corporate culture.
The People Principles complement the HR strategy by
formulating the principles of the corporate culture
of the Mercedes-Benz Group. For example, the Group
defines how communication, management and colla-
boration should take place. They can be found in the
chapter Governance information under Corporate
culture.
Principles of Social Responsibility
and Human Rights
With its Principles of Social Responsibility and Human
Rights, the Mercedes-Benz Group is committed to
preventing potentially negative impacts on human
rights worldwide, including within its own business unit
and with regard to its own workforce.
The Principles of Social Responsibility and Human
Rights describe the rights and obligations of employees
as well as the general commitment of the Mercedes-
Benz Group to uphold and respect human rights. This
includes the prohibition of child and forced labour,
freedom of association, the right to collective
bargaining and the right to strike, equal opportunities
and protection against discrimination, the right to
health and safety at work, working hours, remuneration
and benefits, education and qualification. The Prin-
ciples of Social Responsibility and Human Rights are
described in more detail in the chapter Workers in
the value chain under Policies.
Targets
As a responsible employer, the Mercedes-Benz Group
sets itself targets to actively promote the interests
of its workforce. These targets were developed, for
example, on the basis of the strategic direction,
feedback from stakeholders, competitive analyses,
employee surveys, and demands from employee
representatives, and were discussed in appropriate
committees.
The Mercedes-Benz Group has set itself quantitative
targets where concrete and verifiable metrics can
be determined. The targets are reviewed at regular
intervals and adjusted as necessary.
The effectiveness of policies and actions is monitored
by the Mercedes-Benz Group using qualitative
indicators or cross-topic metrics that are collected at
Group level, primarily through the Group-wide
employee survey. These include:
– The ambition of an employee participation rate of
at least 70% in employee surveys by 2030. The rate
is based on industry benchmarks of comparable
companies and was achieved in the last employee
survey in 2023.
Employee participation in the employee survey is an
important indicator. First and foremost, it provides
information about how willing employees are to share
their feedback and the extent to which they are
interested in helping to shape the work culture in the
Group.
– The measurement of employer attractiveness in
Germany with regard to students in IT and
engineering:
– IT students: a placement among the top 5 by
2030 (top 5 in the target ranking) with the
milestone of the top 7 by 2025 (Trendence
study).
– Engineering: a placement in the top 5 by 2025.
The rankings were defined according to the values of
the last years and the developments with regard to
sought-after job profiles.
Characteristics of the
Mercedes-Benz Group’s Employees
The metrics reported in the chapter Own Workforce
take into account:
– active workforce including holiday workers,
excluding thesis writers, interns, working students,
PhD students, senior experts and trainees,
– retroactively from 1 January 2024, seven companies
that were consolidated in 2024. This leads to an
increase in the number of employees compared to
2023.
Deviating or specific reporting are explained in the
footnotes of individual tables.
Number of employees (headcount) by region
At 31 December
2024
Europe
137,610
North America
13,321
Asia
18,740
Other markets
5,593
Total number of employees*
175,264
* Data has been audited with reasonable assurance.
Number of employees (headcount) by gender
At 31 December
2024
Female
41,605
Male
133,659
Others1
-
Not reported1
-
Total number of employees*
175,264
* Data has been audited with reasonable assurance.
1 In the current Sustainability Statement, the gender identity of employees is shown in
the categories female and male due to the current data collection systems.
Mercedes-Benz Group AG is working on expanding its systems in order to take
additional gender identities into account in the reports in the future. In principle, the
HR department is available to all employees for individual concerns and questions.
Number of Employees (headcount) by country1
At 31 December
2024
Germany
114,741
1 For countries in which the Mercedes-Benz Group has 50 or more employees,
representing at least 10% of the total number of employees.
Number of employees (headcount) by type of contract
At 31 December
2024
Number of employees*, 1
175,264
Female
41,605
Male
133,659
Number of fulltime employees
163,132
Female
33,538
Male
129,594
Number of parttime employees
12,132
Female
8,067
Male
4,065
Number of permanent employees2
169,476
Female
40,045
Male
129,431
Number of temporary employees
5,788
Female
1,560
Male
4,228
Number of non-guaranteed hours employees3,4
600
Female
196
Male
404
* Data has been audited with reasonable assurance.
1 Active workforce on an annual average basis based on quarters: 179,291. Further
information is available in the Notes to the Consolidated Financial Statements in the
note Functional costs.
2 Permanent employees are part of the active workforce with a permanent contract and
correspond to the core workforce.
3 Non-guaranteed hours employees on an annual average basis based on quarters: 580.
4 Non-guaranteed hours employees are part of  temporary employees who were
flexibly deployed at the Mercedes-Benz AG and Mercedes-Benz Ludwigsfelde GmbH
locations in the course of 2024. The work contracts are made after mutual agreement
and in the interest of both parties.
Turnover1
2024
Employees who have left the Group (absolute)
22,601
Turnover (in %)
12.9
1 Active workforce who have left the Mercedes-Benz Group voluntarily or due to
dismissal, retirement or death.
The core workforce (employees with a permanent
contract) is used as a parameter for calculating
company-specific turnover. In contrast to the active
workforce (methodological specification of the ESRS),
temporary employees and holiday workers are not
taken into account due to their time-limited activities.
Turnover – company-specific1
2024
Employees who have left the Group (absolute)
11,006
Turnover (in %)
6.5
1 Permanent employees (core workforce with permanent contracts) who have left the
Mercedes-Benz Group voluntarily or due to dismissal, retirement or death.
Working conditions
Responsible transformation
Policies
With the pillar “Re-Shape” in its sustainable HR
strategy, the Mercedes-Benz Group is taking
responsibility for its employees. The locations and thus
also the various employee groups worldwide are
affected to varying degrees by the digitalization and
electrification of the automotive industry depending on
their product portfolio and size.
The Group is reviewing the effectiveness of policies
and actions for responsible, socially acceptable and
future-oriented shaping of the transformation, among
other things, through employee surveys and various
feedback channels to involve employees.
Actions
The transformation process requires appropriate plans
and implementation actions geared to them. To this
end, different locations  – especially the powertrain
and manufacturing plants, but also the sales
department – have developed plans for their future
orientation. Based on these plans, the locations identify
key topics with corresponding actions. These include,
in particular, qualification and retraining offers for
employees. The Group also enables employees to
move between different locations in order to carry out
new activities or to continue to carry out activities that
correspond to their qualification level.
1 The status is measured by the evaluation of the following statement in the employee survey: “My direct work environment supports me in exercising my skills for digital transformation.” Status in the reporting year: according to plan.
Another action is the “TransformatiON” initiative,
launched in 2022. This aims to address specific
challenges of change in the powertrain production
environment, promote exchange with employees
through new communication channels, develop new
solutions and support managers in their special role
with suitable formats.
A works agreement concluded in 2017 defines pro-
cesses for employees of Mercedes-Benz Group AG,
Mercedes-Benz AG and Mercedes-Benz Intellectual
Property GmbH & Co. KG to overcome the challenges
of the transformation. This agreement includes job
security until the end of 2029, which generally
excludes terminations for operational reasons until
31 December 2029.
Information on the extension of job security guarantee
until 2035 and actions to reduce personnel costs in
Germany that were agreed after the end of the
reporting period can be found in the chapter Corporate
Profile under Important events.
Training and further qualification
Policies
With the pillar “Re-Skill”, the Mercedes-Benz Group is
focusing on training and further qualification as part
of its sustainable HR strategy. The Group continually
invests in the training and further qualification of its
employees and is constantly adapting its qualification
and personnel development programmes in order to
take account of corporate strategic and thematic
developments. In doing so, it also takes into account
demographic change in the skilled labour market.
Various company and collective bargaining regulations
form the basis for the training and qualification
processes at the Mercedes-Benz Group. Professional
and personal qualifications at Mercedes-Benz Group
AG, Mercedes-Benz AG and their subsidiaries in
Germany are regulated by the Voluntary General Works
Agreement on Qualification for Employees and the
General Works Agreement on the use of External
eLearning Platforms for Qualification Measures, among
other things. They serve to standardize the
qualification process and make it more efficient and to
integrate external offers into the learning portfolio.
The effectiveness of qualification policies and actions
is regularly reviewed, among others on the basis of
feedback on completed qualifications, in exchange with
the respective departments and as part of the annual
qualification and development talks between managers
and employees.
Targets
The Group pursues the following target in the subject
area of training and further qualification:
– Enable more than 70% of employees to work
successfully in the digital transformation by 2030.
The basis for this is the employee survey 1.
Actions
Due to the switch to electromobility, digitalization
and the increasing use of artificial intelligence, the
job profiles, requirements and work processes at
the Mercedes-Benz Group are changing. With the
Turn2Learn qualification initiative, the Group offers
all employees a comprehensive range of options to
learn self-determined and flexibly for their current
job or future workplace.
Employees have access to a wide range of learning
opportunities, including targeted qualifications, a wide
range of learning platforms, complete learning paths,
compact learning units and academic degrees along-
side work. Depending on the topic and goal, the
qualification actions take place digitally or in person.
The educational offering is continuously updated and
supplemented.
In 2024, the qualification offering continued to focus
on a portfolio that supports managers and employees
in successfully implementing the business strategy and
digitalization in the Group. These primarily included
qualifications in generative artificial intelligence, IT and
digitalization, and electromobility. Tens of thousands of
employees from all areas of the Group worldwide took
part in a challenge and a learning journey on the topic
of artificial intelligence over the course of the year, for
example. In addition, Mercedes-Benz Group AG offers
training for Mercedes-Benz Direct Chat, an internal
application based on generative artificial intelligence
that can be used by employees since the end of 2023,
for example when creating and summarizing texts or
answering questions.
Worldwide, employees from administration and
production are training to become data and AI
specialists – for example, through the in-house
programmes Data Worker and D.SHIFT explained
below.
With the learning paths for data and AI specialists
(Data Workers), Mercedes-Benz Group AG offers four
tailored qualifications: Data Product Owner, Data
Analyst, Data Engineer or Data Scientist. This offering
allows employees worldwide to build and enhance their
data and AI skills or qualify for a completely new job
profile – with certificates recognized in the job market.
Since 2021, Mercedes-Benz AG has been promoting
digital transformation in production in Germany with
the programme D.SHIFT, which is designed to be
completed alongside work. Specifically for digitally
savvy employees, D.SHIFT focuses on digital compe-
tencies and aims at transitioning to future-oriented job
profiles. Participants are intensively supported during
the reskilling programme and the selection process
for the target positions to facilitate the transition into
the digital future. Since the programme’s inception, the
available slots have been continuously expanded over
the years. The programme was also continued in 2024
to offer even more employees the opportunity to align
themselves with future-proof job profiles. The unique
combination of production experience and digital
competencies provides significant value to the Group
and enables employees to develop innovative and
data-based solutions in production.
In the Sales division of the Mercedes-Benz Group,
the Mercedes-Benz Global Training business unit is the
central pillar for the qualification and further develop-
ment of retail employees. The focus is on basic
qualification and further qualification of strategic job
profiles in sales, service and management. The further
qualification covers not only new products and tech-
nologies, but also soft skills, such as communication
training or sales arguments. There is also new content
on electrics/electronics (E/E) and high voltage, which
is specifically aimed at employees in the repair and
service areas.
The Mercedes-Benz Group is continuously developing
its qualification policies and actions. In the exchange
between the HR department and the respective depart-
ments, qualification goals are developed and
appropriate and concrete training sessions as well as
learning paths are compiled.
Both vocational training and dual study programmes
are very important to the Group when it comes to
recruiting young talent. After all, today’s trainees and
students are tomorrow’s skilled workers. Since sus-
tainability is an integral part of the business strategy,
the new Sustainable Management degree programme
was introduced in Germany in 2024, with the first
dual-study students starting in October 2024.
Remuneration and benefits
Policies
The Mercedes-Benz Group remunerates work
performed in all companies worldwide according to the
same principles. The global Corporate Compensation
Policy, which applies to all employee groups, sets out
the framework conditions and minimum requirements
for the design of the remuneration systems. Here, for
example, it is regulated that the level of remuneration
is based on the assigned requirements of the work
task, taking into account, among other things, know-
ledge and skills, responsibility and scope for decision-
making as well as the performance of the person.
The Group also takes into account the conditions of the
local markets and benchmark data. Personal
characteristics of the employees are not taken into
account.
The Mercedes-Benz Group reviews the effectiveness
of policies and actions through regular evaluations,
benchmark analyses and annual income reviews.
Actions
The Mercedes-Benz Group attaches great importance
to attractive and transparent compensation systems
that strive for uniform framework conditions worldwide
while also taking local conditions into account. The aim
is to ensure that employees receive remuneration and
additional benefits that are in line with market and
industry standards, using benchmark data as a basis.
The Mercedes-Benz Group offers voluntary benefits
such as company pension plans and profit-sharing
schemes. Additional benefits such as preventive care,
insurances, perks, health management and job tickets
may vary depending on the company and local
specifications.
The German Transparency in Wage Structures Act aims
to make any existing pay gap between women and
men transparent. The Group supports this law through
the action of a wage transparency dashboard, which
has enabled employees in Germany to view their com-
parative pay in their job group since 2019.
Salary differences are generally possible and can be
explained on the basis of objective criteria. For
example, professional experience and the length of
time spent in a pay group or level influence the
amount of individual remuneration.
Metrics
Gender pay gap and total renumeration
2024
Gap in pay between female and male employees (in %)
4.8
Ratio between the highest paid individual and the
median annual total remuneration for all employees
175
The pay gap between female and male employees is
calculated as the unadjusted gender pay gap, i.e. the
difference between the average earnings of female
and male employees, expressed as a percentage of the
average earnings of male employees.
In addition to the monthly salary, the average gross
hourly earnings include all other monetary benefits
such as cash allowances, bonus payments,
commissions, cash profit sharing and other forms of
variable cash payments. Also included are benefits
in kind such as: company cars, occupational pension
plans, accident insurance.
The comparison of remuneration of male and female
employees is based on a Group-wide comparison of
the average gross earnings of the two employment
groups. Differentiations according to regions, countries
and comparability of work were not made.
To calculate the ratio of the annual total remuneration
of the highest-paid individual to the median of the
annual total remuneration of all employees (excluding
the highest-paid individual), the annual total remunera-
tion takes into account not only the monthly salary but
also all other monetary benefits such as cash
allowances, bonus payments, commissions, cash profit
sharing and other forms of variable cash payments.
Also included are benefits in kind such as company
cars, occupational pension plans, accident insurance.
Adequate wages
The Mercedes-Benz Group pays all its employees
worldwide adequate wages in accordance with
applicable reference values.
Adequate wages indicate whether the basic wage
of employees corresponds to adequate wage in com-
parison with officially valid benchmarks (such as
national minimum wages and other comparable
international reference values). If the basic wage of
an employee is lower than the benchmark value, it
shows the countries and the percentage of employees
that are affected.
The basic salery consists of the basic wage (excluding
variable remuneration components such as overtime,
incentive payments and allowances unless they
are guaranteed) and all fixed guaranteed additional
payments.
Compatibility of work and private life
Policies
Flexible working conditions that support the
compatibility of work and private life in every phase of
life have a positive effect on employee commitment
and increase, among other things, their satisfaction. To
this end, the Mercedes-Benz Group has implemented
various Group and General Works Agreements.
Examples include: mobile working in Germany and
abroad, flexitime, part-time work, job sharing,
childcare, family time, home nursing and sabbaticals.
Mercedes-Benz Group AG is reviewing the effective-
ness of policies and actions, among other things,
on the basis of the employee survey and the above-
mentioned Trendence study on employer attractive-
ness.
Actions
At the Mercedes-Benz Group, the aim is to ensure,
within the framework of the respective local legal
requirements, that healthy and safe working conditions
prevail, work breaks are observed, working times are
appropriately limited and paid holiday is granted.
Based on the respective local law, such as the German
Working Hours Act and the EU Working Time Directive,
daily and weekly maximum working hours, rest periods
and special regulations for night and shift work must be
observed. The General Works Agreement Working
Order obliges the employees of Mercedes-Benz Group
AG, Mercedes-Benz AG and Mercedes-Benz Intellectual
Property GmbH & Co. KG to record their time using the
time recording systems provided by the employer.
Excluded from this are employees with trust-based
working hours, E4 executives and senior managers. In
the event of working time exceedances, the time
recording system automatically informs the responsible
manager. All other subsidiaries monitor compliance
with local working time laws independently.
The Mercedes-Benz Group is also taking a number
of actions to promote flexible working conditions for
employees and thus improve the balance between
work and private life. To this end, the Group is
continuously developing its working (time) models and
is also focusing on hybrid forms of work. Mobile work
from abroad is possible at times. The office remains the
place of personal collaboration, especially when it
comes to creativity, innovation and quick decisions.
Through offers such as part-time work, job sharing or
time off for a sabbatical, studies, training, further
education or caring for relatives, the Group ensures
that working hours can be adjusted to meet individual
needs.
In addition to flexible and hybrid working models,
one of the most important actions for reconciling work
and private life is company childcare. Employees in
Germany have access to childcare places in eleven
company day-care centres. There are also additional
places in external facilities available at various
locations in Germany.
1 Status in the reporting year: according to plan.
Occupational health and safety
Policies
The Mercedes-Benz Group attaches great importance
to occupational health and the prevention of accidents
at work. Internal programmes, policies and specifica-
tions serve as overarching, internationally valid
company regulations. They are guided by international
standards and national laws and emphasize the
obligation of managers to act responsibly. At the same
time, however, they also underscore the personal
responsibility of employees.
The international Group policy on occupational health
and safety describes binding tasks, duties, necessary
committees and communication guidelines for all
controlled companies and is based on the contents of
the ISO 45001 standard. The policy applies to all
employees and temporary workers whose work and/or
workplace is controlled by the organisation.
The Mercedes-Benz Group offers occupational health
promotion and social counselling services throughout
Germany. In addition, there are works agreements on
mental health and preventive examinations.
Mercedes-Benz Group AG reviews the effectiveness
of policies and actions based on the determined key
figures for occupational health and safety.
Targets
The Mercedes-Benz Group AG has set itself the
following target:
– The certification of the OH&S management system
(occupational health and safety) according to ISO
45001 at all (100%) German production sites and
logistics centres by 2027 1.
Actions
In order to minimise health risks and prevent occupa-
tional accidents and injuries to employees, the Group
has implemented comprehensive actions in the area of
occupational health and safety. The initiatives cover a
wide range of actions, from targeted risk management
to individual health promotion.
Among other things, the Group carries out regular
site evaluations at all production sites. These cover
the topics of safety and accident management, fire
and explosion hazards, and the use of potentially
dangerous machines and environmental conditions.
The Group uses the Safety Due Diligence method to
identify potential hazards at an early stage and take
appropriate actions.
In addition, the Mercedes-Benz Group has introduced a
uniform, IT-supported risk assessment. A key safety
action is the provision of emergency medical care and
compliance with applicable occupational health
standards worldwide.
Effective reporting helps the Mercedes-Benz Group
achieve its occupational health and safety targets. All
locations must therefore report accidents and accident
metrics to the Health & Safety division. The Group has
an accident documentation system at its disposal from
which standardised key figures can be derived in
compliance with applicable data protection regulations.
The Mercedes-Benz Group uses these metrics to
prepare reports with the Group-wide accident key
figures. Every reported accident is analysed to explain
its cause and initiate preventive measures.
The Group is raising awareness among its employees
about ergonomics and occupational safety in order to
create a sustainable "Safety First Culture” and
permanently reduce the number of accidents at work.
In the year 2024, short films about potential safety
risks in production, administration, on construction
sites and in traffic safety were produced as part of the
“We work SAFELY!” campaign. In addition, a SAFE
workshop was opened at the Stuttgart and Rastatt sites
to raise awareness among employees and various
activities were held for the Occupational Safety Day.
In the area of health promotion and prevention, the
Mercedes-Benz Group places great emphasis
worldwide on the ergonomic design of workplaces in
order to avoid musculoskeletal disorders. In addition,
preventive and suitability examinations are carried out
based on risk assessments and legal requirements in
1 The World Employee Committee is the global representation of the employees of the Mercedes-Benz Group and serves to facilitate the exchange of information and opinions between employee representatives, as well as the dialogue with
the Group management on cross-border issues.
order to keep employees healthy and to deploy them in
a way that is appropriate to their abilities.
The Mercedes-Benz Group offers its employees in
Germany occupational health services that go far
beyond the legal requirements. These include company
doctor consultations, a comprehensive preventive
health check, occupational health advice and
precautions, as well as actions and offers for company
health promotion and social counselling. Company
health management in Germany is intended to promote
both the physical and mental health of its employees.
One focus of the awareness-raising actions in 2024
was on the topic of mental health. The internal
Germany-wide communication campaign “Paths to
inner stability” informed employees and especially
managers about possible symptoms and provided
information about support options and contact points
within the Group. In addition, in 2024 managers at
Mercedes-Benz AG and Mercedes-Benz Group AG in
Germany underwent mandatory training on mental
health and psychosocial leadership skills.
In addition, there are regular qualifications and
awareness-raising actions for employees. These cover
a wide range of topics, including handling hazardous
substances, understanding systems and processes, and
available support services. Some of the training
courses are also mandatory.
Metrics
Share of employees covered by the occupational
health and safety management system (in %)
2024
Share of covered employees
100
Recordable work-related accidents1
2024
Number of recordable work-related accidents
989
Rate of recordable work-related accidents2
3.2
1 Number of all reportable occupational accidents according to local legislation
(excluding commuting accidents).
2 Per 1 million hours of attendance.
Number of fatalities as a result of work-related injuries
2024
Own workforce
0
Other workers who worked at a Mercedes-Benz Group
site
2
Number of fatalities as a result of work-related ill health1
2024
Own workforce
0
Other workers who worked at a Mercedes-Benz Group
site
0
1 The information relates to work-related ill health that were reported to the Mercedes-
Benz Group or identified as part of medical monitoring during the reporting period. In
accordance with local legal regulations, no cases were reported to the Group in the
reporting year. In Germany, for example, work-related ill health are recorded by the
employers' liability insurance association.
Employee representation and
engaging with own workforce
Policies
The Mercedes-Benz Group recognizes the right of its
employees to form employee representative bodies
and to collective bargaining to regulate working
conditions, as well as their right to strike. Relevant are
the agreement on the World Employee Committee 1, the
agreement on the information and consultation of
employees at European level (Agreement on the
European Works Council) and, in Germany, the national
Works Constitution Act on trust-based cooperation.
Important partners are the works council committees
at the locations, the General Works Council, the Group
Works Council, the European Works Council and the
World Employee Committee.
The Mercedes-Benz Group reviews the effectiveness of
its policies and actions through, among other things,
employee surveys and various feedback channels for
employee involvement.
Actions
Collective bargaining agreements exist for the majority
of employees across the Group. In the Mercedes-Benz
Group AG, Mercedes-Benz AG and other Group units,
these apply to all employees covered by collective
agreements. Company and employee representatives in
Germany also conduct an ongoing and structured
dialogue. The parties strive to take into account both
the economic interests of the Group and the interests
of the employees. The results of the dialogues and thus
the rights of the employees are laid down in various
(general) works agreements, among other things.
In order to shape the transformation together with
employees and employee representative bodies, the
Group incorporates their perspectives into decision-
making and work processes, including through
institutionalized co-determination processes, regular
employee surveys and internal Group ideas
management.
The Mercedes-Benz Group maintains a continuous
dialogue with employee representatives in order to
harmonize the economic interests of the Group and the
concerns of the workforce. This exchange takes place
through the structured involvement of employee
representatives in various committees (e.g. personnel
commission, economic committee). The co-determina-
tion rights under the Works Constitution Act (BetrVG)
are preserved and workers’ representatives are
involved in decisions on social, personnel and eco-
nomic issues.
Regular meetings between works councils and the
Board of Management serve to exchange information
on current developments and challenges, with
employees being informed early on about planned
changes. The working conditions of employees are
regulated in a binding manner in Group, General and
Works Agreements. In addition, representatives of the
workforce are part of the Supervisory Board.
The cooperation with the collective bargaining parties
is an important action within the social dialogue.
Collective bargaining agreements, in-house and
supplementary collective agreements as well as works
agreements regulate the working conditions for the
majority of employees. The HR department of the
Mercedes-Benz Group actively approaches employee
representatives bodies in order to work together on
issues and to reach agreements and implement them.
Youth and trainee representatives are also firmly
established at the local and cross-site level. In the
2024 reporting year, important agreements were
reached, including the extension of the framework
social plan and a voluntary General Works Agreement
on profit sharing for the 2023 financial year.
Employees can find out about the relevant impacts and
contribute via various communication channels such as
the employee portal, emails and special dialogue
formats. This includes information on further training
and retraining actions, transformation projects and the
promotion of health and safety in the workplace.
Employees also have the opportunity to take part in the 
Employee Day of the Sustainability Dialogue to gain
insights into future projects.
1 European Economic Area (EEA) = EU including Iceland, Liechtenstein, Norway.
Collective bargaining coverage and social dialogue
92.3% of all employees in the European Economic Area 1
are covered by collective agreements. There is also an
agreement on the representation of employees by the
European Works Council. It serves to facilitate the
Europe-wide exchange of information and opinions
between the Group management and the employees.
Coverage Rate1
Collective Bargaining
Coverage2, 3
Social Dialogue2
0-19%
20-39%
40-59%
60-79%
80-100%
Germany
Germany
1 For countries in which the Mercedes-Benz Group has 50 or more employees,
representing at least 10% of the total number of employees.
2 Reference date 31.12.2024.
3 Multiple collective bargaining agreements.
Employee survey
The HR department implements the involvement of
the workforce through a Group-wide employee survey.
The aim of the regular survey is to measure employee
commitment, employee satisfaction, the implementa-
tion of the People Principles in everyday work and
other important topics. This is an important indicator of
where the Mercedes-Benz Group stands on various
topics from the perspective of its employees and
where there is potential for improvement. The survey
offers employees the opportunity to give feedback and,
with the follow-up process, contributes to continuously
improving the management and corporate culture
through a variety of local and cross-company
initiatives. In this way, the work culture can be
continuously developed further in the transformation
process by deriving suitable actions.
Employee networks
Networks offer employees with common interests,
experiences or values the opportunity to come
together and connect and exchange ideas across all
levels. The Mercedes-Benz Group underlines the
importance of the networks by incorporating their
diverse perspectives, especially in Diversity, Equity &
Inclusion Management.
Ideas management
The workforce is also involved through structured ideas
management, which is an integral part of the corporate
culture. Employees can submit their ideas on relevant
topics such as resource use, occupational safety and
environmental protection via a digital platform.
Remediation of negative impacts and channels for
own workforce to raise concerns
If employees of the Mercedes-Benz Group are
discriminated against, bullied or sexually harassed, or if
they have observed such incidents, they can turn to
various contact points: managers, the HR department,
social counselling, employee representatives, the
company medical service, the Works Council or the 
Group Representative Committee for Senior Managers.
Reports are examined, followed up and, if necessary,
acted upon with disciplinary proceedings.
Other points of contact are the Integrity Info Point and
the Group’s own whistleblower system BPO (Business &
People Protection Office). The Whistleblower System
BPO can be found in the chapter Governance
information under Corporate culture.
In many units, employees also have access to external
employee support programmes, which include self-help
options as well as (anonymous) counselling services.
Equal treatment and equal opportunities for all
Policies
The Mercedes-Benz Group values a diverse workforce
and appreciates the uniqueness of each individual.
Diversity and inclusion are therefore central com-
ponents of the Mercedes-Benz Group’s strategy. The
strategic focus is on the topics of women’s advance-
ment, internationality and inclusion.
1 The approval rate is measured using the evaluation of the following statement in the employee survey: Everyone in this Company is treated fairly – regardless of ethnicity, gender, age, disability or other differences that have nothing to do with professional performance.
Status in the reporting year: according to plan.
2 Status in the reporting year: according to plan.
The Mercedes-Benz Group has summarized its under-
standing of diversity and inclusion in the mission
statement “Uniqueness makes us strong”. It was signed
by all members of the Board of Management. For
Mercedes-Benz Group AG, Mercedes-Benz AG and
Mercedes-Benz Intellectual Property GmbH & Co. KG,
the principles of diversity and inclusion are enshrined
in the General Works Agreements Advancement of
women and Equal opportunity. These define concrete
areas of action for deriving measures related to equal
opportunities as a whole or for the promotion of
women.
These topics are also regulated in the Integrity Code
and the Groups Works Agreement Fair Treatment in the
Workplace. The Integrity Code, which can be found in
the chapter Governance information under Corporate
culture, defines the Corporate Principles and guidelines
for the daily interactions of all employees of Mercedes-
Benz Group AG and the consolidated Group companies
worldwide. The Principles of Social Responsibility and
Human Rights can be found in the chapter Workers in
the value chain under Human rights and supplements
and specifies the Integrity Code. It is binding for all
employees of Mercedes-Benz Group AG and con-
solidated Group companies worldwide.In accordance
with its Corporate Principles, the Mercedes-Benz Group
promotes an open attitude characterized by mutual
respect, appreciation and fairness.
Equal opportunities for all is the aspiration. Dis-
crimination in any form is not tolerated, especially
not in relation to:
– age
– disability
– gender, gender identity and gender expression
– health status
– national and ethnic origin
– political opinion, religion and ideology
– political, social or union affiliation
– sexual orientation
– social background
Targets
The Group pursues the following targets with regard to
equal treatment and equal opportunities:
– Achieve an Inclusion Index 1 of 75% by 2030.
The milestone of 70% by 2025 was reached in the
employee survey in 2023. To set the target, an
ambitious target was defined using the status quo.
After setting the target, appropriate actions and a
process for monitoring target achievement in con-
junction with the evaluation of the employee survey
were implemented.
– 30% women in senior management positions at
levels 1-3 worldwide by 2030 2.
In 2020, the proportion of women in senior manage-
ment positions was 20% worldwide. To set the goal,
an ambitious target was defined using the status quo.
Appropriate actions have been implemented and the
achievement of the target is reviewed quarterly and
presented to the Board of Management of Mercedes-
Benz Group AG.
Actions
The Mercedes-Benz Group is actively committed to an
inclusive corporate culture based on appreciation and
respect, thus promoting diversity, equal opportunities
and equal treatment of employees.
The permanent actions include information, aware-
ness-raising and participation formats that emphasize
the principles and rules for equal opportunities and
respectful interaction. In addition, there are training
courses, information and advice offers on topics such
as sexual harassment, bullying and discrimination as
well as measures within the framework of the Social
Compliance Management System. Further information
on this can be found in the section Other work-related
rights of this chapter. The Group sensitizes employees
to diversity, equity and inclusion with its own online
training, while a global diversity community on the
employee portal promotes exchange. With annual com-
munication planning, the Group ensures that important
topics such as International Women’s Day and the Day
of Persons with Disabilities are taken into account.
In 2024, the Group demonstrated its commitment to
diversity and inclusion, for example with Diversity
Week, a week full of digital offerings that focused on
equal opportunities and the personal contribution of
the individual, or by participating in Christopher Street
Day and Pride Parades, in which the Mercedes-Benz
Group has been present for over ten years. In 2024,
the Mercedes-Benz Group was involved in many cities
with sponsorship activities for local LGBTIQ+
organizations. In addition, the Group promoted
dialogue with employee networks through exchange
formats on topics such as women, cultures and
LGBTIQ+.
To promote the inclusion of persons with disabilities,
the Mercedes-Benz Group AG continuously implements
actions that are set out in an inclusion agreement.
These include the creation and adaptation of specially
designed workplaces, e.g. through the use of digitaliza-
tion and Industry 4.0. In Germany, representatives
of severely disabled people and inclusion officers
advocate for the interests of severely disabled
employees in order to enable equal participation.
The Group also organizes awareness-raising activities
and provides barrier-free tools to support an inclusive
working environment.
The Mercedes-Benz Group promotes internationality,
a global mindset and the cultural diversity of its
workforce. Among other things, it supports interna-
tional assignments for its employees and offers
attractive support services and safe reintegration.
The Group is pursuing various actions to actively
promote the advancement of women. On International
Women’s Day in 2024, for example, the Mercedes-Benz
Group offered digital dialogue formats with internal
female role models. The Group also enabled a select
delegation of female managers to take part in the
Global Summit of Women. In addition, the Mercedes-
Benz Group is a member of the European Women’s
Management Development Network (EWMD) and a
signatory of the UN Women’s Empowerment Principles
(WEPs). Internal personnel development programmes
offer targeted mentoring and development oppor-
tunities for female talent. In addition, the Group offers
specific formats to specifically address women in
technical professions.
The Mercedes-Benz Group is also committed to divers-
ity and inclusion outside the Group through member-
ships and initiatives such as the Charta der Vielfalt e.V.,
The Valuable 500 and the UN Standards of Conduct
for Business to combat discrimination against LGBTI
people.
Metrics
Gender distribution at top management level (1-2)1
At 31 December
2024
Gender distribution at top management level
(absolute)
Male
330
Female
100
Gender distribution at top management level (in %)
Male
76.7
Female
23.3
1 Top Management level is the first two levels directly below the Board of
Management.
The Mercedes-Benz Group has taken a more compre-
hensive approach to calculating the gender distribution
of the top management level, as the aim is to increase
the proportion of women in all senior management
positions, not just in top management.
Gender distribution at senior management level 1-3*, 1
– company-specific
At 31 December
2024
Gender distribution at senior management level
(absolute)
Male
1,656
Female
593
Gender distribution at senior management level
(in %)
Male
73.6
Female
26.4
* Data have been audited with reasonable assurance.
1 Management levels 1-3 are the first three levels under the Board of Management.
Age distribution of own workforce (in %)
At 31 December
2024
Under 30 years
13.1
30-50 years
56.8
Over 50 years
30.1
Other work-related rights
Policies
Respect for human rights is of central importance to
the Mercedes-Benz Group and has been integrated
into the sustainable business strategy as a dedicated
focus area called Human Rights. The internationally
recognized reference frameworks and the Mercedes-
Benz Group’s Principles of Social Responsibility and
Human Rights form the basis for this. The organiza-
tional anchoring of the topic of human rights, the
international reference frameworks, the Principles of
Social Responsibility and Human Rights and the human
rights due diligence approach (the Human Rights
Respect System) can be found in the chapter Workers
in the value chain under Policies.
The Mercedes-Benz Group reviews the effectiveness
of policies and actions, among other things, through
the annual assessment of high-risk entities and their
implementation measures within the framework of the
Social Compliance Management System (Social CMS).
Actions
The Human Rights Respect System (HRRS) includes,
among other things, the protection of the Group’s own
workforce through the Group-wide Social CMS. The
Mercedes-Benz Group uses the Social CMS to identify
and address in particular those human rights risks
that may arise among the workforces of its own Group
companies. For example, employee rights are
addressed systematically and risk-based through the
Social CMS. With the Social CMS, the Mercedes-Benz
Group has integrated the topic of human rights for the
Group companies into the Group-wide compliance risk
management process.
The Mercedes-Benz Group has implemented minimum
requirements via the Social CMS to protect employee
rights and systematically prevent human rights risks.
The basis for this are the Principles of Social Respon-
sibility and Human Rights. Among other things, the
Social CMS stipulates that compliance with the
minimum age in accordance with the relevant ILO
conventions must be ensured by documenting the age
of employees when they join the Group. This can be
done, for example, through model employment con-
tracts that require the date of birth to be stated and
through documentation in the HR system. In addition,
the policy on minimum standards for HR work also
requires that personal details are recorded when hiring.
The Social CMS also requires that local units deal with
and observe the ILO convention on the prohibition of
forced labour. Local regulations and processes must be
regularly reviewed and, if necessary, adjusted to
comply with the specified framework. The HR depart-
ment is responsible for managing the entire process of
concluding employment relationships. The preventive
actions implemented have contributed to risk
mitigation in an appropriate and effective manner.
Incidents, complaints and
severe human rights impacts
Incidents and complaints relating to discrimination and other
labour law issues
2024
Number of severe incidents of discrimination1
21
Number of complaints filed through internal channels2
334
Number of complaints filed through national contact
points
0
1 This figure essentially includes serious cases of discrimination, sexual harassment,
racism and violations of physical/psychological integrity.
2 Disciplinary cases in the human resources department regarding working conditions,
equal treatment and equal opportunities and other work-related rights that have
been documented in writing are addressed.
In connection with the above-mentioned cases of
discrimination and complaints on other labour
law issues, material fines, sanctions and damages
payments amounting to €10.000 were incurred. These
expenses are included in the Consolidated Statement
of Income/Loss under Other operating expense.
During the reporting period, the Mercedes-Benz Group
was not aware of any incidents relating to serious
human rights violations in connection to the own
workforce. No material fines, sanctions or compensa-
tion payments were incurred in connection with such
incidents during the financial year.
1 This also includes workers who work at the Group’s site but are not part of the Group’s workforce, workers who work in the upstream value chain and workers who work in the operations of a joint venture or special purpose entity in which the Mercedes-Benz Group is involved.
Workers in the value chain
Material impacts, risks and opportunities and their
interaction with strategy and business model
The Mercedes-Benz Group has identified its material
impacts, risks and opportunities related to labour in the
value chain in accordance with the requirements of
the ESRS. These are described in the chapter General
information under Identification of material impacts,
risks and opportunities and presented in the table
below.
Respect for human rights is of central importance to
the Mercedes-Benz Group and therefore constitutes
one of the six sustainability focus areas. Further
information on this can be found in the chapter General
information under Strategy, business model and value
chain. The Group is committed to protect and promote
human and employee rights along the entire value
chain. This also applies to all employees 1 along the
complex supply chains.
Supply chains can comprise up to eight levels and are
sometimes branched out into a system of sub-
suppliers. The supply chains evolve dynamically with
every market development and innovation. Basic
information on the structure of supply chains can be
found in the chapter General information under
Strategy, business model and value chain. With the
expansion of electromobility in particular, the
protection of workers in the upstream value chain is
increasingly coming into focus. The production of
battery cells requires an increased demand of raw
materials such as lithium and cobalt. These often come
from countries with an increased risk of human rights
violations and negative impacts on working conditions
and employee rights.
The Mercedes-Benz Group has established a risk-based
approach to upholding human rights due diligence,
called the Human Rights Respect System (HRRS). It is
committed to the responsible procurement of pro-
duction and non-production materials and services.
All products should only contain raw materials and
materials that have been mined and produced in
compliance with human rights, employee rights and
environmental standards. The Group already takes
this principle into account in the purchasing process.
Supplier Compliance Risk Management (SCRM) defines
mandatory requirements for compliance with human
rights due diligence within external procurement
processes. In addition, the Group formulates minimum
requirements and expectations for its suppliers, which
are set out in the Responsible Sourcing Standards
(RSS). These additional details can be found on the
🌐 Mercedes-Benz Supplier Portal website.
Information on the analysis of the resilience of the
Group’s strategic sustainability focus areas with regard
to material impacts, risks and opportunities can
be found in the chapter General information under
Material impacts, risks and opportunities.
Workers in the value chain – material impacts, risks and opportunities
Direction of action
Time horizon
Localization
Value chain position
Working conditions
Impacts
Impairment due to long working hours
negative
short-, medium- & long-term
regional
Inadequate remuneration in the upstream value chain
negative
short-, medium- & long-term
regional
Restrictions on employees’ freedom of association
negative
short-, medium- & long-term
regional
Restrictions on employees’ collective bargaining rights
negative
short-, medium- & long-term
regional
Impairment on health and safety
negative
short-, medium- & long-term
regional
Equal treatment and equal opportunities for all
Impacts
Impairment of equal opportunities for employees
negative
short-, medium- & long-term
regional
Other work-related rights
Impacts
Potential child labour in the upstream value chain
negative
short-, medium- & long-term
regional
Potential forced labour in the upstream value chain
negative
short-, medium- & long-term
regional
Impairment due to lack of access to drinking water and sanitary facilities
negative
short-, medium- & long-term
regional
Risks
Capital market-related investment losses related to incidents of human rights violations
short-, medium- & long-term
regional
Human rights violation in supply chains
short-, medium- & long-term
regional
VU  =  Value chain upstream
OA  =  Own business activity
VD  =  Value chain downstream
=  actual
 
=  potential
   
=  ESRS compliant target filed
Policies
Human rights
The Mercedes-Benz Group is committed to ensuring
that human rights are complied with and respected
in all Group companies and by its partners along the
value chain, especially suppliers. It is therefore
committed to respecting the following international
standards:
– Universal Declaration of Human Rights
– International Covenant on Civil and Political Rights
– International Covenant on Economic, Social and
Cultural Rights
– Declaration of the International Labour Organization
(ILO) on Fundamental Principles and Rights at Work
– United Nations Guiding Principles on Business and
Human Rights
– Ten Principles of the UN Global Compact (UNGC)
– Organisation for Economic Co-operation and
Development (OECD) Guidelines for Multinational
Companies
In its Principles of Social Responsibility and Human
Rights, the Mercedes-Benz Group emphasizes how
important the protection of human rights and good
working conditions are for the Group. The principles
describe the process for implementing human rights
due diligence obligations and lists the human rights
risks relevant to the Mercedes-Benz Group. The Group
has identified these risks in accordance with the UN
Guiding Principles on Business and Human Rights,
taking into account the nature and scope of its own
business activities, the above-mentioned international
standards and the specific context of the automotive
industry. The Principles of Social Responsibility and
Human Rights include, among others, the following
topics:
– an appropriate remuneration
– compliance with legal or industry-specific working
time requirements
– the prohibition of human trafficking, child and
forced labour
– the right to freedom of association and collective
bargaining
– health and safety at work
– the right to equal opportunities and protection from
discrimination
The HRRS is the process for implementing human rights
due diligence obligations. The Mercedes-Benz Group
uses the HRRS to carry out systematic and risk-based
checks of whether human rights are being respected in
the value chain. Accordingly, the Group pursues a
variety of actions to prevent negative impacts on
human rights worldwide within its business activities
and towards its partners and suppliers, to end them
wherever possible or to mitigate them.
The Chairman of the Board of Management and other
members of the Board of Management of the
Mercedes-Benz Group AG have signed the Principles of
Social Responsibility and Human Rights together with
the General Works Council, the World Employee
Committee and IndustriALL Global Union. All relevant
departments of the Group participated in drafting the
principles. This included input from in-house human
rights experts, as well as the perspectives and
expertise of external stakeholders.
The overarching activities on the topic of human rights
are managed by the Integrity, Governance & Sustain-
ability executive division of Mercedes-Benz Group AG.
This division is responsible for the Principles of Social
Responsibility and Human Rights as well as for the
further development of human rights due diligence
within the Mercedes-Benz Group via the Group’s own
Human Rights Respect System. The responsible
member of the Board of Management of Mercedes-
Benz Group AG and the Group Human Rights Officer,
who reports to the responsible member of the Board of
Management, develop the topic further. To this end,
the Board of Management member is regularly
informed about the Group’s human rights activities and
receives corresponding reports.
The Chief Compliance Officer of the Mercedes-Benz
Group is also the Group’s Human Rights Officer. He is a
member of the Group Sustainability Committee and
reports to the Board of Management member respon-
sible for Integrity, Governance & Sustainability at
Mercedes-Benz Group AG. He reports annually as well
1 Status in the reporting year: according to plan.
as occasion-related to the Board of Management of
Mercedes-Benz Group AG and other committees
on particularly relevant human rights topics and on the
status of implementation of the Declaration of
Principles of Social Responsibility and Human Rights.
In addition, the Human Rights Officer heads the Human
Rights Steering Committee, which coordinates the
implementation of the Declaration of Principles on
Social Responsibility and Human Rights and the HRRS
within the Mercedes-Benz Group. Its members include
representatives from Procurement and the Human
Relations department as well as the Group’s environ-
mental and energy representative, among others.
Internal guidelines and requirements define the
mandatory specifications for procurement processes.
The guidelines apply to the managers and employees
of the Mercedes-Benz Group and its controlled com-
panies. The Social Compliance department supports
the definition of the requirements of human rights
due diligence within the Mercedes-Benz Group and
towards suppliers. In doing so, it works closely with
the specialist departments that are responsible for
the operational implementation of human rights due
diligence – in particular with the procurement units and
the functional compliance officers responsible for
them.
Requirements for suppliers
The Mercedes-Benz Group has anchored the guidelines
for responsible supply chain management in the
Responsible Sourcing Standards (RSS). They define
minimum requirements and expectations for Tier-1-
suppliers and contractually oblige them to comply
with the requirements, to communicate them to their
employees and upstream value chain stages and to
monitor compliance in their business processes and
sphere of influence. As a central contractual document
for minimum and sustainability requirements, they are
used internationally.
The RSS are derived from internationally recognized
standards, the Integrity Code and the Principles of
Social Responsibility and Human Rights. In addition to
the human rights minimum requirements, the RSS also
set minimum environmental requirements. These are
described in more detail in the chapter Climate change
mitigation in the upstream value chain under Policies
and in the other chapters on environmental
information.
Targets
The Mercedes-Benz Group has set targets to imple-
ment its human rights due diligence. These were
approved by the Board of Management of Mercedes-
Benz Group AG. The requirements of internal and
external stakeholders were also incorporated into the
target-setting process. The targets are reviewed and
updated annually. The Mercedes-Benz Group uses
qualitative indicators and internal processes to monitor
the extent to which policies and actions are effective.
The following targets have been set, among others:
– By the year 2028, define preventive actions for
100% of the Mercedes-Benz Group’s production
materials that pose an increased risk of human
rights violations 1.
– Milestone: by the end of the year 2025, review
70% of all production raw materials used by
the Mercedes-Benz Group with an increased risk
of human rights violations and define necessary
preventive actions.
– By the year 2027, review the appropriateness of
prevention measures for service and non-produc-
tion material commodities relevant for value
creation with the most significant human rights or
environmental risks and derive areas for
optimization1.
Actions
With the following actions, the Mercedes-Benz Group
promotes transparency in the supply chain and
also wants to ensure that business partners comply
with internationally recognized human rights and
observe other social standards and environmental
requirements.
Human Rights Respect System (HRRS)
The Human Rights Respect System is the human rights
due diligence approach of the Mercedes-Benz Group.
It includes the protection of the company’s own
workforce through the Group-wide Social Compliance
Management System (Social CMS) in Group companies
as well as processes for human rights due diligence
in supply chains through Supplier Compliance Risk
Management (SCRM) for direct suppliers and, on a risk-
based basis, indirect suppliers (beyond Tier 1). The
Human Rights Respect System is based on the Group’s
Integrity Code, the Principles of Social Responsibility
and Human Rights and the Group Environmental and
Energy Management Policy, including the ambitions to
achieve carbon neutrality, as well as the existing legal
requirements and internationally recognized human
rights standards.
The HRRS consists of four steps: 1. Risk assessment,
2. Programme implementation, 3. Monitoring and
4. Reporting. It aims to identify risks and potential
and actual negative impacts of corporate activities
on respect for human rights at an early stage, to
systematically prevent them and – if necessary –
to initiate countermeasures.
Supplier Compliance Risk Management (SCRM)
As part of the SCRM, the Mercedes-Benz Group
subjects Tier-1-suppliers of its procurement units for
production materials as well as for non-production
materials and services to a risk assessment at least
once a year. Following an initial overarching risk
statement, the concrete risks are determined using
specific questionnaires.
To ensure comparability, the Group also uses
standardized instruments from external sources. One
example is the industry-wide sustainability question-
naire on social and environmental due diligence
obligations (Sustainability Assessment Questionnaire)
of the European sustainability initiative “Drive
Sustainability”.
In addition, the procurement departments for
production materials as well as non-production
materials and services continuously review
Tier-1 suppliers risk-based for human rights and
environmental risks using artificial intelligence.
The Mercedes-Benz Group follows up on internal and
external reports of potential human rights violation at
Tier-1-suppliers and in case of substantiated know-
ledge at Tier-n-suppliers in accordance with the SCRM.
It examines the nature and severity of the potential
human rights violation. Depending on the result of the
risk assessment or the analysis of suspected cases,
the procurement departments for production materials
and non-production materials and services agree on
and review suitable preventive or corrective actions
with the supplier.
In addition, the Mercedes-Benz Group continued its
risk-based audits of direct and indirect suppliers in
the year 2024. If on-site visits reveal deficiencies at a
supplier, the Mercedes-Benz Group asks the supplier to
improve the relevant processes. If the supplier does
not improve the respective processes adequately, the
Group decides on further steps on an individual basis.
In particularly serious cases, management committees
are also involved. In the last analysis, this can lead to
the Mercedes-Benz Group severing its relationship with
a supplier.
Audits in the deeper supply chain
Since the year 2018, an external auditing and consult-
ing company has been creating transparency for
Mercedes-Benz about the complex raw material supply
chains for battery cells and auditing them across all
stages of the supply chain in accordance with OECD
due diligence guidelines. After initial audits in the
cobalt supply chains, the commitment was expanded in
the year 2022 to include other battery raw materials:
lithium, nickel, graphite, manganese and aluminium.
Mercedes-Benz is also gradually increasing transpar-
ency in these supply chains and conducting audits. In
addition, the scope of the audit, with a focus on human
rights, was expanded to include environmental aspects
and applied to selected audits.
Supplier training courses
The Mercedes-Benz Group sensitizes and informs its
suppliers through appropriate training modules and –
where appropriate – through its cooperation with
sustainability and human rights initiatives.
The Mercedes-Benz Group has developed the Com-
pliance Awareness Module based on its sustainability
standards for suppliers and its Integrity Code. The
publicly available module supports suppliers in dealing
responsibly with potential integrity and compliance
risks. All suppliers can access the module via the
supplier portal around the clock.
Review of risk raw materials
In order to examine further risks in procurement that
go beyond Tier 1 suppliers, the Mercedes-Benz Group
first analysed the raw materials present in a Mercedes-
Benz vehicle and prioritized them based on various
factors. The methodology provides for raw materials to
be evaluated and prioritized based on country risk, the
criticality of the raw material and internal expert
assessments. External data sources are used for the
evaluation, e.g., RMI Global Risk Map. The Group plans
to gradually examine the 24 critical raw materials
identified in more detail by the year 2028 and define
appropriate actions. This review consists of three
steps:
1. Increase transparency along the raw material
supply chains – especially for certain components,
such as the battery cell. To this end, Mercedes-Benz
AG contacts the suppliers of the relevant
components and asks them to disclose their
supplier structure in a self-disclosure.
2. Identify risk hotspots in the raw material supply
chains – for example, based on country risks in the
individual mining countries.
3. Define and implement actions for risk hotspots and
check whether they are effective over the long term.
An example of such an action is the Responsible
Lithium Partnership in the Salar de Atacama in
Chile. Further information on this action can be
found in the chapter Water and marine resources
under Actions.
When assessing risks, the Mercedes-Benz Group is
guided by the Severity Approach of the UN Guiding
Principles, among other things. The Group first
assesses which  human rights risks generally occur in
connection with a specific raw material. The severity of
the risk and the number of people affected are then
assessed. In a further step, the Mercedes-Benz Group
uses supplier dialogues, supplier self-disclosures and
audits to assess whether the risk also occurs in its
own production material supply chain. If this is the
case, the Mercedes-Benz Group defines suitable
actions to minimize the relevant human rights risks .
When selecting actions, the Mercedes-Benz Group
follows the principle of not categorically excluding
high-risk areas as sources of critical raw materials.
Instead, it wants to make an active contribution to
better protecting people and the environment along its
supply chains. The Mercedes-Benz Group follows the
principle of “Empowerment before withdrawal". This is
enshrined in the German Supply Chain Due Diligence
Act (LkSG) as a regulatory principle. The ambition is
to improve the situation for people on the ground and
to strengthen their rights.
Further information on the review of individual raw
materials, identified risks, involvement of stakeholders
and actions initiated can be found in the 🌐 Raw
Materials Report. In the reporting year, the Mercedes-
Benz Group was able to complete 65% of the process
for reviewing all 24 critical raw materials, thereby
achieving its target for the year 2024. The target
achievement describes the progress in the process for
reviewing all 24 raw materials, including fully com-
pleted and partially completed assessments. During
the reporting period, it completed the review of
graphite, rare earths (REE), quartz sand and silicon. The
identified risk areas include child labour, inadequate
occupational health and safety, environmental risks
related to human rights, and forced labour. The
Mercedes-Benz Group also made progress in the
reporting period for raw materials that have not yet
been finally reviewed: It has collected important data
that is necessary for the review – on deposits, pro-
duction volumes, mining and processing of the raw
materials, as well as on trade in them.
Review of high risk services and
non-production materials
In addition, the Mercedes-Benz Group has the ambition
to make risks in upstream supply chains for services
and non-production materials more transparent in
order to address them adequately. The Group therefore
systematically examines value-added commodities
with the most significant human rights or environ-
mental risks in the procurement department for
services and non-production materials using a three-
stage process.
First, the Group analyses the procurement data and
markets of the product group and researches human
rights and environmental risks and contextual factors
of the associated industry. Depending on the identified
risk situation, a cross-functional group of experts
verifies the results. The expectations of stakeholders
are also taken into account. If the Group identifies a
need for action, existing preventive actions are further
developed. In the reporting year, the Mercedes-Benz
Group used this approach to focus on reviewing its
transport logistics supply chains. In addition, it actively
participated in a working group of the Sector Dialogue
Automotive Industry of the National Action Plan for
Business and Human Rights (NAP) to identify suitable
preventive and remedial actions in the area of road
transport logistics.
Promote human rights
In addition to preventive measures, the Mercedes-
Benz Group is committed to actively exerting a positive
influence on the regions where raw materials and
materials for its products are obtained.
The Group supports social projects in the supply chain
with a focus on improving living conditions in the
affected communities and thus helping to prevent child
labour. The focus is on raising awareness about
children’s, girls’ and women’s rights as well as creating
educational and health opportunities and improved
learning conditions. This is intended to strengthen the
human rights situation of the local population as a
whole. To this end, the Group cooperates with two
NGOs: the Good Shepherd International Foundation in
partnership with Bon Pasteur Kolwezi in the Democratic
Republic of Congo, focusing on the cobalt mining region.
The Terre des Hommes project in India focuses on the
mica mines in Jharkhand and the surrounding region.
Both cooperations aim to show the population in the
mining region alternative income opportunities and
thus improve the quality of life in these communities in
the long term. The Terre des Hommes project in par-
ticular places greater emphasis on the representation
of interests at local and national levels and the
involvement of the private sector in order to influence
the political discourse on the issue of child labour.
The Mercedes-Benz Group discussed the effectiveness
of the initiatives with the sponsor at regular intervals.
For example, in the reporting period, quarterly meet-
ings were held in which the Group analysed the initiative’s
current success indicators and compared them with
the figures initially set in the funding agreement.
Industry associations
The Mercedes-Benz Group has long been involved
in various industry and trade associations, as well as
initiatives and networks, that address the issues of
sustainability and human rights in the supply chain.
These memberships help the Group make complex
supply chains more responsible through joint actions.
– UN Global Compact: The Mercedes-Benz Group is a
founding member of the UN Global Compact.
– UN Global Compact Network Germany e.V.: The
Mercedes-Benz Group is a founding member
of the UN Global Compact Network Germany e.V.
and participates as an active member in the Peer
Learning Group Human Rights.
– econsense – Forum for Sustainable Development
of the German Economy e.V.: The Mercedes-Benz
Group participates in the Human Rights & Value
Creation cluster, among others.
– World Business Council for Sustainable Develop-
ment (WBCSD): The Mercedes-Benz Group is a
member of this global business initiative for sus-
tainable development.
– Responsible Supply Chain Initiative e.V. (RSCI): The
Mercedes-Benz Group is a founding member of
the association established by the Association of
the Automotive Industry (VDA). The ambition is
to support all players in the automotive sector in
improving and further developing sustainability
in their supply chains through on-site visits and
corresponding follow-up.
– Drive Sustainability: The Mercedes-Benz Group is a
LEAD partner of the European automotive industry
initiative Drive Sustainability, which promotes sus-
tainability in the supply chain. Common guidelines
play an important role here:
– The Automotive Industry Guiding Principles to
Enhance Sustainability Performance in the
Supply Chain
– The Raw Material Outlook, an offering developed
on the initiative of Mercedes-Benz AG to support
suppliers and stakeholders along raw material
supply chains in conducting effective due
diligence.
– Automotive industry dialogue in the National Action
Plan for Business and Human Rights (NAP): The
Mercedes-Benz Group is actively participating in the
automotive industry’s NAP industry dialogue. The
ambition is to exchange best practices with repre-
sentatives from civil society, science and politics,
business and associations and to develop joint
solutions to strengthen human rights in value
chains.
– Catena-X: The Mercedes-Benz Group is a founding
member of the Catena-X cooperation project.
The ambition is to enable secure, sovereign and
standardized data exchange across all participants
in the automotive value chain. Catena-X is intended
to support the Mercedes-Benz Group, among other
things, in checking whether and to what extent
suppliers comply with specified sustainability
requirements. From the raw material mines to
recycling, the data chain is to be supplemented with
CO2 data from each company, thus enabling a
product-specific carbon footprint with the highest
possible proportion of primary data.
– Responsible Minerals Initiative (RMI): The
Mercedes-Benz Group has been a member of this
initiative since the year 2018 with the ambition to
promote responsible procurement of raw materials
worldwide.
– Initiative for Responsible Mining (IRMA): The
Mercedes-Benz Group has been a member of the
multi-stakeholder initiative since the year 2021.
This initiative advocates an independent assess-
ment of the social and environmental performance
of industrial mining sites worldwide.
– Aluminium Stewardship Initiative (ASI): The
Mercedes-Benz Group has been a member of this
initiative since 2018 with the ambition to achieve
improvements along the entire aluminium value
chain.
– Responsible Mica Initiative (RMI): As an active
member since 2020, the Mercedes-Benz Group is
committed to fair working conditions and the
creation of a legal framework for mica mining.
Involvement of the workforce in the supply chain
The Mercedes-Benz Group uses various formats to
enter into dialogue with relevant stakeholders, as well
as the workforce in the supply chain. The formats
for involving stakeholders are described in detail in
the chapter Strategy under Interests and views of
stakeholders.
The Mercedes-Benz Group attaches great importance
to developing and implementing its HRRS together
with external stakeholders. It is particularly important
to the Group to exchange ideas with potentially
affected stakeholders and their representatives in
order to identify human rights risks and develop
suitable measures. Besides, it also enters into dialogue
with external third parties such as civil society groups
or the local population and takes their suggestions into
account. At the annual Sustainability Dialogue in the
reporting year, the Human Rights Working Group
discussed how to measure effectiveness in the raw
material supply chain. More information on the Sus-
tainability Dialogues can be found in the chapter
Strategy under Interests and views of stakeholders.
The ambition of the working group is to incorporate
feedback and expertise from external stakeholders
into the further development of the HRRS.
In addition, the Group systematically involves poten-
tially affected stakeholders in the review of its 24 raw
materials identified as critical in order to identify
human rights and environmental risks and implement
suitable actions. Regional and local NGOs represent
an important interest group, as they provide a more
accurate picture of the situation on the ground and are
aware of the concerns of those potentially affected.
In addition, trips were made to mining areas during the
reporting period, among others to Brazil and Guinea,
from where Mercedes-Benz AG sources bauxite and
aluminium. The on-site visits serve to establish contact
with those potentially affected and to involve them in
the design of actions. The Mercedes-Benz Group is also
committed to greater involvement of those potentially
affected, such as the local population, in audits by
standard systems.
The organizational anchoring can be found in this
chapter under Policies.
Remediation of negative impacts and channels
through which concerns can be raised
The Whistleblower System BPO (Business & People
Protection Office) enables suppliers, employees in the
value chain and external whistleblowers worldwide
to report violations of the rules. The Mercedes-Benz
Group works closely with the World Employee Com-
mittee in this regard. The Whistleblower System BPO
is described in more detail in the chapter Governance
information under Corporate culture.
In order to gain improved access to the deeper supply
chain, the Mercedes-Benz Group is also participating in
a pilot project to develop a cross-company grievance
mechanism in Mexico, the “Mecanismo de Reclamación
de Derechos Humanos” (MRDH). This independent
grievance mechanism was developed in cooperation
with government institutions, trade unions, civil
society, companies (Mercedes-Benz, BMW and
ZF Friedrichshafen) and human rights institutions from
Germany and Mexico. The ambition of the MRDH is to
identify and mitigate potential human rights risks in the
automotive supply chain in Mexico.
During the reporting period, the Mercedes-Benz Group
was not aware of any incidents relating to serious
human rights violations in connection with the workers
in the value chain.
Affected Communities
Material impacts, risks and opportunities and
their interaction with strategy and business model
The Mercedes-Benz Group has identified its material
impacts, risks and opportunities relating to affected
communities in accordance with the requirements
of ESRS. These are described in the chapter General
information under Identification of material impacts,
risks and opportunities and presented in the table
below.
The Mercedes-Benz Group strives to combine eco-
nomic success with responsible action towards the
environment, people and society. For the Group,
respect for human rights is a central component of
responsible corporate governance and an elementary
focus area of its sustainable business strategy. The
protection of local communities and indigenous
peoples is of great importance to the Mercedes-Benz
Group.
The commitment is to protect and promote human
rights along the entire value chain. This also addresses
the rights of members of local communities and
indigenous peoples who may be affected by business
activities at supply chain locations and by local impacts
of corporate activities.
The protection of the affected communities is also
increasingly coming into focus due to the expansion of
electromobility. The mining and processing of rare raw
materials often takes place in regions where there is a
risk of negative impacts on affected communities.
With regard to its complex supply chains, the
Mercedes-Benz Group is committed to responsible
procurement and sets minimum requirements for its
suppliers, which are linked to clear expectations. Basic
information on the structure of the supply chain is
described in the chapter General information under
Strategy, business model and value chain and in the
chapter Workers in the value chain.
To avoid negative impacts on local communities and
indigenous peoples, the Group relies on comprehensive
prevention actions.
Information on the analysis of the resilience of the
Group’s strategic sustainability focus areas with regard
to the material impacts, risks and opportunities can
be found in the General information under Material
impacts, risks and opportunities.
Affected communities – material impacts, risks and opportunities
Direction of action
Time horizon
Localization
Value chain position
Economic, social and cultural rights
Impacts
Impairment of water quality and sanitary facilities in affected communities
negative
short-, medium- & long-term
regional
Limitation of land rights of affected communities
negative
short-, medium- & long-term
regional
Civil and political rights
Impacts
Endangerment of human rights activists
negative
short-, medium- & long-term
regional
Rights of indigenous peoples
Impacts
Limitation of rights of indigenous peoples
negative
short-, medium- & long-term
regional
VU  =  Value chain upstream
OA  =  Own business activity
VD  =  Value chain downstream
=  actual
 
=  potential
   
=  ESRS compliant target filed
Policies
The basis for respecting the rights of affected
communities and indigenous peoples is made up of
internationally recognized standards, the Mercedes-
Benz Group’s Principles of Social Responsibility and
Human Rights and the Responsible Sourcing Standards
(RSS). These overarching policies for protecting human
rights can be found in the chapter Workers in the value
chain under Policies. They apply to the entire value
chain and therefore also to affected communities.
The Principles of Social Responsibility and Human
Rights and the RSS explicitly mention the protection
of local communities and indigenous peoples and
recognize the ILO Convention No. 169 concerning
Indigenous and Tribal Peoples in Independent
Countries. With the RSS, the Mercedes-Benz Group
sets binding minimum requirements for its suppliers
in order to prevent potentially negative impacts
on local communities, indigenous peoples, human
rights activists and water resources.
The Mercedes-Benz Group uses qualitative indicators
and internal processes to monitor the extent to which
the policy and actions are effective.
Protection of local communities
and indigenous peoples
The minimum requirements for partners to protect
members of local communities and indigenous peoples
include the following aspects: the partner assures the
Mercedes-Benz Group that it will respect the rights
of local communities and indigenous peoples who may
be affected by business activities at the partner’s
locations and that it will take into account the local
impacts of its business activities. In particular, the
partner must:
– take appropriate actions to avoid potentially
harmful impacts on the health, safety and liveli-
hoods of local communities and indigenous peo-
ples. It shall not unlawfully compel the relocation
of local communities and indigenous peoples or
unlawfully contribute to their involuntary relocation.
– respect the principles of free, prior and informed
consent of indigenous peoples in its activities as
defined in the ILO Convention No. 169.
– respect the rights of indigenous peoples and their
social and cultural heritage, as well as their
environmental and economic interests. This
includes their relationship with the land, including
its management, and with other natural resources.
In addition to the minimum requirements, the partner
should:
– work in a spirit of trust with local authorities and
relevant local stakeholders to achieve the best
possible outcome for the people affected by their
business activities.
– engage in local community development and create
employment opportunities.
– if relocation is absolutely necessary, minimize and
compensate for any negative social and economic
impacts. This compensation should restore previous
living conditions.
– not tolerate land grabbing by direct suppliers.
– take remedial action over areas that have been
illegally appropriated in the past.
– ensure inclusion and cultural appropriateness
in all activities and communications with local
communities.
– communicate transparently and document all
interactions with local communities.
– introduce a policy to protect and preserve the
culture of indigenous peoples.
– promote the mutual exchange of skills and
knowledge with indigenous peoples.
Protection of human rights activists
The minimum requirements for partners to protect
human rights activists provide a clear framework for
action. If potential risks for human rights activists
arise in connection with the value creation processes
of the partner’s products or services, the partner must
oppose any form of intimidation, threats, defamation
and criminalization of human rights activists. In
addition to the minimum requirements, the partner
should:
– work towards the protection of human rights
activists and declare its commitment to their
protection in a publicly accessible document and
also demand this from its subcontractors.
– engage in dialogue with human rights activists and
seek constructive cooperation with them. The same
naturally also applies to the Mercedes-Benz Group’s
own activities.
Water protection and quality
The minimum requirements for partners regarding
water protection and quality include the following
aspects. The partner must:
– use natural resources such as water consciously
and as sparingly as possible in its procurement and
in its own production processes.
– use efficient and technologically innovative
solutions for the use of water in its product
procurement and manufacturing processes.
– assess the environmental impact of discharges
and soil disturbances to prevent contamination of
surface or groundwater.
– take appropriate organizational and technical safe-
guards to ensure that its product procurement
and manufacturing processes do not endanger fresh
or sea water.
In addition, the partner should take precautions in
regions affected by water scarcity in order not to
further exacerbate the existing water stress and not
to jeopardize access to clean and sufficient water
for the population.
Targets
The Mercedes-Benz Group has set itself targets for
the implementation of its human rights due diligence
obligations. These were approved by the Board of
Management of Mercedes-Benz Group AG. The
requirements of internal and external stakeholders
were also incorporated into the target-setting process.
The targets are reviewed and updated annually.
Within its scope to influence upstream value chains,
the Mercedes-Benz Group pursues the ambition to
prevent negative impacts on affected communities
through comprehensive due diligence. The targets with
regard to the review of raw materials and services
specified in the chapter Workers in the value chain also
apply to the potential impacts described in this
chapter, as the potential impacts in the value chain can
also relate to affected communities.
Actions
In order to counteract potential violations of the
human rights of affected communities and indigenous
peoples, the Group has established comprehensive
actions, which can be found in the chapter Workers in
the value chain under Actions. These actions are
intended to prevent and remedy negative impacts
throughout the entire value chain, from the workforce
to the local communities. They include the following
systems and actions:
– the Human Rights Respect System,
– Supplier Compliance Risk Management,
– supplier screenings,
– audits and training, as well as
– the 🌐 Raw Materials Report, which contains further
information, and
– the Group’s participation in industry associations.
Engagement with affected communities
The Mercedes-Benz Group uses various formats to
enter into dialogue with its stakeholders. The interests
of affected communities at locations along the value
chain are taken into account in the further develop-
ment of the HRRS and the review of the 24 raw
materials identified as critical, just like the Workers in
the value chain. The organizational anchoring and
responsibility for this engagement can be found in the
chapter Workers in the value chain under Policies and
also apply to the involvement of the affected
communities.
Since it is not always possible to contact the rights
holders concerned directly, the Mercedes-Benz Group
works with various stakeholders such as human rights
organizations, non-governmental organizations, trade
unions, universities, municipalities and community
representatives. The Mercedes-Benz Group uses these
consultations to review the most important risks and
the appropriateness of the remediation to be taken.
The Mercedes-Benz Group is also involved in various
industry and trade associations as well as initiatives
and networks that address the issues of sustainability
and human rights in the supply chain. These member-
ships help the Group to make complex supply chains
more responsible through joint actions with regard to
the human rights of workers and affected communities.
These are described in more detail in the chapter
Workers in the value chain under Actions.
Remediation of negative impacts and
channels through which concerns can be raised
Communities and indigenous peoples who may be
affected by locations along the Mercedes-Benz Group’s
value chain have the opportunity to report suspected
human rights violations and demand remedy through
various channels. These channels include the OECD’s
national contact points and the Mercedes-Benz Group’s
Whistleblower System BPO, which is described in the
chapter Governance information under Corporate
culture.
During the reporting period, the Mercedes-Benz Group
was not aware of any incidents relating to serious
human rights violations in connection with affected
communities.
Consumers and end-users
Material impacts, risks and opportunities and
their interaction with strategy and business model
The Mercedes-Benz Group has identified its material
impacts, risks and opportunities related to consumers
and end-users in accordance with the requirements
of ESRS. These are described in the chapter General
information under Identification of material impacts,
risks and opportunities and presented in the table
below.
The Mercedes-Benz Group is one of the world’s leading
automotive companies. With Mercedes-Benz AG,
it is one of the largest providers of high-end cars and
premium vans. Mercedes-Benz Mobility AG offers
financing, leasing, vehicle subscriptions and rental,
fleet management, digital services for charging and
payment, insurance brokerage and mobility services.
The Mercedes-Benz Group is committed to shaping the
future of mobility in a customer-focused and safe
manner. It relies on innovative and green technologies
as well as safe and high-quality vehicles. The ambition
is to recognise the requirements of customers and to
enable a safe customer experience.
Among other things, customer trust and the respon-
sible handling of customer data form the basis for
individual and digital products, services and offers
for the Mercedes-Benz Group.
With the help of the Data Compliance Management
System, the Mercedes-Benz Group implements its
actions to comply with data protection requirements in
a systematic and risk-based manner; further informa-
tion on this is described in the chapter Governance
information.
Safety is one of the brand values of Mercedes-Benz.
Accident-free driving and a world without road
deaths – this vision drives the Mercedes-Benz Group
and is reflected in one of the focus areas of its sus-
tainable business strategy. It is controlled by a holistic
safety strategy. This is intended to ensure the safety of
all road users.
In order to advance new technologies, the Mercedes-
Benz Group works closely with external innovation
drivers, start-ups and technology companies, among
others. It is committed to the consistent development
of efficient drive systems and is setting the course
for a software-driven, all-electric future. The Group is
working on the intelligent networking of its vehicles,
autonomous driving and new mobility concepts.
The Mercedes-Benz Group is in the midst of a digital
transformation from an automobile manufacturer to a
software-driven company. The digital transformation
and the disruptive development of digital technologies,
products and services are increasing rapidly and
leading to new regulatory developments.
In view of these developments, the fundamental value
of trust in digital innovations becomes clear. The
Mercedes-Benz Group prioritises this with its focus
area Digital Trust.
Information on the analysis of the resilience of the
Group’s strategic sustainability focus areas with regard
to material impacts, risks and opportunities can
be found in the General information under Material
impacts, risks and opportunities.
Consumers and end-users – material impacts, risks and opportunities
Direction of action
Time horizon
Localization
Value chain position
Customer in focus
Impacts
Development partnerships
positive
short-, medium- & long-term
global
Single cases of impairment of personal rights
negative
short-, medium- & long-term
regional
Opportunities
Individualized and digital products, services and offers
short-, medium- & long-term
global
Risks
Cyberattacks
short-, medium- & long-term
global
Traffic safety
Impacts
Contribution to overall traffic safety
positive
short-, medium- & long-term
global
Reduced safety of vehicle users and other road users due to product defects
negative
short-term
regional
Opportunities
Traffic safety as brand/company Unique Selling Proposition (USP)
medium- & long-term
global
VU  =  Value chain upstream
OA  =  Own business activity
VD  =  Value chain downstream
=  actual
 
=  potential
   
=  ESRS compliant target filed
=  company-specific
1 Premium segment defines the relevant competitors used in the course of the studies to determine the annual position on customer satisfaction.
Customers in focus
Policies
The Mercedes-Benz Group is convinced that it can only
be successful and profitable in the long term if it puts
the preferences of its customers first. A customer-
oriented product and service portfolio is therefore a
fundamental requirement for the Mercedes-Benz
Group. The Mercedes-Benz Group works closely with
development partners to advance new technologies
and the intelligent networking of its vehicles. It is also
essential for the Group to build and maintain the trust
of customers in digital products, services and offers.
Irrespective of the overall responsibility of the Board of
Management of Mercedes-Benz Group AG, the indi-
vidual Board members are responsible for implement-
ing the policies and actions. The extent to which
policies and actions are effective is monitored by the
Mercedes-Benz Group on the basis of qualitative
indicators, internal processes and external evaluations.
To ensure customer satisfaction, Mercedes-Benz Cars
sets annual market-specific targets in relation to the
level of customer satisfaction and the competitive
position in the relevant market. The achievement of the
market-specific targets is reviewed annually.
The overarching goal for Mercedes-Benz Cars in terms
of customer satisfaction is to be number 1 in the pre-
mium segment 1 of the automotive industry. The com-
petitive position is assessed annually using represen-
tative external studies such as J.D. Power. This
ambition reflects the requirements of customers and
the Mercedes-Benz brand.
Actions
Market research, trend analyses and surveys
The basis for the customer-oriented development and
design of products and services are systematic and
continuous market research studies that identify
different requirements of customer segments and take
country-specific characteristics into account.
Furthermore, market research studies are carried out
on specific occasions, e.g., before and after the
introduction of new series, products and services.
Comprehensive annual competition studies enable
comparisons of all purchase-relevant criteria and the
analysis of reasons for not purchasing.
Additional customer feedback on satisfaction with
products and services is collected continuously in
order to take targeted actions to improve customer
satisfaction and loyalty.
To detect quality defects at an early stage, all company
car drivers of the Group regularly receive a survey
about possible quality problems. The results are incor-
porated into product development and improvement.
In addition to product and service-related studies,
customer satisfaction with the purchasing and service
processes is recorded worldwide by authorised sales
and service partners. Customers can also provide
individual feedback. These studies are carried out
continuously.
The Customer Care Center (CCC) in Maastricht also
functions as a central brand platform for recording and
resolving complaints, breakdowns and product-related
inquiries. The Mercedes-Benz Group regularly
measures customer loyalty using the Net Promoter
Score (NPS). The NPS is anchored as a performance
criterion in the bonus system for management and
executives.
Development partnerships
The Mercedes-Benz Group is working with partners to
further develop its vehicles in order to optimise the
customer experience and implement new safety
features. The effectiveness of this action is reflected,
among other things, in the competitive position and the
level of customer satisfaction. Further information can
be found in the chapter Customers in focus under
Policies. With its Orin system-on-a-chip, the company
NVIDIA is providing the basis for powerful computers
in the vehicles, enabling AI-supported driver assistance
systems and advanced automation at a new level.
Every vehicle built on the future Mercedes Modular
Architecture (MMA) will be equipped with a high-
performance computer powered by the Mercedes-Benz
operating system (MB.OS).
MB.OS uses AI and machine learning, powered by the
latest generation of chips and systems-on-a-chip (SoC).
The system is supported by sophisticated sensors and
the Mercedes-Benz Intelligent Cloud.
In addition, the partnership with Google enables the
integration of the Google Maps platform, creating a
navigation system with real-time traffic data, automatic
adaptation of route planning to the traffic situation,
automatic speed adjustment at intersections and
curves as well as seamless user-friendliness, thus
ensuring additional comfort and safety.
Together, these partnerships promote an innovative
driving experience that sets new standards through
intuitive operation, continuous updates and additional
protection.
Customer data
In addition to market analyses and surveys, the
marketing and sales organization of Mercedes-Benz AG
evaluates anonymized user data in order to identify
and generate customer-oriented products, services and
offers. In order to offer customers a tailored customer
experience, individualized and digital products, offers
and services are to be made available in an integrated
and smooth process.
Customer trust
For the Mercedes-Benz Group, customer trust and
the responsible handling of customer data are the basis
for digital products and services. This is anchored in
the Mercedes-Benz Data Vision.
Responsible handling of data forms the basic frame-
work of the Mercedes-Benz Data Vision. This basic
framework is based on principles such as Transpar-
ency, Choice and Data Security. The Mercedes-Benz
Data Vision thus supports all employees in the Group in
their work with data by giving them direction – like
an internal compass – and determining which aspects
need to be considered when dealing with data.
In order to strengthen customer trust, the Mercedes-
Benz Group informs its customers about the use of
data and its selection.
The Mercedes-Benz Group has also included the
Privacy Center in the Mercedes me App. It gives cus-
tomers transparency and control over the use of their
data. Further information on data compliance and
how to deal with data breaches can be found in the
chapter Governance information under Compliance
with laws and regulations.
The Mercedes-Benz Group believes in the great
potential of artificial intelligence (AI) and wants to
foster AI innovation. At the same time, it is aware of the
risks and uncertainties associated with AI. That is why
the Mercedes-Benz Group developed four AI Principles
for the responsible handling of AI back in 2019. The
AI Principles are: Responsible Use, Explainability, Pro-
tection of Privacy, and Safety and Reliability. They have
been anchored into the Group’s Integrity Code and
complement the Data Vision.
The information and actions of the Mercedes-Benz
Group in connection with the risk of potential cyber-
attacks resulting from the increasing digitalization and
networking of the vehicles are presented in the Risk
and Opportunity Report in the chapter Company-
specific risks and opportunities under Information
technology risks and opportunities.
Steering of the focus area Digital Trust
In order to promote synergies and to meet digital
developments, the Mercedes-Benz Group further
developed the focus area Data Responsibility into
Digital Trust in the reporting year. Further information
on this can be found in the chapter Governance
information under Corporate culture.
With the ambition to build and maintain trust in digital
products and services, the Mercedes-Benz Group
will steer the key sustainability topic of Digital Trust in
the future via the Digital Trust Index, which was newly
developed in the reporting year.
Traffic Safety
Policies
Vehicle and environmental safety
Real-life safety is the central safety philosophy of the
Mercedes-Benz Group. For decades, the Group’s own
systematic accident research, which is integrated into
vehicle development, has been the basis for innovative,
high-performance safety systems. The Group is con-
tinuously working on improving traffic safety and
offering vehicles with more powerful assistance
systems. This means that accidents can be avoided or
their consequences reduced.
The Mercedes-Benz Group’s holistic safety concept is
divided into four phases:
– Assistance while driving: The Mercedes-Benz Group
pursues the strategy of ensuring a high level of
safety for all road users through preventive actions
and comprehensive protection mechanisms. The
focus is on actively supporting the driver, identify-
ing dangers early and avoiding accidents. This
includes various assistance systems that provide
timely warnings and support the driver in driving the
vehicle. In particular, the Active Brake Assist with
pedestrian detection can help reduce accidents
involving pedestrians and cyclists.
– Prepare for a possible accident: If an accident can
no longer be avoided, actions can help to reduce
the severity of the accident and to prepare the
occupants for the impending impact. Technologies
such as PRE-SAFE® ensure that these are initiated
automatically. This includes, for example, pre-
tensioning seat belts, closing the windows and
sunroof or moving the front passenger seat to a
more upright position.
– Protect in the event of an accident: The third phase
aims to protect the occupants as best as possible
during an accident. This is done by using safety
systems such as airbags and seat belts to reduce
the risk of injury.
– Help after an accident: After an accident, help must
be provided quickly and effectively. Automatic
emergency call systems should ensure that rescue
services are informed very quickly.
Product safety
The Safety First Directive forms the basis for trans-
parent and early identification of potential risks such as
product defects that may reduce the safety of vehicle
occupants and other road users. The directive regu-
lates the process for dealing with issues with potential
safety, regulatory, conformity or emissions relevance
(SCE relevance) and supports the immediate initiation
of necessary actions.
The decision-making process as to which issues are
potentially relevant to SCE goes through different
analysis phases and committees. The final decision is
made by the Vehicle Regulatory Committee (VRC). The
VRC is made up of Level 1 employees from the areas
of development, after-sales, quality management,
legal, certification and product safety. They decide on
possible actions including recalls and/or warnings on
safety, regulatory, conformity and emissions-relevant
issues.
Responsible development of automated vehicles
Responsible development means, among other things,
complying with laws, relevant technical and regulatory
requirements and internal guidelines. These require-
ments are particularly extensive for automated driving.
For example, the implementation of traffic rules shall
be integrated into the design of the system and these
rules must be translated into software. Experts from
development, product safety, certification, law and
ethical issues work together on an equal footing right
from the start to meet the requirement of offering all
road users reliable and safe systems. Technical, legal,
regulatory and ethical aspects are taken into account.
In addition to the safety of vehicle occupants, the
Mercedes-Benz Group also always keeps social aspects
and interests in mind.
With the Ethics by Design approach, the Mercedes-
Benz Group integrates ethical aspects into its concepts
from the start and into the entire product development
process for automated driving. This approach is based
on ethical principles, takes internal rules and
regulations into account and is continuously being
developed further. The internal rules and regulations
include, for example, the data vision and the AI
principles, which are applied to software requirements
and the design of the hardware. These AI principles
build on the principles of the Mercedes-Benz Group
and are anchored in the Integrity Code.
In addition to its own policies and principles, the
Group follows national and international guidelines and
standards, e.g. guidelines from the Ethics Commission
on Automated and Connected Driving (Federal Ministry
of Transport and Digital Infrastructure).
The Mercedes-Benz Group supports the EU’s Vision
Zero with the aim of halving the number of road deaths
and serious injuries by 2030 compared to 2020 and
reducing the number of road deaths to zero by 2050.
Furthermore, the chapter Workers in the value chain
under Policies explains the international standards
to which the Mercedes-Benz Group is committed,
including with regard to human rights along the value
chain.
Actions
Accident research and crash tests
The basis for high-performance safety systems and
better protection for vehicle occupants is systematic
accident research that includes the study of real-life
traffic accidents. Experts from the Mercedes-Benz
Group therefore continuously investigate accidents in
which a Mercedes-Benz vehicle was involved. In this
way, the Group analyses how accidents occur and
which safety systems could have prevented them.
The electrification of the vehicle fleet introduces new
aspects in the field of accident research. Mercedes-
Benz was the first automobile manufacturer in the
world to publicly carry out an offset frontal crash of
two electric vehicles.
The Mercedes-Benz Group also tests the crash safety
of other vehicle models and subsystems using the
latest testing technology in the Technology Center for
Vehicle Safety (TFS) in Sindelfingen (Germany).
Computer simulations also enable the Group to
improve the maturity of the test vehicles and safety
systems before the first crash test, thereby increasing
development efficiency. Around 900 crash tests and
around 1,700 sled tests can be carried out annually on
the TFS crash test tracks.
Cooperations
The Mercedes-Benz Group relies on cooperation and
participates in research projects to make road traffic
safer. Together with external partners, the Group is
working on standard procedures with which the
potential of new protection systems can be predicted.
Furthermore, it wants to work even more closely with
existing and new partners in order to continuously
improve and expand the collection of accident and
traffic data. Since 2016, the Mercedes-Benz Group has
been involved in the strategic cooperation project
“Tech Center i-protect” between business, science and
politics. Together with Robert Bosch GmbH, the
Fraunhofer Institutes for High-Speed Dynamics and
Mechanics of Materials, the Freiburg Sustainability
Center, the SimTech Cluster of Excellence at the
University of Stuttgart and the Technical Universities of
Dresden and Graz, it is researching safety solutions for
vehicles. The aim of this interdisciplinary cooperation is
to advance ideas and technologies from basic research
to market-oriented application through the agile
networking of various projects.
Technical Compliance Management System
The Mercedes-Benz Group uses a technical Compliance
Management System (tCMS) to identify risks in the
product development process at an early stage and to
counter them preventively. The Group answers
technical, legal, ethical, certification and safety-related
questions, including those relating to automated
driving at Mercedes-Benz Cars, using an integrated
approach that is part of the tCMS. An interdisciplinary
committee structure was set up for this purpose. The
committees deal with the needs of all road users who
interact with automated vehicles in road traffic, among
other things. In this way, the Group wants to increase
both the safety and acceptance of the products.
Responsible use of AI in relation
to automated vehicles
The Mercedes-Benz Group is intensively addressing the
potential negative impacts of bias in artificial
intelligence on the safety of road users in automated
vehicles.
In collaboration with a renowned scientific partner
requirements and standards were defined . Based on
these findings, an internal roadmap has been
developed and approved. The Group has identified
specific metrics that the company wants to use to test
for bias. A key element of the action is working with
partners in the field of object recognition in order to
ensure that no bias is present. Particular focus is
placed on collecting diverse and global data and
developing metrics to detect bias.
Management of the focus area of traffic safety
In future, the Mercedes-Benz Group plans to manage
the focus area of Traffic Safety via the Traffic Safety
Index, which was newly developed in the reporting
year. This is made up of four pillars, each of which is
given equal weighting:
Pillar 1 includes actions related to the safety
philosophy of the Mercedes-Benz AG – real-life safety.
In addition, data on accidents worldwide is examined
and real accidents from the vehicle fleet are analysed
using systematic accident research at Mercedes-Benz
AG.
Pillar 2 uses results from relevant vehicle safety ratings
such as NCAP, IIHS and C-IASI.
Pillar 3 is about how customers perceive the safety
concept and safety systems of Mercedes-Benz
vehicles, as well as the communication of technology
and innovations regarding vehicle safety.
Pillar 4 includes actions in the sense of social respon-
sibility towards society. These include dialogue events
with traffic safety experts, educational initiatives
such as MobileKids and SAFE ROADS, and ethics as a
criterion for relevant decisions on automated driving.
Involvement in committees and associations
With regard to automated driving, the Mercedes-Benz
Group is a member of numerous international and
national committees and associations. The Group is
involved in establishing reliable legal frameworks,
technical standards and ethical guidelines for the use
of the new technology. The Mercedes-Benz Group is a
member of the following initiatives, among others:
– In the Connected and Automated Driving working
group of the German Association of the Automotive
Industry (VDA), the Mercedes-Benz Group is partici-
pating in an ongoing interdisciplinary discourse on
legal and certification-relevant aspects.
– Since 2023, Mercedes-Benz has been participating
in the Round Table on Automated Driving convened
by the Federal Ministry for Digital Affairs and
Transport in the field of Safety and Risk under the
coordination of the Institute of Control Engineering
at Braunschweig Technical University.
Inclusion of consumers and end-users
Open dialogue
The Mercedes-Benz Group promotes open dialogue
between business and consumer associations, politics,
authorities, industry, science and civil society. Since
2015, the Group has therefore been using the Traffic
Safety working group at the annual Sustainability
Dialogue to exchange ideas on ethical, legal and social
issues relating to automated driving and vehicle safety.
The working group meeting at the Sustainability
Dialogue 2024 in Germany focused on the topic Help
after an accident with focus on the Rescue Chain. For
this purpose, the Mercedes-Benz Group invited various
rescue workers to exchange ideas and discuss current
challenges and possible solutions. In addition, the topic
of traffic safety was also part of the Sustainability
Dialogues in India and China in the reporting year.
Furthermore, the Mercedes-Benz Group again carried
out the SAFE ROADS initiative in India in the reporting
year. More information on the Sustainability Dialogues
can be found in the chapter Strategy under Interests
and views of stakeholders.
Furthermore, the Mercedes-Benz Group regularly
conducts market research, trend analyses and surveys
in connection with their vehicles and services in order
to understand the concerns and wishes of their
customers. Information on this can be found in the
section Customers in focus of this chapter.
Remediation of negative impacts and channels
through which concerns can be raised
The Mercedes-Benz Group offers consumers and end-
users a variety of channels to raise concerns,
complaints and requests.
The Mercedes-Benz Customer Care Center Maastricht
N.V. (CCC) acts as a central international platform for
the concerns of Mercedes-Benz Group customers. It
offers a wide range of services and support and plays a
fundamental role in customer care worldwide. In
addition, customers can also contact the authorized
sales and service network directly if they have any
concerns or complaints.
Furthermore, consumers and end-users have the
opportunity to submit their requests 24 hours a day by
phone, email or live chat to the Mercedes-Benz Group
service centre or via the contact form on the Group’s
website.
The Mercedes-Benz Group’s Whistleblower System
BPO, which is explained in more detail in the chapter
Governance information under Corporate culture, is
also generally available to consumers and end-users
of the Mercedes-Benz Group. Mercedes-Benz aims
to critically examine every potential issue identified
internally and externally. Every issue is processed
as quickly as possible within the Mercedes-Benz
organization.
During the reporting period, the Mercedes-Benz Group
was not aware of any incidents relating to serious
human rights violations in connection with consumers
and end-users.
To ensure the safety and reliability of its vehicles, the
Mercedes-Benz Group initiates recalls of its vehicles as
soon as a safety risk is identified. Taking into account
local regulatory and data protection provisions, vehicle
owners are informed of necessary recalls. This takes
place in close coordination with the responsible
authorities.
Governance information
Material impacts, risks, and opportunities and
their interaction with strategy and business model
The Mercedes-Benz Group has identified its material
impacts, risks and opportunities in connection with
corporate governance according to the requirements of
the ESRS. These are described in the chapter General
information under Identification of material impacts,
risks and opportunities and presented in the table
below.
The Mercedes-Benz Group is convinced that those who
act ethically and legally responsibly will remain suc-
cessful in the long term – this also applies in times of
upheaval and change. Responsible corporate govern-
ance is the basis of the Mercedes-Benz Group’s actions
and an integral part of its sustainable business
strategy. This firmly underpins the six focus areas
confirmed in the reporting year. More information on
the focus areas can be found in the chapter General
information under Strategy, business model and value
chain.
Integrity and compliance are very important to the
Mercedes-Benz Group. Integrity is firmly anchored in
the strategy and is a central element of the corporate
culture. For the Group, this means complying with
applicable laws, rules and regulatory requirements and
aligning its actions with the Corporate Principles. This
includes, in particular, fairness, diversity, respect,
openness and transparency as well as responsibility for
actions and decisions.
In the age of digitalization, the Mercedes-Benz Group
emphasizes the importance of Digital Trust. In order to
keep up with digital developments, the Mercedes-Benz
Group further developed its focus area Data Respon-
sibility into Digital Trust in the reporting year.
Additional information on this can be found in the
section Corporate culture in this chapter.
The Mercedes-Benz Group strives to counteract
possible compliance risks that may arise from unethical
behaviour. The Group sets various priorities in its
compliance activities. These include combating corrup-
tion, maintaining and promoting fair competition
and ensuring compliance with product requirements
throughout the entire product life cycle.
The Mercedes-Benz Group follows the approach of
responsible political advocacy. Therefore, transparency
is a key factor in building trust. It is committed to its
social responsibility, to respecting human and
employee rights, and sees itself as a supporter of the
social market economy and a rules-based international
economic order.
Information on the analysis of the resilience of the
Group’s strategic sustainability focus areas with regard
to the material impacts, risks and opportunities can be
found in the chapter General information under
Material impacts, risks and opportunities.
Business conduct – material impacts, risks and opportunities
Direction of action
Time horizon
Localization
Value chain position
Corporate culture
Impacts
Positive corporate culture through alignment with corporate principles
positive
short-, medium- & long-term
global
Laws and regulations 
Risks
Potential non-compliance with laws and regulations 
short-, medium- & long-term
global
Regulatory Investigations on Diesel Engines
short-, medium- & long-term
regional
Money-laundering risks due to third party circumvention of sanctions (strawmen)
short-, medium- & long-term
regional
Corruption and bribery
Impacts
Single cases of corruption and bribery
negative
short-, medium- & long-term
national
Risks
Alleged cases of corruption
short-, medium- & long-term
global
Political influence and lobbying
Impacts
Promoting and accelerating the transition towards decarbonization through electrified vehicles
positive
medium- & long-term
national
Deceleration of the transition towards decarbonization through electrified vehicles for economic reasons
negative
short-, medium- & long-term
national
VU  =  Value chain upstream
OA  =  Own business activity
VD  =  Value chain downstream
=  actual
 
=  potential
   
=  ESRS compliant target filed
=  company-specific
Corporate culture
Integrity Code and Corporate Principles
Integrity is the foundation of the corporate culture.
The central requirements for integrity, compliance, and
legal responsibility are anchored in the Group’s own
Integrity Code. The Integrity Code is binding for all
employees of the Mercedes-Benz Group worldwide.
The central element of the Integrity Code are the five
Corporate Principles:
1. The Mercedes-Benz Group strives to create
sustainable value – economically, ecologically and
socially.
2. The Mercedes-Benz Group acts responsibly and
respects the rules.
3. The Mercedes-Benz Group addresses issues openly
and stands for transparency.
4. Fairness and respect are the basis for cooperation
at the Mercedes-Benz Group.
5. The Mercedes-Benz Group lives diversity.
Furthermore, the Integrity Code contains, among other
things, regulations on the prevention of corruption,
requirements for respecting and protecting human
rights, requirements for the responsible handling of
data and artificial intelligence, and compliance with
technical product requirements.
Violations of the Integrity Code can be reported via the
Mercedes-Benz Group’s BPO whistleblower system.
Further information on this can be found in this chapter
under Reporting of legal and rule violations.
Further internal principles, policies and company
agreements of the Mercedes-Benz Group are
summarized in a database that is accessible to all
Group companies and their employees. The policies
are available in several languages.
The ten principles of the United Nations (UN) Global
Compact serve as fundamental guidelines for the
Mercedes-Benz Group’s business activities. As a
founding member, the Group is particularly committed
to the UN Global Compact (UNGC). The Mercedes-Benz
Group’s internal principles and guidelines are based,
among others, on these and other international
principles, which can be found in the chapter Workers
in the value chain under Policies.
Digital Trust
In the reporting year, the Mercedes-Benz Group further
developed the focus area Data Responsibility into
Digital Trust, thereby establishing it as one of the basic
elements of the strategy. With Digital Trust, the
Mercedes-Benz Group is meeting the complex
challenges of the digital transformation and, among
other things, is taking into account the increasing
importance of trust in the digital age. The ambition is to
build and maintain trust in digital products and services
in order to enable competitive digital business. In the
future, the Group will steer the focus area using an
index newly developed in the reporting year.
People Principles
The People Principles create the basis for trusting
leadership and corporate culture. They are the
following eight principles:
– Agility: the ability to adapt quickly to changing
circumstances and conditions – for example, to
respond to competitive challenges.
– Empowerment: continuous development, taking
responsibility and mutual trust.
– Co-Creation: creative collaboration across functions
and departments.
– Driven to Win: the desire to strive for the best.
– Customer Orientation: to continually delight
customers and offer convenience, speed, and the
highest quality – long-term customer satisfaction.
– Purpose Driven: working on the basis of shared
beliefs and a deeper meaning.
– Pioneering Spirit: promoting creativity and
innovation.
– Learning: continuous development through active,
appreciative feedback, and sharing of knowledge
and experiences.
Based on these principles that apply across the Group,
the divisions and departments can set their own
priorities.
Leadership culture
Managers play a particularly important role in the
transformation. More than ever, they must not only
lead the Group successfully into the future, but also
improve their own and their teams’ qualifications and
inspire enthusiasm for the technologies and
innovations of the future. The Mercedes-Benz Group
therefore supports its managers with further training
programmes to integrate the principles mentioned
above into their everyday work and to lead according
to them. Managers therefore specifically address new
challenges in terms of innovation, collaboration,
sustainable development, and personal resilience in
training courses. The Group has developed the digital
development programme “Gear-up – Increase Your
Leadership Impact” for this purpose. Another
programme, “Shaping Future – Leading for Success”,
focuses on the topic of strategy implementation and
shaping the transformation. The focus is primarily on
the complex environment and the resulting challenges
for leadership and management.
In order to continuously improve its leadership and
corporate culture and to further develop the work
culture in the transformation process, the Mercedes-
Benz Group conducts a comprehensive survey of its
employees worldwide every two years. This was most
recently done in the year 2023. The survey is an
important indicator of where the Group stands on
various issues from the perspective of its employees –
and where there is potential for improvement. With the
help of the employee survey and other feedback
options, the Group companies receive extensive
feedback from employees. In addition, employees and
managers have other feedback options available. 86%
of all employees took part in the Group-wide employee
survey in 2023. The survey showed that 77% of
the respondents are satisfied or very satisfied with the
Mercedes-Benz Group as an employer. Further
information on the employee survey can be found in
the chapter Own workforce under Employee
representation and engaging with own workforce.
Integrity, training, and dialogue
The Mercedes-Benz Group trains its employees on
compliance topics based on its Integrity Code.
Employees receive specific training for their area of
responsibility and role. For example, employees in
administration have access to a web-based target-
group-specific training programme that contains a
mandatory basic module as well as specific modules
for managers and expert modules on various com-
pliance topics. The respective modules are auto-
matically assigned to employees when they are newly
hired or promoted or move to a function associated
with higher risk. Employees must regularly complete
the web-based training programme every three years,
but it is voluntary for commercial employees.
The Mercedes-Benz Group regularly checks the training
needs, which are determined through a demand survey,
makes adjustments and extensions and carries out
evaluations. To verify the acquired knowledge, the
web-based training courses contain test and control
questions that must be answered correctly in order to
successfully complete the respective module.
The central web-based offering is supplemented by
local training actions. With a wide range of central
and local communication and training actions, the
Mercedes-Benz Group sensitizes its employees
throughout the Group and on a risk-based approach for
issues such as competition law, antitrust law, and the
prevention of corruption. The local compliance con-
tacts and legal departments in the Group companies
provide additional training courses.
In order to promote a corporate culture of integrity, the
Mercedes-Benz Group also operates the Infopoint
Integrity: It works with experts on legal and HR issues,
data protection, compliance, diversity and sustain-
ability, among others, and serves as a central point of
contact for all employees of the Group with questions
concerning ethical behaviour. It provides support itself
or puts employees in touch with the right contact per-
sons. The Integrity Network, which consists of repre-
sentatives from the business units, works to embed
integrity in everyday business and make it tangible for
employees. The business units share insights into
their respective integrity activities at regular network
meetings.
The Mercedes-Benz Group works consistently on its
understanding of integrity, continuously develops it
and constantly reviews itself. The Mercedes-Benz
Group monitors the extent to which policies and
actions are effective using internal processes and
employee feedback. In addition to the feedback from
the Integrity Network, the employee survey is also an
important indicator. The results of the previous
employee survey in the year 2023 showed that the
perception of the culture of integrity has improved
since the last survey.
Organizational embedding
The topics of integrity, compliance and legal are
bundled in the Integrity, Governance & Sustainability
executive division of Mercedes-Benz Group AG. The
division supports all areas of the Group in anchoring
these topics in day-to-day business. The Integrity
Management & Corporate Responsibility unit is located
there and is committed to promoting, further develop-
ing and creating a common understanding of integrity
at the Mercedes Benz Group. The aim is to encourage
the business units to firmly establish integrity in their
daily business activities. The head of the Integrity
Management & Corporate Responsibility unit reports
directly to the Board member of Integrity, Governance
& Sustainability. The Group plans to reassess its
integrity culture based on the next employee survey.
Compliance with laws and regulations
The Mercedes-Benz Group wants to counteract
possible compliance risks and thus ensure the long-
term success of the Group. With its own Compliance
Management System (CMS), the Mercedes-Benz Group
aims to promote compliance with laws and regulations
and reduce associated risks. The corresponding actions
are defined by the compliance organization together
with the respective departments and shall take busi-
ness requirements into account in an appropriate
manner. The main focus of compliance activities is to
combat corruption, maintain and promote fair
competition and ensure compliance with product
requirements throughout the entire product life cycle.
This also includes respecting and upholding human
rights, handling data responsibly, complying with
sanctions requirements and preventing money
laundering and terrorist financing.
The CMS includes basic principles and measures to
promote compliant behaviour and is used worldwide. It
consists of seven elements that build on each other:
– Compliance values
– Compliance objectives
– Compliance organization
– Compliance risks
– Compliance programme
– Training
– Monitoring and improvement
The Mercedes-Benz Group uses the compliance risk
assessment to systematically review its Group
companies and central departments in order to reduce
compliance risks. To do this, it draws on a wide range
of data on the Group companies, such as revenue,
business models and relationships with business
partners. Where necessary owing to new legal
requirements or to changed risks, the Mercedes-Benz
Group adapts the CMS.
The compliance programme includes principles and
measures to counteract violations of laws and
regulations and reduce compliance risks. The individual
measures are based on the findings of the Group’s
systematic compliance risk assessment. The Mercedes-
Benz Group focuses on the following areas, among
others: continuous awareness of compliance and
preventive training measures, consistent follow-up of
indications of misconduct and the formulation of clear
requirements for the behaviour of business partners.
The management of the respective company is pri-
marily responsible for implementing the measures of
the compliance programme. It also has supervisory
responsibility. Management works closely with the
specialist departments of the Integrity, Governance &
Sustainability executive division of Mercedes-Benz
Group AG. A risk-based network of local compliance
contacts supports the management of the Group
companies in implementing the compliance
programme.
The Mercedes-Benz Group regularly reviews the
processes and measures of the CMS and analyses
whether the measures are appropriate and effective.
For this purpose, it monitors its processes using
internal performance indicators. To determine these,
the Mercedes-Benz Group reviews, among other things,
compliance with formal requirements and the com-
pleteness of the content. In doing so, it also takes into
account the findings from internal and independent
external audits. If necessary, the Mercedes-Benz Group
adapts the CMS. The responsible management bodies
are informed of the monitoring results.
In order to obtain an independent, external assessment
of the compliance programme, Mercedes-Benz Group
AG commissioned KPMG AG Wirtschaftsprüfungs-
gesellschaft to audit the Group’s own CMS for anti-
corruption, antitrust and technical compliance in
accordance with the Institute of Public Auditors’ audit
standard 980. The audits, which were designed to
assess appropriateness, implementation and
effectiveness, were successfully completed at the
end of 2019 for the CMS Anti-Corruption, for the tCMS
(focus on emissions) in late 2020 and at the end of
2021 for the CMS Antitrust.
Data Compliance
The Mercedes-Benz Group’s Data CMS supports the
Group in implementing its actions to comply with data
protection requirements in a systematic and risk-based
manner. It takes into account the applicable data
protection regulations. For Group companies in the EU,
the General Data Protection Regulation (GDPR) is
particularly relevant; for companies outside the EU, the
internal global standards for data protection and the
respective local data protection laws form the basis.
Dealing with data breaches
The Mercedes-Benz Group has established a central
reporting process for handling data protection
incidents. Data breaches can be reported worldwide
around the clock by phone or email. Employees and
contractors are required to report all potential data
breaches. The Chief Officer Corporate Data
Protection – or the chief officer´s team – is also
available as a point of contact for customers with data
protection concerns. The contact details are publicly
available. In Group units subject to the GDPR,
Corporate Data Protection is responsible for following
up on reports of data protection incidents. It is assisted
by a local Incident Support unit to clarify the facts on
site. In Group units not subject to the GDPR, local
Incident Support takes over further processing. The
results must be made available to Corporate Data
Protection for documentation purposes.
Antitrust Compliance
The Group-wide Antitrust Compliance Programme is
based on national and international standards to
ensure fair competition. It includes a globally valid
Group standard that defines how antitrust issues are to
be assessed. In addition to the central legal and
compliance department of the Mercedes-Benz Group
AG, local legal and compliance advice is also available
to the global divisions. Employees receive additional
support through individual advice, guides and toolkits.
Prevention of money laundering
and terrorist financing
The Mercedes-Benz Group defines the prevention and
combating of money laundering and terrorist financing
as a central compliance requirement in its Integrity
Code. The Group has established a two-pillar model
(goods trade and mobility services), which is intended
to take into account the different regulatory require-
ments in the area of goods trade on the one hand and
the area of financial services on the other. In an
integrated compliance approach, applicable sanctions
lists and goods-related restrictions are checked as part
of anti-money laundering customer checks (KYC –
Know Your Customer), and actions are taken to prevent
money laundering and terrorist financing. This is
intended to prevent supranational and national sanc-
tions and goods-related embargoes from being violated
or circumvented. The objective is to combat activities
by third parties that give rise to suspicion of money
laundering, terrorist financing, organized crime and
other economic crime.
Trade Compliance –
Export Control and Sanctions Compliance
In its central Trade Compliance department, Mercedes-
Benz Group AG has brought together the Center of
Competence for Export Control and Sanctions Com-
pliance. The aim is to ensure that applicable export
restrictions and economic and financial sanctions
related to people and goods are complied with in a
dynamic environment. In doing so, it takes into account
both applicable supranational sanctions lists and
embargoes, such as those of the UN or the EU, as well
as national sanctions lists. Business with persons,
companies and organizations on sanctions lists is
prohibited.
The Group-wide policies on export control and sanc-
tions compliance define suitable actions and processes
for complying with goods-related restrictions and
applicable sanctions regulations, including their sys-
tematic review. The Mercedes-Benz Group continu-
ously analyses and evaluates the extent to which
further actions are necessary to minimize risk and
continuously develops these methods and processes.
Risks from legal proceedings related to diesel
exhaust gas emissions – governmental proceedings
The information and actions pertaining to risks from
legal and regulatory proceedings relating to diesel
exhaust gas emissions can be found in the Risk and
opportunity report in the chapter Legal and tax risks
and opportunities under Risks from legal proceedings
related to diesel exhaust gas emissions – governmental
proceedings.
Social Compliance
The Mercedes-Benz Group’s Social Compliance
Management System, which addresses employee
rights in a systematic and risk-based manner, is
described in the chapter Own workforce under
Other work-related rights, Actions.
Regulations on equal pay
The Mercedes-Benz Group remunerates work per-
formed in all companies worldwide according to the
same principles and pays all employees adequate
wages in accordance with applicable reference values.
Policies and actions for remuneration and equal pay
are explained in the chapter Own workforce under
Remuneration and benefits.
Prevention and detection of corruption and bribery
As a founding member of the United Nations (UN)
Global Compact, the Mercedes-Benz Group actively
contributes to ensuring both the Group and its busi-
ness partners act in accordance with the principles of
the UN Global Compact. The Group performs its duties
in compliance with the applicable laws, regulations and
its corporate principles. This also includes the OECD
Convention on Combating Bribery of Foreign Public
Officials (1997) and the UN Convention against Corrup-
tion (2003).
The Mercedes-Benz Group’s corruption prevention
programme is based on its CMS. An important com-
ponent is the annual integrated compliance risk
assessment. When assessing potential risks, the Group
takes into account both internal information, such as a
unit’s business model, and external information, such
as Transparency International’s Corruption Perceptions
Index. The CMS and the compliance risk assessment
are described in the Compliance with laws and
regulations section of this chapter.
Increased corruption risks arise primarily in connection
with sales activities in high-risk countries. In these
areas, the Mercedes-Benz Group implements targeted
actions to minimize the risks.
Employees (full-time and part-time) in administration
of Mercedes-Benz Group AG and consolidated com-
panies must typically complete a web-based training
course every three years. The basic training is
grounded on the Integrity Code and, in addition to the
topic of integrity, also includes compliance topics such
as corruption prevention. When new employees join
the Mercedes-Benz Group, the training is automatically
assigned as mandatory. The percentage of employees
who have been assigned the training since the last roll-
out in 2023 and who have successfully completed it is
99% in total (as of 31 December 2024). A total comple-
tion rate of 100% cannot be achieved because the
training is continuously assigned to newly onboarded
employees, and therefore, the training period had
not expired for all learners by 31 December 2024.
When selecting direct sales partners as well as for
existing sales partners, the Mercedes-Benz Group
checks the partners’ compliance with laws and ethical
principles. New sales partners are subjected to
an examination in the Sales Business Partner Due
Diligence Process. Successful completion of this is a
prerequisite for cooperation. The risk-based check
takes into account, among other things, the planned
business model, the country risk and the involvement
of third parties and government contacts. With the risk-
based application of a dynamic questionnaire, further
risks are identified. During cooperation with the sales
partners, the Mercedes-Benz Group reviews the exist-
ing due diligences as needed or cyclically at appro-
priate intervals – depending on the risk identified. In
permanent monitoring, the existing sales partners
are continuously checked against relevant databases
and valid sanctions lists.
All suspected cases of corruption should be reported
via the Whistleblower System BPO. The investigation of
and response to potential corruption allegations are
carried out in accordance with the process described in
the Reporting of legal and rule violations section of this
chapter.
In the reporting year, there were no convictions for
violations of corruption and bribery regulations and no
related fines in the Mercedes-Benz Group.
Compliance organization
In organizational terms, the compliance organization is
structured functionally, regionally, and along the value
chain. Both functional and regional contacts are avail-
able, supported by a global network of local managers.
Management monitors compliance and works closely
with the Integrity, Governance & Sustainability
specialist departments. The Chief Compliance Officer
(CCO) reports directly to the Board member of
Integrity, Governance & Sustainability of Mercedes-
Benz Group AG and to the Audit Committee of the
Supervisory Board. Regular reports on the status and
further development of the CMS ensure transparency
and promote continuous remediation of the system.
Reporting of legal and rule violations
The Whistleblower System BPO (Business & People
Protection Office) enables employees and external
whistleblowers worldwide to report rule violations. It
accepts reports around the clock, which can be sent
by mail or via a protected reporting channel. In Brazil,
Japan, South Africa and the United States, external toll-
free hotlines are also available. In Germany, whistle-
blowers have additional contact points such as an
external neutral intermediary and other external
reporting channels (for example the external federal
reporting office at the Federal Office of Justice, the
BaFin whistleblower office and the whistleblower
system of the Federal Cartel Office). Reports can also
be submitted anonymously, if permitted by local laws.
By reporting to the Whistleblower System BPO, the
Mercedes-Benz Group is made aware of possible risks
and can avert damage to the Group, its employees and
third parties, as well as protect people harmed by
misconduct. A globally applicable Group policy regu-
lates the procedure and the corresponding respon-
sibilities. The Whistleblower System BPO thus ensures
a transparent and fair procedure that takes into
account both the protection of the whistleblower and
the principle of proportionality for the persons affected
by the allegation. The Group policy also sets out the
standard by which the Mercedes-Benz Group assesses
violations of the rules and decides on consequences.
The Whistleblower System BPO carries out a risk-based
initial assessment for each new tip, taking into account
the four-eyes principle. If the Whistleblower System
BPO classifies a tip-off as a rule violation with a high
risk for the Mercedes-Benz Group, its employees or
other persons, it issues a specific investigation order to
the relevant investigation unit. The Whistleblower
System BPO accompanies further processing until the
proceeding is concluded. Rule violations with high risks
include, for example, corruption and money laundering
offences, antitrust violations, serious violations in
connection with technical specifications and/or
technical safety, violations of environmental regula-
tions and personal matters, e.g. sexual harassment or
human rights violations. In the case of criminal
offences, the Mercedes-Benz Group reserves the right
to file criminal charges. The Mercedes-Benz Group
cooperates fully with the authorities in this regard.
The Whistleblower System BPO passes on information
on all other violations with risk to the responsible
departments. This department follows up on the
information and investigates it independently. This
includes, for example, violations of policies and
guidelines, theft, fraud or undue enrichment with a
value of less than €100,000. The anonymity of the
whistleblower is also guaranteed here.
The Whistleblower System BPO accompanies the
processing of reports until the proceedings are con-
cluded, ensuring confidentiality and, if desired, ano-
nymity if permitted by local laws. The Whistleblower
System BPO complies with applicable EU legislation.
Whistleblowers who could be disadvantaged by
their report and third parties who are associated with
the whistleblower and who could suffer reprisals
in a professional context as a result of the report can
contact the Whistleblower System BPO. Discrimination
or intimidation will be punished with employment law
actions, taking into account applicable law.
In order to continually increase trust in the Whistle-
blower System BPO and make it better known among
employees, the Mercedes-Benz Group provides
extensive information materials in various languages
through various communication actions. In addition,
it regularly informs employees about the type and
number of reported violations and provides ano-
nymized case studies on a quarterly basis. Further-
more, the Whistleblower System BPO comes into
contact with employees through a variety of formats
such as dialogue events, roadshows, presentations and
training courses in order to promote direct exchange
and further strengthen trust in the whistleblower
system. The Mercedes-Benz Group checks the effec-
tiveness of the actions every two years as part of the
global employee survey by asking specific questions
about awareness of and trust in the Whistleblower
System BPO.
Political influence and
the representation of interests
The External Affairs department is the central coordi-
nation point for responsible political advocacy at the
Mercedes-Benz Group. The Mercedes-Benz Group
seeks dialogue with representatives of governments,
policy and authorities at its locations worldwide.
External Affairs falls under the responsibility of the
Chairman of the Board of Management of Mercedes-
Benz Group AG. In addition, the department’s activities
and analyses are a regular part of the reports of the
Board of Management of Mercedes-Benz Group AG to
its Supervisory Board. The Head of the External Affairs
department is a permanent member of the Group
Sustainability Committee (GSC) and supports the
committee’s work on political issues. External Affairs
also closely coordinates with the Board of Management
of Mercedes-Benz Group AG and specialist depart-
ments on issues relating political advocacy. To this end,
the department organizes, among others, the meetings
of the Governmental Affairs Committees for various
executive divisions and specialist departments. The
meetings take place several times a year and on an ad
hoc basis. There is an exchange with the Advisory
Board for Integrity and Sustainability on a topic-related
basis.
The following administrative, management and
supervisory bodies which are responsible for over-
seeing political representation of interests at the
Mercedes-Benz Group were audited with regard to the
employment of individuals who held a comparable
position in public administration in the two years prior
to their appointment: Supervisory and Board of
Management of Mercedes-Benz Group AG, Advisory
Board for Integrity and Sustainability, Group Sustain-
ability Committee, External Affairs. The audit reassured
that the Group employs two individuals in the External
Affairs department who held a report-relevant position
in public administration up to 2 years prior to their
employment at the Mercedes-Benz Group.
The relevant information on the political representation
of interests of the Mercedes-Benz Group is entered
in the EU Transparency Register (registration number:
2349218828-41), in the German Lobby Register
(registration number: R002034) and in the Trans-
parency Register of the State Parliament of Baden-
Württemberg.
The responsible handling of contributions to political
recipients is regulated in internal policies at the
Mercedes-Benz Group. These stipulate that any
contributions to political recipients over €50,000
require approval by the Board of Management of the
Mercedes-Benz Group AG. Regardless of the amount,
contributions to political recipients require approval
from the External Affairs department. Employees can
find the relevant policies in the policies database on
the Mercedes-Benz Group AG intranet.
The Mercedes-Benz Group made no monetary or non-
monetary contributions to political parties during the
reporting period. This decision was made
independently of current political or economic events.
Donations and sponsorships through which political
influence is possible are listed in the following table.
Donations in kind were monetized; they are included in
the amounts shown for donations and sponsorships.
Donations and sponsorships with possible political influence
2024
in €
Donations
1,275,188
Europe
1,272,852
North America
0
Asia
2,336
Other markets
0
Sponsorships
700,473
Europe
374,881
North America
192,771
Asia
90,118
Other markets
42,703
Topics of political advocacy
The Mercedes-Benz Group pursues transparent
political advocacy and is a reliable advisor to political
decision-makers.
Through its political advocacy, the Group is helping to
promote and accelerate the transformation towards
decarbonization through electrified vehicles. This
includes, for example, the commitment to expanding
the charging infrastructure, which is crucial for
customer acceptance of electrified vehicles.
However, if the business fundamentals of the
Mercedes-Benz Group are affected by external factors,
the Group will also, for example, advocate for a more
flexible time frame for achieving the CO2 fleet targets
and tax benefits regarding plug-in hybrids.
List of disclosure requirements
The following index shows where in the Sustainability Statement the disclosure requirements according to ESRS 2 and the thematic standards, determined on the basis of
double materiality are set out. It also shows where information relating to a specific disclosure requirement, which is fulfilled by reference, can be found outside the
Sustainability Statement. This information, provided by reference, is thus an integral part of the Sustainability Statement.
Disclosure requirement
Reference
ESRS 2 General disclosures
BP-1
General basis for preparation of the sustainability statement
Sustainability Statement > General information > Basis for preparation > General basis
BP-2
Disclosures in relation to specific circumstances
Sustainability Statement > General information > Basis for preparation > Disclosures in relation to specific
circumstances
GOV-1
The role of the administrative, management and supervisory bodies
Sustainability Statement > General information > Governance > The role of the administrative, management and
supervisory bodies
Sustainability Statement > General information > Governance > Composition of the Board of Management and the
Supervisory Board
GOV-2
Information provided to and sustainability matters addressed by the undertaking’s
administrative, management and supervisory bodies
Sustainability Statement > General information > Governance > Roles and responsibilities of the Board of
Management and the Supervisory Board and addressed sustainability matters
GOV-3
Integration of sustainability-related performance in incentive schemes
Sustainability Statement > General information > Governance > Integration of sustainability-related performance
in incentive schemes
Remuneration report > Remuneration components of the Board of Management in financial year 2024
GOV-4
Statement on due diligence
Sustainability Statement > General information > Basis for preparation > Statement on due diligence
GOV-5
Risk management and internal controls over sustainability reporting
Sustainability Statement > General information > Governance > Internal controls and risks over sustainability
reporting
SBM-1
Strategy, business model and value chain
Sustainability Statement > General information > Strategy > Strategy, business model and value chain
Corporate Profile > Business model > Overview
SBM-2
Interests and views of stakeholders
Sustainability Statement > General information > Strategy > Interests and views of stakeholders
Disclosure requirement
Reference
SBM-3
Material impacts, risks and opportunities and their interaction with strategy and business model
Sustainability Statement > General information > Strategy > Material impacts, risks and opportunities (IROs)
Sustainability Statement > Environmental information > Climate change > Material impacts, risks and
opportunities and their interaction with strategy and business model
Sustainability Statement > Environmental information > Pollution > Material impacts, risks and opportunities and
their interaction with strategy and business model
Sustainability Statement > Environmental information > Water and marine resources > Material impacts, risks and
opportunities and their interaction with strategy and business model
Sustainability Statement > Environmental information > Biodiversity and ecosystems > Material impacts, risks and
opportunities and their interaction with strategy and business model
Sustainability Statement > Environmental information > Resource use and circular economy > Material impacts,
risks and opportunities and their interaction with strategy and business model
Sustainability Statement > Social information > Own Workforce > Material impacts, risks and opportunities and
their interaction with strategy and business model
Sustainability Statement > Social information > Workers in the value chain > Material impacts, risks and
opportunities and their interaction with strategy and business model
Sustainability Statement > Social information > Affected Communities > Material impacts, risks and opportunities
and their interaction with strategy and business model
Sustainability Statement > Social information > Consumers and end-users > Material impacts, risks and
opportunities and their interaction with strategy and business model
Sustainability Statement > Governance information > Material impacts, risks and opportunities and their
interaction with strategy and business model
IRO-1
Description of the processes to identify and assess material climate-related impacts, risks and
opportunities
Sustainability Statement > General information > Identification of material impacts, risks and opportunities
IRO-2
Disclosure requirements in ESRS covered by the undertaking’s sustainability statement
Sustainability Statement > Appendix (IRO-2 Index) > List of disclosure requirements
Environmental information, ESRS E1 – Climate Change
ESRS 2, GOV-3
Integration of sustainability-related performance in incentive schemes
Remuneration report > Remuneration components of the Board of Management in financial year 2024
E1-1
Transition plan for climate change mitigation
Sustainability Statement > Environmental information > Climate change > Transition plan for climate change
mitigation
ESRS 2, SBM-3
Impacts, risks and opportunities and their interaction with strategy and business model
Sustainability Statement > Environmental information > Climate change > Material impacts, risks and
opportunities and their interaction with strategy and business model
ESRS 2, IRO-1
Description of the processes to identify and assess material climate-related impacts, risks and
opportunities
Sustainability Statement > General information > Identification of material impacts, risks and opportunities >
Special considerations for Identification of material climate-related impacts, risks and opportunities
E1-2
Policies related to climate change mitigation and adaptation
Sustainability Statement > Environmental information > Climate change > Climate change mitigation in the
upstream value chain > Policies
Sustainability Statement > Environmental information > Climate change > Climate change mitigation in own
business activities > Policies
Sustainability Statement > Environmental information > Climate change > Climate change mitigation in the
downstream value chain > Policies
Disclosure requirement
Reference
E1-3
Actions and resources in relation to climate change policies
Sustainability Statement > Environmental information > Climate change > Climate change mitigation in the
upstream value chain > Actions
Sustainability Statement > Environmental information > Climate change > Climate change mitigation in own
business activities > Actions
Sustainability Statement > Environmental information > Climate change > Climate change mitigation in the
downstream value chain > Actions
E1-4
Targets related to climate change mitigation and adaptation
Sustainability Statement > Environmental information > Climate change > Targets
E1-5
Energy consumption and mix
Sustainability Statement > Environmental information > Climate change > Metrics > Energy consumption
E1-6
Gross Scopes 1, 2, 3 and Total GHG emissions
Sustainability Statement > Environmental information > Climate change > Metrics > Total GHG emissions
E1-7
GHG removals and GHG mitigation projects financed through carbon credits
Sustainability Statement > Environmental information > Climate change > Metrics > CO2 compensation and
removals
E1-8
Internal carbon pricing
Sustainability Statement > Environmental information > Climate change > Metrics > Internal carbon pricing
Environmental information, ESRS E2 – Pollution
ESRS 2, IRO-1
Description of the processes to identify and assess material pollution-related impacts, risks and
opportunities
Sustainability Statement > General information > Identification of material impacts, risks and opportunities
E2-1
Policies related to pollution
Sustainability Statement > Environmental information > Pollution > Policies
E2-2
Actions and resources related to pollution
Sustainability Statement > Environmental information > Pollution > Actions
E2-4
Pollution of air, water and soil
Sustainability Statement > Environmental information > Pollution > Metrics > Emissions to air
Environmental information, ESRS E3 – Water and marine resources
ESRS 2, IRO-1
Description of the processes to identify and assess material water
and marine resources-related impacts, risks and opportunities
Sustainability Statement > General information > Identification of material impacts, risks and opportunities
E3-1
Policies related to water and marine resources
Sustainability Statement > Environmental information > Water and marine resources > Policies
E3-2
Actions and resources related to water and marine resources
Sustainability Statement > Environmental information > Water and marine resources > Actions
E3-3
Targets related to water and marine resources
Sustainability Statement > Environmental information > Water and marine resources > Targets
E3-4
Water consumption
Sustainability Statement > Environmental information > Water and marine resources > Metrics > Water
consumption
Environmental information, ESRS E4 – Biodiversity and ecosystems
E4-1
Transition plan and consideration of biodiversity and ecosystems in strategy and business model
Sustainability Statement > Environmental information > Biodiversity and ecosystems > Consideration of
biodiversity and ecosystems in strategy and business model
ESRS 2, SBM-3
Impacts, risks and opportunities and their interaction with strategy and business model
Sustainability Statement > Environmental information > Biodiversity and ecosystems > Material impacts, risks and
opportunities and their interaction with strategy and business model
ESRS 2, IRO-1
Description of the processes to identify and assess material biodiversity and ecosystem-related
impacts, risks and opportunities
Sustainability Statement > General information > Identification of material impacts, risks and opportunities >
Special considerations for Identification of material biodiversity-related impacts, risks and opportunities
E4-2
Policies related to biodiversity and ecosystems
Sustainability Statement > Environmental information > Biodiversity and ecosystems > Policies
E4-3
Actions and resources related to biodiversity and ecosystems
Sustainability Statement > Environmental information > Biodiversity and ecosystems > Actions
Disclosure requirement
Reference
Environmental information, ESRS E5 – Resource use and circular economy
ESRS 2, IRO-1
Description of the processes to identify and assess material resource use and circular economy-
related impacts, risks and opportunities
Sustainability Statement > General information > Identification of material impacts, risks and opportunities
E5-1
Policies related to resource use and circular economy
Sustainability Statement > Environmental information > Resource use and circular economy > Policies
E5-2
Actions and resources related to resource use and circular economy
Sustainability Statement > Environmental information > Resource use and circular economy > Actions
E5-3
Targets related to resource use and circular economy
Sustainability Statement > Environmental information > Resource use and circular economy > Targets
E5-4
Resource inflows
Sustainability Statement > Environmental information > Resource use and circular economy >Metrics > Resource
inflows
E5-5
Resource outflows
Sustainability Statement > Environmental information > Resource use and circular economy > Metrics >
Quantities of waste
Social information, ESRS S1 – Own Workforce
ESRS 2, SBM-2
Interests and views of stakeholders
Sustainability Statement > General information > Strategy > Interests and views of stakeholders
ESRS 2, SBM-3
Impacts, risks and opportunities and their interaction with strategy and business model
Sustainability Statement > Social information > Own workforce > Material impacts, risks and opportunities and
their interaction with strategy and business model
S1-1
Policies related to own workforce
Sustainability Statement > Social information > Own Workforce > Personnel strategy
Sustainability Statement > Social information > Own Workforce > Working conditions > Responsible
transformation > Policies
Sustainability Statement > Social information > Own Workforce > Working conditions > Training and further
qualification > Policies
Sustainability Statement > Social information > Own Workforce > Policies
Sustainability Statement > Social information > Own Workforce > Working conditions > Remuneration and
benefits > Policies
Sustainability Statement > Social information > Own Workforce > Working conditions > Balancing profession and
private life > Policies
Sustainability Statement > Social information > Own Workforce > Working conditions > Occupational health and
safety > Policies
Sustainability Statement > Social information > Own Workforce > Equal treatment and opportunities for all >
Policies
Sustainability Statement > Social information > Own Workforce > Other work-related rights > Policies
S1-2
Processes for engaging with own workers and workers’ representatives about impacts
Sustainability Statement > Social information > Own Workforce > Engaging with own workers > Policies
S1-3
Processes to remediate negative impacts and channels for own workers to raise concerns
Sustainability Statement > Social information > Own Workforce > Remediation of negative impacts and channels
for own workforce to raise concerns
Disclosure requirement
Reference
S1-4
Taking action on material impacts on own workforce, and approaches to mitigating material risks
and pursuing material opportunities related to own workforce, and effectiveness of those
actions
Sustainability Statement > Social information > Own Workforce > Working conditions > Responsible
transformation > Actions
Corporate Profile >  Important events
Sustainability Statement > Social information > Own Workforce > Working conditions > Training and further
qualification > Actions
Sustainability Statement > Social information > Own Workforce > Actions
Sustainability Statement > Social information > Own Workforce > Working conditions > Remuneration and
benefits > Actions
Sustainability Statement > Social information > Own Workforce > Working conditions > Balancing profession and
private life > Actions
Sustainability Statement > Social information > Own Workforce > Working conditions > Occupational health and
safety > Actions
Sustainability Statement > Social information > Own Workforce > Equal treatment and opportunities for all >
Actions
Sustainability Statement > Social information > Own Workforce > Other work-related rights > Actions
S1-5
Targets related to managing material negative impacts, advancing positive impacts, and
managing material risks and opportunities
Sustainability Statement > Social information > Own Workforce > Personnel strategy > Targets
Sustainability Statement > Social information > Own Workforce > Working conditions > Training and further
qualification > Targets
Sustainability Statement > Social information > Own Workforce > Working conditions > Balancing profession and
private life > Targets
Sustainability Statement > Social information > Own Workforce > Working conditions > Occupational health and
safety > Targets
Sustainability Statement > Social information > Own Workforce > Equal treatment and opportunities for all >
Targets
S1-6
Characteristics of the undertaking’s employees
Sustainability Statement > Social information > Own Workforce > Personnel strategy > Characteristics of the
employees of the Mercedes-Benz Group
S1-8
Collective bargaining coverage and social dialogue
Sustainability Statement > Social information > Own Workforce > Engaging with own workers
S1-9
Diversity metrics
Sustainability Statement > Social information > Own Workforce > Working conditions > Equal treatment and
opportunities for all > Metrics
S1-10
Adequate wages
Sustainability Statement > Social information > Own Workforce > Working conditions > Remuneration and
benefits > Metrics > Adequate wages
S1-14
Health and safety metrics
Sustainability Statement > Social information > Own Workforce > Working conditions > Occupational health and
safety > Metrics
S1-16
Compensation metrics (pay gap and total compensation)
Sustainability Statement > Social information > Own Workforce > Working conditions > Remuneration and
benefits > Metrics
S1-17
Incidents, complaints and severe human rights impacts
Sustainability Statement > Social information > Own Workforce > Working conditions > Other work-related rights
> Incidents, complaints and severe human rights impacts
Disclosure requirement
Reference
Social information, ESRS S2 – Workers in the value chain
ESRS 2, SBM-2
Interests and views of stakeholders
Sustainability Statement > General information > Strategy > Interests and views of stakeholders
ESRS 2, SBM-3
Impacts, risks and opportunities and their interaction with strategy and business model
Sustainability Statement > Social information > Workers in the value chain > Material impacts, risks and
opportunities and their interaction with strategy and business model
S2-1
Policies related to value chain workers
Sustainability Statement > Social information > Workers in the value chain > Policies
S2-2
Processes for engaging with value chain workers about impacts
Sustainability Statement > Social information > Workers in the value chain > Engaging with own workers
S2-3
Processes to remediate negative impacts and channels for value chain workers to raise concerns
Sustainability Statement > Social information > Workers in the value chain > Remediation of negative impacts and
channels for workers in the value chain to raise concerns
S2-4
Taking action on material impacts on value chain workers, and approaches to managing material
risks and pursuing material opportunities related to value chain workers, and effectiveness of
those action
Sustainability Statement > Social information > Workers in the value chain > Action
S2-5
Targets related to managing material negative impacts, advancing positive impacts, and
managing material risks and opportunities
Sustainability Statement > Social information > Workers in the value chain > Targets
Social information, ESRS S3 – Affected communities
ESRS 2, SBM-2
Interests and views of stakeholders
Sustainability Statement > General information > Strategy > Interests and views of stakeholders
ESRS 2, SBM-3
Impacts, risks and opportunities and their interaction with strategy and business model
Sustainability Statement > Social information > Affected Communities > Material impacts, risks and opportunities
and their interaction with strategy and business model
S3-1
Policies related to affected communities
Sustainability Statement > Social information > Affected Communities > Policies
S3-2
Processes for engaging with affected communities about impacts
Sustainability Statement > Social information > Affected Communities > Engaging with own workers
S3-3
Processes to remediate negative impacts and channels for affected communities to raise
concerns
Sustainability Statement > Social information > Affected Communities > Remediation of negative impacts and
channels for workers in the value chain to raise concerns
S3-4
Taking action on material impacts on affected communities, and approaches to managing
material risks and pursuing material opportunities related to affected communities, and
effectiveness of those actions
Sustainability Statement > Social information > Affected Communities > Action
S3-5
Targets related to managing material negative impacts, advancing positive impacts, and
managing material risks and opportunities
Sustainability Statement > Social information > Affected Communities > Targets
Social information, ESRS S4 – Consumers and end-users
ESRS 2, SBM-2
Interests and views of stakeholders
Sustainability Statement > General information > Strategy > Interests and views of stakeholders
ESRS 2, SBM-3
Impacts, risks and opportunities and their interaction with strategy and business model
Sustainability Statement > Social information > Consumers and end-users > Material impacts, risks and
opportunities and their interaction with strategy and business model
Disclosure requirement
Reference
S4-1
Policies related to consumers and end-users
Sustainability Statement > Social information > Consumers and end-users > Customers in focus > Policies   
Traffic safety > Policies
S4-2
Processes for engaging with consumers and end-users about impacts
Sustainability Statement > Social information > Consumers and end-users > Engaging with own workers
S4-3
Processes to remediate negative impacts and channels for consumers and end-users to raise
concerns
Sustainability Statement > Social information > Consumers and end-users > Remediation of negative impacts and
channels for workers in the value chain to raise concerns
S4-4
Taking action on material impacts on consumers and end-users, and approaches to managing
material risks and pursuing material opportunities related to consumers and end-users, and
effectiveness of those actions
Sustainability Statement > Social information > Consumers and end-users > Customers in focus > Action
Risk and Opportunity Report > Risks and opportunities > Company-specific risks and opportunities > Information
technology risks and opportunities
Sustainability Statement > Social information > Consumers and end-users > Traffic Safety > Action
Governance information, ESRS G1 – Business conduct
ESRS 2, GOV-1
The role of the administrative, management and supervisory bodies
Sustainability Statement > General information > Governance > The role of the administrative, management and
supervisory bodies
ESRS 2, IRO-1
Description of the processes to identify and assess material impacts, risks and opportunities
Sustainability Statement > General information > Identification of material impacts, risks and opportunities
G1-1
Corporate culture and business conduct policies and corporate culture
Sustainability Statement > Governance information > Corporate culture
Company-
specific
Compliance with laws and regulations
Sustainability Statement > Governance information > Compliance with laws and regulations
Risk and Opportunity Report > Risks and opportunities > Legal and tax risks and opportunities > Risks from legal
proceedings in connection with diesel exhaust gas emissions – governmental proceedings
G1-3
Prevention and detection of corruption and bribery
Sustainability Statement > Governance information > Prevention and detection of corruption and bribery
G1-4
Confirmed incidents of corruption or bribery
Sustainability Statement > Governance information > Prevention and detection of corruption and bribery
G1-5
Political influence and lobbying activities
Sustainability Statement > Governance information > Political influence and lobbying activities
List of data points that derive from other EU legislation
The table below contains all data points derived from other EU regulations as listed in ESRS 2 Annex B, indicating where the data points can be found in the report
and which data points have been classified as "not material" or "not applicable" or where the "phase-in" option has been used.
Disclosure
requirement
Data point
SFDR-
reference1
Pillar-3-
reference2
Benchmark-
regulation-
reference3
EU Climate
Law-
reference4
Reference in the report
ESRS 2, GOV-1
21(d)
Board’s gender diversity paragraph
x
x
General information > Governance > Composition of the Board of Management and the
Supervisory Board > Diversity of the Board of Management and the Supervisory Board
ESRS 2, GOV-1
21 (e)
Percentage of board members who are
independent
x
General information > Governance Composition of the Board of Management and the
Supervisory Board > Independence of the Supervisory Board
GOV-4
30
Statement on due diligence
x
General information > Basis for preparation > Statement on due diligence
SBM-1
40 (d) i.
Involvement in activities related to fossil fuel
activities paragraph
x
x
x
Not applicable
SBM-1
40 (d) ii.
Involvement in activities related to chemical
production paragraph
x
x
Not applicable
SBM-1
40 (d) iii.
Involvement in activities related to
controversial weapons
x
x
Not applicable
SBM-1
40 (d) iv.
Involvement in activities related to
cultivation and production of tobacco
x
Not applicable
E1-1
14
Transition plan to reach climate neutrality by
2050
x
Environmental information > Climate change > Transition plan for climate change
mitigation
E1-1
16 (g)
Undertakings excluded from EU Paris-aligned
Benchmarks
x
x
Environmental information > Climate change > Transition plan for climate change
mitigation
E1-4
34
GHG emission reduction targets
x
x
x
Environmental information > Climate change > Targets
E1-5
38
Energy consumption from fossil sources
disaggregated by sources (only high climate
impact sectors)
x
Environmental information > Climate change > Metrics > Energy consumption
E1-5
37
Energy consumption and mix
x
Environmental information > Climate change > Metrics > Energy consumption
E1-5
40-43
Energy intensity associated with activities in
high climate impact sectors
x
Environmental information > Climate change > Metrics > Energy consumption
E1-6
44
Gross Scopes 1, 2, 3 and Total GHG emissions
x
x
x
Environmental information > Climate change > Metrics > Total GHG emissions
E1-6
53-55
Gross GHG emissions intensity
x
x
x
Environmental information > Climate change > Metrics > Total GHG emissions
E1-7
56
GHG removals and carbon credits
x
Environmental information > Climate change > Metrics > CO2 compensation and
removals
Footnotes are at the bottom of the table
Disclosure
requirement
Data point
SFDR-
reference1
Pillar-3-
reference2
Benchmark-
regulation-
reference3
EU Climate
Law-
reference4
Reference in the report
E1-9
66 (a);
66 (c)
Disaggregation of monetary amounts by
acute and chronic physical risk; Location of
significant assets at material physical risk
paragraph
x
Phase-In
E1-9
67 (c)
Breakdown of the carrying value of its real
estate assets by energy-efficiency classes
paragraph
x
Phase-In
E1-9
69
Degree of exposure of the portfolio to
climate-related opportunities
x
Phase-In
E2-4
28
Amount of each pollutant listed in Annex II
of the E-PRTR Regulation (European
Pollutant Release and Transfer Register)
emitted to air, water and soil
x
Environmental information > Pollution > Metrics > Emissions to air
E3-1
9
Water and marine resources
x
Environmental information > Water and marine resources > Policies
E3-1
13
Dedicated policy paragraph
x
Not applicable
E3-1
14
Sustainable oceans and seas
x
Not material
E3-4
28 (c)
Total water recycled and reused
x
Environmental information > Water and marine resources > Metrics > Water
consumption
E3-4
29
Total water consumption in m3 per net
revenue in own operations
x
Environmental information > Water and marine resources > Metrics > Water
consumption
ESRS 2 SBM-3 E4
16 (a) i.
Activities negatively affecting biodiversity
sensitive areas
x
Environmental information > Biodiversity and ecosystems > Material impacts, risks and
opportunities and their interaction with strategy and business model
ESRS 2 SBM-3 E4
16 (b)
Material negative impacts with regards to
land degradation, desertification or soil
sealing have been identified
x
Environmental information > Biodiversity and ecosystems > Material impacts, risks and
opportunities and their interaction with strategy and business model
ESRS 2 SBM-3 E4
16 (c)
Own operations affect threatened species
x
Environmental information > Biodiversity and ecosystems > Material impacts, risks and
opportunities and their interaction with strategy and business model
E4-2
24 (b)
Sustainable land / agriculture practices or
policies
x
Environmental information > Biodiversity and ecosystems > Policies
E4-2
24 (c)
Sustainable oceans / seas practices or
policies
x
Not material
E4-2
24 (d)
Policies to address deforestation
x
Environmental information > Biodiversity and ecosystems > Policies > Supplier
management and protection against illegal deforestation
E5-5
37 (d)
Non-recycled waste
x
Environmental information > Resource use and circular economy > Metrics > Quantities
of waste
Footnotes are at the bottom of the table
Disclosure
requirement
Data point
SFDR-
reference1
Pillar-3-
reference2
Benchmark-
regulation-
reference3
EU Climate
Law-
reference4
Reference in the report
E5-5
39
Hazardous waste and radioactive waste
x
Environmental information > Resource use and circular economy > Metrics > Quantities
of waste
ESRS 2 SBM3 – S1
14 (f)
Risk of incidents of forced labour
x
Social information > Own Workforce >Material impacts, risks and opportunities and their
interaction with strategy and business model
ESRS 2 SBM3 – S1
14 (g)
Risk of incidents of child labour
x
Social information > Own Workforce > Material impacts, risks and opportunities and their
interaction with strategy and business model
S1-1
20
Human rights policy commitments
x
Social information > Own Workforce > Other work-related rights > Policies
S1-1
21
Due diligence policies on issues addressed
by the fundamental International Labor
Organisation Conventions 1 to 8
x
Social information > Own Workforce > Other work-related rights > Policies
S1-1
22
Processes and measures for preventing
trafficking in human beings
x
Not material
S1-1
23
Workplace accident prevention policy or
management system
x
Social information > Own Workforce > Working conditions > Occupational health and
safety > Policies
S1-3
32 (c)
Grievance/complaints handling mechanisms
x
Social information > Own Workforce > Remediation of negative impacts and channels for
own workforce to raise concerns
S1-14
88 (b),
(c)
Number of fatalities and number and rate of
work-related accidents
x
x
Social information > Own Workforce > Working conditions > Occupational health and
safety > Metrics
S1-14
88 (e)
Number of days lost to injuries, accidents,
fatalities or illness
x
Phase-In
S1-16
97 (a)
Unadjusted gender pay gap
x
x
Social information > Own Workforce > Working conditions > Remuneration and benefits
> Metrics
S1-16
97 (b)
Excessive CEO pay ratio
x
Social information > Own Workforce > Working conditions > Remuneration and benefits
> Metrics
S1-17
103 (a)
Incidents of discrimination
x
Social information > Own Workforce > Other work-related rights > Incidents, complaints
and severe human rights impacts
S1-17
104 (a)
Non-respect of UNGPs on Business and
Human Rights and OECD
x
x
Not applicable
ESRS 2 SBM-3 S2
11 (b)
Significant risk of child labour or forced
labour in the value chain
x
Social information > Workers in the value chain > Material impacts, risks and
opportunities and their interaction with strategy and business model
Footnotes are at the bottom of the table
Disclosure
requirement
Data point
SFDR-
reference1
Pillar-3-
reference2
Benchmark-
regulation-
reference3
EU Climate
Law-
reference4
Reference in the report
S2-1
17
Human rights policy commitments
x
Social information > Workers in the value chain > Policies > Human rights
S2-1
18
Policies related to value chain workers
x
Social information > Workers in the value chain > Policies
S2-1
19
Non-respect of UNGPs on Business and
Human Rights principles and OECD
guidelines
x
x
Social information > Workers in the value chain > Policies > Human rights
S2-1
19
Due diligence policies on issues addressed
by the fundamental International Labor
Organisation Conventions 1 to 8,
x
Social information > Workers in the value chain > Policies > Human rights
S2-4
36
Human rights issues and incidents connected
to its upstream and downstream value chain
x
Not applicable
S3-1
16
Human rights policy commitments
x
Social information > Affected Communities > Policies
S3-1
17
Non-respect of UNGPs on Business and
Human Rights, ILO principles or and OECD
guidelines
x
x
Social information > Affected Communities > Policies
S3-4
36
Human rights issues and incidents
x
Not applicable
S4-1
16
Policies related to consumers and end-users
x
Social information > Consumers and end-users > Customers in focus > Policies
Social information > Consumers and end-users > Traffic safety > Policies
S4-1
17
Non-respect of UNGPs on Business and
Human Rights and OECD guidelines
x
x
Social information > Consumers and end-users > Customers in focus > Policies
S4-4
35
Human rights issues and incidents
x
Not applicable
G1-1
10 (b)
United Nations Convention against
Corruption
x
Governance information > Prevention and detection of corruption and bribery
G1-1
10 (d)
Protection of whistle-blowers
x
Not applicable
G1-4
24 (a)
Fines for violation of anti-corruption and
anti-bribery laws
x
x
Governance information > Prevention and detection of corruption and bribery
G1-4
24 (b)
Standards of anti-corruption and anti-bribery
x
Governance information > Prevention and detection of corruption and bribery
1 Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector (Sustainable Finance Disclosures Regulation) (OJ L 317, 9.12.2019, p. 1).
2 Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ. L 176, 27.6.2013, p. 1).
3 Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and
Regulation (EU) No 596/2014 (OJ. L 171, 29.6.2016, p. 1).
4 Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (“European Climate Law”) (OJ. L 243, 9.7.2021, p. 1).
Combined Non-Financial Declaration of the Mercedes-Benz Group and Mercedes-Benz Group AG
The first-time and complete use of the European
Sustainability Reporting Standards (ESRS) as a frame-
work pursuant to Section 315c Paragraph 3 in conjunc-
tion with Section 289d of the German Commercial
Code (HGB) for the Non-Financial Declaration of the
Mercedes-Benz Group is due to the importance of
the ESRS as reporting standards for sustainability
reporting adopted by the European Commission.
The following contents of the Non-Financial
Declaration of the Mercedes-Benz Group in accord-
ance with the provisions of Sections 315b and 315c
HGB in conjunction with Sections 289b – 289e HGB are
described in the respective chapters mentioned:
– The materiality assessment in the chapter
Identification of material impacts, risks and
opportunities; the materiality assessment basically
covers the requirement for the Non-Financial
Declaration in accordance with the methodological
requirement of the CSRD and ESRS
– The business model of the Mercedes Benz Group in
the chapter General information under Strategy,
business model and value chain
– Environmental issues with the corresponding
management policies, targets, actions and results in
the chapter Environmental information
– Employee issues with the corresponding manage-
ment policies, targets, actions and results in
the chapter Own Workforce and with regard to
employees in the supply chain in the chapter
Workers in the value chain
– Social issues with the corresponding management
policies, targets, actions and results in the chapters
Affected Communities, Consumers and end-users
and Traffic safety
– Corruption and bribery with the corresponding
management policies, actions and results in the
chapter Governance information
– Information on respect for human rights with the
corresponding targets, strategies, policies, actions
and results in the chapter Social information
– The most significant non-financial performance
indicators can be found in the chapter Corporate
Profile under Key performance indicators.
Regarding the contents of the Non-Financial Declara-
tion for Mercedes-Benz Group AG in accordance with
Sections 289b-289e HGB, we refer to the contents of
the Group listed above. Mercedes-Benz Group AG is
the parent company of the Mercedes-Benz Group. The
policies, actions and targets at Group level are also
generally pursued at the level of the parent company.
No framework is used for the parent company’s Non-
Financial Declaration, as the content refers to the Non-
Financial Declaration of the Mercedes-Benz Group,
which was prepared in full accordance with the ESRS
as a framework.
DECLARATION ON
CORPORATE GOVERNANCE
DECLARATION ON CORPORATE GOVERNANCE
Declaration on Corporate Governance
In the Declaration on Corporate Governance pursuant
to Sections 289 f, 315d of the German Commercial
Code (HGB), the Board of Management and the Super-
visory Board explain the corporate governance of the
company in the 2024 reporting year. The statements
are applicable to Mercedes-Benz Group AG and the
Group, unless indicated otherwise below. Pursuant to
Section 317 Subsection 2 Sentence 6 HGB, the review
of the Declaration on Corporate Governance by the
auditor is to be limited to whether the legally required
statements were made.
This Declaration on Corporate Governance, as well
as the most recent version of the Declaration of Com-
pliance pursuant to Section 161 of the German Stock
Corporation Act on the German Corporate Governance
Code, is, in addition to the no longer current declara-
tions of the past five years, available on the website of
the company 🌐 group.mercedes-benz.com/dcg.
Declaration of the Board of Management
and Supervisory Board of Mercedes-Benz
Group AG on the Compliance with the
German Corporate Governance Code
according to Section 161 of the German
Stock Corporation Act
Mercedes-Benz Group AG maintains compliance with
the recommendations of the German Corporate Govern-
ance Code in the Code version, dated April 28, 2022
(“Code”), published by the Federal Ministry of Justice
and Consumer Protection in the official section of the
German Federal Gazette on June 27, 2022, with the
exception of Recommendations C.4 and C.5 (Maximum
number of Supervisory Board mandates) and will also
continue to observe the recommendations with the
aforesaid deviations in the future. Since the submission
of the last Compliance Declaration in December 2023,
Mercedes-Benz Group AG has maintained compliance
with the recommendations of the German Corporate
Governance Code also with the aforesaid deviations.
Maximum number of Supervisory Board mandates
(C. 4 and C. 5) According to Recommendation C.4,
Supervisory Board members who are not members of
any management board of a listed company shall not
accept more than a total of five Supervisory Board
mandates in non-group listed companies or com-
parable functions, whereby a mandate as Supervisory
Board Chair counts twice. According to Recommen-
dation C.5, members of the Management Board of
listed companies shall not have a total of more than
two Supervisory Board mandates in non-group listed
companies or comparable functions, and shall not
accept the Chair of a Supervisory Board in a non-group
listed company. Rather than setting a strict amount
limit, it is more appropriate to assess on a case-by-
case basis whether the number of mandates held by
members of the Management Boards and Supervisory
Boards at non-group listed companies or comparable
functions appears to be appropriate, in particular
because it is not always possible to clearly define the
mandates that should be taken into consideration.
Moreover, the individual workload expected as a result
of the total number of mandates held does not
necessarily increase in proportion to their number.
Stuttgart, December 2024
For the SupervisoryFor the Board of
BoardManagement
Dr Martin BrudermüllerOla Källenius
ChairmanChairman
Remuneration report,
remuneration system
The 2024 remuneration report and the opinion
‘of the auditor pursuant to Section 162 of the German
Stock Corporation Act (AktG) are available at
🌐 group.mercedes-benz.com/remuneration-bom. The
applicable remuneration system for the members
‘of the Board of Management for 2024 pursuant to
Section 87a Subsections 1 and 2 Sentence 1 of the
German Stock Corporation Act (AktG), which was
approved by the Annual General Meeting on 3 May
2023, is also available there. The resolution also
adopted by the Annual General Meeting on 3 May 2023
pursuant to Section 113 Subsection 3 of the German
Stock Corporation Act (AktG) on the remuneration of
the members of the Supervisory Board is available at 🌐
group.mercedes-benz.com/remuneration-sb.
Essential principles and practices
of corporate governance
German Corporate Governance Code
Beyond the statutory requirements of German stock
corporation, co-determination and capital market
legislation, Mercedes-Benz Group AG has complied and
continues to comply with the recommendations of the
German Corporate Governance Code (“Code”) subject
to the exceptions stated and justified in the Declaration
of Compliance (pursuant to Section 161 of the German
Stock Corporation Act).
Mercedes-Benz Group AG has fully complied and
continues to comply with the suggestions of the Code.
Principles of our business activity
The Mercedes-Benz Group conducts its business in
accordance with Group-wide standards that go beyond
the requirements of the law and the German Corporate
Governance Code. Mercedes-Benz Group is convinced
that only those who act in an ethically and legally
responsible manner remain successful in the long
term – this is especially true in times of upheaval and
change. Hence, integrity and compliance are very
important to the Mercedes-Benz Group. In order to
achieve long-term and sustainable corporate success
on this foundation, it is the goal of the Mercedes-Benz
Group to ensure that its business operations are in
harmony with the interests of the environment and
society. As one of the world’s leading automakers, the
Mercedes-Benz Group also wants to be at the forefront
when it comes to sustainability. The company defines
the most important principles in its Code of Conduct,
which provides orientation for all employees of
Mercedes-Benz Group AG and the Group and assists
them in making the right decisions, even in difficult
business situations.
The Code of Conduct
The Code of Conduct applies to all managers and
employees of Mercedes-Benz Group AG and the
consolidated Group companies worldwide, too. The
Code of Conduct was revised in 2024 and the new
version was communicated to the employees at the
end of 2024. The policy sets out the core corporate
principles for conduct in day-to-day business and the
way people deal with each other within the company
and with business partners and customers. In addition
to respect for the law and the legal system, these
corporate principles also include, for example, fairness,
transparency, practical diversity, and responsibility.
In addition to the corporate principles, the Code of
Conduct contains, inter alia, regulations regarding the
respect and safeguarding of human rights as well as
the handling of conflicts of interest, and prohibits
corruption in any form whatsoever. It is available on
the Internet at 🌐 group.mercedes-benz.com/
compliance/integrity-code.
Principles of Social Responsibility
and Human Rights
The Principles of Social Responsibility and Human
Rights supplement and specify the principles of human
rights and good working conditions in the Integrity
Code. They apply to all managers and employees of
Mercedes-Benz Group AG and also the consolidated
Group companies worldwide. Through the Principles,
the Mercedes-Benz Group also commits itself to pre-
venting negative effects on human rights within its own
business operations worldwide and at its partner and
supplier companies and to reducing these negative
effects and, as far as possible, putting an end to them.
The Principles of Social Responsibility and Human
Rights can be viewed in various languages at 🌐
group.mercedes-benz.com/human-rights/principles.
Expectations regarding business partners
The Mercedes-Benz Group also formulates clear
requirements for its business partners, because con-
duct with integrity and in compliance with the rules is a
prerequisite for any trust-based cooperative venture.
Therefore, when selecting its business partners, the
company makes sure that they comply with the law,
follow ethical principles, communicate the associated
requirements to their own suppliers, and work to
ensure compliance with these requirements. For the
Mercedes-Benz Group’s expectations of its business
partners, please also see 🌐 group.mercedes-benz.com/
company/compliance/business-partners.html.
Advisory Board for Integrity and Sustainability
The Mercedes-Benz Group established an Advisory
Board for Integrity and Sustainability. The board’s
members are independent external experts in the fields
of environmental and social policy, transport and
mobility development, and human rights and ethics and
provide the Mercedes-Benz Group with constructive
and critical support with issues relating to integrity, sus-
tainability and corporate responsibility. The Advisory
Board convenes several times a year in meetings that
are chaired by the member of the Board of Manage-
ment of Mercedes-Benz Group AG responsible for
Integrity, Governance & Sustainability. In addition,
bilateral discussions take place several times a year
and there is an annual exchange with the members of
the Supervisory Board and the Board of Management
of Mercedes-Benz Group AG. There was also an
exchange with employees on the employee day as part
of the Sustainability Dialogue 2024.
During the revision of the sustainable business strategy
in the reporting period, feedback from the Advisory
Board was obtained in several rounds and integrated
into the process. In addition, in the 2024 financial year,
the Advisory Board dealt with topics such as market
adaptation of electric vehicles, human rights, the
whistleblower concept and the circularity strategy.
Internal risk management system and
internal control and compliance management
system within the Group
The Mercedes-Benz Group has internal control, risk and
compliance management systems in place that are
commensurate with the size and global presence of the
company, the scope of its business operations, and its
risk situation, and are geared towards the continuous
and systematic management of entrepreneurial risks
and opportunities. These processes and systems are
subject to continual monitoring in order to remedy the
identified weaknesses and continuously improve the
processes and systems. Risks and opportunities
associated with social and environmental factors are
also taken into account. Their identification takes place
through the regular risk management process and the
materiality assessment. For the 2024 financial year,
the Mercedes-Benz Group conducted the materiality
assessment in accordance with the requirement of the
CSRD and ESRS for the first time in order to identify
material sustainability-related impacts, risks and
opportunities. The newly identified material sustain-
ability-related short- and medium-term risks and
opportunities were transferred to the risk management
system after completion of the assessment. In addition,
the Mercedes-Benz Group is examining the further
development of processes and systems with regard to
the overall consideration of sustainability-related
impacts, risks and opportunities.
In the reporting year, the Mercedes-Benz Group used a
comprehensive, multi-stage assessment process to
revise the strategic sustainability priorities that the
Group wants to focus on. These are backed up with
specific goals. The results of the materiality
assessment were also included in this assessment. The
Mercedes-Benz Group plans to take into account the
changes that arise in the regular cycle of the materiality
assessment according to CSRD and ESRS in future
updates to its strategic focus areas.
The risk management system is part of the overall
planning, control and reporting process. This is to
ensure that the executive management recognizes
significant risks at an early stage and can initiate
countermeasures in a timely fashion. Corporate Audit
monitors compliance with legal framework conditions
and corporate standards by means of targeted audits
and initiates appropriate measures where necessary.
Further information on risk management can be found
in the in the chapter Risk and Opportunity Report in
the Combined Management Report 2024.
In addition to the accounting-related internal control
system, the internal control system also includes
in particular the Compliance Management System and
other similar systems or frameworks such as the
Human Rights Respect System, as well as an inde-
pendent and risk-oriented assessment of the structure
and processes of the internal control system by
Corporate Audit as part of various process audits.
Further explanations of the internal control system are
available in the chapter Risk and Opportunity Report in
the Combined Management Report 2024.
The aim of the Compliance Management System (CMS)
is to promote compliance with legislation and policies
within the company and among its employees, to
prevent misconduct and to systematically reduce
compliance risks on the basis of the culture of integrity.
Detailed information on the Mercedes-Benz Com-
pliance Management System can be found in the
chapter Sustainability Statement of the 2024 Annual
Report.
At least once a year, the Audit Committee of the Super-
visory Board of Mercedes-Benz Group AG discusses the
effectiveness and functionality of the internal control
and risk management system, the internal auditing
system, and the Compliance Management System with
the Board of Management. In each case, these systems
and processes or similar ones are also examined with
regard to the sustainability risks and opportunities they
address, taking into account the areas of action of the
sustainable business strategy as well as the ecological
and social impact of the business activities conducted
by Mercedes-Benz Group AG and the Group. The
chairman of the Audit Committee of Mercedes-Benz
Group AG shall report back to the Supervisory Board
about the work of the committee at the latest at the
next meeting of the Supervisory Board. The Super-
visory Board of Mercedes-Benz Group AG also deals
with the risk management system on the occasion of
the audit of the company and Consolidated Financial
Statements. The Chairman of the Supervisory Board
maintains contact with the Board of Management
between meetings of the Supervisory Board, in parti-
cular with the Chairman of the Board of Manage-
ment, in order to discuss issues of risk management
and compliance, in addition to the strategy and
business development of the Group. Moreover, the
Board of Management regularly informs the Audit
Committee and the Supervisory Board about significant
risks to the company and the Group.
The Legal Affairs Committee of the Supervisory Board
supports the Supervisory Board in the performance of
its duties with regard to the complex proceedings
relating to antitrust matters and questions with respect
to emissions with which Mercedes-Benz Group AG and
its subsidiaries are confronted.
Accounting and auditing
The Mercedes-Benz Group compiles its Consolidated
Financial Statements and interim financial reports (mid-
year financial report and quarterly financial reports)
in accordance with the principles of International
Financial Reporting Standards (IFRS) as applicable in
the European Union. The Annual Financial Statements
of Mercedes-Benz Group AG are compiled in accord-
ance with the accounting provisions of the German
Commercial Code (HGB). The Consolidated Financial
Statements and the Annual Financial Statements of
Mercedes-Benz Group AG are audited by an auditor,
and interim financial reports are subject to review by
an auditor. The Consolidated Financial Statements
and the consolidated management reports are publicly
accessible on the website of the company within
90 days; the interim financial reports are publicly
accessible within 45 days after the end of the respec-
tive reporting period.
On the basis of the recommendation of the Audit
Committee, the Supervisory Board of Mercedes-Benz
Group AG submits a proposal to the Annual General
Meeting for the appointment of the auditor of the
financial statements, the Group auditor of the
Consolidated Financial Statements, and the auditor for
the review of the interim financial reports.
Before submitting its recommendation for the election
proposal to the Annual General Meeting, the Audit
Committee of the Supervisory Board obtains a
declaration from the proposed auditor as to whether
and, if so, which business, financial or personal
relationships exist between the auditor and its boards
and committees and audit managers on the one hand
and the company and members of its boards and
committees on the other hand that could give rise to
concerns of partiality.
The auditor informs the Supervisory Board of
Mercedes-Benz Group AG without delay of any and all
findings and occurrences of significance for the duties
of the Supervisory Board that come to the attention
of the auditor during the performance of the audit.
The auditor also informs the Supervisory Board and
annotates in the audit report if, during the performance
of the audit, the auditor discovers facts that reveal an
inaccuracy in the declarations of compliance with the
German Corporate Governance Code issued by the
Board of Management and the Supervisory Board.
After conducting a selection and proposal procedure in
accordance with the EU Audit Regulation to comply
with the audit firm’s rotation obligation, Pricewater-
houseCoopers GmbH Wirtschaftsprüfungsgesellschaft,
Frankfurt am Main, was appointed for the first time
as auditor and Group auditor for the 2024 financial
year and as auditor for the review of interim financial
reports for the 2024 financial year at the Annual General
Meeting on May 3, 2023. Thomas Tandetzki has been
the responsible auditor since the 2024 financial year.
Composition and working method
of the Board of Management
Under the German Stock Corporation Act (AktG),
Mercedes-Benz Group AG has a dual management
system that provides for a strict personnel and
functional separation between the Board of Manage-
ment as the management body and the Supervisory
Board as the supervisory body (two-tier board). The
Board of Management manages the company, while
the Supervisory Board supervises and advises the
Board of Management.
Board of Management
In accordance with the articles of association of
Mercedes-Benz Group AG, the Board of Management
consists of at least two members. The Supervisory
Board shall determine the exact number. As of
31 December 2024, the Board of Management
consisted of eight members.
In December 2020, the Supervisory Board set a target
for the proportion of women on the Board of Manage-
ment and a deadline for achieving this target. In August
2021, the German Second Leadership Positions Act
(FüPoG II) came into force. According to the said Act,
at least one woman and at least one man must be a
member of the Board of Management in listed com-
panies that are subject to co-determination and equal
representation and have more than three members on
the Board of Management. Companies that are subject
to the minimum proportion requirement no longer
have to set a target quota for the proportion of women
on the board of management. Nevertheless, the target
quota determined in 2020 continued to apply as
an aspect of the overall requirements profile for the
composition of the Board of Management in the
reporting period.
Details on the overall profile of requirements and the
participation of women on the Board of Management
are presented in separate sections in this Declaration
on Corporate Governance.
Without prejudice to the overall responsibility of the
Board of Management, the individual members of the
Board of Management of Mercedes-Benz Group AG
shall manage their divisions on their own responsibility
within the framework of the guidelines adopted by the
Board of Management as a whole. Certain matters
defined by the Board of Management as a whole shall
nevertheless be discussed by the Board of Manage-
ment as a whole and shall require its approval. In
addition, each member of the Board of Management
has the right to demand that any matter he or she
deems important be discussed by the Board of
Management as a whole or that a decision be made on
that matter by the Board as a whole. The work of the
Board of Management is coordinated by the chairman
of the Board of Management. No committees of
the Board of Management were established during the
reporting period.
Information about the areas of responsibility and the
curricula vitae of the members of the Board of Manage-
ment is available on the website of Mercedes-Benz
Group AG at 🌐 group.mercedes-benz.com/company/
corporate-governance/board-of-management.
The Board of Management manages Mercedes-Benz
Group AG and the Group, in consideration of the
interests of the shareholders, the employees and the
other stakeholders, with the goal of sustainable added
value. With the approval of the Supervisory Board, it
determines the strategic orientation of the company,
which also takes into account long-term economic
targets and environmental and social targets and
objectives. The strategic areas of action –
Decarbonization, Resource Use and Circularity,
Employees, Human Rights, Digital Trust and Traffic
Safety are thus components of the sustainable
business strategy. Along with financial targets, the
corporate planning decided on by the Board of
Management with the approval of the Supervisory
Board also includes corresponding sustainability-
related targets.
The internal control and risk management system
established by the Board of Management also addresses
sustainability-related targets. Further information on
sustainability can be found in the chapter Sustainability
Statement of the 2024 Annual Report.
The Board of Management is responsible for ensuring
compliance with statutory provisions and internal
policies within the company, and works to ensure that
they are also observed by the Group companies (com-
pliance). It has established a comprehensive Compli-
ance Management System geared to the risk situation
of the company, the basic features of which are pre-
sented in the chapter Governance information in the
Sustainability Statement of this Annual Report. The
components of the Compliance Management System
also include the BPO (Business & People Protection
Office) whistleblowing system, which gives employees
and external whistleblowers worldwide the opportunity
to report violations of the rules.
The Board of Management compiles the interim finan-
cial reports of the company, the Annual Financial State-
ments of Mercedes-Benz Group AG, the Consolidated
Financial Statements and the Combined Management
Report including sustainability reporting of the company
and the Group. Together with the Supervisory Board, it
prepares the Remuneration report and issues an annual
Declaration of Compliance with the German Corporate
Governance Code.
The Board of Management and the Supervisory Board
cooperate to ensure the well-being of the company in a
relationship based on trust. The Board of Management
informs the Supervisory Board regularly, comprehen-
sively and in a timely manner about all strategic issues
of relevance to the company as a whole, including
issues relating to the sustainability strategy, planning,
profitability, business development, the situation of the
company, the internal control system, the risk manage-
ment system and compliance. The Supervisory Board
has defined the information and reporting duties of the
Board of Management in more detail.
For certain types of transactions defined by the
Supervisory Board of Mercedes-Benz Group AG, the
Board of Management requires the prior approval of
the Supervisory Board.
Each member of the Board of Management is bound to
serve the interests of the company and is subject to a
comprehensive restraint of competition throughout the
entire term of their contract. When making decisions,
they may not pursue personal interests and they may
not exploit the company’s business opportunities for
their own benefit. Members of the Board of Manage-
ment must disclose without delay to the Chairman of
the Supervisory Board and the Chairman of the Board
of Management any personal interest they may have
in a particular business activity conducted by the
company, as well as any and all other conflicts of
interest, and they must also report such information to
all other members of the Board of Management.
Members of the Board of Management may only per-
form external ancillary activities if these are approved
by the Supervisory Board’s Presidential Committee.
The Board of Management of Mercedes-Benz Group AG
has adopted rules of procedure, available on the
website of the company at 🌐 group.mercedes-
benz.com/company/corporate-governance which
among other things govern the procedure to be
followed when adopting resolutions and contain
provisions designed to avoid conflicts of interest.
Diversity and equal opportunity
The Mercedes-Benz Group is committed to tolerance,
openness and fairness, and promotes diversity and
equal opportunity because these values form the basis
of an efficient and successful company. Diversity is a
firm component of the business strategy of the
Mercedes-Benz Group; activities to promote diversity
focus on the overarching strategic areas of action for
the advancement of women, internationality and equal
opportunities.
With respective conditions and measures, the
Mercedes-Benz Group promotes a working
environment in which employees, regardless of their
age, ethnic origins and nationality, gender and gender
identity, physical or intellectual capacity, religion and
worldview, sexual orientation and social origins, can
freely develop their talents. Along with the
establishment of a framework and processes for
ensuring equal opportunities, and measures to reduce
and eliminate subconscious prejudices, this also
includes measures to promote a work culture marked
by appreciation in which individual lifestyles are
respected, as well as the organization of programmes
for employees and managers that provide information,
raise awareness and improve personal skills in this
regard. Diversity, equal opportunities and inclusion
therefore make a significant contribution to the further
development of the corporate culture of the Mercedes-
Benz Group.
The targeted promotion of women had already been a
central focus of attention in diversity management
before the German Act on the Equal Participation of
Women and Men in Leadership Positions came into
force. In compliance with the statutory requirements,
the Board of Management of Mercedes-Benz Group AG
has set targets for the proportion of women at the two
management levels of the Mercedes-Benz Group AG
below the Board of Management and a deadline for
attaining these targets. The specific details are
presented in a separate section of this Declaration on
Corporate Governance.
Independently of the statutory requirements, the
company set itself the goal of appointing women to fill
at least 30% of its senior management positions
by 2030. As of 31 December 2024, the proportion of
women in senior management positions at the
Mercedes-Benz Group worldwide was 26.4% (with
reference to the active workforce without holiday
workers).
Composition and working method
of the Supervisory Board and its
committees
Supervisory Board
In accordance with the German Co-Determination Act
(MitbestG), the Supervisory Board of Mercedes-Benz
Group AG consists of 20 members. Half of them are
elected by the shareholders at the General Meeting and
half by the employees of the German companies of the
Group. Shareholder representatives and employee
representatives are by law equally bound to serve the
interests of the company.
Curricula vitae of the individual members of the Super-
visory Board and their other mandates are published
on the Internet at 🌐 group.mercedes-benz.com/
company/corporate-governance/supervisory-board.
This information is also updated every year.
The Supervisory Board shall be composed in such
manner that its members as a whole are familiar with
the industry in which the company operates and have
the knowledge, skills and professional experience
necessary for the proper performance of their duties.
In accordance with applicable law, the Supervisory
Board of Mercedes-Benz Group AG must be composed
of at least 30% women and at least 30% men. The
specific details are presented in a separate section of
this Declaration on Corporate Governance.
In addition, the Supervisory Board of Mercedes-Benz
Group AG has developed an overall profile of require-
ments for its own composition, which includes a com-
petence profile and a diversity concept for the Board
as a whole, including an age limit. The specific details
of the overall profile of requirements are also summa-
rized in a separate section of this Declaration on Cor-
porate Governance. The proposals of the Supervisory
Board for the election of shareholder representatives
by the General Meeting, for which the Nomination
Committee submits recommendations, aim to fulfil the
overall profile of requirements for the Supervisory
Board as a whole.
The members of the Supervisory Board of Mercedes-
Benz Group AG assume responsibility for the training
and further qualification measures required for their
tasks, e.g. on topics relating to changes in the legal
framework and new, forward-looking technologies, and
are supported in this by the company. During the
reporting period, the company held information events
on the topic of Digital Trust as part of the sustainable
business strategy and on the Mercedes-Benz operating
system MB.OS. Internal and external experts were
involved in these events. In addition, new members of
the Supervisory Board have the opportunity to meet
the members of the Board of Management and senior
executives with specialist responsibility in a specifically
designated onboarding programme for a bilateral
exchange on fundamental and current topics in respect
of the relevant areas of the Board of Management, thus
gaining an overview of the topics relevant to the
company and of the governance structure. ESG
(Environmental, Social, Governance) or sustainability-
related topic blocks are also an integral part of this
programme.
The Supervisory Board supervises and advises the Board
of Management in the management of the business.
Monitoring and advisory activities also relate to sustain-
ability issues. At regular intervals, the Supervisory Board
discusses business development, the situation of the
company, and planning and strategy, including the sus-
tainability strategy and its implementation. The Super-
visory Board also reviews and discusses the internal
control and risk management system and monitors com-
pliance with statutory provisions, official regulations and
internal policies within the company.
The Supervisory Board of Mercedes-Benz Group AG has
also specified in more detail the information and report-
ing duties of the Board of Management vis-à-vis the
Supervisory Board, the Audit Committee and – between
meetings of the Supervisory Board – vis-à-vis the
Chairman of the Supervisory Board. The Supervisory
Board has reserved the right of approval for transactions
of fundamental importance.
The Supervisory Board’s monitoring and advisory
activities also relate to sustainability issues associated
with the ESG dimensions (environmental, social and
governance factors). At regular intervals, the Supervisory
Board obtains reports from the Board of Management
on the status of implementation of the sustainable cor-
porate strategy and also examines the risks and
opportunities for the company that result from social
and environmental factors and, increasingly, the
ecological and social effects of the company’s business
activities. In addition, the Supervisory Board deals with
sustainability reporting as part of the discussion of the
Combined Management Report.
The duties of the Supervisory Board of Mercedes-Benz
Group AG include the appointment and, if necessary, the
dismissal of the members of the Board of Management.
Initial appointments are for a maximum of three years.
In addition, the Supervisory Board resolved a flexibly
structured further reduction in the term of office for
appointments and reappointments of individuals aged
58 or older at the beginning of a term of office.
With regard to the composition of the Board of Manage-
ment, the Supervisory Board observes the statutory
requirements for the equal participation of women and
men. The specific details are presented in a separate
section of this Declaration on Corporate Governance.
Furthermore, with regard to the composition of the
Board of Management, the Supervisory Board adopted a
diversity concept embedded in an overall profile of
requirements. Its specific details are also summarized in
a separate section of this Declaration on Corporate
Governance.
The Supervisory Board of Mercedes-Benz Group AG
determines the system of Board of Management
remuneration based on a proposal from the Presidential
Committee, defines the targets for the variable
remuneration components, including non-financial and
sustainability-oriented parameters, and submits the
remuneration system to the General Meeting for
approval. The Supervisory Board determines the
individual remuneration of the Board of Management
members in accordance with a remuneration system
submitted to the General Meeting. Furthermore, the
Supervisory Board regularly reviews both the remunera-
tion system and the total individual remuneration of the
individual members of the Board of Management in
order to ensure that these remain appropriate. The
adjusted remuneration system for the members of the
Board of Management, which was approved by a
majority of 91% at the Annual General Meeting in 2023,
can be viewed at 🌐 group.mercedes-benz.com/
remuneration-bom. The Remuneration report that was
prepared jointly by the Board of Management and the
Supervisory Board (including the opinion of the auditor
pursuant to Section 162 of the German Stock
Corporation Act) is also available there.
The Supervisory Board examines the Annual Financial
Statements, the Consolidated Financial Statements, and
the Combined Management Report of the company and
the Group including the Sustainability Statement with
the Non-Financial Declaration for the Company and the
Group, as well as the proposal for the appropriation of
the distributable profits. After discussions with the
auditor and in consideration of the audit opinions of the
auditor and the audit results of the Audit Committee, the
Supervisory Board shall declare whether any objections
are to be raised after the final result of its own review. If
this is not the case, the Supervisory Board approves the
Annual Financial Statements and the Combined
Management Report; the financial statements are
deemed to have been adopted with the approval of the
Supervisory Board. The Supervisory Board shall report
to the Annual General Meeting on the results of its own
review as well as on the nature and scope of the super-
vision of the Board of Management during the past
financial year. The Report of the Supervisory Board on
the 2024 reporting year is available in the Annual Report
and at 🌐 group.mercedes-benz.com/company/
corporate-governance/supervisory-board.
The Supervisory Board of Mercedes-Benz Group AG
has adopted Rules of Procedure that, in addition to its
duties and responsibilities, specifically regulate the
convening and preparation of its meetings as well as
the procedure for the adoption of resolutions and con-
tain provisions that are intended to avoid conflicts
of interest. The Rules of Procedure of the Supervisory
Board are available on the Internet at
🌐 group.mercedes-benz.com/company/corporate-
governance.
For the meetings of the Supervisory Board during the
reporting period, regular Executive Sessions were again
scheduled in order to be able to discuss topics in the
absence of the Board of Management. The Board of
Management does not participate in meetings of the
Supervisory Board and its committees to which the
auditor is called in as an expert, unless the Supervisory
Board or the committee deems its participation
necessary. Meetings of the Supervisory Board and its
committees should as a rule take place in person. In
justified exceptional cases the meetings can be held in
the form of a video conference or a conference call or
with the use of other comparable means of tele-
communication or individual members can participate
in a meeting using such means.
Every member of the Supervisory Board must disclose
any conflicts of interest they may have without delay to
the Chairman of the Supervisory Board. Conflicts of
interest and the manner in which they are dealt with
are disclosed in the Report of the Supervisory Board.
The Supervisory Board regularly evaluates how
effectively it and its committees fulfil their tasks. In the
financial year 2023, a comprehensive self-assessment
of the Supervisory Board and its committees in which
the perspective of the Board of Management was also
taken into account took place with the involvement of
an external consultant on the basis of an extensive
questionnaire and additional interviews carried out.
The Supervisory Board addressed the results in detail
in its meeting on 21 February 2024. The results confirm
very good, professional cooperation characterized by a
high degree of trust within the Supervisory Board and
its committees as well as with the Board of
Management. There was no fundamental need for
change. Some individual ideas and recommendations
were discussed. In addition, the Audit Committee also
conducted a self-evaluation of its activities in 2024
based on a comprehensive company-specific
questionnaire. The positive results of this self-
assessment were presented and discussed at the Audit
Committee meeting on February 19, 2025.
As of 31 December 2024, in addition to the Mediation
Committee to be established by law, there are
four other committees of the Supervisory Board of
Mercedes-Benz Group AG that perform the tasks
assigned to them in the name of and on behalf of the
Supervisory Board as a whole, to the extent permitted
by law. The relevant committee chairpersons shall
report on the work of the committees to the plenary
meeting of the Supervisory Board at the latest at
the next meeting of the Supervisory Board following
the committee meeting. The Supervisory Board has
adopted separate rules of procedure for all its
committees. They are available on the Internet at
🌐 group.mercedes-benz.com/company/corporate-
governance.
Presidential Committee
The Presidential Committee consists of the Chairman
of the Supervisory Board, the Deputy Chairman of the
Supervisory Board, and two other members elected
by the Supervisory Board. As of 31 December 2024, the
Presidential Committee consisted of Dr Martin Bruder-
müller (Chairman), Ergun Lümali (Deputy Chairman),
Ben van Beurden and Roman Zitzelsberger.
The Presidential Committee makes recommendations to
the Supervisory Board for the appointment of members
to the Board of Management, in consideration of the
overall profile of requirements defined by the Super-
visory Board with the diversity concept, including the
requirements for the proportion of women on the Board
of Management. It submits proposals to the Supervisory
Board for the structure of the remuneration system for
the Board of Management and for the appropriate indi-
vidual total remuneration of the individual members of
the Board of Management. The Presidential Committee
is responsible for the contractual matters of the mem-
bers of the Board of Management and decides on the
granting of approval for ancillary activities of members
of the Board of Management outside the Group.
In addition, the Presidential Committee advises and
decides on corporate governance issues, on which
it also makes recommendations to the Supervisory
Board. It supports and advises the Chairman of the
Supervisory Board and his Deputy and prepares the
meetings of the Supervisory Board within the scope
of its responsibilities.
Nomination Committee
The Nomination Committee consists of the Chairman of
the Supervisory Board and two other members elected
by the shareholder representatives in the Supervisory
Board by a majority of the votes cast. As of 31 Decem-
ber 2024, they are Dr Martin Brudermüller (Chairman of
the Nomination Committee), Ben van Beurden and Liz
Centoni. The Nomination Committee is the only com-
mittee of the Supervisory Board composed exclusively
of shareholder representatives. It makes recommenda-
tions to the Supervisory Board for proposals to the
General Meeting for the election of shareholder repre-
sentatives on the Supervisory Board. In this respect, it
takes the statutory requirements for the participation
of women into account and strives to fulfil the overall
profile of requirements for the Supervisory Board as a
whole.
Audit Committee
The Audit Committee consists of four members elected
by the Supervisory Board of Mercedes-Benz Group AG
by a majority of the votes cast. As of 31 December 2024,
they are the shareholder representatives Olaf Koch
(Chairman of the Audit Committee) and Timotheus
Höttges as well as the employee representatives Ergun
Lümali and Sebastian Fay.
The members of the Audit Committee as a whole are
very familiar with the industry in which the company
operates.
Pursuant to the German Stock Corporation Act (AktG),
at least one member of the Audit Committee must have
expertise in the field of accounting and at least one
other member must have expertise in the audit of finan-
cial statements. In accordance with the German
Corporate Governance Code, expertise in the field of
accounting shall involve specialized knowledge of and
experience with the use of accounting principles and
internal control and risk management systems, while
expertise in relation to the audit of financial statements
shall also involve specialized knowledge of and
experience with the same. In addition, specialized
knowledge of and experience with financial reporting
and financial statement auditing shall include
sustainability reporting and the audit of sustainability
reports. The Chairman of the Audit Committee shall
have expertise as described in at least one of the
aforementioned fields.
Throughout the course of his career, Olaf Koch has held
management positions in the field of finance and con-
trolling in his capacity as a chief financial officer, and
he later served for many years as the Chairman of the
Board of Management of Metro AG and Chairman of
the Audit Committee of Hugo Boss AG. He has been
a member of the Audit Committee of Mercedes-Benz
Group AG since 2021 and its Chairman since 2022. He
thus has specialized knowledge and experience with
regard to the use of financial reporting principles and
internal control and risk management systems and the
audit of financial statements. This also includes sound
knowledge of sustainability reporting and the audit of
sustainability reports. For example, Olaf Koch intro-
duced a sustainability target system and sustainability
reporting at Metro AG, which led to the company
maintaining a top position in the Dow Jones Sustain-
ability Index for many years. He also monitors and
contributes to the development of sustainability
reporting and the audit of sustainability reports in
general and at Mercedes-Benz Group AG in particular
and he actively contributes his expertise to the work
conducted by the Audit Committee.
Due to the many years he has spent serving in
executive positions in the field of finance, most
recently as Chief Financial Officer of Deutsche Telekom
AG and as its CEO since 2014, Timotheus Höttges also
has specialized knowledge and experience with regard
to the use of financial reporting principles and internal
control and risk management systems and the audit of
financial statements. This also includes extensive
knowledge of sustainability reporting and the audit of
sustainability reports, which he gained in his principal
activity as CEO of Deutsche Telekom AG. He also
monitors and contributes to the development of sus-
tainability reporting and the audit of sustainability
reports and he actively contributes his expertise to the
work conducted by the Audit Committee of which he
has been a member since 2022..
Both Olaf Koch, the Chairman of the Audit Committee,
and Timotheus Höttges, in his capacity as the other
shareholder representative on the Audit Committee,
are independent of the company and its Board of
Management. Further information on the evaluation of
the independence of members of the Supervisory
Board is summarized in the section Overall profiles of
requirements for the composition of the Board of
Management and the Supervisory Board in this
Declaration on Corporate Governance.
The Audit Committee is responsible for monitoring
the accounting and the accounting process, and for
the audit of the financial statements, in particular the
selection and independence of the auditor and the
quality of the audit. At least once a year, it discusses
the effectiveness and operation of the internal control
and risk management system, the internal auditing
system and the Compliance Management System,
including the sustainability-related topics addressed
therein, with the Board of Management. It receives
regular reports on the work of Corporate Audit and the
compliance organization. In addition, each member of
the Audit Committee may obtain information directly
from the heads of those corporate departments that
are responsible within the company for tasks relating
to the Audit Committee in accordance with its Rules
of Procedure via the Chairman of the Committee. The
Chairman of the Committee shall communicate the
information obtained to all members of the Audit
Committee. If such information is obtained, the Board
of Management shall be informed accordingly without
delay.
At least quarterly, the Audit Committee receives the
report of the BPO (Business & People Protection Office)
whistleblowing system on complaints and information
on possible violations of rules by top executives
and violations of a defined catalogue of statutory
provisions by other employees. It regularly obtains
information on the processing of the said complaints
and information.
The Audit Committee discusses the interim financial
reports and the information provided by the auditor
about the review of the interim financial reports with
the Board of Management and the auditor. On the basis
of the opinion of the auditor, the Audit Committee
reviews the annual company Financial Statements, the
annual Consolidated Financial Statements, and the
Management Report of the company and the Group
including the sustainability reporting and discusses
them together with the auditor. The Audit Committee
submits its recommendations regarding the adoption of
the Annual Financial Statements of Mercedes-Benz
Group AG, the approval of the Consolidated Financial
Statements, and the proposal for the appropriation of
profits to the Supervisory Board. The Committee also
makes recommendations concerning the proposal of
the Supervisory Board for the election of the auditor,
assesses the suitability, qualifications, and independ-
ence of the auditor, and, after appointment by the
Annual General Meeting, engages the auditor for the
audit of the Consolidated Financial Statements and
the Annual Financial Statements as well as for the
review of interim financial reports. In this respect, it
also agrees on the fee and coordinates the key areas
of the audit with the auditor.
The Chairman of the Audit Committee meets regularly
with the auditor to discuss the progress of the audit
and then reports to the Audit Committee on the results
of these discussions. The Audit Committee also dis-
cusses topics with the auditor in the absence of the
Board of Management.
The auditor shall report to the Audit Committee on any
and all accounting matters considered critical and on
any material weaknesses in the internal control and risk
management system relating to the accounting process
that are identified during the audit. The Audit Commit-
tee also addresses the sustainability reporting in the
Management Report.
Finally, the Audit Committee also approves in advance
permissible services that the auditors or their
subsidiaries perform for Mercedes-Benz Group AG or
its Group companies and that are not directly related to
the audit of the annual accounts (or the review of
interim financial statements).
Transactions between Mercedes-Benz Group AG and
related parties within the meaning of Section 111 b of
the German Stock Corporation Act (AktG) require the
prior approval of the Audit Committee, unless the law
or the Supervisory Board stipulates that the approval
of the plenary Supervisory Board or another committee
is required.
Legal Affairs Committee
The Legal Affairs Committee is composed of six mem-
bers elected by the Supervisory Board by a majority of
the votes cast. As of 31 December 2024, the members
of the Committee are the shareholder representatives
Olaf Koch (Chairman), Dame Polly Courtice and
Dr Doris Höpke as well as the employee representa-
tives Ergun Lümali, Sebastian Fay and Michael Häberle.
The Committee coordinates the exercising of the rights
and obligations of the Supervisory Board with regard
to the ongoing emission and cartel-related proceedings
against the company and Group companies. It prepares
resolutions of the Supervisory Board in this regard and
makes corresponding resolution recommendations.
As part of the agreement in principle reached in 2020
with various US authorities to terminate civil and
environmental proceedings in connection with emission
control systems of certain diesel vehicles, the Com-
mittee was assigned further tasks and decision-making
competences with regard to the fulfilment of the
obligations assumed in the agreement in principle. The
said other tasks include, inter alia, the steering and
monitoring of the Post Settlement Audit Team that was
set up in the context of the agreement in principle.
Mediation Committee
By law, the Mediation Committee consists of the Chair-
man of the Supervisory Board, Dr Martin Brudermüller;
the Deputy Chairman of the Supervisory Board, Ergun
Lümali; and two members elected by a majority of
the votes cast, one by the employee representatives
and one by the shareholder representatives on the
Supervisory Board. As of 31 December 2024, they are
Ben van Beurden for the shareholder side and Roman
Zitzelsberger for the employee side. The Committee
was established for the sole purpose of performing the
task set out in Section 31 Subsection 3 of the German
Co-Determination Act (MitbestG). As in previous years,
the Mediation Committee had no reason to take action
in 2024.
German Act on the Equal
Participation of Women and Men
in Leadership Positions, as
amended by the German Second
Act on Leadership Positions
The requirements of the German Equal Participation of
Women and Men in Leadership Positions Act are to be
fulfilled at the company level. The following infor-
mation therefore relates to the Board of Management
of Mercedes-Benz Group AG, two management
levels of Mercedes-Benz Group AG below its Board of
Management, and the Supervisory Board of Mercedes-
Benz Group AG.
By resolution of 3 December 2020, the Supervisory
Board of Mercedes-Benz Group AG set a target for the
proportion of women on the Board of Management of
at least 25% by 31 December 2025. Since August 2022,
a legally mandated minimum participation requirement
must be complied with when appointing members of
the Board of Management. This requirement stipulates
that at least one woman and at least one man must
be a member of the Board of Management in a listed
company with co-determination and equal representa-
tion and more than three members on the Board of
Management. Companies that are subject to the mini-
mum proportion requirement are no longer obliged
to set a target quota for the proportion of women on
the Board of Management. Nevertheless, the target
quota determined in 2020 continued to apply in the
reporting period as an aspect of the overall require-
ments profile for the composition of the Board of
Management in addition to the statutory minimum
participation requirement. As of 31 December 2024,
three of the eight members of the Board of Manage-
ment were women: Renata Jungo Brüngger, Sabine
Kohleisen and Britta Seeger. The proportion of women
on the Board of Management is now 37.5%, which
means it exceeds the target that was set.
By a resolution dated 25 November 2020, the Board
of Management set a 11.8% share of women at the first
(two women of a total of 17 executives) and 22.5%
at the second level of management of Mercedes-Benz
Group AG (16 women of a total of 71 executives) below
the Board of Management at the time of the resolution
and a target for the proportion of women of at least
20% for the first and of at least 25% for the second
level of the Mercedes-Benz Group AG below the
Board of Management by 31 December 2025. As of
31 December 2024, the first level of management
of Mercedes-Benz Group AG below the Board of
Management consists of 11 executives, of whom 5 were
women, corresponding to a percentage of women of
45.5%. At the second level of management of
Mercedes-Benz Group AG below the Board of
Management, as of 31 December 2024, 15 out of a total
of 48 executives were women, corresponding to 31.3%.
The change in the total number of executives at the
various management levels of Mercedes-Benz Group
AG between 25 November 2020 and 31 December 2024
was mainly due to the spin-off and hive-down of the
Daimler commercial vehicles business that has mean-
while been carried out and the associated transfers
to Daimler Truck.
Based on the assumption of a total of 11 executives at
the first management level below the Board of Manage-
ment of Mercedes-Benz Group AG as of 31 December
2025, the set target quota of at least 20% results in a
target of 3 women for this level. Based on the assump-
tion of a total of 48 executives at the second manage-
ment level below the Board of Management of
Mercedes-Benz Group AG as of 31 December 2025, the
set target quota of 25% results in a target of 12 women
for this level.
The supervisory boards of listed companies subject to
co-determination and equal representation of share-
holders and employees on the Supervisory Board must
be composed of at least 30% women and at least 30%
men. The quota is to be met by the Supervisory Board
as a whole. If the representatives of the shareholders
or the representatives of the employees object to
the Chairman of the Supervisory Board prior to the
election, then the minimum share for this election shall
be fulfilled separately by the shareholders and the
employees. With regard to the election of shareholder
representatives by the Annual General Meeting on
8 May, 2024, there was no objection to the overall
fulfilment.
As of 31 December 2024, women made up 40%
of the shareholder side of the Supervisory Board of
Mercedes-Benz Group AG (Liz Centoni, Dame Polly
Courtice, Dr Doris Hoepke and Professor Dr Helene
Svahn), while the remaining 60% were men. At
that point in time, on the employee side, Nadine
Boguslawski, Gabriela Neher, Pia Simon and Monika
Tielsch also made up 40% women and the remaining
60% were men.
As at 31 December 2024 the statutory quota for women
for the Supervisory Board thus remained fulfilled.
In the event of the election of the candidates proposed
by the Supervisory Board to the 2025 Annual General
Meeting, the gender quota on the shareholder side will
remain unchanged at 40% women and 60% men.
With regard to this election, the overall fulfilment was
not objected to. On the employee side, the proportion
of women has increased to 50% with the court
appointment of Barbara Resch as successor to Roman
Zitzelsberger, effective January 1, 2025.
In addition to Mercedes-Benz Group AG itself, other
Group companies are subject to co-determination and
set their own targets for the proportion of women on
their respective Supervisory Boards and Boards of
Management and at the two levels below the Board of
Management as well as a deadline for achieving these
targets, and publish them in accordance with the
statutory requirements.
Directive (EU) 2022/2381 on improving the balance
between women and men among directors of listed
companies and on related measures sets a target
of 40% of the underrepresented sex among non-
executive directors and 33% among all directors for
large listed companies in the EU. The targets are
to be achieved by 30 June 2026. The deadline for
implementation of the Directive into national law
expired on December 28, 2024. In November 2024,
the German Federal Government suspended both the
binding targets for companies and the means to
achieve them in accordance with the Directive.
Overall profiles of requirements
for the composition of
the Board of Management
and the Supervisory Board
With regard to the composition of its Board of Manage-
ment and its Supervisory Board, Mercedes-Benz Group
AG considers competence profiles and diversity con-
cepts with regard to aspects such as age and gender.
The Supervisory Board has combined these profiles
and concepts in the overall profiles of requirements for
the Board of Management and the Supervisory Board
described below. The profiles of requirements are
reviewed annually and also serve as a basis for long-
term succession planning.
Board of Management
The objective of the profile of requirements for the
Board of Management is to ensure that the Board of
Management has excellent leadership skills and that
its composition is as diverse and complementary as
possible. The Board of Management as a whole shall
possess the knowledge, skills and experience neces-
sary for the proper performance of its duties and
at the same time embody the company’s management
philosophy on the basis of the various personal
backgrounds and skills of its members. The key factor
for the decision on filling a specific board position is
always the interest of the company, taking any and all
circumstances of the individual case into account.
The profile of requirements for the Board of
Management remained the same in the reporting
period as in the previous year and included the
following aspects:
– The members of the Board of Management shall
have diverse educational and professional back-
grounds, preferably with at least two members with
a technical background. As of 31 December 2024,
the Board of Management includes two graduate
engineers, Markus Schäfer and Dr Jörg Burzer. Ola
Källenius has demonstrated his technical expertise
on a sustained basis since taking over the Group
Research & Mercedes-Benz Cars Development
division on 1 January 2017.
– On 3 December 2020, the Supervisory Board set a
target for the proportion of women on the Board
of Management of at least 25% by 31 December
2025. In August 2022, the previous statutory obliga-
tion to set a target quota for the proportion of
women was replaced by a statutory minimum par-
ticipation requirement of one woman (and one man)
for boards of management consisting of more
than three persons at listed companies with co-
determination and equal representation. For
the reporting period, however, the target quota
determined in 2020 continued to apply as an aspect
of the overall requirements profile for the com-
position of the Board of Management in addition to
the statutory minimum participation requirement.
As of 31 December 2024, three of the eight mem-
bers of the Board of Management are women:
Renata Jungo Brüngger, Sabine Kohleisen and Britta
Seeger. The proportion of women on the Board of
Management is now 37.5%, which means it exceeds
the target that was set.
– For the last possible age-related appointment
or reappointment of a member of the Board of
Management, the completion of the 62nd year
of life at the time of the beginning of a (new) term
of office generally serves as a guideline. When
determining this age limit, the Supervisory Board
deliberately opted for a flexible benchmark in order
to preserve the necessary leeway for appropriate
decisions in individual cases. With the exception of
Renata Jungo Brüngger, all members of the Board
of Management fall below this standard age limit as
of 31 December 2024.
– In addition, attention shall be paid to a sufficient
generational mix among the members of the Board
of Management; if possible, at least three members
of the Board of Management shall be 57 years of
age or younger at the beginning of the relevant term
of office. As of 31 December 2024, this applies
to Ola Källenius, Dr Jörg Burzer, Britta Seeger and
Harald Wilhelm.
– In the composition of the Board of Management,
attention shall also be paid to internationality in
the sense of different cultural backgrounds or
international experience through several years of
stays abroad; if possible, at least one member of
the Board of Management shall be of international
origin. Notwithstanding the many years of inter-
national experience of the vast majority of the
members of the Board of Management, this goal
had already been achieved by 31 December 2024,
simply because of the international origins of
Ola Källenius and Renata Jungo Brüngger and the
focus of Hubertus Troska’s activities in China.
– As a rule, and subject to disclosure of a deviation
in the annual Declaration of Compliance with the
German Corporate Governance Code, members of
the Board of Management shall not hold more
than two mandates on supervisory boards in
non-Group listed companies or comparable
functions and shall not chair a supervisory board of
a non-Group listed company. For the purpose of the
profile of requirements, mandates on supervisory
boards in joint ventures, the performance of which
is part of the departmental responsibility of a mem-
ber of the Board of Management, are not consid-
ered to be comparable functions.
Of the non-Group memberships of Supervisory
Boards and other supervisory bodies held by
Hubertus Troska, only BAIC Motor Corporation Ltd.
is listed on the stock exchange. This mandate ended
on 22 March 2024. With the exception of the man-
date at Beijing Foton Daimler Automotive Co., Ltd.,
his other mandates outside the Group are mandates
in non-listed joint ventures within his departmental
responsibility. In the opinion of the Supervisory
Board, these mandates do not pose any require-
ments comparable to mandates on supervisory
boards of listed companies outside the Group in
terms of the requirements profile. In the opinion
of the Supervisory Board, this also applies to
Hubertus Troska’s mandate at Beijing Foton Daimler
Automotive Co., Ltd., a company of the Daimler
Truck Group, that ended on 1 October 2024, as well
as to Markus Schäfer’s mandates outside the Group.
Of the non-Group memberships of supervisory
boards and other supervisory bodies held by Britta
Seeger, only Deutsche Lufthansa AG is listed on the
stock exchange. In the opinion of the Supervisory
Board, the other mandates outside the Group are
mandates within the scope of her departmental res-
ponsibilities that, in terms of the profile of require-
ments, do not pose any demands comparable
to a mandate on the Supervisory Board of a listed
company outside the Group.
Renata Jungo Brüngger is a member of the Super-
visory Board of the listed company Münchener
Rückversicherungs-Gesellschaft Aktiengesellschaft
and Harald Wilhelm was a member of the Super-
visory Board of the also listed BAIC Motor Corpora-
tion Ltd until 22 March 2024. In addition, both are
represented on the Supervisory Board of the non-
Group listed Daimler Truck Holding AG as well as
on the Supervisory Board of the non-listed Daimler
Truck AG, a wholly owned subsidiary of Daimler
Truck Holding AG. The shareholder representatives
on the Supervisory Boards of Daimler Truck Holding
AG and Daimler Truck AG are identical. Against this
background, in the opinion of the Supervisory
Board, membership of the Supervisory Board of
Daimler Truck AG does not impose any additional
requirements comparable to the mandate at
Daimler Truck Holding AG in terms of the profile of
requirements. A deviation from the recommenda-
tion of the German Corporate Governance Code
that members of boards of management of listed
companies should not hold more than two man-
dates on supervisory boards in non-Group listed
companies or comparable functions and should not
chair a supervisory board is stated and justified in
the 2024 Declaration of Compliance, notwithstand-
ing the assessments of the Supervisory Board for
the purposes of the profile of requirements.
With effect from 1 January 2025, the Supervisory Board
has decided to adjust the overall requirements profile
of the Board of Management:
– The aspect of gender ratio was aligned with the
legal situation as changed in 2020. In accordance
with the legal requirement, the Board of Manage-
ment must include at least one woman and at least
one man. The target quota for women no longer
applies.
– The aspect of generational mix has been tightened
up so that, if possible, at least two members of the
Board of Management should be 52 years old or
younger at the start of their current term of office.
This is also intended to promote diversity and the
consideration of different perspectives with regard
to the age structure of the Board of Management.
– The aspect of the maximum number of mandates
has been deleted. Instead, a new aspect of sus-
tainability/ESG has been added to the requirements
profile of the Board of Management, according to
which the its members as a whole should have
knowledge and experience in the area of sustain-
ability/ESG that is relevant to the Company. This
is intended to take into account the increasing
regulatory and practical importance of this topic.
The other aspects of the overall requirements profile
of the Board of Management remain unaffected. The
criteria of the profile of requirements shall be taken
into account when filling positions on the Board of
Management. The Presidential Committee draws up a
short-list of available candidates on the basis of a
target profile, taking into account the specific qualifica-
tion requirements and the requirements profile. It then
submits a candidate proposal to the Supervisory Board
together with the reasons for its recommendation for
the decision-making. The decisive factor is always the
interest of the company, in consideration of any and all
circumstances of the individual case.
In the view of the Supervisory Board, fundamental
individual suitability criteria for a position on the Board
of Management are, in particular, personality, integrity,
convincing leadership qualities, professional qualifica-
tions for the division to be taken over, past performance,
knowledge of the company, and the ability to adapt
business models and processes in a changing world.
Together with the Board of Management, the Super-
visory Board also ensures long-term succession plann-
ing for the Board of Management, with due conside-
ration of the profile of requirements and the circum-
stances of the individual case. The Presidential
Committee of the Supervisory Board regularly discus-
ses talents and exceptional leaders of the company.
The contract terms and renewal options of current
members of the Board of Management are discussed,
as well as possible successors. On the basis of a
potential analysis and in consideration of the criteria of
the profile of requirements, executives from the
management level below the Board of Management as
well as special high potentials are assessed and the
next development steps are discussed and determined
together with the Board of Management. The process
of succession planning also includes regular reporting
by the Board of Management on the proportion and
development of female managers, especially at the
first and second management levels below the Board
of Management. The Board of Management is respon-
sible for proposing a sufficient number of suitable
candidates to the Supervisory Board. Mercedes-Benz
Group AG aims to predominantly fill positions on the
Board of Management with managers developed
within the company. Nevertheless, potential external
candidates are also evaluated and included in the
selection process on a case-by-case basis, with the
support of external recruitment consultancy firms.
Supervisory Board
The Supervisory Board as a whole must be familiar with
the industry in which the company operates.
The aim of the profile of requirements for the Super-
visory Board in its entirety is also to ensure that the
composition of the Supervisory Board is as diverse and
complementary as possible. The Supervisory Board
shall, as a whole, understand the business model of the
company and possess the knowledge, skills and
experience – including expertise on the sustainability
issues that are important for the company – necessary
to properly provide qualified supervision and advice
to the Board of Management.
Overall, the members of the Supervisory Board shall
complement one another in terms of their expertise
and professional experience in such a way that the
Board as a whole can draw on the broadest possible
pool of experience and diverse specialist knowledge.
Furthermore, the Supervisory Board considers the
diversity of its members in terms of age, gender,
internationality and other personal characteristics as
an important prerequisite for an effective working
relationship. The decision of the Supervisory Board on
an election proposal to the General Meeting shall
always be based on the interests of the company,
taking any and all circumstances of the individual case
into account.
The requirements profile for the Supervisory Board
in the reporting period included the following aspects,
unchanged from the prior year:
– Standard limit of membership duration
As a rule, only candidates who have not already
been members of the Supervisory Board for
12 years at the time of their (re-)election shall be
proposed for election to the Supervisory Board
for a full term of office. On 31 December 2024,
this requirement was fulfilled for all members of
the Supervisory Board in office.
– Diversity
– Gender ratio: By law, at least 30% of the mem-
bers of the Supervisory Board must be women
and at least 30% must be men. The quota is to
be met by the Supervisory Board as a whole,
unless the representatives of the shareholders
or the representatives of the employees object
to the overall fulfilment. If such an objection
is made, then the minimum proportion for the
next election in the given case is to be fulfilled
separately by the shareholder side and the
employee side. As of 31 December 2024, there
are four women on both the side of the share-
holders and the side of the employees. This puts
the proportion of women on the shareholder
side, the employee side and for the Supervisory
Board as a whole at 40%. With regard to the
election of shareholder representatives by the
Annual General Meeting on May 8, 2024, there
was no objection to the overall fulfilment. In the
event of the election of the candidates proposed
by the Supervisory Board to the 2025 Annual
General Meeting, the gender quota on the share-
holder side will remain unchanged at 40%
women and 60% men. Also with regard to this
election, the overall fulfilment was not objected
to. On the employee side, the proportion of
women has increased to 50% with the court
appointment of Barbara Resch as successor to
Roman Zitzelsberger, effective January 1, 2025.
– Generational mix: At least 30% of the members
of the Supervisory Board shall be no more than
62 years of age at the time of their election or
re-election. Except for Dr Martin Brudermüller,
Dame Polly Courtice, Marco Gobbetti and Stefan
Pierer, all other members (16 members, or more
than 30%) of the Supervisory Board in office
on 31 December 2024 were aged 62 or younger
at the time of their election or re-election for
the current term of office.
– Internationality: At least 30% of shareholder
representatives shall be of international origin
(international citizenship) or have international
experience. All shareholder representatives in
office on 31 December 2024 have international
experience. Moreover, the target has already
been exceeded simply because of the inter-
national background of six shareholder repre-
sentatives – Ben van Beurden, Liz Centoni, Dame
Polly Courtice, Marco Gobbetti, Stefan Pierer
and Professor Dr Helene Svahn – who together
account for 60% of the shareholder
representatives.
– Educational and professional background: the
members of the Supervisory Board should have
different educational and professional back-
grounds. As of 31 December 2024, the members
of the Supervisory Board display a broad range
of educational and professional backgrounds.
Dr Martin Brudermüller, Ben van Beurden, Liz
Centoni, Stefan Pierer, Professor Helene Svahn
and Roman Zitzelsberger have university
degrees in chemistry, business and energy
management, biotechnology and/or electrical
engineering. Other employee representatives
have completed relevant professional training.
Several university graduates in economics are
represented, including Timotheus Höttges and
Olaf Koch on the shareholder side and Pia Simon
and Michael Bettag on the employee side. Dame
Polly Courtice and Marco Gobbetti are proven
experts in the field of sustainability and the
luxury segment respectively. A lawyer belongs
to both the shareholder and employee side.
A social economist and a production mechanic
round off the diverse educational and profes-
sional backgrounds on the Supervisory Board.
– Formal suitability
– Independence: In order to ensure independent
advice to and supervision of the Board of
Management by the Supervisory Board, more
than half of the shareholder representatives on
the Supervisory Board shall be independent of
the company and the Board of Management,
subject to the disclosure of a deviation from the
corresponding recommendation of the German
Corporate Governance Code in the Declaration
of Compliance pursuant to Section 161 of the
German Stock Corporation Act (AktG).
A shareholder representative on the Supervisory
Board shall be independent of the company and
its Board of Management if he or she has no
personal or business relationship with the com-
pany or its Board of Management that could give
rise to a material and not merely temporary
conflict of interests. The assessment of inde-
pendence is incumbent on the shareholder
representatives on the Supervisory Board them-
selves. In this respect, four indicators must be
taken into account that may point to a lack
of independence: membership of the Board of
Management within the last two years prior to
the appointment as a member of the Supervisory
Board; a significant business relationship with
the company or a company dependent on it, e.g.
as a customer, supplier, lender or consultant;
a close family relationship to a member of the
Board of Management; membership of the
Supervisory Board for more than twelve years
(all criteria relate to both the members of the
Supervisory Board and their close family mem-
bers). However, the shareholder side is expressly
at liberty to regard the member of the Super-
visory Board in question as independent if one
or even several negative indicators are fulfilled –
however, this assessment should then be
substantiated in the Declaration on Corporate
Governance.
On the basis of the information known to the
Supervisory Board, the shareholder representa-
tives are of the opinion that there are no specific
indications of relevant personal or business
relationships or circumstances, in particular with
regard to the company, members of the Board
of Management or other members of the Super-
visory Board, that could constitute a material and
not merely temporary conflict of interests and
therefore argue against the independence of any
member of the Supervisory Board on the share-
holder side. During the reporting period, the
shareholder representatives Dr Martin Bruder-
müller, Liz Centoni, and Timotheus Höttges in
particular did not have any such material busi-
ness relationship with Mercedes-Benz Group AG
or any company dependent on Mercedes-Benz
Group AG (e.g. as a supplier, customer, lender or
consultant) in a responsible function of a com-
pany outside the Group. The same applies –
also in view of the information provided in the
chapter Consolidated Financial Statements in
the note Related party disclosures – to Stefan
Pierer in his role as a shareholder and/or board
member of companies in the Pierer Group. He
sold the majority of the LEONI Group in Septem-
ber 2024. The transaction has not been closed
yet. No former member of the Board of Manage-
ment was a member of the Supervisory Board
during the reporting period. No member of the
Supervisory Board holds board functions or
performs advisory tasks for significant
competitors.
As a result, according to the assessment of the
shareholders’ side, at 31 December 2024, all
shareholder representatives on the Supervisory
Board were to be deemed independent, namely
Dr Martin Brudermüller, Ben van Beurden, Liz
Centoni, Dame Polly Courtice, Marco Gobbetti,
Dr Doris Höpke, Timotheus Höttges, Olaf Koch,
Stefan Pierer and Professor Dr Helene Svahn.
– Standard age limit: As a rule, only candidates
who are not older than 72 years at the time of
their election shall be proposed for election to
the Supervisory Board for a full term of office.
Upon the establishment of this age limit, the
Supervisory Board deliberately decided against
a rigid maximum age limit and in favour of
a flexible standard limit that preserves the
necessary leeway for an appropriate assessment
of the circumstances of the individual case, that
defines the group of potential candidates in a
sufficiently broad manner, and that also allows
for re-election. None of the members of the
Supervisory Board in office on 31 December
2024 exceeded the standard age limit at the
time of their election for a full term of office.
Expertise and experience
– Two financial experts: At least one member of the
Audit Committee must have expertise in the field of
accounting and at least one other member must
have expertise in the audit of financial statements.
Expertise in the field of accounting should involve
specialized knowledge of and experience with the
use of accounting principles and internal control
and risk management systems, while expertise
in relation to the audit of financial statements
must also involve specialized knowledge of and
experience with the same. In addition, specialized
knowledge of and experience with financial
reporting and financial statement auditing shall
include sustainability reporting and the audit of
sustainability reports. On the shareholder side,
the Audit Committee has two financial experts as
members – Olaf Koch and Timotheus Höttges –
whose current or past relevant duties at (listed)
companies, as well as continuing qualification
activities, ensure they have specialized knowledge
of and experience with accounting and the audit
of financial statements. The same applies to their
specialized knowledge of and experience with
sustainability reporting and the audit of sustain-
ability reports. Further details on the expertise
of the two financial experts can be found in the
information on the composition and working
method of the Audit Committee in this Declaration
on Corporate Governance.
– Other special areas of expertise: the
Supervisory Board shall, as a whole, possess
expertise and experience in areas of particular
relevance to the company. At least three
members of the Supervisory Board shall bring
knowledge and experience in each of the
following areas:
– Finance (e.g. accounting, controlling,
risk management, auditing, M&A)
– Strategy
– Digitalization/IT (e.g. software, processes,
data security)
– Transformation (e.g. products,
working models)
– HR (e.g. human resources management,
employee issues, world of work)
– Sustainability/ESG (in particular: the
environment – green production and
logistics, climate and decarbonization
strategy; social – people plan, sustainable
supply chains; governance – sustainable
corporate governance, sustainable finance)
– Industry (e.g. production, procurement)
– Innovation, research and development,
technology
– Sales/brands
– Capital markets
The specification examples in the parentheses
for the areas shown above are not exhaustive; in
addition, expertise does not have to be demon-
strated for every specified item in the paren-
theses for each area.
On the basis of the table Qualification matrix of
the Supervisory Board members, the Supervisory
Board as a whole in its composition as of
31 December 2024 meets the defined require-
ments pertaining to its expertise/experience.
More than three members of the Supervisory
Board have relevant knowledge and/or
experience in each of the areas of expertise
shown above. The explanations shown below
regarding the members of the Supervisory Board
who are mentioned by name should therefore
be viewed as examples.
In the area of finance, Ben van Beurden and
Dr Doris Höpke in particular possess special
expertise, as do the two financial experts Olaf
Koch and Timotheus Höttges and the other
members of the Audit Committee, Ergun Lümali
and Sebastian Fay.
With regard to strategy, Dr Martin Brudermüller
in particular has proven sector-specific expertise
as a result of his previous professional
experience. In terms of the corporate strategy
that is geared towards sustainability and the
luxury vehicle segment, the ESG expertise of
Dame Polly Courtice, as well as Marco Gobbetti’s
experience in the luxury-goods industry, deserve
special mention. In addition, Roman Zitzels-
berger and Ergun Lümali in particular have
extensive experience with strategy issues –
Roman Zitzelsberger due to the mandates he has
held in various supervisory boards and Ergun
Lümali due to the many years he has served on
the company’s Supervisory Board.
In the area of digitalization/IT, Liz Centoni and
Timotheus Höttges, among others, contribute
expertise and experience gained through their
professional activities at Cisco and Deutsche
Telekom, respectively. The same can be said for
Monika Tielsch due to her activity as a Works
Council member in the R&D unit, where the
MB.OS operating system is being developed.
Dr Martin Brudermüller and Ben van Beurden in
particular have extensive expertise in the area of
transformation. They were particularly respon-
sible for the transformation of the companies
they chaired as CEOs. In their capacity as works
council chairmen at key Mercedes-Benz produc-
tion plants, both Ergun Lümali and Michael
Häberle use their expertise to help manage the
transformation at the Mercedes-Benz Group.
In the area of human resources, Dr Doris
Höpke, among others, possesses profound
knowledge due to her professional experience as
a Chief Human Resources Officer and Labour
Director of a listed company. As a representative
of senior executives, Pia Simon also has the
relevant expertise. Furthermore, the relevant
knowledge and experience contributed by IG
Metall representatives Nadine Boguslawski,
Sebastian Fay and Roman Zitzelsberger are very
valuable for the work of the Supervisory Board.
In the area of sustainability/ESG, Dame Polly
Courtice contributes the expertise she has
gained in ESG matters as a result of having
served for many years as Director of the Uni-
versity of Cambridge Institute for Sustainability
Leadership. Dr Martin Brudermüller, Ben van
Beurden and Timotheus Höttges in particular
contribute to the Supervisory Board their
knowledge of and experience with environ-
mental (E) issues. All of them deal or dealt
extensively with sustainability issues (in
particular those relating to climate change
mitigation and decarbonization) at the com-
panies in which they serve or served as
chairmen of the board of management. Dame
Polly Courtice as well as the employee
representatives on the Supervisory Board
possess expertise in the fields shown above that
relate to the social (S) component of ESG. With
regard to governance (G), Olaf Koch and
Sebastian Fay contribute to the Supervisory
Board the expertise they have gained throughout
their professional careers.
In the area of industry, Dr Martin Brudermüller’s
many years of experience in the chemical
industry are particularly noteworthy. He has
further deepened his industry-specific know-
ledge since assuming the role of Chairman of the
Supervisory Board. Stefan Pierer also possesses
in-depth industrial experience. In addition, Ergun
Lümali possesses expertise relevant to the
area of industry due to the many years he has
spent as Chairman of the Works Council at the
Mercedes-Benz Sindelfingen plant.
With respect to innovation, research and
development, the proven expertise of Professor
Dr Helene Svahn deserves to be especially
highlighted. Liz Centoni also possesses
specialized knowledge in this area due to the
many years she has spent in executive positions
at Cisco. Finally, Monika Tielsch and Michael
Häberle, among others, also contribute to the
Supervisory Board the expertise they have
gained in this area throughout their careers.
In the area of sales/brands, Stefan Pierer’s
industry-related knowledge must be recognized.
In addition, Marco Gobbetti enriches the
Supervisory Board with special expertise in the
area of branding. Michael Bettag has many years
of experience in sales.
The area of capital markets is extremely well
covered by Dr Martin Brudermüller, Ben van
Beurden, Olaf Koch and Timotheus Höttges in
particular, as all of them serve or have served as
chairmen of listed companies. Ergun Lümali and
Roman Zitzelsberger, among others, also possess
expertise with regard to capital markets after
having served as members of the Supervisory
Board for many years.
With effect from 1 January 2025, the Supervisory Board
has decided to adjust its overall requirements profile:
– The aspect of the standard retirement age has been
tightened up so that a four-year term of office
is already considered a full term of office within the
meaning of the standard retirement age. This
corresponds to the practice of the Supervisory
Board of only proposing Supervisory Board candi-
dates to the Annual General Meeting for a term
of office of a maximum of four years instead of the
legally permitted five years.
– Industry and digitalization/IT, two of the to date
ten special fields of expertise in which at least three
members of the Supervisory Board should have
expertise/experience, will be merged into one field
of expertise. This is intended to take into account
the close interconnection of these two areas of
expertise.
– As a new requirement in the overall requirements
profile of the Supervisory Board, the Supervisory
Board as a whole should have skills/experience in
the regions that are particularly relevant for the
company: Germany, Europe, America, Asia-Pacific
(especially China). Regional skills in this sense are
professional activity in the region or professional
experience related to the region.
The other aspects of the overall requirements profile
for the Supervisory Board remain unchanged.
Proposals by the Supervisory Board for the election of
shareholder representatives by the General Meeting,
for which the Nomination Committee makes recommen-
dations, shall take the aspects outlined above into
account and aim to fulfil the profile of requirements for
the Board as a whole. The Nomination Committee shall
draw up a short-list of available candidates on the
basis of a target profile, taking the specific qualification
requirements and the aforementioned criteria into
account, and, while doing so, also obtain assurances
that the proposed candidate has sufficient time to be
able to exercise the mandate with due diligence.
Subsequently, the Nomination Committee submits a
candidate proposal to the Supervisory Board together
with the reasons for its recommendation for decision-
making. The decision of the Supervisory Board on
the election proposal to the General Meeting shall
always be based on the interests of the company,
taking any and all circumstances of the individual case
into account.
The terms of office of the shareholder representatives
on the Supervisory Board of Mercedes-Benz Group AG
end at different times (“staggered board”). Every year,
the General Meeting elects one or more shareholder
representatives. The staggered board opens up
the possibility of adapting the composition of the
Supervisory Board more flexibly to a changing
environment. In addition, it facilitates the search for
suitable candidates, because not all seats on the
shareholder side have to be filled at a single General
Meeting. The Nomination Committee of the Supervisory
Board regularly reviews which mandates end at which
point in time and whether the relevant mandate
holders are eligible and willing to serve a further term
of office, taking the aforementioned criteria into
account. In the search for new candidates, the
Nomination Committee may rely on independent
external recruitment consultancy services if it chooses
to do so.
Shareholders and General Meeting
The shareholders exercise their membership rights,
in particular their voting rights, at the General Meeting.
Each share of Mercedes-Benz Group AG entitles the
holder to one vote. Documents and information about
the General Meeting are available at
🌐 group.mercedes-benz.com/am.
In the context of comprehensive investor and public
relations, the company is in close contact with its
shareholders. Shareholders, financial analysts, share-
holder associations, the media and interested members
of the public are regularly and comprehensively
informed about the company’s situation and are
promptly informed about important business changes.
The Chairman of the Supervisory Board is also
prepared, within appropriate and reasonable limits,
to discuss topics specific to the Supervisory Board
with investors, e.g. the remuneration of the Board
of Management and the work and the structure of
the Supervisory Board and its committees. Such
discussions took place in the run-up to the 2024
Annual General Meeting and following the election
of the new Chairman of the Supervisory Board in
September 2024.
In addition to other channels of communication, the
company makes very good use of the company website
for investor relations. All key information published in
2024, including annual, quarterly and half-yearly
financial reports, press releases, voting rights notifi-
cations by major shareholders, presentations and audio
recordings from analyst and investor events and
conference calls, as well as the financial calendar, is
available at 🌐 group.mercedes-benz.com/investors.
The dates of important publications, such as the annual
report and interim financial reports, as well as the
dates of the General Meeting, the annual press con-
ference and analysts’ conferences, are announced
well in advance in the financial calendar.
Qualification matrix of the Supervisory Board members
Dr Martin Brudermüller
Ben van Beurden
Liz Centoni
Dame Polly Courtice
Marco Gobbetti
Tenure
Joined board in
2021
2021
2021
2022
2022
Term limit not breached
ü
ü
ü
ü
ü
Diversity
Gender
Male
Male
Female
Female
Male
Year of birth
1961
1958
1964
1952
1958
Nationality
German
Dutch
US
British/South Africa
Italian
International experience1
ü
ü
ü
ü
ü
Educational and professional background
Chemistry
Chemical engineering
Chemistry/MBA/software
engineering
History/marketing/sustainability
International management/sales
Formal suitability
Independence2
ü
ü
ü
ü
ü
Age limit not breached
ü
ü
ü
ü
ü
Competencies/experience
Finance
(e.g. accounting, controlling, risk
management, audit, M&A)
ü
ü
ü
ü
Strategy
ü
ü
ü
ü
ü
Digitalization/IT
(e.g. software, processes, data protection)
ü
ü
ü
Transformation
(e.g. product, working models)
ü
ü
ü
ü
ü
HR
(e.g. personnel management, employee
issues, working environment)
ü
ü
ü
ü
ü
Sustainability/ESG4
ü
ü
ü
ü
ü
Industry
(e.g. production, procurement)
ü
ü
Innovation, research and development,
technology
ü
ü
ü
ü
ü
Sales/Brand
ü
ü
ü
Capital market
ü
ü
ü
Footnotes are at the bottom of the table
Dr Doris Höpke
Timotheus Höttges
Olaf Koch
Stefan Pierer
Professor Dr Helene Svahn
Tenure
Joined board in
2024
2020
2021
2023
2021
Term limit not breached
ü
ü
ü
ü
ü
Diversity
Gender
Female
Male
Male
Male
Female
Year of birth
1966
1962
1970
1956
1974
Nationality
German
German
German
Austrian
Swedish
International experience1
ü
ü
ü
ü
Educational and professional background
Law/mediation
Business administration/MBA
Business administration
Integrated master’s degree in
engineering —business and energy
management
Biotechnology/electrical
engineering
Formal suitability
Independence2
ü
ü
ü
ü
ü
Age limit not breached
ü
ü
ü
ü
ü
Competencies/experience
Finance
(e.g. accounting, controlling, risk
management, audit, M&A)
ü
ü³
ü³
ü
ü
Strategy
ü
ü
ü
ü
ü
Digitalization/IT
(e.g. software, processes, data protection)
ü
ü
ü
Transformation
(e.g. product, working models)
ü
ü
ü
ü
ü
HR
(e.g. personnel management, employee
issues, working environment)
ü
ü
ü
ü
ü
Sustainability/ESG4
ü
ü
ü
ü
ü
Industry
(e.g. production, procurement)
ü
ü
Innovation, research and development,
technology
ü
ü
ü
ü
ü
Sales/Brand
ü
ü
ü
Capital market
ü
ü
ü
ü
ü
Footnotes are at the bottom of the table
Ergun Lümali
Michael Bettag
Nadine Boguslawski
Sebastian Fay
Michael Häberle
Tenure
Joined board in
2014
2015
2021
2024
2018
Term limit not breached
ü
ü
ü
ü
ü
Diversity
Gender
Male
Male
Female
Male
Male
Year of birth
1962
1961
1977
1984
1969
Nationality
German
German
German
German
German
Educational and professional background
Construction mechanics/
compensation and service policy
Business administration
Electronics engineer
Law
Mechanical engineering
business administration
Formal suitability
Age limit not breached
ü
ü
ü
ü
ü
Competencies/experience
Finance
(e.g. accounting, controlling, risk
management, audit, M&A)
ü
ü
ü
ü
ü
Strategy
ü
ü
ü
ü
ü
Digitalization/IT
(e.g. software, processes, data protection)
Transformation
(e.g. product, working models)
ü
ü
ü
ü
ü
HR
(e.g. personnel management, employee
issues, working environment)
ü
ü
ü
ü
ü
Sustainability/ESG4
ü
ü
ü
ü
ü
Industry
(e.g. production, procurement)
ü
ü
ü
ü
Innovation, research and development,
technology
ü
ü
ü
Sales/Brand
ü
Capital market
ü
Footnotes are at the bottom of the table
Gabriela Neher
Michael Peters
Pia Simon
Monika Tielsch
Roman Zitzelsberger
Tenure
Joined board in
2023
2023
2024
2021
2015
Term limit not breached
ü
ü
ü
ü
ü
Diversity
Gender
Female
Male
Female
Female
Male
Year of birth
1995
1968
1971
1967
1966
Nationality
German
German
German
German
German
Educational and professional background
Production mechanic/
graphic designer
Sheet metal processor
Business administration
Socioeconomics/mediation
Mechanical engineering/
management
Formal suitability
Age limit not breached
ü
ü
ü
ü
ü
Competencies/experience
Finance
(e.g. accounting, controlling, risk
management, audit, M&A)
ü
ü
ü
Strategy
ü
ü
ü
ü
Digitalization/IT
(e.g. software, processes, data protection)
ü
ü
Transformation
(e.g. product, working models)
ü
ü
ü
ü
ü
HR
(e.g. personnel management, employee
issues, working environment)
ü
ü
ü
ü
ü
Sustainability/ESG4
ü
ü
ü
ü
ü
Industry
(e.g. production, procurement)
ü
ü
ü
ü
ü
Innovation, research and development,
technology
ü
ü
Sales/Brand
ü
Capital market
ü
1 Only relevant for shareholder representatives.
2 Within the meaning of the German Corporate Governance Code; only relevant for shareholder representatives.
3 Financial expert in accordance with Section 100 Subsection 5 of the German Stock Corporation Act (AktG), Recommendation D.3 DCGK (German Corporate Governance Code).
4 Especially: environmental – green production and logistics, climate and decarbonization strategy; social – people plan, sustainable supply chains; governance – sustainable corporate governance, sustainable finance.
CONSOLIDATED
FINANCIAL STATEMENTS
CONSOLIDATED FINANCIAL STATEMENTS
1.
2.
3.
Corrections in accordance with IAS 8
4.
5.
6.
7.
8.
9.
10.
11.
12.
Property, plant and equipment including
right-of-use assets
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
Consolidated Statement of Income/Loss
Note
2024
2023
(adjusted)
In millions of euros
Revenue1
5
145,594
152,390
Cost of sales1, 2
6
-117,018
-117,386
Gross profit in relation to revenue2
28,576
35,004
Selling expenses2
6
-9,993
-10,270
General administrative expenses2
6
-2,529
-2,771
Research and non-capitalized development costs
6
-5,580
-6,230
Other operating income
7
2,507
2,206
Other operating expense
7
-483
-516
Gains/losses on equity-method investments, net
14
1,138
2,129
Other financial income/expense, net
8
-37
108
Earnings before interest and taxes (EBIT)
34
13,599
19,660
Interest income
9
738
678
Interest expense
9
-190
-254
Profit before income taxes
14,147
20,084
Income taxes
10
-3,738
-5,553
Net profit
10,409
14,531
thereof profit attributable to non-controlling interests
202
270
thereof profit attributable to shareholders of Mercedes-Benz Group AG
10,207
14,261
Earnings per share (in euros)
For profit attributable to shareholders of Mercedes-Benz Group AG
36
Basic
10.19
13.46
Diluted
10.19
13.46
1 The previous year’s figures have been corrected in accordance with IAS 8. Further information is included in Note 3.
2 For a more suitable presentation, reclassifications have been carried out in the functional costs. The reclassifications are described in Note 1.
Annual Report 2024 | Mercedes-Benz Group
291
Consolidated Statement of
Comprehensive Income/Loss
Consolidated Statement of Comprehensive Income/Loss
2024
2023
In millions of euros
Net profit
10,409
14,531
Gains/losses from currency translation
1,001
-795
Gains/losses on debt instruments
9
14
Gains/losses on derivative financial instruments1
-1,181
475
Gains/losses on equity-method investments
3
-251
Items that may be reclassified to profit/loss in the Statement of Income in the future
-168
-557
Actuarial gains/losses from pensions and similar obligations
1,045
194
Gains/losses on equity instruments
-126
89
Gains/losses on equity-method investments
23
-16
Items that will not be reclassified to profit/loss in the Statement of Income
942
267
Other comprehensive income/loss after taxes2
774
-290
thereof income/loss attributable to non-controlling interests after taxes
5
-87
thereof income/loss attributable to shareholders of Mercedes-Benz Group AG after taxes
769
-203
Total comprehensive income/loss
11,183
14,241
thereof income/loss attributable to non-controlling interests
207
183
thereof income/loss attributable to shareholders of Mercedes-Benz Group AG
10,976
14,058
1 Reclassifications of gains/losses from other comprehensive income relating to derivative financial instruments into the Consolidated Statement of Income/Loss are provided in Note 32.
2 For more information on income taxes included in other comprehensive income see Note 10.
Annual Report 2024 | Mercedes-Benz Group
292
Consolidated Statement of Financial
Position
Consolidated Statement of Financial Position
At 31 December
Note
2024
2023
(adjusted)
In millions of euros
Assets
Intangible assets
11
19,436
17,593
Property, plant and equipment including right-of-use assets
12
26,537
26,090
Equipment on operating leases
13
45,220
41,712
Equity-method investments
14
12,786
13,104
Receivables from financial services
15
48,547
49,742
Marketable debt securities and similar investments
16
644
699
Other financial assets
17
3,020
4,340
Deferred tax assets
10
4,335
4,127
Income tax assets1
327
318
Other assets1
18
2,391
1,265
Total non-current assets
163,243
158,990
Inventories2
19
26,234
26,486
Trade receivables
20
6,973
7,281
Receivables from financial services2
15
39,320
39,277
Cash and cash equivalents
14,511
15,962
Marketable debt securities and similar investments
16
7,086
6,159
Other financial assets
17
2,868
3,599
Income tax assets1
1,034
798
Other assets1
18
3,581
3,675
Assets held for sale
4
160
795
Total current assets
101,767
104,032
Total assets
265,010
263,022
1 For a more suitable presentation, reclassifications have been carried out between the balance sheet items. The reclassifications are described in Note 1.
2 The previous year’s figures have been corrected in accordance with IAS 8. Further information is included in Note 3.
Annual Report 2024 | Mercedes-Benz Group
293
Consolidated Statement of Financial
Position
At 31 December
Note
2024
2023
(adjusted)
In millions of euros
Equity and liabilities
Share capital
3,070
3,070
Capital reserves
11,718
11,718
Retained earnings
75,469
76,670
Other reserves
2,368
2,571
Treasury shares
0
-2,256
Equity attributable to shareholders of Mercedes-Benz Group AG
92,625
91,773
Non-controlling interests
1,005
1,043
Total equity
21
93,630
92,816
Provisions for pensions and similar obligations
23
952
1,090
Provisions for other risks
24
7,332
7,345
Financing liabilities
25
73,487
63,724
Other financial liabilities
26
1,490
1,642
Deferred tax liabilities
10
7,497
7,714
Contract and refund liabilities1
27
3,100
2,658
Income tax liabilities2
1,342
1,473
Other liabilities2
28
1,354
1,270
Total non-current liabilities
96,554
86,916
Trade payables2
11,312
12,705
Provisions for other risks
24
7,688
7,955
Financing liabilities2
25
39,311
45,707
Other financial liabilities2
26
4,071
4,357
Contract and refund liabilities1
27
8,146
7,733
Income tax liabilities2
705
948
Other liabilities2
28
3,547
3,661
Liabilities held for sale
4
46
224
Total current liabilities
74,826
83,290
Total equity and liabilities
265,010
263,022
1 The previous year’s figures have been corrected in accordance with IAS 8. Further information is included in Note 3.
2 For a more suitable presentation, reclassifications have been carried out between the balance sheet items. The reclassifications are described in Note 1.
Consolidated Statement of Cash Flows
2024
2023
(adjusted)
In millions of euros
Profit before income taxes
14,147
20,084
Depreciation and amortization/impairments
6,772
6,663
Other non-cash expense and income
-1,362
-2,369
Gains (-)/losses (+) from disposals of non-current assets
18
-92
Change in operating assets and liabilities
Inventories1
737
-2,420
Trade receivables and trade payables
-1,199
1,310
Receivables from financial services1
3,280
-6,125
Vehicles on operating leases
-3,110
-640
Other operating assets and liabilities
986
1,624
Dividends received from equity-method investments
1,918
2,056
Income taxes paid
-4,452
-5,621
Cash flow from operating activities
17,735
14,470
Additions to property, plant and equipment
-4,039
-3,745
Additions to intangible assets
-4,626
-4,468
Cash inflows from disposals of property, plant and equipment and intangible assets
188
285
Investments in shareholdings
-363
-334
Cash inflows from disposals of shareholdings and other business operations
716
612
Acquisition of marketable debt securities and similar investments
-6,785
-4,714
Cash inflows from sales of marketable debt securities and similar investments
6,160
5,021
Other cash flows
-1
28
Cash flow from investing activities
-8,750
-7,315
2024
2023
(adjusted)
In millions of euros
Change in short-term financing liabilities
-3,171
-512
Additions to long-term financing liabilities
38,338
39,288
Repayment of long-term financing liabilities
-35,355
-39,473
Dividend paid to shareholders of Mercedes-Benz Group AG
-5,486
-5,556
Dividends paid to non-controlling interests
-239
-324
Acquisition of treasury shares
-4,921
-1,941
Other cash inflows
82
127
Cash flow from financing activities
-10,752
-8,391
Effect of foreign exchange-rate changes on cash and cash equivalents
311
-471
Net decrease in cash and cash equivalents
-1,456
-1,707
Cash and cash equivalents at beginning of year
15,972
17,679
less cash and cash equivalents classified as assets held for sale at beginning of year
10
–
Cash and cash equivalents at beginning of year (Consolidated Statement of Financial Position)
15,962
17,679
Cash and cash equivalents at end of year
14,516
15,972
less cash and cash equivalents classified as assets held for sale at end of year
5
10
Cash and cash equivalents at end of year (Consolidated Statement of Financial Position)
14,511
15,962
1 The previous year’s figures have been corrected in accordance with IAS 8. Further information is included in Note 3.
Consolidated Statement of Changes in Equity
Other reserves
Share
capital
Capital
reserves
Retained
earnings
Difference of
currency
translation
Equity
instruments/
debt
instruments
Derivative
financial
instruments
Treasury
shares
Equity
attributable to
shareholders
of Mercedes-
Benz Group AG
Non-
controlling
interests
Total
equity
In millions of euros
Balance at 1 January 2023
3,070
11,718
67,695
2,161
-241
1,012
–
85,415
1,125
86,540
Net profit
–
–
14,261
–
–
–
–
14,261
270
14,531
Other comprehensive income/loss after taxes
–
–
185
-962
98
476
–
-203
-87
-290
Total comprehensive income/loss
–
–
14,446
-962
98
476
–
14,058
183
14,241
Dividends
–
–
-5,556
–
–
–
–
-5,556
-327
-5,883
Capital increase
–
–
–
–
–
–
–
–
62
62
Acquisition of treasury shares
–
–
–
–
–
–
-2,322
-2,322
–
-2,322
Issue and disposal of treasury shares
–
–
–
–
–
–
66
66
–
66
Other
–
–
85
–
1
26
–
112
–
112
Balance at 31 December 2023
3,070
11,718
76,670
1,199
-142
1,514
-2,256
91,773
1,043
92,816
Balance at 1 January 2024
3,070
11,718
76,670
1,199
-142
1,514
-2,256
91,773
1,043
92,816
Net profit
–
–
10,207
–
–
–
–
10,207
202
10,409
Other comprehensive income/loss after taxes
–
–
1,045
1,048
-93
-1,231
–
769
5
774
Total comprehensive income/loss
–
–
11,252
1,048
-93
-1,231
–
10,976
207
11,183
Dividends
–
–
-5,486
–
–
–
–
-5,486
-242
-5,728
Changes in the consolidated group
–
–
138
–
–
–
–
138
-10
128
Capital increase
–
–
–
–
–
–
–
–
5
5
Acquisition of treasury shares
–
–
–
–
–
–
-4,809
-4,809
–
-4,809
Issue and disposal of treasury shares
–
–
-6,992
–
–
–
7,065
73
–
73
Other
–
–
-113
–
87
-14
–
-40
2
-38
Balance at 31 December 2024
3,070
11,718
75,469
2,247
-148
269
–
92,625
1,005
93,630
Annual Report 2024 | Mercedes-Benz Group
297
Notes to the Consolidated Financial
Statements
Notes to the Consolidated Financial Statements
1. Material accounting policies
General information
The Mercedes-Benz Group is a vehicle manufacturer
with a worldwide product range of premium cars. Its
product portfolio is rounded off by a range of financial
services, product-related mobility services and the
installation of a charging infrastructure. The Group
comprises the segments Mercedes-Benz Cars,
Mercedes-Benz Vans and Mercedes-Benz Mobility.
Mercedes-Benz Group AG is the parent company of the
Mercedes-Benz Group.
Mercedes-Benz Group AG is a stock corporation
organized under the laws of the Federal Republic of
Germany. The company is entered in the Commercial
Register of the Stuttgart District Court under No.
HRB 19360 and its registered office is located at
Mercedesstraße 120, 70372 Stuttgart, Germany.
The Consolidated Financial Statements of Mercedes-
Benz Group AG are presented in euros (€). Unless
otherwise stated, all amounts are given in millions of
euros. All figures shown are rounded.
The Board of Management of Mercedes-Benz Group AG
authorized the Consolidated Financial Statements for
publication on 11 March 2025.
Basis of preparation
Applied IFRS
The Consolidated Financial Statements of Mercedes-
Benz Group AG and its subsidiaries (“Mercedes-Benz
Group” or “the Group”) as of 31 December 2024 have
been prepared in accordance with Section 315e of
the German Commercial Code (HGB) (Consolidated
Financial Statements in accordance with International
Financial Reporting Standards) and comply with the
International Financial Reporting Standards (IFRS) in
the form in which they must be applied in the European
Union (EU) as of 31 December 2024.
IFRS issued, not yet EU endorsed and not yet
adopted in the reporting period
In April 2024 the IASB issued the standard IFRS 18
Presentation and Disclosure in Financial Statements.
The aim of the standard is to improve the presentation
of financial information as well as to increase the
transparency and comparability of financial statements.
IFRS 18 will in future replace IAS 1 Presentation of
Financial Statements. The application of IFRS 18 is
mandatory for reporting periods beginning on or after
1 January 2027 (subject to EU endorsement). Earlier
application is permitted but not planned in the
Mercedes-Benz Group. The Mercedes-Benz Group
currently does not expect any material impacts on the
Group’s profitability, liquidity and capital resources,
and financial position due to the application of IFRS 18.
In December 2024, the IASB published amendments
to IFRS 9 and IFRS 7 for Contracts Referencing Nature-
dependent Electricity. The amendments extend the
own-use exemption and the scope of hedge accounting
with regard to energy supplies from nature-dependent
sources. The application will be mandatory for repor-
ting periods beginning on or after 1 January 2026 (sub-
ject to EU endorsement). Earlier application is per-
mitted. The Mercedes-Benz Group currently does not
expect any material impacts on the Group’s
Annual Report 2024 | Mercedes-Benz Group
298
Notes to the Consolidated Financial
Statements
profitability, liquidity and capital resources, and
financial position due to the application of the
amendments to IFRS 9 and IFRS 7.
In addition, other standards and interpretations
were published which are not expected to have any
significant impact on the Consolidated Financial
Statements.
Presentation
Presentation in the Consolidated Statement of
Financial Position differentiates between current and
non-current assets and liabilities. Assets and liabilities
are generally classified as current if they are expected
to be realized or settled within one year. Deferred tax
assets and liabilities as well as assets and provisions
for pensions and similar obligations are presented as
non-current items.
The Consolidated Statement of Income is presented
using the cost-of-sales method.
Changes in presentation made during
the reporting year
In the reporting year, the following changes were made
to improve the presentation of the Consolidated State-
ment of Income and the Consolidated Statement of
Financial Position. The impacts on profitability, liquidity
and capital resources, and financial position are of
minor importance. For error corrections made in the
previous year within the meaning of IAS 8.41 ff., please
refer to the note Corrections in accordance with IAS 8.
As of 31 December 2024, a change was made to the
elimination of intra-Group income and expenses, which
resulted in reclassifications within the functional costs.
The following table shows the reclassifications within
the Group and in the segments of the years 2024 and
2023.
Reclassifications in the functional costs in the years 2024
and 2023
2024
2023
In millions of euros
Mercedes-Benz Group
Cost of sales
713
625
Selling expenses
-529
-542
General administrative expenses
-184
-83
–
–
Mercedes-Benz Cars
Cost of sales
443
396
Selling expenses
-364
-354
General administrative expenses
-79
-42
–
–
Mercedes-Benz Vans
Cost of sales
45
64
Selling expenses
-42
-62
General administrative expenses
-3
-2
–
–
Mercedes-Benz Mobility
Cost of sales
–
–
Selling expenses
–
–
General administrative expenses
–
–
–
–
Reconciliation
Cost of sales
225
165
Selling expenses
-123
-126
General administrative expenses
-102
-39
–
–
Annual Report 2024 | Mercedes-Benz Group
299
Notes to the Consolidated Financial
Statements
As of 31 December 2023, income taxes claims of
€1,116 million were reported in other assets. Income tax
liabilities of €2,421 million were included in other
liabilities. To increase transparency, income tax assets
and income tax liabilities will be shown separately in
the Consolidated Statement of Financial Position from
31 December 2024. The deferred income will be shown
in other liabilities from 31 December 2024. For better
comparability, the figures of the previous year have
been adjusted accordingly.
For reasons of materiality, deferred income does not
represent separate lines in the Consolidated Statement
of Financial Position and is shown in other liabilities
from 31 December 2024. For better comparability, the
figures of the previous year have been adjusted ac-
cordingly. The corresponding values are shown in the
note on other liabilities.
As of 31 December 2024, non-derivative financial
instruments are reported including the corresponding
accrued interest. This means that, in particular, de-
ferred interest expense relating to financing liabilities
that was previously shown separately under other
financial liabilities is now accounted for under financing
liabilities. As of 31 December 2024, €1,028 million was
therefore reclassified from other financial liabilities to
financing liabilities. For better comparability a corre-
sponding amount of €793 million was reclassified as of
31 December 2023. In this context, the tables Cash
flows included in Cash flow from operating activities
and Changes in liabilities
arising from financing activities in the note on
Consolidated Statement of Cash flows were adjusted
accordingly.
From 2024, liabilities from customs duties and excise
taxes are shown uniformly in other liabilities. The item
amounted to €223 million as of 31 December 2024. As
of 31 December 2023, €326 million and €123 million of
the current other financial liabilities and of the trade
payables of the previous years were reclassified to
current other liabilities for better comparability.
Principles of consolidation
The Consolidated Financial Statements include the
financial statements of Mercedes-Benz Group AG and
the financial statements of all subsidiaries, including
structured entities, which are directly or indirectly
controlled by Mercedes-Benz Group AG. Control exists
if the parent company has the power of decision over a
subsidiary based on voting rights or other rights, if it
participates in positive and negative variable returns
from a subsidiary, and if it can affect these returns by
its power of decision.
Structured entities are entities which have been
designed so that voting or similar rights are not rele-
vant in deciding who controls the entity. This is
the case for example if voting rights relate to admini-
strative tasks only and the relevant activities are
directed by means of contractual arrangements.
The financial statements of consolidated subsidiaries
which are included in the Consolidated Financial
Statements are generally prepared as of the reporting
date of the Consolidated Financial Statements. The
financial statements of Mercedes-Benz Group AG and
its companies included in the Consolidated Financial
Statements are prepared using uniform recognition and
measurement principles. Intra-Group assets and lia-
bilities, equity, income and expenses as well as cash
flows from transactions between consolidated entities
are eliminated in the course of the consolidation
process.
Business combinations and changes
in equity interests
Business combinations are accounted for using the
purchase method. In connection with obtaining control,
non-controlling interest in the acquiree is in principle
recognized at the proportionate share of the acquiree’s
identifiable assets, which are measured at fair value.
Annual Report 2024 | Mercedes-Benz Group
300
Notes to the Consolidated Financial
Statements
Changes in equity interests in subsidiaries that reduce
or increase the Mercedes-Benz Group’s percentage
ownership without a change of control are accounted
for as equity transactions between owners. If the
Group loses control of a subsidiary, the difference
between the carrying amounts of the transferred assets
and liabilities as well as the consideration received is
generally reported in other operating income or ex-
pense. Amounts that were previously recognized in
other comprehensive income/loss are recognized
in other operating income or expense upon loss of
control. If realization is not permitted, they are
reclassified to retained earnings.
Investments in associated companies,
joint ventures or joint operations
An associated company is an entity over which the
Group has significant influence. Significant influence is
the power to participate in the financial and operating
policy decisions of the investee. Associated companies
are generally accounted for using the equity method.
For entities over which the Mercedes-Benz Group has
joint control together with a partner (joint arrange-
ments), it is necessary to differentiate between
whether a joint operation or a joint venture exists.
In a joint venture, the parties that have joint control of
the arrangement have rights to the net assets of the
arrangement. For joint ventures, the equity method has
to be applied. A joint operation exists when the jointly
controlling parties have direct rights to the assets and
obligations for the liabilities. In this case, the prorated
assets and liabilities and the prorated income and
expenses are generally to be recognized (proportionate
consolidation).
If the financial statements of associated companies,
joint ventures or joint operations should not be avail-
able in good time, the Group’s proportionate share of
the results of operations is included in the Mercedes-
Benz Group’s Consolidated Financial Statements with
up to three-month time lag taking into account
significant events or transactions.
Entities measured at amortized cost
Subsidiaries, associated companies, joint ventures and
joint operations whose business is non-active or of low
volume and that individually and in sum are not
material for the Group and the fair presentation of
profitability, liquidity and capital resources, and
financial position are generally measured at amortized
cost in the Consolidated Financial Statements.
Foreign currency translation
Transactions in foreign currency are translated at the
relevant foreign exchange rates prevailing at the trans-
action date. In subsequent periods, assets and liabili-
ties denominated in foreign currency are translated
using period-end exchange rates; gains and losses from
this measurement are recognized in profit and loss
(except for gains and losses resulting from the
translation of equity instruments measured at fair value
through other comprehensive income, which are
recognized in other comprehensive income/loss).
Assets and liabilities of foreign companies for which
the functional currency is not the euro are translated
into euros using period-end exchange rates. The trans-
lation adjustments are presented in other comprehen-
sive income/loss. The components of equity are trans-
lated using historical rates. The statements of income
and cash flows are translated into euros using the
quarterly average exchange rates during the respective
periods.
Annual Report 2024 | Mercedes-Benz Group
301
Notes to the Consolidated Financial
Statements
The exchange rates providing the basis for the currency
translation of the US dollar, Japanese yen and the
Chinese renminbi – the most significant foreign curren-
cies for the Mercedes-Benz Group – developed as
shown in the following table.
Exchange rates
2024
2023
USD
CNY
JPY
USD
CNY
JPY
€1 =
€1 =
€1 =
€1 =
€1 =
€1 =
Average exchange rate on 31 December
1.0389
7.5833
163.0600
1.1050
7.8509
156.3300
Average exchange rates during the respective period
First quarter
1.0858
7.8048
161.1500
1.0730
7.3419
141.9800
Second quarter
1.0767
7.7974
167.7700
1.0887
7.6441
149.7200
Third quarter
1.0983
7.8701
163.9500
1.0884
7.8856
157.2500
Fourth quarter
1.0681
7.6754
162.5486
1.0751
7.7712
159.1200
Hyperinflation
To determine whether a country is to be considered
as in hyperinflation, the Mercedes-Benz Group refers
to the list published by the International Practices
Task Force (IPTF), the Center for Audit Quality or other
relevant international publications. If a country is in
hyperinflation, IAS 29 Financial Reporting in Hyper-
inflationary Economies has to be applied from the
beginning of the respective reporting period, i.e., from
1 January of the respective year. Argentina and Turkey
are currently considered as in hyperinflation.
The effects of taking into account the devaluation of
the monetary balance sheet items of subsidiaries in
countries in hyperinflation are therefore recognized in
profit or loss and are included in the Consolidated
Statement of Income under other operating expense or
other operating income and interest income and
interest expense.
Due to the close economic relationship, the effects
from the recognition of the inflation effect together
with the conversion effect from the translation are
presented as a currency effect in accordance with
IAS 21. Both effects are presented on a net basis in
other comprehensive income and in the reserve for
currency translation.
For companies that use hyperinflation accounting, the
profit and loss statements and the cash flow state-
ments are converted into euros using the exchange
rates at the end of the period.
Annual Report 2024 | Mercedes-Benz Group
302
Notes to the Consolidated Financial
Statements
Accounting policies
Revenue recognition
Revenue from sales of vehicles, spare parts and other
related products is recognized when control of the
goods is transferred to the customer. This generally
occurs at the time the customer takes possession of
the products. Payment is usually also made at this
point, unless it involves proceeds from leasing and
financing packages for end customers and dealers.
If a dealer is not classified as a principal but as an
agent and therefore control of vehicles is not trans-
ferred to him, sales revenue is only recorded when the
end customer obtains control. The brokerage commis-
sions payable to the dealer are shown in selling
expenses.
Revenue recognition from the sale of vehicles for
which the Group enters into a repurchase obligation is
dependent on the form of the repurchase agreement.
– Sales of vehicles in which the Mercedes-Benz Group
is obliged to repurchase the vehicles in the future
are accounted for as operating leases. This also
applies to a call option that grants the Mercedes-
Benz Group the right to repurchase.
– Sales of vehicles including a put option (an entity’s
obligation to repurchase the asset at the customer’s
request) are reported as operating leases if the
customer has a significant economic incentive to
exercise that right at contract inception. Otherwise,
a sale with a right of return is reported. The
Mercedes-Benz Group considers several factors
when assessing whether the customer has a sig-
nificant economic incentive to exercise his or her
right. Among others, these are the relation between
the agreed repurchase price and the expected
future market value (at the time of repurchase) of
the asset, or historical return rates.
Arrangements such as when the Mercedes-Benz Group
provides a customer with a guaranteed minimum
resale value that they receive on resale (residual-value
guarantee) do not constrain the customer in their
ability to direct the use of and obtain substantially all
of the benefits from the asset. At contract inception
of a sale with a residual-value guarantee, revenue
therefore has to be recognized, reduced by a potential
compensation payment to the customer (revenue
deferral).
Under a contract manufacturing agreement, the
Mercedes-Benz Group sells assets to a third-party
manufacturer from which the Mercedes-Benz Group
buys back the manufactured products after completion
of the commissioned work. If the provision of material
is not associated with the transfer of control to the
service provider, no revenue is recognized.
For certain products sold by the Group, it offers ex-
tended, separately priced warranties that go beyond
the statutory period, as well as service and mainte-
nance contracts. Usual for such contracts is an advance
payment or the payment of constant instalments over
the term of the contract. If the customer has made an
advance payment, the revenue from these contracts is
deferred as a contract liability and recognized as
revenue over the term of the contract in proportion to
the costs expected to be incurred based on historical
information. A future loss on these contracts is recog-
nized in the current reporting year if the expected
costs for outstanding services under the contract
exceed unearned revenue.
Annual Report 2024 | Mercedes-Benz Group
303
Notes to the Consolidated Financial
Statements
For multiple-element arrangements, such as when
vehicles are sold with free or reduced-in-price main-
tenance contracts or with free online services, the
Group generally allocates revenue to the various
elements based on their estimated relative stand-alone
selling prices. To determine stand-alone selling prices,
the Mercedes-Benz Group primarily uses price lists
with consideration of average price reductions granted
to its customers.
Depending on the sales model, vehicles may be initially
sold to non-Group dealers. When control of the vehicle
is transferred to the non-Group dealer, the Mercedes-
Benz Group recognizes revenue from the sale of the
vehicle. Irrespective of this, an end customer can
decide to enter into a leasing contract with Mercedes-
Benz Mobility regarding such a vehicle. The vehicle is
then sold by the non-Group dealer to Mercedes-Benz
Mobility.
The incremental cost of obtaining contracts is recog-
nized as an expense when incurred if the amortization
period would be no longer than one year.
The Mercedes-Benz Group does not adjust the prom-
ised amount of consideration for the effects of a sig-
nificant financing component if at contract inception it
is expected that the period between the transfer of a
promised asset or service to a customer and payment
by the customer will be no longer than one year.
Revenue also includes revenue from the rental and
leasing business as well as interest from the financial
services business at Mercedes-Benz Mobility. Revenue
generated from operating leases is recognized on a
straight-line basis over the periods of the contracts. In
addition, sales revenue is generated at the end of lease
contracts from the subsequent sale of the vehicles.
Revenue from finance leases that are based on vehicles
manufactured by the Mercedes-Benz Group is recorded
in accordance with the regulations for lessors who are
manufacturers or dealers. Revenue from receivables
from financial services is recognized using the
effective-interest method.
The Mercedes-Benz Group uses a variety of sales
promotion programmes dependent on various market
conditions in individual countries as well as the
respective product life cycles and product-related
factors (such as amounts of discounts offered by
competitors, excess industry production capacity, the
intensity of market competition and consumer demand
for the products). These programmes comprise cash
offers to dealers and customers as well as lease
subsidies or loans at reduced interest rates which are
reported as follows:
– Revenue is recognized net of sales reductions such
as cash discounts and sales incentives granted.
– When loans are issued below market rates, related
receivables are recognized at present value (using
market rates) and revenue is reduced for the
interest incentive granted.
– If subsidized leasing fees are agreed upon in
connection with finance leases, revenue from the
sale of a vehicle is reduced by the amount of the
interest incentive granted.
Research and non-capitalized development costs
Expenditure for research and development that does
not meet the conditions for capitalization according to
IAS 38 Intangible Assets is expensed as incurred.
Borrowing costs
Borrowing costs are expensed as incurred, unless they
are attributable to the acquisition, construction or
production of a qualifying asset and are therefore part
of the acquisition or manufacturing costs of that asset.
Depreciation of the capitalized borrowing costs is
presented within cost of sales.
Annual Report 2024 | Mercedes-Benz Group
304
Notes to the Consolidated Financial
Statements
Government grants
Government grants related to assets are deducted
from the carrying amount of the asset and are recog-
nized in earnings over the life of a depreciable asset as
a reduced depreciation expense. Government grants
which compensate the Group for expenses are recog-
nized as other operating income in the same period as
the expenses themselves.
Gains/losses on equity-method investments
This item includes all income and expenses in
connection with investments accounted for using the
equity method. In addition to the prorated profits and
losses from financial investments, it also includes
profits and losses resulting from the sale of equity
interests or the remeasurement of equity interests
following a loss of significant influence or joint control.
The Mercedes-Benz Group’s share of dilution gains and
losses resulting from the Group’s non-participation or
subproportional participation in capital increases of
companies in which shares are held and are accounted
for using the equity method is also included in gains/
losses on equity-method investments. Non-participa-
tion or subproportional participation in capital reduc-
tions is recorded as fictitious acquisition transactions.
This item also includes impairment losses and/or gains
on the reversal of such impairments of equity-method
investments.
Other financial income/expense
Other financial income/expense depicts all income and
expense from financial transactions which are included
neither in interest income nor in interest expense, and
which for Mercedes-Benz Mobility are included neither
in revenue nor in cost of sales.
Furthermore, income and expenses from equity
interests are included in other financial income/
expense if such income or expenses are not presented
under gains/losses on equity-method investments.
Interest income and interest expense
Interest income and interest expense include interest
income from investments in securities and from cash
and cash equivalents as well as interest expense from
liabilities. Furthermore, interest and changes in fair
values related to interest rate hedging activities as well
as income and expense resulting from the allocation of
premiums and discounts are included. The interest
components of defined benefit pension commitments
and other similar obligations, as well as of the plan
assets available to cover these obligations and interest
on supplementary income tax payments or reimburse-
ments are also presented in this line item.
Interest income and expense and gains or losses from
derivative financial instruments related to the financial
services business are disclosed under revenue and
cost of sales respectively.
Expense from the compounding of interest on
provisions for other risks is presented in other financial
income/expense.
Income taxes
Income taxes are comprised of current income taxes
and deferred taxes.
Current income taxes are calculated based on the
respective local taxable income and local tax rules for
the period. The calculation of income taxes of
Mercedes-Benz Group AG and its subsidiaries is based
on the legislation and regulations applicable in the
various countries. In addition, current income taxes
presented for the reporting year include adjustments
for uncertain tax payments or tax refunds for periods
not yet finally assessed; however, excluding interest
expenses and interest refunds and penalties on
the underpayment of taxes. In cases for which it is
probable that amounts declared as expenses in the
tax returns might not be recognized (uncertain tax
positions), a liability for income taxes is recognized.
The amount is based on the best estimate of the
expected tax payment (expected amount or most likely
amount). Tax refund claims from uncertain tax
positions are recognized when it is probable that they
can be realized. Only in the case of tax-loss
Annual Report 2024 | Mercedes-Benz Group
305
Notes to the Consolidated Financial
Statements
carryforwards or unused tax credits, no liability for
taxes or tax claim is recognized for these uncertain
tax positions. Instead, the deferred tax assets for
the unused tax-loss carryforwards or tax credits are
adjusted.
Changes in deferred tax assets and liabilities are
generally recognized through profit and loss in
deferred taxes in the Consolidated Statement of
Income, except for changes recognized in other
comprehensive income/loss or directly in equity.
Deferred tax assets or liabilities are calculated on the
basis of temporary differences between the tax basis
and the financial reporting of assets and liabilities
including differences from consolidation, on unused
tax-loss carryforwards and unused tax credits. Meas-
urement is based on the tax rates expected to be
effective in the period in which an asset is recognized
or a liability is settled. For this purpose, those tax rates
and tax rules are used which have been enacted at the
reporting date or are soon to be enacted. Deferred tax
assets are recognized to the extent that it is probable
that there will be future taxable income available
against which the deductible temporary differences,
tax-loss carryforwards and tax credits can be utilized.
Deferred tax liabilities for taxable temporary differ-
ences in connection with investments in subsidiaries,
branches, associated companies and interests in joint
arrangements are not recognized if the Group is able
to control the timing of the reversal of the temporary
difference and it is probable that the temporary differ-
ence will not be reversed in the foreseeable future.
For the calculation of deferred tax assets, assumptions
have to be made regarding future taxable income and
the time of realization of the deferred tax assets. In this
context, the Mercedes-Benz Group takes into consi-
deration, among other things, the projected earnings
from business activities, the effects on earnings of
the reversal of taxable temporary differences, and
realizable tax strategies. On each balance sheet date,
the Mercedes-Benz Group carries out impairment tests
on deferred tax assets on the basis of the planned
taxable income in future years. Deferred tax assets are
only recognized if it is more likely than not that future
tax benefits can be realized.
Earnings per share
Basic earnings per share are calculated by dividing
profit attributable to shareholders of Mercedes-Benz
Group AG by the weighted average number of shares
outstanding.
Intangible assets
Intangible assets are measured at acquisition or
manufacturing cost less accumulated amortization. If
necessary, accumulated impairment losses are
recognized.
Intangible assets with indefinite useful lives are re-
viewed annually to determine whether indefinite-life
assessment continues to be appropriate. If not, the
change in the useful-life assessment from indefinite to
finite is made on a prospective basis.
Development costs for vehicles and components are
capitalized if the recognition criteria according to
IAS 38 are met. Subsequent to initial recognition, the
asset is carried at acquisition or manufacturing costs
less accumulated amortization and accumulated
impairment losses. Capitalized development costs
include all direct costs and pro-rata allocable over-
heads. Capitalized development costs for vehicles and
vehicle components are amortized on a straight-line
basis over the expected product life cycle. The planned
product lifespan only exceeds ten years in individual
cases. The assessment also takes into account possible
impacts from the transformation of the automotive
industry, such as the transition to electric drive
systems. Amortization of capitalized development
costs is an element of manufacturing costs and is
allocated to those vehicles and components by which
they were generated and is included in cost of sales
when the inventory (vehicles) is sold.
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306
Notes to the Consolidated Financial
Statements
Other intangible assets with finite useful lives are
generally amortized on a straight-line basis over their
useful lives (three to ten years). The amortization
period for intangible assets with finite useful lives is
reviewed at least at the end of each reporting year.
Changes in expected useful lives are treated as
changes in accounting estimates. The amortization
expense on intangible assets with finite useful lives is
recorded in functional costs.
With acquisitions of businesses, goodwill represents
the excess of the consideration transferred over the
fair values assigned to the identifiable assets propor-
tionally acquired and liabilities assumed. Goodwill is
accounted for at the subsidiaries in the functional
currency of those subsidiaries.
Emission allowances (e.g. emission permits from the
EU emissions trading system or the vehicle-related
emissions regulations in the United States or China) to
compensate for CO2 emissions are also reported under
intangible assets. These certificates and rights are
stated at acquisition cost. Derecognition occurs at the
time the certificates or rights are returned or upon
sale or expiration. Obligations to surrender emission
allowances are recognized as provisions valued at
the acquisition costs of emission allowances that have
already been purchased. Any excess obligation that
may exist is valued at the market value of the emission
allowances still to be acquired.
Property, plant and equipment
Property, plant and equipment are measured at
acquisition or manufacturing costs less accumulated
depreciation. If necessary, accumulated impairment
losses are recognized.
The costs of internally produced equipment and
facilities include all direct costs and allocable
overheads. Acquisition or manufacturing costs include
the estimated costs, if any, of dismantling and
removing the item and restoring the site as well as
borrowing costs.
Depreciable property, plant and equipment are written
down by scheduled depreciation over the correspon-
ding useful life, generally on a straight-line basis.
The useful lives of property, plant and equipment are
shown in the following table.
Useful lives of property, plant and equipment
Buildings and site improvements
10 to 50 years
Technical equipment and machinery
5 to 25 years
Other equipment, factory and office equipment
3 to 30 years
Leasing
Leases include all contracts that transfer the right to
use a specified asset for a stated period of time in
exchange for consideration, even if the transfer of the
right to use such asset is not explicitly described in
the contract. The Group is a lessee mainly of real estate
properties and a lessor of its products.
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307
Notes to the Consolidated Financial
Statements
The Mercedes-Benz Group as lessee
The Mercedes-Benz Group as a lessee recognizes for
generally all lease contracts right-of-use assets
as well as leasing liabilities for the outstanding lease
payments. Variable lease payments that are not
included in the initial recognition of the right-of-use
asset are recognized as an expense for the period.
The Mercedes-Benz Group applies both recognition
exemptions for leases with a lease term of twelve
months or less (short-term leases) and for leases for
which the underlying asset is of low value, not to
recognize a right-of-use asset and a lease liability. The
lease payments associated with those leases are
generally recognized as an expense on a straight-line
basis over the lease term.
Right-of-use assets, which are included under property,
plant and equipment, are initially recognized at cost.
The cost of a right-of-use asset comprises the amount
of the initial measurement of the lease liability, any
lease payments made at or before the commencement
date, any initial direct costs and an estimate of costs to
be incurred in dismantling or removing the underlying
asset. All leasing incentives already received from the
lessor are deducted.
Lease liabilities, which are assigned to financing
liabilities, are measured initially at the present value of
the lease payments still to be made. The lease
liabilities include the following lease payments:
– fixed payments including de facto fixed payments
less lease incentives receivables from the lessor,
– variable lease payments linked to an index or
interest rate,
– amounts expected to be payable under residual-
value guarantees,
– the exercise price of a purchase option, when
exercise is estimated to be reasonably certain, and
– contractual penalties for the termination of a lease
if the lease term reflects the exercise of a
termination option.
The Mercedes-Benz Group generally also applies the
option for contracts comprising lease components
as well as non-lease components not to split these
components.
Lease payments are discounted at the rate implicit in
the lease if that rate can readily be determined.
Otherwise, discounting is at the incremental borrowing
rate. This incremental borrowing rate as a risk-adjusted
interest rate is derived on a maturity- and currency
specific basis. As the cash flow pattern of the reference
interest rates (bullet bonds) does not correspond to
the cash flow pattern of a lease contract (annuity), a
duration adjustment in order to account for that
difference is used.
A right-of-use asset is subsequently measured at cost
less any accumulated depreciation and, if necessary,
any accumulated impairment. If the lease transfers
ownership of the underlying asset to the lessee at the
end of the lease term or if the cost of the right-of-use
asset reflects that the lessee will exercise a purchase
option, the right-of-use asset is depreciated to the end
of the useful life of the underlying asset. Otherwise, the
right-of-use asset is depreciated to the end of the
lease term. According to IFRS 16, the depreciation of
right-of-use assets is recognized within functional
costs.
In the subsequent measurement of a lease liability,
the carrying amount is increased to reflect interest on
the lease liability and reduced to reflect the lease
payments made. The interest due on the lease liability
is a component of interest expense. Extension and
termination options are part of a number of leases
particularly of real estate. In determining the lease
term, those options are only considered if their
exercise is reasonably certain. During the term, these
options are regularly checked with regard to their
probability of being exercised.
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308
Notes to the Consolidated Financial
Statements
The Mercedes-Benz Group as lessor
(equipment on operating leases)
The opportunities and risks associated with a leased
asset are used to assess whether economic ownership
of the leased asset is attributable to the lessor
(operating leases) or the lessee (finance leases) as part
of the lease of a Group product.
For operating leases the economic ownership of the
vehicle remains at the Mercedes-Benz Group. Addition-
ally, an operating lease may have to be reported
with sales of vehicles for which the Group enters into a
repurchase obligation.
For operating leases in particular, certain assumptions
are regularly made about the residual value of returns
from leasing transactions. If changing market develop-
ments at the balance sheet date lead to a negative
deviation from previously estimated assumptions, the
residual value must be adjusted or an impairment
carried out. Depending on the region and the current
market situation, the risk-mitigation measures taken
generally include continuous market monitoring as
well as, if required, price-setting strategies or sales-
promotion measures designed to regulate vehicle
inventories. Market forecasts are verified by regular
comparisons of internal and external sources, and,
if required, the determination of residual values
is adjusted and further developed with regard to
methods, processes and systems.
In the case of accounting as an operating lease, these
vehicles are capitalized at the (amortized) cost of
production under equipment on operating leases and
are depreciated over the contract term on a straight-
line basis with consideration of the expected residual
values. Changes in the expected residual values lead
either to prospective adjustments of the scheduled
depreciation or, if necessary, to an impairment loss.
The vehicles are allocated to the segment which bears
substantially all of the residual-value risk. Excluded
from this are the operating lease agreements described
in the following paragraph.
Operating leases also relate to vehicles, primarily
Group products, that Mercedes-Benz Mobility acquires
from non-Group dealers or other third parties and
leases to end customers. These vehicles are presented
at (amortized) cost of acquisition under equipment
on operating leases in the Mercedes-Benz Mobility
segment. If these vehicles are Group products and are
subsidized, the subsidy is passed on to the external
customer as part of the leasing contract. This leads to a
reduction in acquisition costs and a corresponding
reduction of revenue from vehicle sales. After revenue
is received from the sale to independent dealers, these
Group products generate revenue from lease payments
and subsequent resale on the basis of the separate
leasing contracts.
In the case of finance leases, the Group presents the
receivables under receivables from financial services in
an amount corresponding to the net investment of the
lease agreements. The net investment of a lease agree-
ment is the gross investment (future lease payments
and non-guaranteed residual value) discounted at the
rate upon which the lease agreement is based.
Mercedes-Benz Mobility continues the leasing and
sales-financing business for Daimler Truck’s
commercial vehicles in some markets. To this end,
Mercedes-Benz Mobility acquires these vehicles from
Daimler Truck and leases them to the end customers.
Insofar as a mandatory vehicle return to Daimler Truck
has been agreed, a leasing contract (head lease)
between Mercedes-Benz Mobility and Daimler Truck is
shown. The contract between Mercedes-Benz Mobility
and the end customer constitutes a sublease in this
respect. In addition to the finance lease, Mercedes-
Benz Mobility recognizes a residual-value receivable
from the Daimler Truck Group in the amount of the
guaranteed residual value. The head lease is not
recorded separately.
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309
Notes to the Consolidated Financial
Statements
Impairment of non-current non-financial assets
The Mercedes-Benz Group assesses at each reporting
date whether there is an indication that an asset may
be impaired or whether there is an indication that
a previously recognized impairment loss may be re-
versed. If such indication exists, the Mercedes-Benz
Group estimates the recoverable amount of the asset.
The recoverable amount is determined for each
individual asset unless the asset generates cash
inflows that are not largely independent of those from
other assets or other groups of assets (cash-generating
units).
An assessment is made at each reporting date as to
whether there is any indication that previously
recognized impairment losses may no longer exist or
may be reversed. If this is the case, the Mercedes-Benz
Group records a partial or entire reversal of the
impairment; the carrying amount is thereby increased
to the recoverable amount. However, the increased
carrying amount may not exceed the carrying amount
that would have been determined (net of scheduled
depreciation) if no impairment loss had been
recognized in prior years.
Goodwill and other intangible assets with indefinite
useful lives are tested at least annually for impairment.
This takes place at the level of the cash-generating
units. The cash-generating units Mercedes-Benz Cars
and Mercedes-Benz Vans basically correspond to the
segments. At Mercedes-Benz Mobility, impairment
testing is carried out below segment level. A distinction
is made between the cash-generating unit Mercedes-
Benz Mobility Classic (traditional financial services
business) and several region-specific cash-generating
units at Charging Solutions (development of a global
high-power charging network). As the cash-generating
units related to Charging Solutions had neither goodwill
nor other intangible assets with indefinite useful lives
in 2024 and there was no indication of impairment in
2024, it was not necessary to calculate the recoverable
amount.
If it is determined that the carrying amount of an
asset or of a cash-generating unit exceeds the recover-
able amount, an impairment loss is recognized for
the difference.
The recoverable amount is the higher of fair value less
costs of disposal and value in use. For cash-generating
units, the Mercedes-Benz Group in a first step deter-
mines the respective recoverable amount as value
in use and compares it with the respective carrying
amounts (including goodwill). If value in use is lower
than the carrying amount, fair value less costs of
disposal is additionally calculated to determine the
recoverable amount.
Value in use is measured by discounting expected
future cash flows from the continuing use of the cash-
generating units using a risk-adjusted interest rate.
Future cash flows are determined on the basis of the
long-term planning, which is approved by management
and which is valid at the date when the impairment test
is conducted. This planning, which covers the period
up to and including 2029, is based on assumptions,
including those regarding future sales volumes, the
general development of the respective markets and
the profitability of the products, taking into account
the effects of the transformation of the automotive
industry and the expected macroeconomic develop-
ments. In the detailed planning period, an increase
in unit sales and revenue is assumed for the cash-
generating units Mercedes-Benz Cars and Mercedes-
Benz Vans. Thereby, an increase in the proportion of
electric vehicles is assumed; however, due to changes
or uncertainties in the market environment and
customer behaviour, a slower increase and thus a lower
share of electric vehicles is assumed in the planning
period than previously. Based on the sales planning
of the cash-generating units Mercedes-Benz Cars
and Mercedes-Benz Vans, the planning of the cash-
generating unit Mercedes-Benz Mobility Classic
assumes an increase in the portfolio in the detailed
planning period. The assumptions used for planning are
checked for plausibility both against historical develop-
ments and against external sources of information (e.g.
market studies). The rounded, risk-adjusted interest
rates determined specifically for the respective cash-
generating unit and used to discount the cash flows are
9.5% (2023: 9.5%) after taxes for the Mercedes-Benz
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310
Notes to the Consolidated Financial
Statements
Cars and Mercedes-Benz Vans cash-generating units.
A risk-adjusted interest rate of 10% (2023: 10%) after
taxes is used for the Mercedes-Benz Mobility Classic
cash-generating unit. The interest rates after taxes
mentioned above correspond to interest rates before
taxes between 12.8% and 14% (2023: 13.4% and 14%).
While the discount rate for the Mercedes-Benz Mobility
Classic cash-generating unit represents the cost of
equity, the risk-adjusted interest rate for the Mercedes-
Benz Cars and Mercedes-Benz Vans cash-generating
units is based on the weighted average cost of capital
(WACC). This is calculated based on the capital asset
pricing model (CAPM), taking into account current
market expectations. In calculating the risk-adjusted
interest rate for impairment test purposes, specific
peer group information is used for beta factors, capital
structure data and cost of debt. Periods not covered by
the forecast are taken into account by recognizing a
residual value (terminal value), which does not include
any growth rates. When deriving the terminal value,
assumptions regarding the effects of the transforma-
tion of the automotive industry are also taken into
account, analogous to the detailed planning period.
While the recoverable amount of the Mercedes-Benz
Cars and Mercedes-Benz Vans cash-generating units
significantly exceeds the carrying amount, the recover-
able amount of the Mercedes-Benz Mobility Classic
cash-generating unit is close to the carrying amount.
In addition, a risk assessment is carried out for both
the detailed planning period and the terminal value,
which takes into account additional risks compared to
the approved corporate planning or an increase in the
risks already included in corporate planning. These
include, for example, market risks, risks regarding the
price development of raw materials as well as risks
resulting from legal and political framework conditions
(e.g. in connection with sustainability aspects such as
CO2 legislation or geopolitical conflicts). This risk
assessment shows for the relevant cash-generating
units that even in the case of reasonably possible
changes in operational key assumptions (e.g. profitabi-
lity of the products, unit sales and portfolio) compared
to the original planning, no need for impairment exists.
In addition, sensitivity analyses are carried out in
isolation from this additional risk assessment (e.g. with
regard to the discount rate). The carrying amount of the
Mercedes-Benz Mobility Classic cash-generating unit
would exceed the recoverable amount by a low three-
digit million amount, if the cost of equity were to
increase by one percentage point to 11% after taxes. If
the cost of equity were to increase to 10.9% after
taxes, the carrying amount would equal the recoverable
amount.
Equity-method investments
The initial recognition of interests in investments
accounted for using the equity method is generally
made with their acquisition costs. If the Group loses
control of a subsidiary and subsequently presents it at
equity, the fair value of the retained shares represents
the acquisition cost.
On the date of acquisition, a positive difference
between cost of acquisition and the Mercedes-Benz
Group’s share of the fair values of the identifiable
assets and liabilities of the associated company or joint
venture is determined and recognized as investor level
goodwill. The goodwill is included in the carrying
amount of the equity-method investment. If an equity
interest in an existing associated company is increased
without change in significant influence, goodwill is
determined only for the additionally acquired interest;
the previous investment is not remeasured at fair
value.
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311
Notes to the Consolidated Financial
Statements
The Mercedes-Benz Group reviews on each reporting
date whether there is any objective indication of im-
pairments or impairment reversals of equity-method
investments. If such indications exist, the Group
determines the impairment loss or reversal to be
recognized. If the carrying amount exceeds the
recoverable amount of an investment, the carrying
amount is written down to the recoverable amount. The
recoverable amount is the greater of fair value less
costs to sell and value in use. An impairment reversal is
carried out if there is objective evidence for an im-
pairment reversal. If such an assessment is made, the
recoverable amount is remeasured. An impairment
reversal is recognized to the extent that the recover-
able amount has increased subsequent to the impair-
ment and is limited to the amount by which an asset
has been impaired.
Gains or losses to be eliminated from transactions with
companies accounted for using the equity method are
recognized through profit and loss with corresponding
adjustments of the investments’ carrying amounts
and are reported in gains/losses on equity-method
investments. Gains or losses from the contribution of
interests in subsidiaries to investments which are
measured using the equity method are also subject to
elimination adjustments to the carrying amount of
the investment.
Non-current assets and
disposal groups held for sale
The Group classifies non-current assets or disposal
groups as held for sale if the carrying amount will
be recovered principally through an extremely likely
sale transaction rather than through continuing use. In
this case, the assets or disposal groups are no longer
depreciated as planned, but are measured at the lower
of carrying amount and fair value less costs to sell.
Immediately before classification as held for sale, it is
assessed if the assets are impaired based on the
applicable individual regulations. If fair value less costs
to sell subsequently increases, any impairment loss
previously recognized is reversed. This reversal is
restricted to the impairment loss previously recognized
for the assets or disposal group concerned.
Inventories
Inventories are measured at the lower of acquisition or
manufacturing cost and net realizable value. The net
realizable value is the expected sales price less esti-
mated costs of completion and estimated costs to sell.
The acquisition or manufacturing costs of inventories
are generally based on the specific identification
method and include costs incurred in acquiring the
inventories and bringing them to their present location
and condition. Acquisition or manufacturing costs for
large numbers of inventories that are interchangeable
are allocated under the average-cost formula.
In the case of manufactured inventories and work in
progress, manufacturing cost also includes production
overheads based on normal capacity.
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312
Notes to the Consolidated Financial
Statements
Financial instruments
A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability
or equity instrument of another entity. Financial instru-
ments in the form of financial assets and financial
liabilities are generally presented separately. Financial
instruments are recognized as soon as the Mercedes-
Benz Group becomes a party to the contractual pro-
visions of the financial instrument. In the case
of purchases or sales of financial assets through the
regular market, the Mercedes-Benz Group uses the
transaction date as the date of initial recognition or
derecognition.
Upon initial recognition, financial instruments are
measured at fair value. For the purpose of subsequent
measurement, financial instruments are allocated to
one of the categories mentioned in IFRS 9 Financial
Instruments (financial assets measured at amortized
cost, financial assets measured at fair value through
other comprehensive income and financial assets
measured at fair value through profit or loss). Trans-
action costs directly attributable to acquisition or
issuance are considered when determining the carrying
amount if the financial instruments are not measured
at fair value through profit or loss.
Financial assets
Financial assets primarily comprise receivables from
financial services, trade receivables, receivables
from banks, cash on hand, derivative financial assets,
marketable securities and similar investments and
financial investments.
The classification of financial instruments is based
on the business model in which these instruments are
held and on their contractual cash flows.
The determination of the business model is carried out
at the portfolio level and is based on management’s
intention and past transaction patterns. Assessments
of the contractual cash flows are made on an
instrument-by-instrument basis.
Financial assets measured at fair value through
profit or loss
Financial assets measured at fair value through profit
or loss include financial assets with cash flows other
than those of principal and interest on the nominal
amount outstanding. Furthermore, financial assets that
are held in a business model other than “hold to
collect” or “hold to collect and sell” are included here.
In addition, derivatives, including embedded deriva-
tives separated from the host contract, which are not
classified as hedging instruments in hedge accounting,
as well as shares and marketable debt securities
acquired for the purpose of selling in the short term
that are classified as held for trading, are included
here. Gains or losses on these financial assets are
recognized in profit or loss.
Financial assets measured at fair value through
other comprehensive income
Financial assets measured at fair value through other
comprehensive income are non-derivative financial
assets with contractual cash flows that consist solely
of payments of principal and interest on the nominal
amount outstanding and which are held to collect the
contractual cash flows as well as to sell the financial
assets, e.g. to achieve a defined liquidity target
(business model “hold to collect and sell”). This cate-
gory also includes equity instruments not held for
trading for which the option to recognize changes in
the fair value of the instrument within other compre-
hensive income has been applied.
After initial measurement, financial assets measured at
fair value through other comprehensive income are
recognized at fair value, with unrealized gains or losses
being recognized in other comprehensive income/loss.
Upon the disposal of debt instruments, the accumu-
lated gains and losses recognized in other comprehen-
sive income/loss resulting from measurement at fair
value are recognized in profit or loss. Interest earned
on financial assets measured at fair value through
other comprehensive income is generally reported as
interest income using the effective-interest method.
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313
Notes to the Consolidated Financial
Statements
Changes in the fair value of equity instruments
measured at fair value through other comprehensive
income are not recycled to profit or loss, but
reclassified to retained earnings upon disposal.
Dividends are recognized in profit or loss when the
right to payment has been established.
Financial assets measured at amortized cost
Financial assets measured at amortized cost are non-
derivative financial assets with contractual cash flows
that consist solely of payments of principal and inte-
rest on the nominal amount outstanding and which are
held with the aim of collecting the contractual cash
flows, such as receivables from financial services, trade
receivables or cash and cash equivalents (business
model “hold to collect”). After initial recognition, these
financial assets measured at amortized cost are subse-
quently carried at amortized cost using the effective-
interest method less any loss allowances. Gains and
losses are recognized in the Consolidated Statement of
Income, if the financial assets measured at amortized
cost are impaired or derecognized. Interest effects
from the application of the effective-interest method
are also recognized in profit or loss as well as effects
from foreign currency translation.
Cash and cash equivalents consist primarily of cash on
hand, cheques and demand deposits at banks, as well
as debt instruments and certificates of deposits with a
remaining term when acquired of up to three months,
which are not subject to any material value fluctua-
tions. Cash and cash equivalents correspond with the
classification in the Consolidated Statement of Cash
Flows.
The restricted funds representing cash and cash
equivalents are related to subsidiaries where foreign
exchange controls apply, so that the Group has
restricted access to the funds.
Impairment of financial assets
At each reporting date, an impairment is recognized
for financial assets, loan commitments and financial
guarantees other than those to be measured at fair
value through profit or loss reflecting expected credit
losses for these instruments. Impairments are
allocated using a three stage approach to expected
credit losses:
Stage 1: expected credit losses within the next twelve
months
Stage 1 includes all contracts with no significant in-
crease in credit risk since initial recognition and usually
includes new acquisitions and contracts with fewer
than 31 days past due date. The portion of the lifetime
expected credit losses resulting from default events
possible within the next twelve months is recognized.
Stage 2: expected credit losses over the lifetime – not
credit impaired
If a financial asset has a significant increase in credit
risk since initial recognition but is not yet credit
impaired, it is moved to stage 2 and measured at
lifetime expected credit loss, which is defined as the
expected credit loss that results from all possible
default events over the expected life of a financial
asset.
Stage 3: expected credit losses over the lifetime –
credit impaired
If a financial asset is defined as credit-impaired or in
default, it is transferred to stage 3. The expected credit
loss is recognized as an impairment measured over
the expected lifetime of the financial asset. Objective
evidence for a credit-impaired financial asset includes
91 days past due date and other information about
significant financial difficulties of the debtor.
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314
Notes to the Consolidated Financial
Statements
The determination of whether a financial asset has
experienced a significant increase in credit risk is
based on an assessment of the probability of default,
which is made at least quarterly, incorporating external
credit rating information as well as internal information
on the credit quality of the financial asset. For debt
instruments that are not receivables from financial
services, a significant increase in credit risk is assessed
mainly based on past-due information or the
probability of default.
A financial asset is migrated to stage 2 if the asset’s
credit risk has increased significantly compared to its
credit risk at initial recognition. Indicators of a signifi-
cant increase in credit risk may be past due dates of
more than 30 days or an increase in debtor-specific
risk premiums. For trade receivables, the simplified
approach is applied whereby all trade receivables are
allocated to stage 2 initially. Hence, no determination
of significant increases in credit risk is necessary.
The Mercedes-Benz Group applies the low-credit-risk
exception to the stage allocation to quoted debt
instruments with investment-grade ratings. These debt
instruments are always allocated to stage 1.
In stages 1 and 2, the effective interest revenue is
calculated based on gross carrying amounts. If a
financial asset becomes credit impaired in stage 3, the
effective interest revenue is calculated based on its
net carrying amount (gross carrying amount adjusted
for any loss allowance).
Measurement of expected credit losses
Expected credit losses are measured in a way that
reflects:
a) the unbiased and probability-weighted amount,
b) the time value of money,
c) reasonable and supportable information (if available
without undue cost or effort) at the reporting date
about past events, current conditions and forecasts
of future economic conditions.
Expected credit losses are measured as the proba-
bility-weighted present value of all cash shortfalls over
the expected life of each financial asset.
For receivables from financial services, expected credit
losses are calculated using a statistical model with
three major risk parameters: probability of default, loss
given default and exposure at default.
The estimation of these risk parameters incorporates
all available relevant information, not only historical
and current loss data, but also reasonable and suppor-
table forward-looking information reflected by future
expectations. This information includes macroecono-
mic factors (e.g. gross domestic product growth,
unemployment rate, cost performance index) and
forecasts of future economic conditions. For receiva-
bles from financial services, these forecasts are
performed using a scenario analysis (basic scenario,
optimistic scenario and pessimistic scenario). The
impairment amount for trade receivables is predo-
minantly determined on a collective basis.
A financial instrument is written off when there is no
reasonable expectation of recovery in whole or in part,
for example, after the end of insolvency proceedings
or after a court decision of uncollectibility.
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315
Notes to the Consolidated Financial
Statements
Significant modifications of financial assets (e.g. with
a change in the present value of the contractual cash
flows of 10%) also leads to derecognition of the finan-
cial assets with a simultaneous recognition of new
financial assets. If the terms of a contract are renego-
tiated or modified and this does not result in dereco-
gnition of the contract, then the gross carrying amount
of the contract is recalculated and a modification
gain or loss is recognized in profit or loss. To assess
whether a significant increase in credit risk has
occurred, the probability of default of the modified
financial instrument is compared to the probability of
default of the original instrument at initial recognition.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and
the net amount is presented in the Consolidated
Statement of Financial Position provided that an
enforceable right currently exists to offset the amounts
involved, and there is an intention either to carry out
the offsetting on a net basis or to settle a liability when
the related asset is sold.
Financial liabilities
Financial liabilities primarily include trade payables,
liabilities to financial institutions, bonds, derivative
financial liabilities and other liabilities.
Financial liabilities measured at amortized cost
After initial recognition, financial liabilities are
subsequently measured at amortized cost using the
effective-interest method.
Insofar as the Mercedes-Benz Group enters into
reverse factoring agreements in which trade recei-
vables of a supplier are transferred to a financial
intermediary, changes in the presentation of the
original trade payables may occur. If these liabilities
differ in nature and function from other trade payables,
the liabilities are presented separately.
Financial liabilities measured at fair value
through profit or loss
Financial liabilities measured at fair value through
profit or loss include financial liabilities held for
trading. Derivatives (including embedded derivatives
separated from the host contract) which are not
used as hedging instruments in hedge accounting are
classified as held for trading. Gains or losses on
liabilities held for trading are recognized in profit or
loss.
Derivative financial instruments and
hedge accounting
The Mercedes-Benz Group uses derivative financial
instruments in principle only for hedging financial risks
that arise from its operating or financing activities or
liquidity management. These are mainly currency risks,
interest rate risks and commodity price risks.
Contracts for the purchase or sale of non-financial
items are regularly qualified as executory contracts and
thus treated as suspended transactions, although they
fulfil the definition of a derivative. If such contracts
do not meet the criteria for executory contracts they
are recorded as derivatives. These derivatives are mea-
sured at fair value through profit or loss. The valuation
effects are reported in the functional costs, in which
the consumption of the procured non-financial items
(e.g. energy) is reported.
Annual Report 2024 | Mercedes-Benz Group
316
Notes to the Consolidated Financial
Statements
Embedded derivatives are principally separated from
the host contract and recognized separately. However,
embedded derivatives are not separated from the host
contract if that host contract is a financial asset, if the
Mercedes-Benz Group chooses to measure a hybrid
contract at fair value through profit or loss, or if the
embedded derivative is closely related to the host
contract.
Derivative financial instruments are measured at fair
value upon initial recognition and at each subsequent
reporting date. The fair value of listed derivatives is
equal to their positive or negative market value. If a
market value is not available, fair value is calculated
using standard financial valuation models such as
discounted cash flow or option-pricing models.
Derivatives are recognized as assets if their fair value is
positive and as liabilities if their fair value is negative.
If the requirements for hedge accounting set out in
IFRS 9 are met, the Mercedes-Benz Group designates
and documents the hedge relationship from the date a
derivative contract is entered into as a fair-value
hedge, a cash flow hedge or a hedge of a net invest-
ment in a foreign business operation. In a fair-value
hedge, the changes in the fair value of a recognized
asset or liability or an unrecognized firm commitment
are hedged. In a cash flow hedge, highly probable
future cash flows from expected transactions or
variable cash flows to be paid or received related to a
recognized asset or liability are hedged. The docu-
mentation of the hedging relationship includes the
objectives and strategy of risk management, the type
of hedging relationship, the nature of the risk being
hedged, the identification of the eligible hedging
instrument and the eligible hedged item, as well as an
assessment of the effectiveness requirements com-
prising the risk mitigating economic relationship, the
impact of deteriorating effects from credit risk and
the appropriate hedge ratio. The effectiveness of the
hedge is assessed at the start of and during the
hedging relationship.
For fair-value hedges, changes in the fair value of
derivative financial instruments and the hedged item
are recognized in profit or loss. For cash flow hedges,
fair-value changes in the effective portion of derivative
financial instruments are recognized after tax in other
comprehensive income.
Effective and ineffective results from hedging
are presented in the line item of the Consolidated
Statement of Income in which the underlying
transaction is reported.
Under IFRS 9, for cash flow hedges in procurement
transactions expected with a high degree of proba-
bility, designation can be made for separable risk
components of these non-financial hedged items.
Under IFRS 9, with cash flow hedges, amounts recog-
nized in other comprehensive income as effective
hedging gains or losses from hedging instruments are
removed from the reserves for derivative financial
instruments and directly included in the initial cost or
carrying amount of the hedged item at initial recogni-
tion if the hedged item, e.g. the forecast transaction,
results in the recognition of a non-financial asset or
non-financial liability.
For other cash flow hedges, the accumulated hedging
gains or losses from hedging instruments are trans-
ferred from the reserves for derivative financial instru-
ments to the Consolidated Statement of Income when
the hedged item affects profit or loss. Insofar as
currency translation effects recognized in profit or loss
due to trade receivables and payables are connected
with the underlying hedged transactions, simulta-
neously occurring hedging gains/losses are transferred
to the Consolidated Statement of Income.
The ineffective portions of fair-value changes are
recognized directly in profit or loss.
For derivative instruments designated in a hedge
relationship, certain components can be excluded from
designation and the changes in these components’ fair
value are then deferred in other comprehensive income
under IFRS 9. This may apply for example to the time
value of options, the forward element of a forward
contract or cross-currency basis spreads.
Annual Report 2024 | Mercedes-Benz Group
317
Notes to the Consolidated Financial
Statements
Hedge relationships are to be discontinued prospec-
tively if a particular hedge relationship ceases to meet
the qualifying criteria for hedge accounting under
IFRS 9. Instances that require discontinuation of hedge
accounting are, among others, changes to the
designated hedged item, loss of the economic relation-
ship between the hedged item and the hedging
instrument, disposal or termination of the hedging
instrument, or a revision of the documented risk-
management objective of a particular hedge relation-
ship. Accumulated hedging gains and losses from cash
flow hedges are retained and are reclassified from
equity as described at maturity if the hedged future
cash flows are still expected to occur. Otherwise,
accumulated hedging gains and losses are immediately
reclassified to profit or loss.
If derivative financial instruments do not or no longer
qualify for hedge accounting because the qualifying
criteria for hedge accounting are not or are no longer
met, the derivative financial instruments are classified
as held for trading and are measured at fair value
through profit or loss.
Pensions and similar obligations
The measurement of defined benefit commitments for
pensions and other similar post-employment benefits
(healthcare benefits) in accordance with IAS 19
Employee Benefits is based on the projected unit-
credit method. Plan assets invested to cover defined
benefit pension commitments and other post-
employment benefit obligations are measured at fair
value and offset against the corresponding obligations.
The balance of defined benefit commitments for
pensions and other similar post-employment benefit
obligations and plan assets (net pension obligation or
net pension assets) accrues interest at the discount
rate used as a basis for the measurement of the gross
pension obligation. The resulting net interest expense
or income is recognized in profit and loss under
interest expense or interest income in the Consolidated
Statement of Income. The other expenses resulting
from pension commitments and other post-employ-
ment benefit obligations, which mainly result from
entitlements acquired during the year under review, are
taken into consideration in functional costs in the
Consolidated Statement of Income. Differences
between the assumptions made and actual develop-
ments as well as changes in actuarial assumptions for
the measurement of defined benefit plans and similar
obligations result in actuarial gains and losses, which
are recognized in equity through other comprehensive
income.
The discount factors used to calculate the present
values of defined benefit pension obligations are
determined – with maturities and currencies matching
the pension payments – by reference to market yields
at the end of the reporting period on high-quality fixed-
rate corporate bonds in the respective market. For
very long maturities, there are no high-quality corporate
bonds available as a benchmark. The respective
discount factors are estimated by extrapolating current
market rates along the yield curve.
Gains or losses on the curtailment or settlement of
a defined benefit plan are recognized in profit or loss
when the curtailment or settlement occurs.
Annual Report 2024 | Mercedes-Benz Group
318
Notes to the Consolidated Financial
Statements
Provisions for other risks
Provisions are recognized when an obligation to third
parties has been incurred, an outflow of resources
is probable and the amount of the obligation can be
reasonably estimated. The amount recognized as a
provision represents the best estimate of the obligation
at the reporting date.
Provisions with an original maturity of more than one
year are discounted to the present value of the
expenditures expected to settle the obligation at the
end of the reporting period.
If the recognition criteria of provisions are not fulfilled
and the possibility of a cash outflow upon settlement
is not unlikely, the item is presented as a contingent
liability, insofar as it is adequately measurable. The
amount disclosed as a contingent liability represents
the best estimate of the possible obligation at the re-
porting date. Provisions and contingent liabilities are
regularly reviewed and adjusted as further information
becomes available or circumstances change.
A provision for expected warranty costs is recognized
when a product is sold or when a new warranty pro-
gramme is initiated. Estimates for accrued warranty
costs are particularly based on historical experience.
Other assumptions include, but are not limited to, the
amount of potential repair costs. The provisions are
regularly adjusted to reflect new information.
Restructuring provisions are set up in connection
with programmes that materially change the scope of
business performed by a segment or business unit
or the manner in which business is conducted. In most
cases, restructuring expenses include termination
benefits and compensation payments due to the
termination of agreements with suppliers and dealers.
Benefits on termination of employment are recognized
when the Group has a detailed formal plan that has
either commenced implementation or been announced.
Contract and refund liabilities
Contract liabilities
A contract liability is an entity’s obligation to transfer
goods or services to a customer for which the entity
has received consideration (or the amount is due) from
the customer.
Refund liabilities
A refund liability occurs if the Mercedes-Benz Group
receives consideration from a customer and expects
to refund some or all of that consideration to the
customer. A refund liability is measured at the amount
of consideration received for which the Mercedes-Benz
Group does not expect to be entitled and is thus not
included in the transaction price.
Share-based payment
Share-based payment comprises cash-settled liability
awards.
Liability awards are measured at fair value at each
balance sheet date until settlement and are classified
as provisions under consideration of vesting condi-
tions. The profit or loss of the period equals the
addition to and/or the reversal of the provision during
the reporting period and the dividend equivalent paid
during the period, and is included in functional costs.
Presentation in the Consolidated Statement
of Cash Flows
Cash-effective government grants are shown in cash
flow from operating activities. In addition, interest paid
as well as interest and dividends received are allocated
to cash flow from operating activities. To the extent
that the reverse factoring agreements entered into by
the Mercedes-Benz Group do not result in changes
in the presentation of the original trade payables, the
cash flows from these agreements are also presented
in cash flow from operating activities. Furthermore
all cash flows of receivables from financial services in
the Consolidated Statement of Cash Flows are also
classified as cash flow from operating activities.
1 Net carbon-neutral means that carbon emissions that are not avoided or reduced at Mercedes-Benz are compensated for by certified offsetting products.
Annual Report 2024 | Mercedes-Benz Group
319
Notes to the Consolidated Financial
Statements
The cash flows from short-term marketable debt
securities with high turnover rates and significant
amounts are offset and presented within cash flow
from investing activities.
Consideration of sustainability related aspects in
connection with the recognition and measurement
of assets and liabilities
The Mercedes-Benz Group has set itself the target of
net carbon-neutrality 1 for the new vehicle fleet by
2039, as far as market conditions allow. In addition to
market conditions, the course of the transformation will
be determined primarily by the infrastructure and the
consumer behaviour. The Group is therefore preparing
to be able to meet the various customer requirements,
whether all-electric drives or electrified combustion
engines. To achieve this, production is set up to be
flexible in terms of drive systems. For the further
development of the product portfolio, the Mercedes-
Benz Group sustainably utilizes efficiencies between
new and existing model series.
Recognition and measurement of the Group’s assets
and liabilities take into account climate-related risks
and developments associated with the transformation,
which also include the climate targets set in the Paris
Climate Agreement.
Accounting estimates and management judgements in
connection with sustainability-related aspects include,
in particular, the following issues:
The determination and review of the useful lives of
the capitalized development costs are based on the
expected product life cycle. Changes in the originally
envisaged product life cycles can result from the
transformation to all-electric vehicles. Due to the
resolutions regarding the accelerated transformation
new developments in the area of conventional
powertrains are reduced and already capitalized
development expenditure is partly used for a longer
time.
In the same way, the useful lives of property, plant and
equipment assets are regularly reviewed in the light
of the transformation to all-electric vehicles. This did
not require any material adjustments of the useful lives
up to the reporting date as the production facilities of
the Group are basically flexible in use.
In the context of production network management,
efforts are also being made to secure sites affected by
the transformation by enhancing them. No significant
obligations to dismantle or remove production facilities
and plants that would give rise to a provision existed
on the reporting date.
The recoverability of leased vehicles classified as
operating leases is reviewed regularly. When deter-
mining recoverability, the residual value of the leased
vehicles is particularly relevant. Due to the transfor-
mation to all-electric vehicles, residual values can be
influenced by changing customer behaviour, new
regulatory requirements and further technological
developments. No significant impairment losses were
required for conventionally powered vehicles in
the reporting year. Due to the slower transformation
towards all-electric vehicles, impairments of
€0.4 billion were recorded for vehicles with electric
drives.
The expected proceeds from the disposal of vehicles
pledged as collateral are taken into account in the
determination of expected credit losses for receivables
from financial services. The expected proceeds from
the disposal are based on an estimate of the market
value at the expected time of a possible default. There
were very few instances of a reduction of these
estimated market values that could be traced to effects
of climate change or of changing customer behaviour
as of the reporting date.
Annual Report 2024 | Mercedes-Benz Group
320
Notes to the Consolidated Financial
Statements
In addition to traditional energy supply contracts,
which are usually only recorded as pending trans-
actions upon delivery, the Group has concluded
contracts to secure purchase quantities and prices for
renewable energies (in particular electricity from wind
and solar energy). These are contracts that provide for
a fixed remuneration per unit of energy and are mainly
recognized either as derivatives or leases.
The impairment test on the level of the cash-generating
units is based on the corporate planning and strategy
of the Mercedes-Benz Group. This provides for a
step by step substitution of vehicles with combustion
engines by electric vehicles.
Corporate planning parameters in connection with the
transformation affect the investment requirements
and the currently higher variable costs of all-electric
vehicles in comparison with vehicles with conventional
powertrains. The simultaneous development, model
refinement and production of electric and conventio-
nally powered vehicles results in a high investment
requirement, particularly in the detail planning period
until 2029. No growth was assumed in the derivation
of the terminal value, due in part to the not yet
completely predictable effects of the competitive
situation and customer behaviour in the course
of the transition to electric mobility.
In addition, a risk assessment is being carried out for
both the detailed planning period and the terminal
value, which includes, for example, market risks as well
as risks resulting from legal and political framework
conditions (e.g. in connection with sustainability
aspects such as CO2 legislation).
The impairment test carried out in 2024 did not result
in any impairment requirement for the cash-generating
units.
2. Accounting estimates and
management judgements
In the Consolidated Financial Statements, it is to a
certain degree necessary to make estimates and
management judgements which can affect the amounts
and reporting of assets and liabilities, the reporting of
contingent assets and liabilities on the balance sheet
date, and the income and expense reported for the
period. The major items affected by such estimates and
management judgements are described as follows.
Actual amounts may differ from the estimates. Changes
in the estimates and management judgements can have
a material impact on the Consolidated Financial
Statements.
Recoverable amounts of cash-generating units
and equity-method investments
In the context of impairment tests for non-financial
assets, estimates have to be made to determine the
recoverable amount of a cash-generating unit.
Assumptions have to be made in particular with regard
to future cash inflows and outflows for the planning
period and the following periods. The estimates mainly
refer to future unit sales, growth in the respective
markets and the profitability of the products, which are
also highly dynamic and thus uncertain as a result of
the transition to electric mobility. Therefore, a risk
assessment and sensitivity analyses are additionally
carried out.
1 The previous year’s figures have been corrected in accordance with IAS 8. Further information is included in Note 3.
Annual Report 2024 | Mercedes-Benz Group
321
Notes to the Consolidated Financial
Statements
When objective evidence of impairment or impairment
reversal is present, estimates and assessments also
have to be made to determine the recoverable amount
of an equity-method investment. The determination of
the recoverable amount is based on assumptions
regarding future business developments for the
determination of the expected future cash flows of that
investment. On the balance sheet date, the carrying
amount of equity-method investments was
€12,786 million (31 December 2023: €13,104 million).
Recoverable amount of equipment
on operating leases
The Mercedes-Benz Group regularly reviews the factors
determining the values of its leased vehicles (carrying
amount as of 31 December 2024: €45,220 million;
31 December 2023: €41,712 million). In particular, it is
necessary to estimate the residual values of vehicles,
which constitute a substantial part of the expected
future cash inflows from equipment on operating
leases.
In this context, assumptions are made regarding major
influencing factors, such as the expected number of
returned leased vehicles and the latest remarketing
results. Those assumptions are determined by qualified
estimates. The qualified estimates are based on publi-
cations by expert third parties and data from external
market research institutes as well as additional
information available internally, such as historical
experience and current sales data. In addition,
knowledge about new regulatory requirements or
changes in customer behaviour is included in the
residual value estimates. The residual values thus
determined serve as a basis for scheduled depre-
ciation; changes in residual values lead either to a
prospective adjustment of the scheduled depreciation
or, in the case of a significant decline in expected
residual values, to an impairment. If scheduled
depreciation is prospectively adjusted, changes in
estimates of residual values do not have a direct effect
but are equally distributed over the remaining term of
the lease contract.
Collectability of receivables from financial services
The Group regularly estimates the risk of default on
receivables from financial services (carrying amount as
of 31 December 2024: €87,867 million; 31 December
2023: €89,019 million 1).
Many factors are taken into consideration in this
context including historical loss experience, the size
and composition of certain portfolios, current
economic events and conditions and the current fair
values and adequacy of collaterals. In addition to
historical and current information on losses, appro-
priate and reliable forward-looking information on
factors is also included. This information includes
macroeconomic factors (e.g. gross domestic product
growth, unemployment rate, cost performance index)
and forecasts of future economic conditions. For
receivables from financial services, these forecasts are
performed using a scenario analysis (basic scenario,
optimistic scenario and pessimistic scenario). Further
external information which cannot be depicted in the
scenarios, is – as far as necessary – included in the
assessment through subsequent adjustments. Changes
to the estimation and assessment of these factors
influence the allowance for credit losses with a
resulting impact on the Group’s net profit.
Annual Report 2024 | Mercedes-Benz Group
322
Notes to the Consolidated Financial
Statements
Product warranties
The Group provides various types of product warran-
ties, depending on the type of product and market
conditions. Provisions for product warranties (carrying
amount as of 31 December 2024: €6,934 million;
31 December 2023: €6,399 million) are generally
recognized at the time of vehicle sale. In order to
determine the extent of these provisions, assumptions
have to be made concerning the type and extent of
expected statutory and contractual warranty claims, of
future goodwill cases and of possible recall campaigns.
These assessments are based on experience of the
frequency and extent of vehicle faults and defects in
the past. In addition, the estimates also include
assumptions on the amounts of potential repair costs
per vehicle and the effects of possible time or mileage
limits. The discount factors are also based on estimates
to a certain extent. The provisions are regularly
adjusted to reflect new information.
Liability and litigation risks and
regulatory proceedings
Various legal proceedings, claims and regulatory
investigations are pending against Mercedes-Benz
Group AG and its subsidiaries on a wide range of
topics. If the outcome of such legal proceedings is
detrimental to the Mercedes-Benz Group, the Group
may be required to pay substantial compensatory
and punitive damages, to undertake service actions
or recall campaigns, to pay fines or to carry out
other costly actions. Litigation and governmental
investigations often involve complex legal issues and
are connected with a high degree of uncertainty.
Accordingly, the assessment of whether a current
obligation exists on the balance sheet date as a result
of an event in the past, and whether a future cash
outflow is likely and the obligation can be reliably
estimated, largely depends on estimations by the
management. The Mercedes-Benz Group regularly
evaluates the current stage of legal proceedings, also
with the involvement of external legal counsel. The
amounts of provisions for pending or threatened
proceedings are regularly restated in accordance with
new expected developments. As of 31 December 2024,
the carrying amounts of provisions for liability and
litigation risks were €1,683 million (31 December 2023:
€2,104 million). Changes in estimates and assumptions
can have a material effect on the Group’s future profit-
ability, liquidity and capital resources, and financial
position. It is also possible that provisions recognized
for some legal proceedings may turn out to be in-
sufficient once such proceedings have ended. The
Mercedes-Benz Group may also become liable for
payments in legal proceedings for which no provisions
were established. Although the final resolution of any
such proceedings could have a material effect on
the Mercedes-Benz Group’s earnings and cash flows
for a particular reporting period, from the current
assessment, the Mercedes-Benz Group does not
expect this to result in any sustained impact on the
Group’s financial position.
Pensions and similar obligations
The calculation of provisions for pensions and similar
obligations and the related pension cost are based
on various actuarial valuations. The calculations are
subject to various assumptions on matters such
as current actuarially developed probabilities (e.g.
discount factors and cost-of-living increases), future
fluctuations with regard to age and period of service,
and experience with the probability of occurrence of
pension payments, annuities or lump sums. As a
result of changed market or economic conditions, the
probabilities caused by the influencing factors may
differ from current developments.
The financial effects of deviations of the main factors
are calculated with the use of sensitivity analyses.
As of 31 December 2024 provisions for pensions and
similar obligations were €952 million (31 December
2023: €1,090 million).
Annual Report 2024 | Mercedes-Benz Group
323
Notes to the Consolidated Financial
Statements
Income taxes
The calculation of income taxes of Mercedes-Benz
Group AG and its subsidiaries is based on the
legislation and regulations applicable in the various
countries. Due to their complexity, the tax items
presented in the Consolidated Financial Statements are
possibly subject to different judgements by taxpayers
on the one hand and local tax authorities on the other
hand. Different judgements can occur especially in
connection with the recognition and measurement of
balance sheet items as well as in connection with
the tax assessment of expenses and income. Carrying
amounts of liabilities for income taxes as of
31 December 2024 were €2,047 million (31 December
2023: €2,421 million).
3. Corrections in accordance
with IAS 8
In the year 2024, the accounting of lease returns from
operating lease contracts was examined at segment
and Group level. It was determined that some
companies in the Mercedes-Benz Mobility segment
reported revenue and cost of sales from the remar-
keting of returned leased vehicles, even though
Mercedes-Benz Cars was the economic owner of the
vehicle inventories. This led to double entries of
revenue and cost of sales.
In addition, some companies in the Mercedes-Benz
Mobility segment did not report revenue and cost of
sales from the remarketing of returned leased vehicles,
even though the Mercedes-Benz Mobility segment
accounted for vehicles purchased from external third
parties as leased assets and was therefore the
economic owner of these vehicles.
Revenue and cost of sales were corrected in accor-
dance with IAS 8.41 ff., as the impacts on the reporting
of revenue and cost of sales in the Mercedes-Benz
Mobility segment are material.
The following tables show the required adjustments
in the Consolidated Statement of Income/Loss, in the
table Revenue in Note 5, in the table Cost of sales in
Note 6 as well as in the table Segment Information and
in the table Revenue and non-current assets by region
in Note 34 in the year 2023.
Annual Report 2024 | Mercedes-Benz Group
324
Notes to the Consolidated Financial
Statements
Corrections in the Consolidated Statement of Income/Loss in 2023
As previously
reported
Corrections in
accordance
with IAS 8
Further
adjustments1
As restated
In millions of euros
Revenue
153,218
-828
–
152,390
Cost of sales
-118,839
828
625
-117,386
Gross profit in relation to revenue
34,379
–
625
35,004
Selling expenses
-9,728
–
-542
-10,270
General administrative expenses
-2,688
–
-83
-2,771
Research and non-capitalized development costs
-6,230
–
–
-6,230
Others
3,927
–
–
3,927
Earnings before interest and taxes (EBIT)
19,660
–
–
19,660
Net profit
14,531
–
–
14,531
Earnings per share (in euros)
For profit attributable to shareholders of Mercedes-Benz Group AG
Basic
13.46
–
–
13.46
Diluted
13.46
–
–
13.46
1 For a more suitable presentation, reclassifications have been carried out in the functional costs. The reclassifications are described in Note 1.
Annual Report 2024 | Mercedes-Benz Group
325
Notes to the Consolidated Financial
Statements
Corrections in 2023
As previously
reported
Corrections in
accordance
with IAS 8
As restated
In millions of euros
Revenue
Revenue IFRS 15 in
Europe
Mercedes-Benz Mobility
5,762
-1,147
4,615
Reconciliation
-3,737
319
-3,418
Mercedes-Benz Group
53,849
-828
53,021
Total revenue
Mercedes-Benz Mobility
26,718
-1,147
25,571
Reconciliation
-6,544
319
-6,225
Mercedes-Benz Group
153,218
-828
152,390
Segment reporting
External revenue
Mercedes-Benz Mobility
25,752
-828
24,924
Mercedes-Benz Group
153,218
-828
152,390
Intra-Group revenue
Mercedes-Benz Mobility
966
-319
647
Reconciliation
-6,544
319
-6,225
Total revenue
Mercedes-Benz Mobility
26,718
-1,147
25,571
Reconciliation
-6,544
319
-6,225
Mercedes-Benz Group
153,218
-828
152,390
Revenue and non-current assets by region
Revenue
153,218
-828
152,390
Europe
61,895
-828
61,067
thereof Germany
25,799
-1,168
24,631
Corrections in the cost of sales in 2023
As
previously
reported
Corrections
in accor-
dance
with IAS 8
Further
adjustments1
As restated
In millions of
euros
Cost of sales
-118,839
828
625
-117,386
Expense of
goods sold
-102,416
828
574
-101,014
Refinancing
costs from
financial
services
business
-3,226
–
278
-2,948
Other cost
of sales
-5,793
–
-227
-6,020
1 For a more suitable presentation, reclassifications have been carried out in the
functional costs. The reclassifications are described in Note 1.
In 2024, corrections in connection with the allocation
of economic ownership of vehicle inventories as part
of dealer inventory financing led to reclassifications in
the Mercedes-Benz Mobility segment from inventories
to receivables from financial services. This issue was
also corrected in accordance with IAS 8.41 ff.: As of
31 December 2023, €808 million had to be reclassified
from inventories to current receivables from financial
services. As of 1 January 2023, the related reclassi-
fications amounted to €495 million.
In addition in 2024, contract and refund liabilities in
the Mercedes-Benz Cars segment were corrected
regarding the presentation of non-current and current
liabilities within the meaning of IAS 8.41 ff. The
corresponding reclassification of €856 million as of
31 December 2023 is shown in the following table. As
of 1 January 2023, the figure to be reclassified
amounted to €1,106 million.
Both adjustments to the Consolidated Statement of
Financial Position as of 31 December 2023 are shown
in the following table.
Corrections in the Consolidated Statement of Financial Position at
31 December 2023
As previously
reported
Corrections in
accordance
with IAS 8
As restated
In millions of euros
Inventories
27,294
-808
26,486
Receivables from
financial services
38,469
808
39,277
Total current assets
104,032
–
104,032
Total assets
263,022
–
263,022
Contract and
refund liabilities
3,514
-856
2,658
Total non-current
liabilities
87,772
-856
86,916
Contract and
refund liabilities
6,877
856
7,733
Total current liabilities
82,434
856
83,290
Total liabilities
263,022
–
263,022
Annual Report 2024 | Mercedes-Benz Group
326
Notes to the Consolidated Financial
Statements
The balance sheet corrections result in the following
changes in the Consolidated Statement of Cash Flows.
Corrections in the Consolidated Statement of Cash Flows in 2023
As previously
reported
Corrections in
accordance
with IAS 8
As restated
In millions of euros
Inventories
-2,733
313
-2,420
Receivables from
financial services
-5,812
-313
-6,125
Cash flow from
operating activities
14,470
–
14,470
4. Consolidated Group
Composition of the Group
The following table shows the composition of the
Group. A detailed list of the companies included in the
Consolidated Financial Statements and of the equity
investments of the Mercedes-Benz Group pursuant to
Section 313 of the German Commercial Code (HGB) is
provided in the statement of investments in Note 42.
Composition of the Group
31 December
2024
2023
Consolidated subsidiaries
239
251
Germany
52
50
International
187
201
Unconsolidated subsidiaries
53
63
Germany
21
26
International
32
37
Joint operations accounted for
using proportionate consolidation
1
1
Germany
–
–
International
1
1
Joint ventures accounted for
using the equity method
8
7
Germany
2
2
International
6
5
Associated companies accounted for
using the equity method
11
10
Germany
3
3
International
8
7
Joint operations, joint ventures,
associated companies accounted
for at (amortized) cost and
substantial other investments
recognized at fair value
28
29
Germany
16
16
International
12
13
Total
340
361
Annual Report 2024 | Mercedes-Benz Group
327
Notes to the Consolidated Financial
Statements
Subsidiaries whose business is non-active or of low
volume and are therefore not material for the Group
and the fair presentation of its profitability, liquidity,
capital resources, and financial position are not
consolidated. The criteria are the balance sheet totals,
the aggregate revenues and the aggregate net profits
after taxes of the subsidiaries, associated companies,
joint ventures and joint operations accounted for at
(amortized) cost in relation to the corresponding size
of the Group.
With the implementation of the European Sustainability
Reporting Standards (ESRS) from 2024, the number
of employees became an additional criterion for the
inclusion of a company in the Consolidated Group. As
a result, seven previously unconsolidated companies
were consolidated for the first time in the reporting
year. The effects on the profitability, liquidity and
capital resources, and financial position are of minor
importance. The effects on the personnel indicators are
described in Note 6.
Structured entities
The structured entities of the Group are mainly asset-
backed-securities (ABS) companies and special funds.
The ABS companies are primarily used for the Group’s
refinancing. The receivables transferred to structured
entities usually result from the leasing and sales-
financing business. Those entities refinance the
purchase price by issuing securities. The special funds
are set up in particular in order to diversify the capital-
investment strategy.
At the reporting date, the Group had business relation-
ships with 29 (2023: 34) controlled structured entities,
which all are fully consolidated. In addition, as in the
previous year, the Group has relationships with one
non-controlled structured entity.
Shares in subsidiaries
Sale of sales companies and retail activities
In the course of the year 2023, the sales company in
Greece and other dealers in Europe had been sold. The
disposals resulted in income of €186 million. The cash
inflow amounted to a total of €315 million. The criteria
for classification as assets and liabilities held for sale
were met for other sales companies in other European
countries as of 31 December 2023.
In 2024, the Group divested retail activities in Italy,
France, Sweden, Poland, Denmark, Portugal and
the Netherlands. The disposals resulted in a total
income of €96 million and a cash inflow of €374 million.
The assets disposed of in the deconsolidation amoun-
ting to €716 million mainly included inventories of
€239 million, property, plant and equipment of
€134 million, equipment on operating leases of
€118 million, trade receivables of €107 million and cash
and cash equivalents of €21 million. The disposed
liabilities of €159 million included in particular financing
liabilities and other financial liabilities of €73 million.
Annual Report 2024 | Mercedes-Benz Group
328
Notes to the Consolidated Financial
Statements
The assets and liabilities held for sale in the
Consolidated Statement of Financial Position as of
31 December 2024 relate to retail activities in Poland.
The Group sold these in January 2025. In addition there
were no significant effects on the profitability and the
liquidity and capital resources. All of the above effects
were mainly allocated to the Mercedes-Benz Cars
segment.
Sale of financing portfolio in Austria
In 2023, the Mercedes-Benz Mobility AG decided to no
longer offer vehicle financing in Austria and thus to sell
the financing portfolio of Mercedes-Benz Bank GmbH
in Austria. The criteria for classification as assets and
liabilities held for sale were met in the third quarter
of 2024. For this reason, assets and liabilities in the
Consolidated Statement of Financial Position as
of 31 December 2024 were reported as assets and
liabilities held for sale, which are fully allocated to the
Mercedes-Benz Mobility segment. In addition no
significant effects on the profitability and liquidity and
capital resources are expected.
The assets and liabilities shown in the Consolidated
Statement of Financial Position as held for sale are
shown in the following table.
Assets and liabilities held for sale
31 December
2024
2023
In millions of euros
Assets held for sale
160
795
Sales companies in European countries
73
795
Financing portfolio in Austria
87
–
Liabilities held for sale
46
224
Sales companies in European countries
31
224
Financing portfolio in Austria
15
–
Sale of the shares in the Russian subsidiaries
On 2 March 2022, the Mercedes-Benz Group decided
to stop exporting cars and vans to Russia and to cease
local production in Russia until further notice. At the
end of October 2022, the Mercedes-Benz Group signed
contracts with the Russian car dealer Avtodom AO for
the sale of the shares in the Russian subsidiaries. With
the closing of the transaction on 19 April 2023, the
shares of Russian subsidiaries were deconsolidated.
The deconsolidation in 2023 involved the disposal of
assets of €976 million, which were essentially com-
posed of property, plant and equipment of €290 million
and receivables from financial services of €280 million.
In addition, cash and cash equivalents of €91 million
were also included. The liabilities of €1,065 million
disposed of included in particular provisions of
€636 million and financing liabilities of €347 million.
The Group had issued a global guarantee for the
financing liabilities to financial institutions, which
ended when the transaction was completed.
The sale of the Russian subsidiaries resulted in no
significant cash inflow. The cash outflow in the amount
of the disposed cash and cash equivalents of
€91 million was mainly attributable to the Mercedes-
Benz Mobility segment.
The transaction costs amounted to €3 million. After
realizing the currency reserve of €291 million, a loss on
disposal of €205 million resulted in 2023. This was
reported in other operating expense. Expenses of
€276 million were attributable to the Mercedes-Benz
Mobility segment; the Mercedes-Benz Cars and
Mercedes-Benz Vans segments generated income of
€66 million and €5 million, respectively.
Annual Report 2024 | Mercedes-Benz Group
329
Notes to the Consolidated Financial
Statements
Sale of Indonesian sales and production entities
The Mercedes-Benz Group sold its subsidiaries in
Indonesia to a local investor with effect from
29 September 2023. The sale of both companies
resulted in an income of €89 million and a cash inflow
of €140 million which were allocated to the Mercedes-
Benz Cars segment. Assets decreased by €141 million
and liabilities by €88 million as a result of decon-
solidation of the subsidiaries.
Shares in associated companies
Sale of interests in Mercedes-Benz Grand Prix Ltd.
In the fourth quarter of 2021, the Mercedes-Benz
Group signed the contractual agreements with Motor-
sports Invest Ltd. and INEOS Industries Holdings Ltd.
on the sale of shares of Mercedes-Benz Grand Prix Ltd.
The purchase price payment agreed for 2023 resulted
in a cash inflow of €144 million.
5. Revenue
Revenue in 2024 was slightly below the previous year’s
level. The drop was primarily due to the slight decrease
in unit sales in connection with an unfavourable
product and market mix as well as negative net pricing
effects.
Revenue disclosed in the Consolidated Statement of
Income includes revenue from contracts with custo-
mers, which are in the scope of IFRS 15 (revenue
according to IFRS 15), and other revenue not in the
scope of IFRS 15. The composition of the revenue
in the Consolidated Statement of Income is shown
by region in Note 34.
Revenue according to IFRS 15 is disaggregated by
the two categories – type of products and services and
geographical regions. The category type of products
and services corresponds to the reported segments.
Revenue according to IFRS 15 includes revenue that
was included in contract liabilities at 31 December
2023 in the amount of €2,832 million (2023:
€2,903 million) and revenue from performance obli-
gations fully (or partially) satisfied in previous periods
in the amount of €222 million (2023: €467 million).
Revenue related to performance obligations that were
unsatisfied (or partially unsatisfied) by the end of the
reporting period that is expected to be recognized
within three years amounted to €7,327 million at
31 December 2024 (2023: €6,663 million).
This revenue is mainly derived from long-term service
and maintenance contracts and extended warranties. It
does not include performance obligations from custo-
mer contracts that have initial expected durations of
one year or less. The number of vehicles, for which the
expected original delivery time will exceed twelve
months, is immaterial and is therefore not part of the
disclosed amount. Long-term performance obligations
of minor importance to the overall contract value of a
bundled contract are not considered in assessing the
initial duration of the bundled contract.
Annual Report 2024 | Mercedes-Benz Group
330
Notes to the Consolidated Financial
Statements
Other revenue primarily comprises revenue from the
rental and leasing business of €10,695 million (2023:
€10,870 million), interest from the financial services
business at Mercedes-Benz Mobility recognized
using the effective-interest method in the amount of
€5,738 million (2023: €5,161 million) and effects from
currency hedging. Interest from the financial services
business includes financial income on the net invest-
ment in leases of €1,233 million (2023: €1,027 million).
Revenue
Mercedes-Benz Cars
Mercedes-Benz Vans
Mercedes-Benz Mobility
Total segments
Reconciliation1
Mercedes-Benz Group
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
(adjusted)
(adjusted)
(adjusted)
(adjusted)
In millions of euros
Europe2
37,350
38,890
12,540
12,934
4,539
4,615
54,429
56,439
-3,883
-3,418
50,546
53,021
North America
25,650
26,021
3,319
4,281
4,519
5,252
33,488
35,554
-270
-250
33,218
35,304
Asia
35,883
39,759
1,012
985
127
142
37,022
40,886
-18
-7
37,004
40,879
Other markets
5,562
5,125
2,108
1,744
43
86
7,713
6,955
-4
–
7,709
6,955
Revenue according to IFRS 152
104,445
109,795
18,979
19,944
9,228
10,095
132,652
139,834
-4,175
-3,675
128,477
136,159
Other revenue
3,316
2,961
341
344
15,855
15,476
19,512
18,781
-2,395
-2,550
17,117
16,231
Total revenue2
107,761
112,756
19,320
20,288
25,083
25,571
152,164
158,615
-6,570
-6,225
145,594
152,390
1 The reconciliation includes eliminations of intra-Group revenue between the segments.
2 The previous year’s figures for Mercedes-Benz Mobility, the reconciliation and the Mercedes-Benz Group have been corrected in accordance with IAS 8. Further information is included in Note 3.
Annual Report 2024 | Mercedes-Benz Group
331
Notes to the Consolidated Financial
Statements
6. Functional Costs
Cost of sales
Cost of sales
2024
2023
(adjusted)
In millions of euros
Expense of goods sold1, 2
-97,885
-101,014
Depreciation of equipment on operating
leases
-7,895
-7,022
Refinancing costs from financial services
business
-4,046
-2,948
Impairment losses on receivables from
financial services
-528
-382
Other cost of sales2
-6,664
-6,020
-117,018
-117,386
1 The previous year’s figures have been corrected in accordance with IAS 8. Further
information is included in Note 3.
2 For a more suitable presentation, reclassifications have been carried out in the
functional costs. The reclassifications are described in Note 1.
In 2024, the cost of sales was on the same level as in
the previous year. The slight decrease in unit sales
and cost efficiencies, primarily in procurement and
production, were offset by increased expenses for
measures relating to the product life cycles of
Mercedes-Benz vehicles, higher expenses to suppliers
and value adjustments of leased vehicles with electric
drive trains as well as by increased cost of credit risks,
in particular in the United States, and a negative
development of interest rates in the financial services
sector. The amortization expense of capitalized devel-
opment costs in the amount of €2,005 million (2023:
€2,139 million) is presented in expense of goods sold.
Selling expenses
Selling expenses amounted to €9,993 million in 2024
(2023: €10,270). Selling expenses consist of direct
selling costs as well as selling overhead expenses and
comprise personnel expenses, material costs and other
selling costs.
General administrative expenses
In 2024, general administrative expenses amounted
to €2,529 million and were below the previous year’s
figure of €2,771 million, in particular due to lower
variable wage and salary components. They consist of
expenses which are not attributable to production,
sales or research and development functions, and
include personnel expenses, depreciation and
amortization of fixed and intangible assets, and other
administrative costs.
Research and non-capitalized
development costs
Research and non-capitalized development costs were
€5,580 million in 2024 (2023: €6,230 million) and
primarily comprise personnel expenses and material
costs. The decrease was due to lower expenses in
connection with existing vehicle models, mainly with
the current platform generations geared towards
electric mobility, and due to lower expenses for
conventional drive systems.
Personnel expenses and average
number of employees
Personnel expenses included in the Consolidated
Statement of Income for 2024 amounted to
€17,301 million (2023: €16,633 million). Personnel
expenses comprise wages and salaries in the amount
of €14,374 million (2023: €13,848 million), social-
security contributions in the amount of €2,497 million
(2023: €2,376 million) and expenses from pension
obligations in the amount of €430 million (2023:
€409 million). The first-time consolidations in 2024
as a result of the first-time application of the ESRS
resulted in an increase of personnel expenses of
€805 million which were already included in other
cost types within the respective functional costs in
the prior year due to the intra-Group allocation
of the companies’ costs.
Annual Report 2024 | Mercedes-Benz Group
332
Notes to the Consolidated Financial
Statements
The average number of people employed in the
reporting year is shown in the following table.
Average number of employees1, 2
2024
2023
Mercedes-Benz Cars3
142,782
134,673
Mercedes-Benz Vans
18,984
19,179
Mercedes-Benz Mobility
9,538
9,945
Central Functions & Services
7,987
4,539
179,291
168,336
1 Active workforce (including holiday workers, excluding thesis writers, interns, working
students, PhD students, senior experts and trainees) in headcount as an average
number for the year 2024.
2 Seven subsidiaries have been consolidated retrospectively to 1 January 2024 as a
result of the first-time application of the ESRS. Taking into account the average
number of employees of 15,448 employees of these subsidiaries, the average number
of employees would have amounted to 183,784 employees in 2023.
3 Proportionally including 2,130 (2023: 2,345) employees from a proportionately
consolidated company.
7. Other operating income
and expense
The composition of other operating income is shown
in the following table.
Other operating income
2024
2023
In millions of euros
Income from costs recharged
932
1,131
Government grants
69
59
Gains on sales of property, plant and
equipment
31
29
Rental income not relating to sales financing
304
139
Income from company transactions
126
285
Other miscellaneous income
1,045
563
2,507
2,206
Income from costs recharged to third parties includes
IT and logistics costs as well as other income from
recharged costs related to expenses primarily within
functional costs.
The increase in other miscellaneous operating income
in 2024 resulted mainly from the reversal of provisions
in connection with governmental and court procee-
dings and measures taken relating to Mercedes-Benz
diesel vehicles. In contrast, income from costs
recharged to third parties was reduced mainly as a
result of the first time consolidation of previously
unconsolidated companies.
The composition of other operating expense is shown
as follows.
Other operating expense
2024
2023
In millions of euros
Losses on sales of property, plant and
equipment
-136
-60
Loss from deconsolidation
-2
-207
Other miscellaneous expense
-345
-249
-483
-516
In 2023, expenses of €205 million from the deconso-
lidation of the shares in the Russian subsidiaries
were included, which were mainly attributable to the
Mercedes-Benz Mobility segment.
Annual Report 2024 | Mercedes-Benz Group
333
Notes to the Consolidated Financial
Statements
8. Other financial income/expense
The following table shows the components of other
financial income/expense.
Other financial income/expense, net
2024
2023
In millions of euros
Income and expense from compounding
and effects from changes in discount rates
of provisions for other risks
-396
-437
Income and expense from equity
instruments
30
177
Income and expense from marketable debt
securities and similar investments
242
241
Income and expense from foreign currency
valuation of financial instruments
-196
108
Miscellaneous other financial income/
expense, net
283
19
-37
108
In 2024, miscellaneous other financial income/expense
includes a positive effect on earnings of €223 million
(2023: €68 million) from the revaluation of the liabili-
ties recognized in the context of the share buyback
programmes .
9. Interest income and interest
expense
The following table shows the components of interest
income and interest expense.
Interest income and interest expense
2024
2023
In millions of euros
Interest income
Net interest income on the net assets of
defined benefit pension plans
25
32
Interest and similar income
713
646
738
678
Interest expense
Net interest expense on the net obligation
from defined benefit pension plans
-41
-42
Interest and similar expense
-149
-212
-190
-254
10. Income taxes
The following table shows the components of income
tax expense.
Components of income tax expense
2024
2023
In millions of euros
Current taxes
-3,908
-5,344
Deferred taxes
170
-209
Deferred taxes due to temporary
differences
135
-227
Deferred taxes due to tax-loss
carryforwards and tax credits
35
18
-3,738
-5,553
The current tax expense includes tax benefits
recognized for prior periods at German and foreign
companies of €318 million (2023: €341 million).
The Group is within the scope of the OECD Pillar 2
model rules and the Act to Ensure Global Minimum
Taxation for Groups of Companies (Minimum Tax Act –
MinStG), and it applies the exception rule according to
IAS 12, which stipulates that no deferred tax assets
and liabilities are accounted for in connection with the
income taxes of Pillar 2 of the OECD. The Mercedes-
Benz Group has recognized insignificant income tax
expenses for 2024 due to the Minimum Tax Act.
Annual Report 2024 | Mercedes-Benz Group
334
Notes to the Consolidated Financial
Statements
The following table shows a reconciliation of expected
income tax expense to actual income tax expense in
the financial year. In order to determine the expected
income tax expense, the German combined statutory
tax rate of 29.825% applicable in the financial year is
multiplied by the profit before taxes.
Reconciliation of expected income tax expense to actual income tax
expense
2024
2023
In millions of euros
Expected income tax expense
-4,219
-5,990
Foreign tax-rate differential
307
238
Trade tax-rate differential
26
12
Tax-law changes
78
27
Change of unrecognized deferred tax assets
including write-down of deferred tax assets
-76
-16
Tax-free income and non-deductible
expenses
376
622
Other
-230
-446
Actual income tax expense
-3,738
-5,553
Tax-free income and non-deductible expenses includes
all reconciling items of German and foreign companies
relating to tax-free income and non-deductible ex-
penses, e.g. tax-free gains/losses on the equity-method
investments. The decrease compared to the previous
year is due, among other things, to the decrease in tax-
free equity-method earnings in 2024.
The other items which include, among other things,
effects from withholding taxes on dividends, patents
and licenses, decreased compared to the prior year.
Deferred tax assets and deferred tax liabilities are
offset if the deferred tax assets and liabilities relate to
income taxes levied by the same taxation authority and
if there is the right to set off current tax assets against
current tax liabilities. In the presentation of deferred
tax assets and liabilities in the Consolidated Statement
of Financial Position, no difference is made between
current and non-current.
In respect of each type of temporary difference and in
respect of each type of unutilized tax-loss carry-
forwards as well as unutilized tax credits at
31 December, the deferred tax assets and liabilities
presented in the Consolidated Statement of Financial
Position before offset are summarized in the following
table.
At 31 December 2024, unrecognized deferred tax
assets in the Consolidated Statement of Financial
Position relate mainly to tax-loss carryforwards and tax
credits of €116 million. These can largely be carried
forward indefinitely.
The Mercedes-Benz Group believes that it is more
likely than not that it will be unable to utilize those
unrecognized deferred tax assets.
Annual Report 2024 | Mercedes-Benz Group
335
Notes to the Consolidated Financial
Statements
Split of deferred tax assets and liabilities
31 December
31 December
2024
2023
Deferred tax assets
Deferred tax liabilities
Deferred tax assets
Deferred tax liabilities
In millions of euros
Intangible assets, mainly development costs
220
-5,301
175
-4,709
Property, plant and equipment
470
-2,469
431
-2,591
Equipment on operating leases
3,647
-4,664
3,465
-3,939
Inventories
1,749
-73
1,379
-18
Receivables from financial services
501
-2,168
795
-2,178
Miscellaneous assets, mainly other financial assets
5,044
-729
4,396
-1,583
Tax-loss carryforwards and unused tax credits
340
–
386
–
Provisions for pensions and similar obligations
143
-2,787
152
-2,832
Other provisions
1,008
-487
886
-461
Miscellaneous liabilities, mainly liabilities
3,399
-888
3,267
-407
16,521
-19,566
15,332
-18,718
Unrecognized deferred tax assets
-117
–
-201
–
thereof on temporary differences
-1
–
-29
–
thereof on tax-loss carryforwards and tax credits
-116
–
-172
–
Deferred tax assets and liabilities (unbalanced)
16,404
-19,566
15,131
-18,718
Balance sheet amounts of deferred tax assets and liabilities (balanced)
4,335
-7,497
4,127
-7,714
Deferred tax assets/deferred tax liabilities, net
-3,162
-3,587
Annual Report 2024 | Mercedes-Benz Group
336
Notes to the Consolidated Financial
Statements
The development of deferred tax assets and deferred
tax liabilities, net, is shown in the following table.
Changes in deferred tax assets/deferred tax liabilities, net
2024
2023
In millions of euros
Deferred tax assets/deferred tax liabilities,
net as of 1 January
-3,587
-3,185
Deferred tax expense/benefit in the
Consolidated Statement of Income
170
-209
Change in deferred tax assets/liabilities on
equity instruments included in other
comprehensive income/loss
30
-3
Change in deferred tax assets/liabilities on
debt instruments included in
other comprehensive income/loss
-3
-6
Change in deferred tax assets/liabilities on
derivative financial instruments included in
other comprehensive income/loss
504
-218
Change in deferred tax assets/liabilities on
actuarial gains/losses from defined
benefit pension plans included in other
comprehensive income/loss
-226
201
Other changes1
-50
-167
Deferred tax assets/deferred tax liabilities,
net as of 31 December
-3,162
-3,587
1 The other changes primarily relate to changes due to the effects of currency
translation.
From the current perspective, the retained earnings
of non-German subsidiaries are largely intended to be
reinvested in those operations. The Group did not
recognize deferred tax liabilities on retained earnings
which are intended to be reinvested at non-German
subsidiaries of €36,505 million (2023: €27,529 million).
If those earnings were paid out as dividends, an
amount of 5% would be taxed under German taxation
rules and they may be subject to non-German with-
holding tax. Additionally, other income tax conse-
quences might arise if the dividends first have to be
distributed by a non-German subsidiary to a non-
German holding company. Normally, the distribution
would lead to an additional income tax expense.
Estimating the amount of taxable temporary differ-
ences for these undistributed foreign earnings would
require a disproportionate effort. Deferred tax liabilities
on expected distributions from subsidiaries and
potential distributions from associated companies
amount to a total of €321 million (2023: €441 million).
In the Group, several years have not been finally
assessed for tax purposes. The Mercedes-Benz Group
believes that it has recognized adequate liabilities
for any future income taxes that may be owed for all
open tax years. Nevertheless, it cannot be ruled out
that tax arrears payments might exceed the liabilities
recognized in the financial statements.
As a result of future adjudications or changes in the
opinions of the fiscal authorities, it cannot be ruled out
that the Mercedes-Benz Group might receive tax
refunds for previous years. In particular, from 2012 to
2021, Mercedes-Benz Group AG incurred currency
exchange-rate related losses from the financing of
Group companies based abroad totalling €2.1 billion,
which were compensated by corresponding hedging
instruments. For the years until 2021, the German tax
authorities consider that exchange-rate related losses
from the financing of Group companies are generally
not to be recognized, while the compensating profits
from the hedging activities remain taxable. In 2021, the
German Modernization of Corporate Income Tax Act
stipulated that such exchange-rate losses are generally
deductible. However, this only applies from 2022 on-
wards. The company does not share the legal opinion
represented by the tax authorities for the years up to
2021. In the meantime, a lawsuit was also filed with the
Finance Court.
Annual Report 2024 | Mercedes-Benz Group
337
Notes to the Consolidated Financial
Statements
11. Intangible assets
Intangible assets developed as shown on the following
page.
At 31 December 2024 , goodwill of €388 million (2023:
€389 million) related to the Mercedes-Benz Mobility
segment, goodwill of €345 million (2023: €335  million)
related to the Mercedes-Benz Cars segment and
goodwill of €21 million (2023: €21 million) related to
the Mercedes-Benz Vans segment.
At 31 December 2024, development costs of
€15,695 million (2023: €14,068 million) related to the
Mercedes-Benz Cars segment and €1,558 million (2023:
€1,081 million) to the Mercedes-Benz Vans segment.
Non-amortizable intangible assets primarily relate to
goodwill and development costs for projects which
have not yet been completed (carrying amount at
31 December 2024: €9,549 million; 2023: €6,131 mil-
lion). The increase in capitalized development costs
is mainly due to development services for the new
platform generations geared to electromobility. In
addition, other intangible assets with a carrying
amount of €404 million (2023: €262 million) are not
amortizable. These assets relate in particular to
emission certificates and sales rights of the vehicle
segments with indefinite useful lives.
The Group plans to continue to use these assets
unchanged.
The following table shows the line items of the Con-
solidated Statement of Income in which total amorti-
zation expense for intangible assets is included.
Amortisation expense for intangible assets
in the Consolidated Statement of Income
2024
2023
In millions of euros
Cost of sales
2,262
2,339
Selling expenses
34
49
General administrative expenses
72
67
Research and non-capitalized
development costs
19
16
2,387
2,471
Annual Report 2024 | Mercedes-Benz Group
338
Notes to the Consolidated Financial
Statements
Intangible assets
Goodwill
(acquired)
Development costs
(internally generated)1
Other intangible assets
(acquired)
Total
In millions of euros
Acquisition/manufacturing costs
Balance at 1 January 2023
876
21,733
4,196
26,805
Additions
–
3,812
701
4,513
Transfers
–
–
–
–
Disposals
-2
-776
-331
-1,109
Other changes2
-10
–
-142
-152
Balance at 31 December 2023
864
24,769
4,424
30,057
Additions
–
4,136
490
4,626
Transfers
–
–
-58
-58
Disposals
-1
-1,801
-1,093
-2,895
Other changes2
13
–
53
66
Balance at 31 December 2024
876
27,104
3,816
31,796
Depreciation/impairment
Balance at 1 January 2023
127
8,196
2,613
10,936
Additions
–
2,152
319
2,471
Disposals
–
-727
-173
-900
Other changes2
-8
-1
-34
-43
Balance at 31 December 2023
119
9,620
2,725
12,464
Additions
–
2,018
369
2,387
Disposals
–
-1,787
-744
-2,531
Other changes2
3
–
37
40
Balance at 31 December 2024
122
9,851
2,387
12,360
–
–
–
–
Carrying amount at 31 December 2023
745
15,149
1,699
17,593
Carrying amount at 31 December 2024
754
17,253
1,429
19,436
1 Including capitalized borrowing costs on development costs of €100 million (2023: €113 million). Amortization amounted to €13 million (2023: €12 million).
2 Mainly relates to changes due to currency translations, changes in the scope of consolidation and reclassification to the balance sheet item Assets held for sale.
Annual Report 2024 | Mercedes-Benz Group
339
Notes to the Consolidated Financial
Statements
12. Property, plant and equipment
including right-of-use assets
Property, plant and equipment as shown in the Con-
solidated Statement of Financial Position with a carry-
ing amount of €26,537 million (2023: €26,090 million)
also includes right-of-use assets, that the Group
received as lessee. Property, plant and equipment,
including right-of-use assets, developed as shown on
the following page.
In 2024, government grants of €30 million (2023:
€69 million) were deducted from the carrying amount
of property, plant and equipment.
The following tables show additional disclosures
related to lessee accounting.
Expenses related to lessee accounting
2024
2023
In millions of euros
Interest expense from
lease transactions
72
57
Expenses from
short-term leases
26
17
Expenses from leases of
low-value assets
17
11
Expenses from variable
lease payments
54
24
Cash outflows related to lessee accounting
2024
2023
In millions of euros
Total cash outflow
for lease contracts
667
765
Future cash outflows that are not
reflected in the lease liabilities
4,447
4,144
Further information on lessee accounting is provided in
Notes 25 and 33.
Annual Report 2024 | Mercedes-Benz Group
340
Notes to the Consolidated Financial
Statements
Property, plant and equipment including right-of-use assets
Land, land rights
and buildings,
including buildings
on land owned by others
thereof
right-of-use
assets
from leasing
Technical
equipment
and machinery
thereof
right-of-use
assets
from leasing
Other equipment,
factory and
office equipment
thereof
right-of-use
assets
from leasing
Advance
payments
and construction
in progress
Total
thereof
right-of-use
assets
from leasing
In millions of euros
Acquisition/manufacturing costs
Balance at 1 January 2023
19,019
3,689
23,916
746
29,783
84
1,517
74,235
4,519
Additions
545
449
570
1
1,135
19
1,937
4,187
469
Transfers
138
–
549
91
551
–
-1,147
91
91
Disposals
-503
-299
-1,403
-7
-797
-16
-105
-2,808
-322
Other changes¹
-805
-234
-198
-4
-387
-2
25
-1,365
-240
Balance at 31 December 2023
18,394
3,605
23,434
827
30,285
85
2,227
74,340
4,517
Additions
547
405
615
24
861
27
2,472
4,495
456
Transfers
216
-1
568
58
297
1
-1,023
58
58
Disposals
-272
-215
-1,525
-272
-867
-29
-90
-2,754
-516
Other changes¹
377
238
165
9
460
4
29
1,031
251
Balance at 31 December 2024
19,262
4,032
23,257
646
31,036
88
3,615
77,170
4,766
Depreciation/impairment
Balance at 1 January 2023
8,791
1,448
15,295
295
22,882
50
17
46,985
1,793
Additions
757
450
1,647
196
1,800
19
–
4,204
665
Disposals
-325
-160
-1,289
-7
-722
-13
–
-2,336
-180
Other changes¹
-258
-77
-117
–
-269
-2
41
-603
-79
Balance at 31 December 2023
8,965
1,661
15,536
484
23,691
54
58
48,250
2,199
Additions
769
456
1,730
145
1,898
18
3
4,400
619
Disposals
-170
-135
-1,512
-272
-805
-28
–
-2,487
-435
Other changes¹
75
39
80
5
315
1
–
470
45
Balance at 31 December 2024
9,639
2,021
15,834
362
25,099
45
61
50,633
2,428
Carrying amount at 31 December 2023
9,429
1,944
7,898
343
6,594
31
2,169
26,090
2,318
Carrying amount at 31 December 2024
9,623
2,011
7,423
284
5,937
43
3,554
26,537
2,338
1 Mainly relates to changes due to currency translations, changes in the scope of consolidation and reclassification to the balance sheet item Assets held for sale.
Annual Report 2024 | Mercedes-Benz Group
341
Notes to the Consolidated Financial
Statements
13. Equipment on operating leases
The development of equipment on operating leases
is shown in the table Equipment on operating leases.
The carrying amount of the equipment on operating
leases includes leased right-of-use assets from
recognized head leases with the Daimler Truck Group
of €111 million (2023: €268 million).
The revenue received from the sale of Group products
to external dealers – plus in particular any dealer
margin – is estimated by the Group as being of the
magnitude of the respective addition to leased equip-
ment at Mercedes-Benz Mobility. These vehicles
generate revenue from lease payments and sub-
sequent resale on the basis of the separate leasing
contracts. In 2024, additions to leased equipment
from these vehicles at Mercedes-Benz Mobility
amounted to €11.4 billion (2023: €10.4 billion).
At 31 December 2024, equipment on operating leases
with a carrying amount of €10,890 million was pledged
as security for liabilities from ABS transactions (2023:
€8,187 million). These liabilities related to a securiti-
zation transaction of future lease payments on leased
vehicles (see also Note 25).
Equipment on operating leases
In millions of euros
Acquisition/manufacturing costs
Balance at 1 January 2023
56,026
Additions1
21,124
Transfers
-1
Disposals
-21,766
Other changes2
-563
Balance at 31 December 2023
54,820
Additions1
24,269
Transfers
3
Disposals
-21,788
Other changes2
893
Balance at 31 December 2024
58,197
Depreciation/impairment
Balance at 1 January 2023
14,474
Additions
7,022
Disposals
-8,006
Other changes2
-382
Balance at 31 December 2023
13,108
Additions
7,895
Disposals
-8,240
Other changes2
214
Balance at 31 December 2024
12,977
Carrying amount at 31 December 2023
41,712
Carrying amount at 31 December 2024
45,220
1 The additions include €9,770 million (2023: €8,353 million) that were not acquired
from external dealers.
2 Primarily changes from currency translation and in the year 2023 reclassifications to
Assets held for sale.
Due to the slower transition to all-electric vehicles,
impairment losses of €380 million (2023: €8 million)
were recorded for vehicles with electric drives in cost
of sales mainly in the Mercedes-Benz Cars segment.
Lease payments
Maturities of lease payments under operating lease
agreements to be paid by lessees to the Mercedes-
Benz Group in the future, are as follows.
Maturity of undiscounted lease payments for
equipment on operating leases
31 December
2024
2023
In millions of euros
Maturing
Within one year
7,957
7,565
Between one year and two years
6,036
5,434
Between two and three years
3,846
2,547
Between three and four years
2,047
1,116
Between four and five years
473
284
Later than five years
142
146
Total lease payments
20,501
17,092
Annual Report 2024 | Mercedes-Benz Group
342
Notes to the Consolidated Financial
Statements
14. Equity-method investments
Summarized carrying amounts and gains/losses on equity-method investments
Associated companies
Joint ventures
Total
2024
2023
2024
2023
2024
2023
In millions of euros
Equity-method carrying amount1, 2
12,322
12,378
464
726
12,786
13,104
Equity-method gains/losses1, 2
1,653
2,271
-515
-142
1,138
2,129
1 Including investor-level adjustments.
2 Impairments of totalling €526 million are included, thereof associated companies €176 million and joint ventures €350 million.
The Mercedes-Benz Cars segment accounts for €485 million with €41 million included in the reconciliation.
Key figures on interests in associated companies accounted for using the equity method
Daimler Truck1
BBAC
Other
Total
2024
2023
2024
2023
2024
2023
2024
2023
In millions of euros
Equity interest (in %)
31.6
30.7
49.0
49.0
–
–
–
–
Stock-market price2
9,099
8,401
–
–
–
–
–
–
Equity-method carrying amount3
8,655
8,425
2,443
2,578
1,224
1,375
12,322
12,378
Equity-method gains/losses3
711
797
1,073
1,457
-131
17
1,653
2,271
1 The information on the amount of the share (in %) represents the share relevant for accounting purposes as of the reporting date.
2 Proportionate stock-market prices.
3 I ncluding investor-level adjustments.
Annual Report 2024 | Mercedes-Benz Group
343
Notes to the Consolidated Financial
Statements
Associated companies
Daimler Truck Holding AG
The Daimler Truck Group is one of the world’s largest
commercial vehicle manufacturers. Its product port-
folio comprises light-, medium- and heavy-duty trucks,
city buses and intercity buses, coaches and bus
chassis. In addition financial services aligned to the
product portfolio are offered. The investment in
Daimler Truck Holding AG (Daimler Truck, parent com-
pany of Daimler Truck Group) is reported in the recon-
ciliation of the reportable segments of the Group.
The Mercedes-Benz Group calculates the proportional
earnings and the at-equity carrying amount of Daimler
Truck on the basis of the best possible estimates. The
financial information of Daimler Truck was not available
at the time of publication of this Consolidated Financial
Statements. The updated at-equity-method carrying
amount includes expenses of €120 million from an
impairment on a Daimler Truck investment.
In May 2024, the Annual General Meeting of Daimler
Truck resolved a dividend of €1.90. The distribution
led to a cash inflow of €469 million and reduced the
carrying amount of the investment accordingly. With
the approval of the Supervisory Board, the Board
of Management of Daimler Truck resolved a share
buyback programme on 10 July 2023. The acquisition of
the treasury shares on the stock exchange began on
2 August 2023. The first tranche of the programme was
completed on 5 November 2024 and the shares were
cancelled. During the share buyback programme, the
Mercedes-Benz Group did not sell any of its Daimler
Truck shares. A shareholding of 31.59% is used as basis
for the development of the equity-method carrying
amount as of 31 December 2024.
Beijing Benz Automotive Co., Ltd.
Beijing Benz Automotive Co., Ltd. (BBAC) produces
and distributes Mercedes-Benz cars in China. The
investment and the proportionate share in the results
of BBAC are allocated to the Mercedes-Benz Cars
segment.
In the second quarter of 2024, the shareholders of
BBAC resolved the distribution of a dividend of
€642 million. A further distribution of €644 million
was resolved in the fourth quarter of 2024. The
distributions reduced the shareholding’s carrying
amount and resulted in a cash inflow of €1,235 million.
Mercedes-Benz AG and BBAC signed a technology
license agreement for the localization of the GLE at
BBAC in October 2024. The Group reported a total
result of €189 million from this license agreement. This
is included in the line item revenue and a proportionate
negative effect in the line item gains/losses on equity-
method investments.
The Mercedes-Benz Group plans to contribute
additional equity of approximately €0.2 billion in
accordance with the shareholding ratio at BBAC.
There Holding B.V.
There Holding B.V. (THBV) owns shares of HERE
International B.V. (HERE). HERE is one of the world’s
largest manufacturers of digital road maps for naviga-
tion systems. The high-resolution maps provide one
of the foundations for autonomous driving. THBV is
accounted for as an associated company in the
Consolidated Financial Statements of Mercedes-Benz
Group AG using the equity method and is assigned to
the Mercedes-Benz Cars segment.
THBV recognized an impairment loss on the carrying
amount of the investment in HERE in the second
quarter of 2023 due to a reassessment of business
development. The Group’s proportional expenses of
€92 million from the impairment were included in the
line item gains/losses on equity-method investments.
Annual Report 2024 | Mercedes-Benz Group
344
Notes to the Consolidated Financial
Statements
Summarized IFRS financial information on significant associated companies accounted for using the equity method
Daimler Truck
BBAC
20241
20232
20242
20232
In millions of euros
Information on the Statement of Income
Revenue
39,727
55,890
21,747
22,484
Profit/loss after taxes
2,263
3,971
2,443
2,999
Other comprehensive income/loss
-471
-622
-39
-2
Total comprehensive income/loss
1,792
3,349
2,404
2,997
Information on the Statement of Financial Position
Non-current assets
39,239
39,494
6,846
6,504
Current assets
39,442
37,559
8,556
7,839
Non-current liabilities
26,866
26,275
975
920
Current liabilities
24,573
22,749
8,501
7,499
Equity (including non-controlling interests)
27,242
28,029
5,926
5,924
Reconciliation of equity from 30 September 2024 to 31 December 2024 (best estimate)
Equity (including non-controlling interests) as of 30 September 2024
27,242
Profit/loss after taxes
498
Other comprehensive income/loss
332
Equity (including non-controlling interests) as of 31 December 2024
28,072
Reconciliation to equity-method carrying amount
Equity (excluding non-controlling interests) attributable to the Group
8,558
8,331
2,904
2,903
Unrealized profit (-)/loss (+) on sales to/purchases from
–
–
-467
-321
Other reconciliation effects including equity-method goodwill and impairments on the investment
97
94
6
-4
Carrying amount of equity-method investment
8,655
8,425
2,443
2,578
1 Figures for the Statement of Income relate to the period of 1 January to 30 September 2024.
Figures for the Statement of Financial Position relate to the balance sheet date of 30 September 2024 and include investor level adjustments.
2 Figures for the Statement of Income relate to the period of 1 January to 31 December.
Figures for the Statement of Financial Position and the reconciliation to the equity-method carrying amount relate to the balance sheet date of 31 December and include investor level adjustments.
Annual Report 2024 | Mercedes-Benz Group
345
Notes to the Consolidated Financial
Statements
Joint ventures
Automotive Cells Company SE
Automotive Cells Company SE (ACC) develops and
produces high-performance battery cells and modules.
ACC is accounted for as a joint venture in the Consoli-
dated Financial Statements of Mercedes-Benz Group
AG using the equity method and is assigned to the
Mercedes-Benz Cars segment.
The gains/losses on equity-method investments
includes the pro-rata loss from the investment in ACC
of €546 million (2023: pro-rata loss of €22 million). The
decrease in the pro-rata result is mainly due to the
increase in ACC’s current losses, which arose mainly in
the course of the production build-up, as well as
an impairment of €350 million on the investment’s
carrying amount, which is mainly related to a strategic
focus within ACC.
YOUR NOW Holding GmbH
YOUR NOW Holding GmbH (YOUR NOW) is assigned
to the Mercedes-Benz Mobility segment. The purpose
of YOUR NOW Holding is to hold shares in mobility
service providers.
In 2023, YOUR NOW’s gains/losses on equity-method
investments included impairments of €117 million.
The following table shows summarized aggregated
financial information for the other minor equity-
method investments after purchase-price allocation
and on a pro-rata basis.
Further information on equity-method investments is
provided in Note 37.
Summarized aggregated financial information on minor equity-method investments
Associated companies
Joint ventures
2024
2023
2024
2023
In millions of euros
Summarized aggregated financial information (pro rata)
Profit/loss after taxes
36
2
-316
-213
Other comprehensive income/loss
38
–
9
-8
Total comprehensive income/loss
74
2
-307
-221
Unrecognized losses
–
–
-74
-55
Annual Report 2024 | Mercedes-Benz Group
346
Notes to the Consolidated Financial
Statements
15. Receivables from
financial services
Types of receivables
Receivables from sales financing with customers in-
clude receivables from credit financing for non-Group
third parties who purchased their vehicle either from a
dealer or directly from the Mercedes-Benz Group.
Receivables from sales financing with dealers rep-
resent loans for floor financing programmes for
vehicles purchased from the Mercedes-Benz Group. In
addition, these receivables also relate to the financing
of other assets that the dealers purchased from third
parties, in particular used vehicles or property.
Receivables from finance lease contracts consist of
receivables from leasing contracts for which all
substantial risks and opportunities incidental to the
leasing business are transferred to the lessee.
In 2024, the Mercedes-Benz Group recognized a gain
of €110 million (2023: €538 million) from the difference
between the additions to receivables from finance
lease contracts and the carrying amounts of the
underlying assets.
At 31 December 2024, receivables from financial
services with a carrying amount of €10,536 million
(2023: €11,139 million) were pledged mostly as
collateral for liabilities from ABS transactions (see
also Note 25).
Receivables from financial services
31 December
31 December
2024
2023
(adjusted)
Current
Non-current
Total
Current
Non-current
Total
In millions of euros
Sales financing with customers
15,753
29,886
45,639
17,578
31,940
49,518
Sales financing with dealers1
17,138
5,874
23,012
15,069
4,824
19,893
Finance lease contracts
6,687
12,745
19,432
6,744
12,781
19,525
Residual-value receivables
175
714
889
302
836
1,138
Gross carrying amount
39,753
49,219
88,972
39,693
50,381
90,074
Loss allowances
-433
-672
-1,105
-416
-639
-1,055
Net carrying amount
39,320
48,547
87,867
39,277
49,742
89,019
1 The previous year’s figures have been corrected in accordance with IAS 8. Further information is included in Note 3.
Annual Report 2024 | Mercedes-Benz Group
347
Notes to the Consolidated Financial
Statements
The following table shows the maturities of the future
contractual lease payments and the development of
lease payments to the carrying amounts of receivables
from finance lease contracts.
Development of the receivables from finance lease contracts
31 December
2024
2023
In millions of euros
Contractual future lease payments
17,468
17,716
thereof due
within one year
6,431
6,455
between one year and two years
4,741
5,515
between two and three years
3,076
2,649
between three and four years
2,001
1,925
between four and five years
1,017
949
later than five years
202
223
Unguaranteed residual values
4,242
3,922
Gross investment
21,710
21,638
Unearned finance income
-2,278
-2,113
Gross carrying amount
19,432
19,525
Loss allowances
-323
-291
Net carrying amount
19,109
19,234
Loss allowances
The loss allowances for receivables from financial
services due to expected credit losses are shown in the
table Development of loss allowances for receivables
from financial services due to expected credit losses.
The carrying amounts of receivables from financial
services based on modified contracts that are shown
in stages 2 and 3, amounted to €580 million at
31 December 2024 (2023: €463 million). In addition,
carrying amounts of €91 million in connection with
contractual modifications were reclassified at
31 December 2024 from stages 2 and 3 into stage 1
(2023: €86 million).
Credit risks
Information on credit risks included in receivables
from financial services is shown in the table Credit risks
included in receivables from financial services.
Longer overdue periods regularly lead to higher loss
allowances.
At the beginning of the contracts, collaterals of usually
at least 100% of the carrying amounts were agreed,
which are backed by the vehicles based on the under-
lying contracts. Over the term of the contracts, the
performance of the collateral is continuously included
in the calculation of the risk provision to be recognized,
so the net carrying amounts of the credit-impaired
contracts are essentially backed by the underlying
vehicles.
Further information on loss allowances, financial risks
and types of risks is provided in Note 33.
Annual Report 2024 | Mercedes-Benz Group
348
Notes to the Consolidated Financial
Statements
Development of loss allowances for receivables from financial services due to expected credit losses
12-month expected credit loss
Lifetime expected credit loss
Total
Not credit impaired
Credit impaired
(Stage 1)
(Stage 2)
(Stage 3)
2024
2023
2024
2023
2024
2023
2024
2023
In millions of euros
Balance at 1 January
329
364
240
170
486
664
1,055
1,198
Additions
132
141
54
48
107
123
293
312
Remeasurement changes
-36
-23
90
115
307
216
361
308
Utilization
-4
-4
-36
-19
-154
-107
-194
-130
Reversals
-140
-177
-88
-72
-205
-226
-433
-475
Transfer to stage 1
60
56
-46
-42
-14
-14
–
–
Transfer to stage 2
-33
-27
50
88
-17
-61
–
–
Transfer to stage 3
-3
-3
-45
-33
48
36
–
–
Exchange-rate effects and other changes
-8
2
25
-15
6
-145
23
-158
Balance at 31 December
297
329
244
240
564
486
1,105
1,055
Credit risks included in receivables from financial services1
12-month expected credit loss
Lifetime expected credit loss
Total
Not credit impaired
Credit impaired
(Stage 1)
(Stage 2)
(Stage 3)
2024
2023 (adjusted)
2024
2023
2024
2023
2024
2023 (adjusted)
In millions of euros
Gross carrying amount at 31 December2
78,997
81,687
8,569
7,109
1,490
1,278
89,056
90,074
thereof
not past due2
78,377
80,879
6,596
5,442
260
254
85,233
86,575
past due 30 days and less
612
806
1,003
658
79
52
1,694
1,516
past due 31 to 60 days
1
2
696
704
77
50
774
756
past due 61 to 90 days
–
–
273
305
95
60
368
365
past due 91 to 180 days
–
–
1
–
337
335
338
335
past due more than 180 days
7
–
–
–
642
527
649
527
1 In the reporting year, it includes the part of the gross carrying amount that was reclassified to the Assets held for sale item of the Consolidated Statement of Financial Position.
2 The previous year’s figures have been corrected in accordance with IAS 8. Further information is included in Note 3.
Annual Report 2024 | Mercedes-Benz Group
349
Notes to the Consolidated Financial
Statements
16. Marketable debt securities
and similar investments
The marketable debt securities and similar investments
amount to €7,730 million (2023: €6,858 million). When
a short-term liquidity requirement is covered with
quoted securities, those securities are presented as
current assets. Further information on marketable
debt securities and similar investments is provided in
Note 32.
17. Other financial assets
The line item Other financial assets presented in the
Consolidated Statement of Financial Position is
comprised as shown in the following table. Further
information on other financial assets is provided
in Note 32.
At 31 December 2024, other financial assets included
receivables with a carrying amount of €519 million
(2023: €450 million) that were pledged as collateral for
liabilities.
Other financial assets
31 December
31 December
2024
2023
Current
Non-current
Total
Current
Non-current
Total
In millions of euros
Equity instruments and debt instruments
–
1,293
1,293
–
1,507
1,507
recognized at fair value through profit or loss
–
589
589
–
649
649
recognized at fair value through other comprehensive income
–
704
704
–
858
858
Derivative financial instruments used in hedge accounting
586
705
1,291
1,038
1,622
2,660
Other financial assets measured at fair value through profit or loss
144
127
271
232
115
347
Other receivables and miscellaneous other financial assets
2,138
895
3,033
2,329
1,096
3,425
2,868
3,020
5,888
3,599
4,340
7,939
Annual Report 2024 | Mercedes-Benz Group
350
Notes to the Consolidated Financial
Statements
18. Other assets
Non-financial other assets are comprised as shown in
the following table.
Other expected reimbursements predominantly relate
to recovery claims against our suppliers in connection
with issued product warranties.
Other assets
31 December
31 December
2024
2023
(adjusted)
Current
Non-current
Total
Current
Non-current
Total1
In millions of euros
Reimbursements due to other tax refunds
2,373
170
2,543
2,621
37
2,658
Other expected reimbursements
273
189
462
184
151
335
Asset from defined benefit pension plans
–
1,553
1,553
–
643
643
Prepaid expenses
457
164
621
445
169
614
Other
478
315
793
425
265
690
3,581
2,391
5,972
3,675
1,265
4,940
1 For a more suitable presentation, reclassifications have been carried out between the balance sheet items. The reclassifications are described in Note 1.
Annual Report 2024 | Mercedes-Benz Group
351
Notes to the Consolidated Financial
Statements
19. Inventories
Inventories are comprised as shown in the following
table.
Inventories
31 December
2024
2023
(adjusted)
In millions of euros
Raw materials and
manufacturing supplies
2,799
2,651
Work in progress
3,032
3,070
Finished goods, spare parts and
products held for resale1
20,069
20,408
Advance payments
334
357
26,234
26,486
1 The previous year’s figures have been corrected in accordance with IAS 8. Further
information is included in Note 3.
The amount of write-down of inventories to net real-
izable value recognized as an expense in cost of sales
was €579 million in 2024 (2023: €620 million). The
carrying amounts of inventories that are expected to be
recovered or settled after more than twelve months
amounted to €901 million at 31 December 2024 (2023:
€812 million) and are related primarily to finished
goods.
To secure obligations from partial retirement and long-
term working accounts, a number of company cars
and demonstration vehicles included in inventories of
Mercedes-Benz AG in the amount of €1,478 million was
pledged as collateral to Mercedes-Benz Pension Trust
e.V. as of 31 December 2024 (2023: €1,195 million). In
addition, as of 31 December 2024, inventories with a
carrying amount of €78 million (2023: €44 million) were
pledged as collateral for liabilities from ABS transac-
tions.
20. Trade receivables
Trade receivables are primarily receivables from
contracts with customers within the scope of IFRS 15
and are shown in the following table.
Trade receivables
31 December
2024
2023
In millions of euros
Gross carrying amount
7,180
7,419
Loss allowances
-207
-138
Net carrying amount
6,973
7,281
At 31 December 2024, €25 million of the trade receiv-
ables have a residual term of more than one year
(2023: €33 million).
Annual Report 2024 | Mercedes-Benz Group
352
Notes to the Consolidated Financial
Statements
Loss allowances
The development of loss allowances for trade receiv-
ables due to expected credit losses is shown in the
following table.
Development of loss allowances for trade receivables due to expected credit losses1
Lifetime expected credit loss
Total
not credit impaired
credit impaired
(Stage 2)
(Stage 3)
2024
2023
2024
2023
2024
2023
In millions of euros
Balance at 1 January
37
70
104
120
141
190
Additions
18
26
116
51
134
77
Remeasurement changes
2
1
13
9
15
10
Utilization
-10
-11
-18
-12
-28
-23
Reversals
-10
-22
-45
-55
-55
-77
Transfer to stage 2
–
–
–
–
–
–
Transfer to stage 3
-1
-2
1
2
–
–
Exchange-rate effects and other effects
-1
-25
1
-11
–
-36
Balance at 31 December
35
37
172
104
207
141
1 In the previous year, it includes the part of loss allowances that was reclassified to the Assets held for sale item of the Consolidated Statement of Financial Position.
Annual Report 2024 | Mercedes-Benz Group
353
Notes to the Consolidated Financial
Statements
Credit risks
Information on credit risks included in trade receiv-
ables is shown in the following table. Further
information on financial risks and types of risk is
provided in Note 33.
Credit risks included in trade receivables1
Lifetime expected credit loss
Total
not credit impaired
credit impaired
(Stage 2)
(Stage 3)
31 December
31 December
31 December
2024
2023
2024
2023
2024
2023
In millions of euros
Gross carrying amount
6,872
7,449
317
110
7,189
7,559
thereof
not past due
5,528
5,365
8
2
5,536
5,367
past due 30 days and less
706
1,108
10
–
716
1,108
past due 31 to 60 days
205
224
3
–
208
224
past due 61 to 90 days
116
188
16
1
132
189
past due 91 to 180 days
136
159
43
30
179
189
past due more than 180 days
181
405
237
77
418
482
1 In the reporting year and the previous year, it includes the part of the gross carrying amount that was reclassified to the Assets held for sale item of the Consolidated Statement of Financial Position.
Annual Report 2024 | Mercedes-Benz Group
354
Notes to the Consolidated Financial
Statements
21. Equity
Share capital
The share capital (authorized capital) is €3,070 million
at 31 December 2024, unchanged compared to
31 December 2023. It is divided into 963 million (2023:
1,070 million) no-par-value shares, as 107 million treas-
ury shares were cancelled without a capital reduction
on 13 December 2024. The number of shares in circu-
lation decreased by 29 million from 1,070 million since
1 January 2023 to 1,041 million as of 31 December 2023
due to share buybacks. The additional 78 million own
shares repurchased in the year 2024 were cancelled
together with the own shares repurchased in the year
2023, so that as of 31 December 2024, the number of
shares in circulation, at 963 million, corresponds to the
number of shares issued. All shares are fully paid up.
Each no-par-value share confers the right to one vote
at the General Meeting of Mercedes-Benz Group AG
and, if applicable, with the exception of any new shares
or treasury shares potentially not entitled to dividends,
to an equal portion of the profits as defined by the
dividend distribution decided upon at the General
Meeting. The proportionate amount of each share in
the share capital increased to approximately €3.19 as of
31 December 2024 as a result of the cancellation of
repurchased own shares without a capital reduction,
after having amounted to around €2.87 in the prior
year.
Approved capital
The General Meeting held on 3 May 2023 authorized
the Board of Management again to increase the share
capital by up to a total of €1.0 billion by 2 May 2028
with the approval of the Supervisory Board against
cash and/or non-cash contributions (Approved Capital
2023). The authorization enables the exclusion of
shareholders’ subscription rights under certain
conditions and within defined limits subject to the
consent of the Supervisory Board.
No use has been made of the Approved Capital 2023
to date.
Conditional capital
By resolution of the General Meeting on 8 July 2020,
the Board of Management is authorized, with the
consent of the Supervisory Board, until 7 July 2025 to
issue convertible and/or warrant bonds or a combi-
nation of these instruments (“bonds”) with a total face
value of up to €10.0 billion and a maturity of no more
than ten years. The Board of Management is allowed to
grant the holders of these bonds conversion or warrant
rights for new registered no-par-value shares in
Mercedes-Benz Group AG with an allocable portion of
the share capital of up to €500 million in accordance
with the details defined in the terms and conditions of
the bonds. The bonds can be offered in exchange for
cash and/or non-cash contributions, in particular for
shares in other companies. The terms and conditions
of the bonds can include conversion obligations or
warranty obligations. The bonds can be issued once or
several times, wholly or in instalments, or simulta-
neously in various tranches as well as by subsidiaries
of the company within the meaning of Sections 15 et
seq. of the German Stock Corporation Act (AktG).
Among other things, the Board of Management was
also authorized to exclude shareholders’ subscription
rights for the bonds under certain conditions and
within defined limits subject to the consent of the
Supervisory Board.
In order to fulfil the conditions of the above-mentioned
authorization, the General Meeting on 8 July 2020 also
resolved to increase the share capital conditionally
by an amount of up to €500 million (Conditional Capital
2020).
No use was made of this authorization to issue
convertible and/or warrant bonds during the reporting
period.
Annual Report 2024 | Mercedes-Benz Group
355
Notes to the Consolidated Financial
Statements
Treasury shares
By resolution of the General Meeting on 8 July 2020,
the Board of Management is authorized, with the
consent of the Supervisory Board, until 7 July 2025 to
acquire treasury shares in a volume of up to 10% of the
share capital issued as of the day of the resolution or –
if this is lower – of the share capital existing at the time
of the authorization being exercised, to be used for all
permissible purposes. The shares can be used, among
other things, with the exclusion of shareholders’
subscription rights, for business combinations or to
acquire companies or to be sold to third parties for
cash at a price that is not significantly lower than the
stock-exchange price of the company’s shares. The
acquired shares can also be used to fulfil obligations
from issued convertible bonds and/or bonds with war-
rants and to be issued to employees of the company
and employees and board members of the company’s
subsidiaries pursuant to Sections 15 et seq. of the
German Stock Corporation Act (AktG). The treasury
shares can also be cancelled.
In a volume up to 5% of the share capital issued as of
the day of the resolution of the General Meeting, the
Board of Management is authorized, with the consent
of the Supervisory Board, to acquire treasury shares
also by using derivatives (put options, call options,
forward purchases or a combination of these instru-
ments), whereby the term of a derivative must
not exceed 18 months and must not end later than
7 July 2025.
Share buyback programmes
On the basis of the authorization to acquire the
company’s own shares given by the General Meeting
on 8 July 2020, the Board of Management, with the
approval of the Supervisory Board, resolved a share
buyback programme on 16 February 2023. The
acquisition of treasury shares worth up to €4 billion
(not including incidental costs) on the stock exchange
over a period of up to two years for the purpose of
cancellation began on 3 March 2023. Mercedes-Benz
Group AG separately agreed with Beijing Automotive
Group Co., Ltd. and Geely Group that they will each
keep their share in all voting shares of Mercedes-Benz
Group AG below 10% by divesting their shares on a pro-
rata basis concurrently with the share buyback
programme.
On 21 February 2024, Mercedes-Benz Group AG
resolved to implement a share buyback policy. Based
on such policy, the future Free Cash Flow of the indus-
trial business (as available post potential small-scale
M&A transactions) generated beyond the approxi-
mately 40% dividend payout ratio of Mercedes-Benz
Group previous year’s net profit shall be used to fund
share buybacks with the purpose of redeeming shares.
In this context, in addition to the first share buyback
programme launched in March 2023, Mercedes-Benz
Group AG also resolved to conduct a further share
buyback programme, through which it was intended
to acquire own shares worth up to €3 billion (not
including incidental costs) on the stock exchange and
to then cancel them. This share buyback programme
was also based on the authorization by the General
Meeting of Mercedes-Benz Group AG on 8 July 2020.
The upper limit of 10% of the share capital applies to
both buyback programmes together.
The additional share buyback programme commenced
on 10 May 2024 and was initially implemented in
parallel with the share buyback programme which had
been started on 3 March 2023 and concluded on
1 August 2024. The additional share buyback
programme was completed on 29 November 2024.
From March 2023 to November 2024, as part of the
two share buyback programmes, a total of 107 million
of the company’s own shares were repurchased at a
purchase price of €6,992 million (including transaction
costs), representing €307 million or around 10% of the
share capital.
All own shares repurchased under the 2023 and
2024 share buyback programmes were cancelled on
13 December 2024 without a capital reduction. This
increased the proportionate amount of each share in
the share capital from around €2.87 to around €3.19.
Annual Report 2024 | Mercedes-Benz Group
356
Notes to the Consolidated Financial
Statements
Employee share purchase plan
In the first quarter of 2024, as in the previous year,
Mercedes-Benz Group AG purchased 1.0 million shares
of Mercedes-Benz Group AG for the employee share
purchase plan pursuant to Section 71 Subsection 1
No. 2, of the German Stock Corporation Act (AktG). The
purchase was carried out without utilizing the authori-
zation to acquire treasury shares granted by the
General Meeting on 8 July 2020. The shares, which
were reissued to Group employees for a total selling
price of €58 million, were purchased for a price of
€73 million and represented €2.8 million or 0.09%
of the share capital (2023: 0.9 million shares of
Mercedes-Benz Group AG representing €2.7 million or
0.09% of the share capital were purchased for a price
of €66 million for a total selling price of €53 million).
Capital reserves
Capital reserves primarily comprise premiums arising
on the issue of shares as well as expenses relating to
the exercise of the up to 2014 exercisable stock option
plans and the issue of employee shares, effects from
changes in ownership interests in consolidated entities
and directly attributable related transaction costs.
Retained earnings
Retained earnings comprise the accumulated net
profits and losses of all companies included in
Mercedes-Benz Group’s Consolidated Financial
Statements, less any profits distributed. In addition,
the remeasuring of defined benefit plans and the
corresponding effects arising from equity-method
investments and the respective related deferred
taxes are presented within retained earnings. Further
effects result from the cancellation of own shares.
In the financial year 2024, other comprehensive
income/loss on equity-method investments, that will
not be reclassified to profit/loss in the Statement of
Income, resulted in gains of €23 million (2023: losses
of €16 million). In the year 2024, these resulted from
equity instruments (2023: mainly losses of €6 million
from equity instruments and €10 million from the
remeasuring of defined benefit plans).
Dividend
Under the German Stock Corporation Act (AktG), the
dividend is paid out of the distributable profit reported
in the Annual Financial Statements of Mercedes-Benz
Group AG (parent company only) in accordance with
the German Commercial Code (HGB). The management
will propose to the shareholders at the General
Meeting the payment of €4,140 million of the distribu-
table profit of Mercedes-Benz Group AG for the 2024
financial year as a dividend to the shareholders,
equivalent to €4.30 per no-par-value share entitled to
a dividend and the transfer of €146 million to retained
earnings.
For the 2023 financial year, in accordance with the
adjusted proposal for the appropriation of profits, the
General Meeting resolved that €5,486 million (€5.30
per no-par-value share entitled to a dividend) be
distributed to the shareholders from the distributable
profit. Further €563 million were transferred to
retained earnings, of which a portion of €184 million
was attributable to the 34.7 million treasury shares not
entitled to dividends held by Mercedes-Benz Group AG
directly or indirectly at the time of the 2024 General
Meeting.
Annual Report 2024 | Mercedes-Benz Group
357
Notes to the Consolidated Financial
Statements
Other reserves
Other reserves comprise accumulated unrealized
gains/losses from currency translation of the financial
statements of the consolidated foreign companies and
accumulated unrealized gains/losses on financial
assets, derivative financial instruments and equity-
method investments.
The changes in other reserves are included in other
comprehensive income/loss and are presented in the
Consolidated Statement of Comprehensive Income/
Loss.
In the financial year 2024, other comprehensive
income/loss on equity-method investments, that may
be reclassified to profit/loss in the Statement of
Income in the future, resulted in a total of zero (2023:
losses of €245 million). In 2024, the effects resulted
mainly from gains from currency translation of
€49 million, with offsetting losses of €50 million from
derivative financial instruments (2023: mainly losses of
€247 million from currency translation).
22. Share-based payment
At 31 December 2024, the Group has the 2021–2024
Performance Phantom Share Plans (PPSP) in favour
of the members of the Board of Management and
executives entitled to participate that have not yet
been paid out. As instruments of share-based payment
with cash settlement, the PPSP are measured at their
fair values on the balance sheet date. They are paid out
at the end of their contractually defined periods; an
earlier, proportionate payout is only possible under
certain conditions when a beneficiary leaves the
company. PPSP 2020 was paid out as planned in the
first quarter of 2024.
Moreover, until the 2022 financial year, 50% of the
annual bonus of the members of the Board of
Management was paid out after a waiting period of
one year. The actual payout was determined by
the development of the Mercedes-Benz Group share
compared to an automobile-related index (Auto-
STOXX). The fair value of this medium-term annual
bonus, which depends on that development, is
measured by using the intrinsic value at the reporting
date. The payment of the annual bonus for the 2022
financial year in 2024 essentially corresponded to
the amount deferred.
The pre-tax effects of share-based payment arrange-
ments for the executives of the Group and the
members of the Board of Management of Mercedes-
Benz Group AG on the Consolidated Statement of
Income and Consolidated Statement of Financial
Position are shown in the following table.
The details shown in the table do not represent any
paid or committed remuneration, but refer to expenses
calculated according to IFRS.
Effects of share-based payment
Expense
Provision
31 December
2024
2023
2024
2023
In millions of euros
PPSP
107
248
325
596
thereof PPSP of
the members of
the Board of
Management
12
16
28
36
Medium-term
component of
annual bonus of the
members of the
Board of
Management
–
8
–
15
107
256
325
611
Annual Report 2024 | Mercedes-Benz Group
358
Notes to the Consolidated Financial
Statements
In 2024, as in previous years, the Group issued a
Performance Phantom Share Plan (PPSP), under
which eligible board members and employees of the
Mercedes-Benz Group are granted phantom shares
entitling them to receive cash payments after four
years. During the four-year period between the
allocation of the preliminary phantom shares and
the payout of the plan after the end of the term, the
phantom shares earn a dividend equivalent to the
amount of the actual dividend paid on real Mercedes-
Benz Group shares in the respective year. The amount
of cash paid after the end of the holding period is
based on the final number of vested phantom shares
(determined after three years according to the degree
of target achievement of specific performance indi-
cators) multiplied by the quoted price of the Mercedes-
Benz Group’s ordinary shares (calculated as an average
price over a specified period after the end of the four-
year plan period). The vesting period is therefore four
years. For the existing plans, the quoted price of the
phantom shares to be used for the payout is limited to
2.5 times the phantom share price at the date of grant.
Furthermore, in the case of the plans PPSP 2021 and
2022, the payout for the members of the Board of
Management is also limited to 2.5 times the allotment
value used to determine the preliminary number of
phantom shares. The limitation of the payout for the
members of the Board of Management also includes
the dividend equivalents.
For the PPSP 2021 to PPSP 2024, the degree of target
achievement is determined on the basis of the relative
share performance, which measures the performance
development of the Mercedes-Benz Group share
compared with the development of a performance
index based on a group of competitors including the
Mercedes-Benz Group, and the return on sales (RoS) of
the Mercedes-Benz Group compared with the average
revenue-weighted RoS of a group of competitors.
Beginning with PPSP 2023, environmental, social and
governance (ESG) targets are also included in the
target achievement in order to promote the sustainable
realignment and long-term, sustainable development of
the Group. The achievement of the financial targets
(relative share performance and RoS) accounts for 80%
and the achievement of the ESG targets for 20% of the
overall target achievement of the PPSP.
Special rules apply to the members of the Board of
Management in the PPSP 2021 and 2022 plans: With
the same average RoS of the competitors, a higher RoS
of the Mercedes-Benz Group must be attained in order
to obtain the same target achievement as the other
plan participants. Furthermore, an additional limit on
target achievement was agreed upon for the reference
parameter RoS for the members of the Board of
Management. In the case of target achievement be-
tween 195% and 200%, an additional comparison is
made on the basis of the RoS achieved in absolute
terms. If the actual RoS for the automotive business
is below the strategic target in the third year of the
performance period, target achievement is limited to
195%.
The Group recognizes a provision for awarding the
PPSP in the provisions for other risks in the Con-
solidated Statement of Financial Position. Since
payment per vested phantom share depends on the
quoted price of Mercedes-Benz Group’s share, that
quoted price essentially represents the fair value of
each phantom share at the balance sheet date. The
proportionate remuneration expenses from the PPSP
recognized in the individual years are measured
based on the price of the Mercedes-Benz Group share
and the estimated target achievement.
Annual Report 2024 | Mercedes-Benz Group
359
Notes to the Consolidated Financial
Statements
23. Pensions and
similar obligations
Commitments specific to various countries for defined
benefit pension plans and defined contribution pension
plans exist at the Mercedes-Benz Group.
Furthermore, certain foreign subsidiaries, mainly in
the United States, provide their employees with post-
employment healthcare benefits with defined entitle-
ments, which have to be accounted for as defined
benefit plans.
The following table shows the composition of
provisions for pensions and similar obligations.
Composition of provisions for pensions and similar obligations
31 December
2024
20231
In millions of euros
Provisions for pension benefits
615
760
Provisions for post-employment
healthcare benefits
337
330
952
1,090
1 Including the part of pension obligations that was reclassified to the balance sheet
item liabilities held for sale.
Defined benefit pension plans
Provisions for pension obligations are made for defined
benefit pension commitments to active and former
employees of the Mercedes-Benz Group and their
survivors. The defined benefit pension plans provided
by the Group generally vary according to the economic,
tax and legal circumstances of the country concerned.
Most of the defined benefit pension commitments also
provide benefits in the case of invalidity and death.
Pension plans and
pension plan assets
Most employees in Germany have defined benefit
pension commitments; most of the pension com-
mitments for the active workforce are based on
individual retirement benefit accounts, to which the
company makes annual contributions. The amount of
the contributions for non-exempt employees depends
on the tariff classification in the respective year or on
their respective income; for executives it depends
on their respective income. For the commitments to
retirement benefits made prior to 2011, the contri-
butions continue to be converted into capital compo-
nents and credited to the individual pension accounts
with the application of fixed factors related to each
employee’s age. The conversion factors include a fixed
value increase. For the commitments to retirement
benefits made as of 2011, the company guarantees at a
minimum the value of the contributions paid into a
cash-balance plan. Pension payments are made either
as a life annuity, twelve annual instalments, or a single
lump sum.
In addition, closed to new entrants defined benefit
plans exist which primarily depend on employees’
wage-tariff classification upon transition into the
benefit phase and which foresee a life annuity.
As well as the employer-financed pension plans
granted by German companies, the employees of
some companies are also offered various deferred
compensation models.
Most of the pension obligations in Germany relating
to defined benefit pension commitments are funded
by investment funds. Contractual trust arrangements
(CTA) exist between Mercedes-Benz Group AG as well
as some subsidiaries in Germany and the Mercedes-
Benz Pension Trust e.V. The Mercedes-Benz Pension
Trust e.V. acts as a collateral trust fund.
In 2018, Mercedes-Benz Group AG transferred certain
pension obligations and plan assets of retired em-
ployees and their survivors to Mercedes-Benz
Pensionsfonds AG (previously Daimler Pensionsfonds
AG; pension fund). These benefits are administrated by
that non-insurance-like pension fund, which falls under
the scope of the Act on the Supervision of Insurance
Undertakings and is therefore subject to the oversight
of the Federal Financial Supervisory Agency (BaFin).
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360
Notes to the Consolidated Financial
Statements
Insofar as in the future, BaFin rules that a deficit
has occurred in the pension fund, a supplementary
contribution will be required from Mercedes-Benz
Group AG.
In Germany, there are normally no statutory or
regulatory minimum funding requirements.
Outside Germany, there are plans relating to final
salaries as well as plans relating to salary-based
components. Most of the international obligations
from defined benefit pension commitments are
funded by investment funds.
The funded status of pension obligations with the split
between German and international plans is shown in
the following table.
Development of funded status
31 December
31 December
2024
2023
Total
Germany
International
Total
Germany
International
In millions of euros
Present value of the defined benefit obligations
21,599
20,293
1,306
21,992
20,660
1,332
Fair value of plan assets
22,550
21,316
1,234
21,890
20,646
1,244
Funded status
951
1,023
-72
-102
-14
-88
Effects of asset ceiling
-13
–
-13
-15
–
-15
Amounts in the balance sheet
938
1,023
-85
-117
-14
-103
thereof other assets
1,553
1,426
127
643
513
130
thereof provisions for pensions and similar obligations
-615
-403
-212
-760
-527
-233
Annual Report 2024 | Mercedes-Benz Group
361
Notes to the Consolidated Financial
Statements
Risks from defined benefit pension
plans and pension plan assets
The general requirements with regard to retirement
benefit models are included in policies with Group-
wide validity. Accordingly, the committed benefits are
intended to contribute to additional financial security
during retirement, and in the case of death or invalidity
to be capable of being planned and fulfilled by the
respective company of the Group and to have a low-
risk structure. In addition, a committee exists that
approves new pension plans and amendments to
existing pension plans as well as policies relating to
company retirement benefits.
The obligations from defined benefit pension com-
mitments and the pension plan assets can be subject
to fluctuations over time. This can have a negative or a
positive effect on the funded status. Fluctuations in the
defined benefit pension obligations result at the
Mercedes-Benz Group in particular from changes in
financial assumptions such as discount rates and the
cost of living, but also from changes in demographic
assumptions such as adjusted life expectancies. With
most of the German plans, expected long-term wage
and salary increases do not have an impact on the
amount of the obligation.
The fair value of the plan assets is predominantly
determined by the situation on the capital markets.
Unfavourable developments, especially of equity prices
and fixed-interest securities, could reduce that fair
value. The diversification of investment funds, the
engagement of asset managers using quantitative and
qualitative analyses, and the continual monitoring of
performance and risk help to reduce the associated
investment risk. As long as the commitments of the
defined benefit pension plans remain overfunded by
the plan assets, the Mercedes-Benz Group will only
make additional pension contributions when legally and
economically necessary.
As a general principle, it is the Group’s objective
to design new pension commitments as defined
benefit plans based on capital components or on
contributions, or as defined contribution plans.
Annual Report 2024 | Mercedes-Benz Group
362
Notes to the Consolidated Financial
Statements
Reconciliation of the defined
benefit obligations, the fair value
of the plan assets and amounts
in the balance sheet
Present value of the defined benefit obligations and fair value of the plan assets
2024
2023
In millions of euros
Present value of the defined benefit obligations at 1 January
21,992
20,444
Current service cost
374
351
Interest cost
681
742
Contributions by plan participants
37
39
Actuarial gains (-)/losses from changes in demographic assumptions
-50
-8
Actuarial gains (-)/losses from changes in financial assumptions
-540
1,292
Actuarial gains (-)/losses from experience adjustments
-58
24
Actuarial gains (-)/losses
-648
1,308
Past service cost, curtailments and settlements
-1
–
Pension benefits paid
-995
-937
Currency exchange-rate changes and other changes
159
45
Present value of the defined benefit obligations at 31 December
21,599
21,992
Fair value of plan assets at 1 January
21,890
20,526
Interest income
684
751
Deviation between actual return on plan assets and interest income
595
1,280
Actual profit/loss on plan assets
1,279
2,031
Contributions by the employer
145
122
Contributions by plan participants
37
39
Pension benefits paid
-957
-898
Currency exchange-rate changes and other changes
156
70
Fair value of plan assets at 31 December
22,550
21,890
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363
Notes to the Consolidated Financial
Statements
Overview of the amounts in the balance sheet
2024
2023
In millions of euros
Amounts in the balance sheet at 1 January
-117
55
Pension costs
-370
-342
Actuarial gains/losses (-)
1,243
-28
Contributions to plan assets
145
122
Pension payments not covered by plan assets
38
39
Change of effects of asset ceiling
2
12
Currency exchange-rate changes and other changes
-3
25
Amounts in the balance sheet at 31 December
938
-117
The composition of pension costs is shown in the table
Pension costs.
Actuarial gains/losses consist of the actuarial gains/
losses in the present value of the defined benefit
obligations, the deviation between actual return on
plan assets and interest income and the change in
the effects of asset ceiling.
Composition of plan assets
Plan assets are used solely to fulfil pension obligations
and to cover the administration costs of the plan
assets. The composition of the Group’s pension plan
assets is shown in the following table.
Market prices are usually available for equity instru-
ments and bonds due to their listing in active markets.
Most of the bonds have investment grade ratings.
They include government bonds of very good credit-
worthiness.
The investment strategy is reviewed regularly and
adjusted if deemed necessary. The investment strategy
is determined by Investment-Committees, which are
generally composed of representatives of the Finance
and HR departments. The investment strategy for the
pension plan assets is generally oriented towards the
structure of the pension obligations.
Composition of plan assets
31 December
2024
2023
In millions of euros
Equity instruments1
7,849
7,611
Government bonds
3,594
3,174
Corporate bonds
8,804
8,729
Securitized bonds
143
140
Bonds
12,541
12,043
Other exchange-traded instruments
128
117
Exchange-traded instruments
20,518
19,771
Alternative investments and other
non-exchange-traded instruments
369
642
Real estate
655
642
Cash and cash equivalents
1,008
835
Non-exchange-traded instruments
2,032
2,119
Fair value of plan assets
22,550
21,890
1 Including the shares in Daimler Truck in the amount of €1,515 million (2023: €1,398
million) and in Nissan Motor Co., Ltd. in the amount of €453 million (2023: €526
million).
Annual Report 2024 | Mercedes-Benz Group
364
Notes to the Consolidated Financial
Statements
Pension costs
The components of pension costs included in the
Consolidated Statement of Income are shown in the
following table.
Pension costs
2024
2023
In millions of euros
Current service cost
-374
-351
Past service cost,
curtailments and settlements
1
–
Net interest expense
-22
-23
Net interest income
25
32
-370
-342
Measurement assumptions
The measurement date for the defined benefit pension
obligations and plan assets is generally 31 December.
The measurement date for the periodic pension cost is
generally 1 January. The assumptions used to calculate
the defined benefit obligations vary according to the
economic conditions of the country in which the
pension plans are situated.
Calculation of the pension obligations uses life expec-
tancy for the German plans based on the Heubeck
2018 G mortality tables. Comparable country-specific
calculation methods are used for international plans.
The following significant weighted average measure-
ment factors are used to calculate pension benefit
obligations.
Significant factors for the calculation of pension benefit obligations
31 December
31 December
2024
2023
2024
2023
Germany
Germany
International
International
In %
Discount
rates
3.4
3.2
5.4
5.0
Expected
increases
in cost of
living1
2.0
2.2
–
–
1 For German plans – depending on the design of the specific plan – expected increases
in cost of living may affect the obligation to the Group’s active employees as well
as to retirees and their survivors. For most international plans, expected increases in
cost of living do not have a material impact on the amount of the obligation.
Sensitivity analysis
The calculations carried out by actuaries were done in
isolation for the evaluation parameters regarded as
important. This means that if there is a simultaneous
change in several parameters, the individual results
cannot be summed due to correlation effects. With a
change in the parameters, the sensitivities shown
cannot be used to derive a linear development of the
defined benefit obligation.
An increase or decrease in the main actuarial assump-
tions would have the following effects on the present
value of the defined benefit pension obligations.
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365
Notes to the Consolidated Financial
Statements
Sensitivity analysis for the present value of defined benefit
obligations
31 December
2024
20231
In millions of euros
Sensitivity to
discount rates
+0,50%
-1,108
-617
discount rates
-0,50%
1,149
649
expected increases
in cost of living
+0,25%
129
58
expected increases
in cost of living
-0,25%
-125
-58
life expectancy
+1 year
354
359
life expectancy
-1 year
-318
-320
1 Sensitivities as of 31 December 2023: to discount rates +/-0.25% and to expected
increases in cost of living +/-0.10%.
Calculation of the sensitivity to life expectancy by
means of fixed (non-age-dependent) factors for
a reference person results in a life expectancy one
year higher or one year lower.
Effect on future cash flows
For the year 2025, the Group plans to make contribu-
tions of €0.2 billion to the plan assets; the final amount
is usually set in the fourth quarter of a year. The
pensions benefits paid are expected to amount to
€1.1 billion in 2025.
The weighted average duration of the defined benefit
obligations amounts to 12 years (2023: 13 years).
Defined contribution pension plans
Under defined contribution pension plans, the
Mercedes-Benz Group makes defined contributions to
external insurance policies or investment funds. There
are fundamentally no further contractual obligations
or risks arising from these pension obligations for
the Mercedes-Benz Group in excess of the defined
contributions. The Group also pays contributions to
statutory pension plans. In 2024, the total costs from
defined contribution plans amounted to €1.1 billion
(2023: €1.0 billion). Of those payments, €1.1 billion
(2023: €1.0 billion) was related to statutory pension
plans.
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366
Notes to the Consolidated Financial
Statements
24. Provisions for other risks
Product warranties
The Mercedes-Benz Group issues various types of
product warranties, under which it generally guaran-
tees the performance of products delivered and
services rendered for a certain period. The provision
for these product warranties covers expected costs
for legal and contractual warranty claims as well as
expected costs for goodwill concessions and recall
campaigns. The utilization date of product warranties
depends on the incidence of the warranty claims and
can span the entire term of the product warranties and
the goodwill period. The cash outflows in relation to
non-current provisions are primarily expected within a
period until 2027.
Personnel and social costs
Provisions for personnel and social costs primarily
comprise expected expenses of the Group for
employee anniversary bonuses, profit-sharing bonuses
for non-exempt employees and variable remuneration
for the management as well as early-retirement and
partial-retirement plans. The additions recorded to the
provisions for profit-sharing bonuses and variable
remuneration in the reporting year usually result in
cash outflows in the following year. The cash outflows
for non-current provisions for personnel and social
costs are primarily expected within a period until 2035.
Liability and litigation risks and
regulatory proceedings
Provisions for liability and litigation risks and regulatory
proceedings comprise costs for various legal proceed-
ings, claims and governmental investigations, which
can lead in particular to payments of compensation,
punitive damages or other costly actions. They pri-
marily include risks from litigation and regulatory pro-
ceedings in relation to Mercedes-Benz diesel vehicles.
The cash outflows in relation to non-current provisions
are primarily expected within a period until 2027.
Further information on liability and litigation risks and
regulatory proceedings is provided in Note 30.
Annual Report 2024 | Mercedes-Benz Group
367
Notes to the Consolidated Financial
Statements
Other
Provisions for other risks primarily comprise expected
costs for environmental protection risks, other taxes
and charges related to income taxes as well as obliga-
tions from outstanding commission. They also include
provisions for anticipated losses on pending trans-
actions and various other risks which cannot be
allocated to any other class of provision. The develop-
ment of provisions for other risks is as follows.
Provisions for other risks
Product
warranties
Personnel
and social
costs
Litigation
risks and
regulatory
proceedings
Others
Total
In millions of euros
Balance at 31 December 2023
6,399
4,672
2,104
2,125
15,300
thereof current
2,980
2,580
675
1,720
7,955
thereof non-current
3,419
2,092
1,429
405
7,345
Additions
4,086
1,962
262
1,616
7,926
Utilizations
-3,618
-2,524
-139
-1,263
-7,544
Reversals
-180
-77
-610
-299
-1,166
Compounding and effects from changes in discount rates
234
82
64
16
396
Exchange-rate effects and other changes
13
83
2
10
108
Balance at 31 December 2024
6,934
4,198
1,683
2,205
15,020
thereof current
3,239
2,152
554
1,743
7,688
thereof non-current
3,695
2,046
1,129
462
7,332
Annual Report 2024 | Mercedes-Benz Group
368
Notes to the Consolidated Financial
Statements
25. Financing liabilities
In the year 2024, bonds totalling €17,504 million
(2023: €13,608 million) were issued. Due to
redemptions, the bonds were reduced by
€12,415 million (2023: €11,865 million).
Furthermore, liabilities to financial institutions
increased by €842 million to €26,315 million in 2024.
In addition, asset-backed securities (ABS) transactions
with a total financing volume of €13,957 million (2023:
€10,388 million) were carried out in 2024.
Further information on the maturities of lease liabilities
as of 31 December 2024 is provided in Note 33.
The composition of financing liabilities is as follows.
Financing liabilities
31 December
31 December
2024
2023
(adjusted)
Current
Non-current
Total
Current
Non-current
Total
In millions of euros
Bonds1
12,565
50,321
62,886
12,659
43,454
56,113
Commercial paper
911
41
952
3,452
18
3,470
Liabilities to financial institutions1
15,903
10,412
26,315
15,775
9,698
25,473
Deposits from the direct banking business1
1,557
–
1,557
5,639
134
5,773
Liabilities from ABS transactions1
7,305
10,894
18,199
7,197
8,497
15,694
Lease liabilities
485
1,748
2,233
453
1,713
2,166
Loans, other financing liabilities1
585
71
656
532
210
742
39,311
73,487
112,798
45,707
63,724
109,431
1 For a more suitable presentation, reclassifications have been carried out between the balance sheet items. The reclassifications are described in Note 1.
Annual Report 2024 | Mercedes-Benz Group
369
Notes to the Consolidated Financial
Statements
26. Other financial liabilities
The composition of other financial liabilities is shown in
the following table.
Further information on other financial liabilities is
provided in Note 32.
Other financial liabilities
31 December
31 December
2024
2023
(adjusted)
Current
Non-current
Total
Current
Non-current
Total
In millions of euros
Derivative financial instruments used in hedge accounting
508
610
1,118
317
798
1,115
Financial liabilities measured at fair value through profit or loss
63
51
114
120
68
188
Liabilities from residual value guarantees resulting from repurchase agreements
602
181
783
519
238
757
Liabilities from wages and salaries
735
4
739
864
6
870
Deposits received
199
478
677
248
454
702
Credit from customers
166
–
166
141
–
141
Other1
1,798
166
1,964
2,148
78
2,226
4,071
1,490
5,561
4,357
1,642
5,999
1 For a more suitable presentation, reclassifications have been carried out between the balance sheet items. The reclassifications are described in Note 1.
Annual Report 2024 | Mercedes-Benz Group
370
Notes to the Consolidated Financial
Statements
27. Contract and refund liabilities
The following table shows the composition of contract
and refund liabilities.
Contract and refund liabilities
31 December
2024
2023
(adjusted)
In millions of euros
Service and maintenance contracts
and extended warranties
4,275
4,147
Other contract liabilities
1,926
1,678
Contract liabilities
6,201
5,825
Obligations from sales transactions
4,655
4,236
Other refund liabilities
390
330
Refund liabilities
5,045
4,566
Contract and refund liabilities
11,246
10,391
thereof non-current1
3,100
2,658
thereof current1
8,146
7,733
1 The previous year’s figures have been corrected in accordance with IAS 8. Further
information is included in Note 3.
Annual Report 2024 | Mercedes-Benz Group
371
Notes to the Consolidated Financial
Statements
28. Other liabilities
Other liabilities are composed as follows.
Other liabilities
31 December
31 December
2024
2023
(adjusted)
Current
Non-current
Total
Current
Non-current
Total
In millions of euros
Other tax liabilities1
1,562
8
1,570
1,698
8
1,706
Deferral of advance rental payments received from operating lease arrangements1
1,250
1,126
2,376
1,097
995
2,092
Deferred income resulting from repurchase agreements that are accounted for as operating leases1
169
126
295
125
138
263
Other deferred income1
235
69
304
256
90
346
Miscellaneous other liabilities1
331
25
356
485
39
524
3,547
1,354
4,901
3,661
1,270
4,931
1 For a more suitable presentation, reclassifications have been carried out between the balance sheet items. The reclassifications are described in Note 1.
Annual Report 2024 | Mercedes-Benz Group
372
Notes to the Consolidated Financial
Statements
29. Consolidated Statement
of Cash Flows
Calculation of funds
At 31 December 2024, cash and cash equivalents
included restricted funds of €62 million (2023:
€91 million).
Cash flow from operating activities
Other operating assets and liabilities changed as
follows.
Changes in other operating assets and liabilities
2024
2023
In millions of euros
Provisions
-10
487
Financial instruments
103
-55
Miscellaneous other assets and liabilities
893
1,192
986
1,624
The decrease in miscellaneous other assets and
liabilities compared to the prior year was mainly due
to other non-financial liabilities and other financial
assets. This was offset by other financial liabilities
with a smaller positive effect.
In the prior year the increase in miscellaneous other
assets and liabilities was primarily related to miscel-
laneous other financial assets, liabilities from accrued
interest and deferred income.
The following cash flows are included in Cash flow from
operating activities.
Cash flows included in Cash flow from operating activities
2024
2023
(adjusted)
In millions of euros
Interest paid (including refinancing
financial services business)1
-3,902
-3,068
Interest received (including
financial services business)1
6,142
5,689
Dividends received from
equity-method investments
1,918
2,056
Dividends received from other
shareholdings
130
307
1 For a more suitable presentation, the interest paid and received have been affected
by reclassifications of balance sheet items. The reclassifications are described in
Note 1.
In the financial year and the prior year, the other non-
cash expenses and income shown in the reconciliation
of profit before income taxes to cash flow from
operating activities were particularly affected by the
equity-method investments with the Group’s share of
the result and the impairments on the carrying amount.
A further effect arose from the market valuation of
debt instruments.
Cash Flow from financing activities
Cash flow from financing activities includes cash flows
from hedging the currency risks of financing liabilities.
Cash flow from financing activities included payments
for the reduction of outstanding leasing liabilities of
€567 million (2023: €640 million).
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373
Notes to the Consolidated Financial
Statements
The liabilities arising from financing activities, divided
into cash and non-cash components, changed as
follows.
Changes in liabilities arising from financing activities
2024
2023
(adjusted)
In millions of euros
Financing cash flow
-188
-697
Interest paid (including refinancing financial
services business)1
-3,902
-3,068
Change of control in subsidiaries
-156
-384
Changes in foreign exchange rates1
2,493
-2,814
Fair value changes
22
46
Interest expense (including refinancing financial
services business)1
4,195
3,160
Other changes1
849
930
1 For a more suitable presentation, the reconciling items have been affected by
reclassifications of balance sheet items. The reclassifications are described in Note 1.
The other changes mainly include effects from the
increase in lease liabilities as well as from interest
valuations and accruals on liabilities from financing
activities.
30. Legal proceedings
Mercedes-Benz Group AG and its subsidiaries are
confronted with various legal proceedings, claims as
well as governmental investigations and orders (legal
proceedings) on a large number of topics, including
vehicle safety, emissions, fuel economy, financial
services, dealer, supplier and other contractual
relationships, intellectual property rights (including but
not limited to patent infringement actions), warranty
claims, environmental matters, antitrust matters
(including actions for damages) as well as investor
litigation. Product-related litigation involves, among
other things, claims alleging faults in vehicles. Some of
these claims are asserted by way of class actions. If
the outcome of such legal proceedings is detrimental
to the Mercedes-Benz Group or such legal proceedings
are settled, the Group may encounter substantial
financial burdens, e.g. from damages payments or
service actions, recall campaigns, monetary penalties
or other costly actions, which would adversely affect
the earnings of Mercedes-Benz Group AG. Legal
proceedings and related settlements may also have an
impact on the company’s reputation and/or may lead
to the exclusion from tenders.
Diesel emission behaviour:
governmental proceedings
The activities of various authorities worldwide in
connection with diesel exhaust emissions of Mercedes-
Benz vehicles, which were already reported in the past,
are partly ongoing, as described below. These activities
particularly relate to test results, the emission control
systems used in Mercedes-Benz diesel vehicles and/or
the interactions of the Mercedes-Benz Group with the
relevant authorities as well as related legal issues
and implications, including, but not limited to, under
applicable environmental, consumer protection and
antitrust laws.
In the United States, Mercedes-Benz Group AG and
Mercedes-Benz USA, LLC (MBUSA) reached agreements
in 2020 with various authorities to settle civil environ-
mental claims regarding the emission control systems
of certain diesel vehicles. These agreements have
become final and effective. As part of these settle-
ments, the Mercedes-Benz Group has agreed to, among
other things, conduct an emission modification
programme for the affected vehicles and take certain
other measures. The failure to meet certain of the
agreements’ obligations may trigger additional stipu-
lated penalties. Provisions have been recognized
for the emission modification programme and other
measures; in the case of the emission modification
programme under product warranties.
Annual Report 2024 | Mercedes-Benz Group
374
Notes to the Consolidated Financial
Statements
As already reported, in 2016, the U.S. Department of
Justice (DOJ) requested that the Mercedes-Benz Group
conduct an internal investigation. The Mercedes-Benz
Group conducted such an internal investigation in
cooperation with the DOJ’s investigation. In March
2024, the DOJ informed the Mercedes-Benz Group that
based on the information available to it, it had closed
its investigation; thus, the DOJ will not bring any
criminal charges against the Mercedes-Benz Group. In
addition, further US state authorities have opened
investigations pursuant to both local environmental
and consumer protection laws and have requested
documents and information.
In Canada, the environmental regulator Environment
and Climate Change Canada (ECCC) is conducting
an investigation in connection with diesel exhaust
emissions based on the suspicion of potential viola-
tions of, amongst others, the Canadian Environmental
Protection Act, as well as undisclosed Auxiliary
Emission Control Devices and defeat devices.
The Mercedes-Benz Group cooperates with the
investigating authorities.
In Germany, between 2018 and 2024, the Federal
Motor Transport Authority (KBA) issued subsequent
auxiliary provisions for the EC type approvals of certain
Mercedes-Benz diesel vehicles, and ordered mandatory
recalls, different technical remedial actions as well
as, in some cases, stops of the first registration. In each
of those cases, it held that certain calibrations of
specified functionalities are to be qualified as imper-
missible defeat devices. Mercedes-Benz has a contrary
legal opinion on this question and has filed timely
objections against the KBA’s administrative orders and
determinations mentioned above. Insofar as the KBA
has not remedied the objections, Mercedes-Benz has
filed lawsuits with the competent administrative court.
Irrespective of such objections and the lawsuits that
are now pending, the Mercedes-Benz Group continues
to cooperate fully with the KBA. The remedial actions
requested by the KBA were developed by the
Mercedes-Benz Group and assessed and approved by
the KBA. The necessary recalls were initiated. Insofar
as remedial actions relate to cooperation engines, the
Mercedes-Benz Group has commissioned the develop-
ment of the remedial actions. It cannot be ruled out
that under certain circumstances, software updates
may have to be reworked, or further delivery and
registration stops may be ordered or resolved by the
company as a precautionary measure, also with regard
to the used car, leasing and financing businesses. In
the course of its regular market supervision, the KBA
routinely conducts further reviews of Mercedes-Benz
vehicles and asks questions about technical elements
of the vehicles. In addition, the Group continues to
be in a dialogue with the responsible authorities to
conclude the analysis of the diesel-related emissions
matter and to further the update of affected customer
vehicles. In light of the aforementioned administrative
orders issued by the KBA, and continued discussions
with the responsible authorities, as well as potential
developments of the jurisprudence, it cannot be ruled
out that additional administrative orders may be issued
in the course of the ongoing and/or further investiga-
tions. This also applies to other responsible authorities
of other EU member states and the European Commis-
sion, which conduct market surveillance under the
European Type Approval Regulation and can take
measures upon assumed non-compliance, irrespective
of the place of the original type approval, and also e.g.
to the British market surveillance authority DVSA
(Driver and Vehicle Standards Agency).
In addition to the aforementioned authorities, author-
ities of various foreign states, particularly the South
Korean Ministry of Environment and the South Korean
competition authority (Korea Fair Trade Commission)
are conducting various investigations and/or pro-
cedures in connection with diesel exhaust emissions.
In this context, these South Korean authorities have
made determinations and imposed sanctions against
Mercedes-Benz which Mercedes-Benz has appealed.
In the same context, national antitrust authorities of
various countries are also conducting investigations,
including the Brazilian antitrust authority, which
opened an antitrust proceeding against Mercedes-Benz
and some other car manufacturers in July 2024.
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375
Notes to the Consolidated Financial
Statements
The Mercedes-Benz Group continues to fully cooperate
with the authorities and institutions.
Diesel emission behaviour:
consumer actions and other lawsuits
in the United States, Germany and
other states
Consumer class actions were filed against Mercedes-
Benz Group AG in Israel in 2019 and, since 2020, in the
United Kingdom, the Netherlands, Portugal, and since
2022 in Australia against Mercedes-Benz Group AG and
further Group companies. The plaintiffs inter alia assert
that the Mercedes-Benz Group had used devices that
impermissibly impair the effectiveness of emission
control systems in reducing nitrogen-oxide (NOX)
emissions and which cause excessive emissions from
vehicles with diesel engines. Furthermore, they claim
that the Mercedes-Benz Group deceived consumers in
connection with advertising statements for Mercedes-
Benz diesel vehicles. The proceedings in England and
Wales consist of several individual lawsuits that have
been consolidated into a class action. A class action
lawsuit is also pending in Scotland. In these proceed-
ings, allegedly injured parties must actively register
for the enforcement of claims (opt-in). The plaintiffs in
the consumer class action in England and Wales also
allege, among other things, anti-competitive behaviour
relating to technology for the treatment of diesel
exhaust emissions.
In Germany, a large number of customers of Mercedes-
Benz diesel vehicles have filed lawsuits for damages or
rescission of sales contracts. They assert that the
vehicles contained illegal defeat devices and/or
showed impermissibly high emission or consumption
values. In particular, they refer to the KBA’s recall
orders (see above). Although the number of pending
cases is declining, a future increase cannot be ruled
out. Following a decision of the European Court of
Justice in the first quarter of 2023, the German Federal
Court of Justice ruled in the second quarter of 2023
that vehicle purchasers are entitled to claim damages
against the manufacturer if it intentionally or
negligently used an inadmissible defeat device. Based
on similar allegations, the Federation of German
Consumer Organizations (Verbraucherzentrale
Bundesverband e.V.) filed a model declaratory action
(Musterfeststellungsklage) against Mercedes-Benz
Group AG with the Stuttgart Higher Regional Court in
2021. Such an action seeks a ruling that certain
preconditions of alleged consumer claims are met. In
March 2024, the Stuttgart Higher Regional Court largely
granted the model declaratory action. Mercedes-Benz
Group AG and, in respect of the dismissed claims, also
the plaintiff have appealed against the decision to the
Federal Court of Justice.
Mercedes-Benz Group AG and the respective other
affected companies of the Group regard the pending
lawsuits set out above as being without merit and
continue to defend themselves against the claims.
In addition, investors from Germany and abroad have
filed lawsuits for damages with the Stuttgart Regional
Court alleging the violation of disclosure requirements
(main proceedings) and also raised out-of-court claims
for damages. The investors allege that Mercedes-Benz
Group AG did not immediately disclose inside informa-
tion in connection with the emission behaviour of its
diesel vehicles and that it had made false and mislead-
ing public statements. They further claim that the
purchase price of the financial instruments acquired by
them (in particular Mercedes-Benz Group shares,
formerly Daimler shares) would have been lower if
Mercedes-Benz Group AG had complied with its dis-
closure obligations. Mercedes-Benz Group AG regards
these allegations and claims as being without merit
and defends itself against them. In this context, the
Stuttgart Higher Regional Court initiated model case
proceedings under the German Act on Model Case
Proceedings in Disputes under Capital Markets Law
(KapMuG) in 2021 (model case proceedings). The
purpose of the model case proceedings is to reach a
decision that is binding for the main proceedings
regarding common factual and legal questions. The
main proceedings before the Stuttgart Regional Court
will be suspended until a decision is reached on
the questions submitted, insofar as they cannot be
dismissed independently of the questions to be
decided in the model case proceedings. The decision
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376
Notes to the Consolidated Financial
Statements
in the model case proceedings is binding for the
suspended main proceedings. Multiple investors have
used the possibility to register claims in a considerable
amount with the model case proceedings in order to
suspend the period of limitation. Mercedes-Benz Group
AG is of the view to have duly fulfilled its disclosure
obligations under capital markets law and defends
itself against the investors’ allegations also in these
model case proceedings.
Accounting assessment of the legal
proceedings in connection with
diesel emission behaviour
With respect to the legal proceedings described in the
two preceding chapters, in accordance with IAS 37.92
no further information is disclosed with respect to
whether, or to what extent, provisions have been
recognized and/or contingent liabilities have been
disclosed, so as not to prejudice the Mercedes-Benz
Group’s position. For recognized provisions, this does
not apply to the extent that a settlement has been
reached or a proceeding has been concluded.
Other legal proceedings
As already reported, class actions in connection with
Takata airbags are pending in the United States and
Israel. The lawsuits are based on allegations that, along
with Takata entities and many other companies that
sold vehicles equipped with Takata airbag inflators,
Mercedes-Benz Group companies and others were
allegedly negligent in selling such vehicles, purportedly
not recalling them quickly enough, and failing to warn
consumers about a potential defect and/or to provide
an adequate replacement airbag inflator. The consumer
class action in the United States was dismissed against
Mercedes-Benz Group AG in its entirety, and against
MBUSA in part. The plaintiffs have appealed the dis-
missal of Mercedes-Benz Group AG and the procee-
dings against MBUSA are still pending. The remaining
class action in Canada was discontinued by the plain-
tiffs and finally dismissed by the court in January 2025.
This development leads to a reduction of the risk
associated with the class actions. They therefore no
longer qualify for separate reporting, which is why the
Mercedes-Benz Group will no longer report on them in
the future.
In 2021, a number of Australian Mercedes-Benz dealers
lodged a claim against Mercedes-Benz Australia/Pacific
Pty Ltd. (MBAuP) with a Federal Court in Australia. They
allege that MBAuP forced the dealers to accept a
change in their business model from a dealership
model to an agency model and thus deprived them of
the goodwill they created through their investments in
the Australian Mercedes-Benz dealership network.
They seek reinstatement of the dealership model or,
alternatively, compensation for the damage they
allegedly incurred. In 2023, the court dismissed the
claims in their entirety. In January 2024, the plaintiffs
appealed the decision. MBAuP considers those claims
to be without merit and continues to defend itself
against the claims.
Since 2022, two class actions have been pending in
the United States alleging claims based on a voluntary
recall of certain Mercedes-Benz ML-, GL- and R-Class
vehicles produced during the 2004–2015 model years
for potentially corroded brake boosters. Among other
things, the plaintiffs allege that the brake boosters in
such vehicles can corrode and lead to reduced braking
force. They allege failure to disclose the claimed defect
and assert various claims. A further class action which
was filed in Israel was withdrawn in November 2024.
The Mercedes-Benz Group considers the lawsuits to be
without merit and defends itself against them.
Annual Report 2024 | Mercedes-Benz Group
377
Notes to the Consolidated Financial
Statements
In accordance with IAS 37.92 no further information
is disclosed with respect to whether, or to what extent,
provisions have been recognized and/or contingent
liabilities have been disclosed with respect to the
procedures described in the two preceding paragraphs,
so as not to prejudice the Mercedes-Benz Group’s
position.
Accounting estimates and
management judgements relating to
all legal proceedings
Mercedes-Benz Group AG and its subsidiaries
recognize provisions in connection with pending or
threatened proceedings to the extent an obligation is
probable and can be reasonably estimated. Such pro-
visions are recognized in the Group’s Consolidated
Financial Statements and are based on estimates.
If quantifiable, contingent liabilities in connection
with legal proceedings are disclosed in the Group’s
Consolidated Financial Statements. Risks resulting
from legal proceedings sometimes cannot be assessed
reliably or only to a limited extent. Consequently,
provisions recognized for some legal proceedings may
turn out to be insufficient once such proceedings have
ended. The Mercedes-Benz Group may also become
liable for payments in legal proceedings for which no
provisions were recognized and/or contingent liabilities
were disclosed. Uncertainty exists with regard to
the amounts or due dates of possible cash outflows.
Although the final result of any such proceedings could
materially affect the Group’s operating results and cash
flows for a particular reporting period, the Mercedes-
Benz Group believes that it should not exert a
sustained influence on the Group’s financial position.
31. Contingent liabilities and
other financial obligations
Contingent liabilities
At 31 December 2024, the best estimate for obligations
from contingent liabilities was €2,807 million (2023:
€2,553 million). The contingent liabilities are mainly
related to the legal proceedings described in Note 30
and product warranties.
Other financial obligations
At 31 December 2024, other financial obligations exist
from the acquisition of intangible assets, property,
plant and equipment and equipment on operating
leases of €5,534 million (2023: €5,684 million).
In addition, the Mercedes-Benz Group issued
irrevocable loan commitments at 31 December 2024.
These loan commitments had not been utilized as of
that date. Further information with respect to these
irrevocable loan commitments is provided in Note 33.
Annual Report 2024 | Mercedes-Benz Group
378
Notes to the Consolidated Financial
Statements
32. Financial instruments
Carrying amounts and fair values
of financial instruments
The carrying amounts and fair values of the respective
classes of the Group’s financial instruments are
shown in the table Carrying amounts and fair values of
financial instruments and contain the Group amounts,
including assets and liabilities held for sale. The fair
values of financial instruments were calculated on the
basis of market information available on the balance
sheet date. The following methods and assumptions
were used.
Receivables from financial services
For the sake of simplicity, the fair values of receivables
from financial services with variable interest rates are
estimated to be equal to the respective carrying
amounts, because the agreed upon interest rates and
those available in the market do not significantly differ.
The fair values of receivables from financial services
with fixed interest rates are determined on the basis of
discounted expected future cash flows. Discounting is
based on the current interest rates at which similar
loans with identical terms could have been obtained at
31 December 2024 and 31 December 2023.
Trade receivables and cash and cash equivalents
Due to the short terms and the fundamentally low
credit risk of these financial instruments, it is assumed
that their fair values are equal to the carrying amounts.
Marketable debt securities and similar investments
as well as other financial assets
Marketable debt securities are recognized at fair
value through other comprehensive income or at fair
value through profit or loss. Similar investments are
measured at amortized cost and are not included in the
measurement hierarchy, as the carrying amount is a
reasonable approximation of fair value due to the short
terms of these financial instruments and the
fundamentally low credit risk.
Equity instruments are recognized at fair value through
other comprehensive income or at fair value through
profit or loss. Equity instruments recognized at fair
value through other comprehensive income primarily
comprise the shares in Momenta Global Limited, BAIC
BluePark New Energy Technology Co., Ltd., Aston
Martin Lagonda Global Holdings Plc and the shares in
Sila Nanotechnologies Inc. which are classified as
a Level 3 instrument according to the measurement
hierarchy. As a result of a new funding round and
associated new pricing information, our fair value in
Sila Nanotechnologies Inc. decreased.
Marketable debt securities and equity instruments
recognized at fair value were measured using quoted
market prices at the end of the reporting period. If
quoted market prices are not available for these debt
and equity instruments, fair value measurement is
based on inputs that are either directly or indirectly
observable in active markets. Fair values are calculated
using recognized financial valuation models such as
discounted cash flow models or multiples, taking into
account current valuation parameters such as interest
rates and exchange rates.
Other financial assets measured at fair value through
profit or loss relate to derivative financial instruments
not used in hedge accounting. These financial instru-
ments as well as derivative financial instruments used
in hedge accounting comprise:
– derivative currency hedging contracts; the fair
values of cross-currency interest rate swaps are
determined on the basis of the discounted
estimated future cash flows (taking account of
credit premiums and default risks) using the market
interest rates appropriate to the remaining terms of
the financial instruments. The measurement of
currency forwards is based on market quotes of
forward curves. Currency options, if used, are
measured with option-pricing models using market
data.
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379
Notes to the Consolidated Financial
Statements
– derivative interest rate hedging contracts; the fair
values of interest rate hedging instruments (e.g.
interest rate swaps) are calculated on the basis of
the discounted estimated future cash flows (taking
account of credit premiums and default risks)
using the market interest rates appropriate to the
remaining terms of the financial instruments.
– derivative commodity hedging contracts; the fair
values of commodity hedging contracts (e.g.
commodity swaps) are determined on the basis of
current reference prices with consideration of
forward premiums and discounts and default risks.
Other financial receivables and other financial assets
are carried at amortized cost. Because of the pre-
dominantly short maturities and the fundamentally
lower credit risk of these financial instruments, it is
assumed that the fair values approximate the carrying
amounts.
Financing liabilities
Financing liabilities are measured at amortized cost.
The fair values of bonds, loans, commercial paper,
deposits from the direct banking business and
liabilities from ABS transactions are calculated as
present values of the estimated future cash flows
(taking account of credit premiums and credit risks).
Market interest rates for the appropriate terms are
used for discounting.
Trade payables
Due to the short maturities of these financial instru-
ments, it is assumed that their fair values are equal to
the carrying amounts.
Reverse factoring agreements did not change the
relevant characteristics of a trade payable for the
Group for the liabilities concerned. As a result, there
were no reclassifications of these trade payables to
financing liabilities.
Contract and refund liabilities
Contract and refund liabilities include obligations from
sales transactions that qualify as financial instruments.
Obligations from sales transactions should generally
be regarded as current. Due to the short maturities of
these financial instruments, it is assumed that their
fair values are equal to the carrying amounts.
Other financial liabilities
Other financial liabilities measured at fair value through
profit or loss comprise derivative financial instruments
not used in hedge accounting. For information regar-
ding these financial instruments as well as derivative
financial instruments used in hedge accounting, see the
notes above under Marketable debt securities and
similar investments as well as other financial assets.
Miscellaneous other financial liabilities are carried at
amortized cost. Because of the predominantly short
maturities of these financial instruments, it is assumed
that the fair values are equal to the carrying amounts.
See Note 1 for further qualitative descriptions of
accounting for and presentation of financial instru-
ments (including derivative financial instruments).
Annual Report 2024 | Mercedes-Benz Group
380
Notes to the Consolidated Financial
Statements
Carrying amounts and fair values of financial instruments
31 December
31 December
2024
2023
(adjusted)
Carrying amount
Fair value
Carrying amount
Fair value
In millions of euros
Receivables from financial services1
87,950
90,048
89,019
90,655
Trade receivables
6,982
6,982
7,419
7,419
Cash and cash equivalents
14,517
14,517
15,972
15,972
Marketable debt securities and similar investments
7,730
7,730
6,858
6,858
Measured at fair value through profit or loss
5,952
5,952
5,611
5,611
Measured at fair value through other comprehensive income
880
880
1,155
1,155
Measured at cost
898
898
92
92
Other financial assets
Equity instruments and debt instruments
1,293
1,293
1,507
1,507
Measured at fair value through profit or loss
589
589
649
649
Measured at fair value through other comprehensive income
704
704
858
858
Other financial assets measured at fair value through profit or loss
271
271
347
347
Derivative financial instruments used in hedge accounting
1,291
1,291
2,660
2,660
Other receivables and miscellaneous other financial assets
2,690
2,690
3,013
3,013
Financial assets
122,724
124,822
126,795
128,431
Financing liabilities2
110,583
110,095
107,310
106,800
Trade payables2
11,312
11,312
12,727
12,727
Other financial liabilities
Other financial liabilities measured at fair value through profit or loss
114
114
188
188
Derivative financial instruments used in hedge accounting
1,118
1,118
1,115
1,115
Miscellaneous other financial liabilities2
4,334
4,334
4,733
4,733
Contract and refund liabilities
Obligations from sales transactions
4,655
4,655
4,236
4,236
Financial liabilities
132,116
131,628
130,309
129,799
1 The previous year’s figures have been corrected in accordance with IAS 8. Further information is included in Note 3.
2 For a more suitable presentation, reclassifications have been carried out between the balance sheet items. The reclassifications are described in Note 1.
Annual Report 2024 | Mercedes-Benz Group
381
Notes to the Consolidated Financial
Statements
Offsetting of financial instruments
The Group concludes derivative transactions in ac-
cordance with the master netting agreements of the
International Swaps and Derivatives Association (ISDA)
and comparable national framework agreements.
However, these agreements do not meet the criteria for
netting in the Consolidated Statement of Financial
Position, as they allow netting only in the case of future
events such as default or insolvency on the part of the
Group or the counter-parties.
The following table shows the carrying amounts of the
derivative financial instruments subject to the de-
scribed agreements as well as the possible financial
effects of netting in accordance with the master netting
agreements.
Disclosure for recognized derivative financial instruments that are subject to an enforceable master netting arrangement or similar agreement
31 December
31 December
2024
2023
2024
2023
Other financial assets1
Other financial liabilities2
In millions of euros
Gross and net amounts of financial instruments in the Consolidated Statement of Financial Position
1,562
3,007
1,232
1,303
Amounts subject to a master netting arrangement
-888
-1,104
-888
-1,104
Net amounts
674
1,903
344
199
1 The other financial assets which are subject to a master netting agreement comprise derivative financial instruments that are included in hedge accounting and other financial assets measured at fair value through profit or loss (see Note 17).
2 The other financial liabilities which are subject to a master netting agreement comprise derivative financial instruments that are included in hedge accounting and other financial liabilities measured at fair value through profit or loss (see Note 26).
Annual Report 2024 | Mercedes-Benz Group
382
Notes to the Consolidated Financial
Statements
Measurement hierarchy
The following table provides an overview of the classi-
fication into measurement hierarchies of financial
assets and liabilities measured at fair value (according
to IFRS 13).
At the end of the reporting period, the Group reviews
whether reclassifications between the measurement
hierarchies are necessary compared to 31 December of
the previous year.
For the determination of the credit risk from derivative
financial instruments which are allocated to the Level 2
measurement hierarchy, portfolios managed on the
basis of net exposure are applied.
Measurement hierarchy of financial assets and liabilities measured at fair value
31 December
31 December
2024
2023
Total
Level 11
Level 22
Level 33
Total
Level 11
Level 22
Level 33
In millions of euros
Marketable debt securities and similar investments
6,832
6,780
52
–
6,766
6,712
54
–
Measured at fair value through profit or loss
5,952
5,950
2
–
5,611
5,607
4
–
Measured at fair value through other comprehensive income
880
830
50
–
1,155
1,105
50
–
Equity instruments and debt instruments
1,293
316
303
674
1,507
417
406
684
Measured at fair value through profit or loss
589
28
9
552
649
59
214
376
Measured at fair value through other comprehensive income
704
288
294
122
858
358
192
308
Other financial assets measured at fair value through profit or loss
271
–
243
28
347
–
339
8
Derivative financial instruments used in hedge accounting
1,291
–
1,291
–
2,660
–
2,660
–
Financial assets measured at fair value
9,687
7,096
1,889
702
11,280
7,129
3,459
692
–
–
–
–
–
–
–
–
Other financial liabilities measured at fair value through profit or loss
114
–
114
–
188
–
188
–
Derivative financial instruments used in hedge accounting
1,118
–
1,118
–
1,115
–
1,115
–
Financial liabilities measured at fair value
1,232
–
1,232
–
1,303
–
1,303
–
1 Fair value measurement is based on quoted prices (unadjusted) in active markets for these or identical assets or liabilities.
2 Fair value measurement is based on inputs, that can be observed directly or indirectly on an active market.
3 Fair value measurement is based on inputs for which no observable market data is available.
Annual Report 2024 | Mercedes-Benz Group
383
Notes to the Consolidated Financial
Statements
The following table shows into which level of the
measurement hierarchies (according to IFRS 13) the fair
values of the financial assets and liabilities that are not
measured at fair value in the Consolidated Statement
of Financial Position are classified.
Measurement hierarchy of financial assets and liabilities not recognized at fair value
31 December
31 December
2024
2023
(adjusted)
Total
Level 11
Level 22
Level 33
Total
Level 11
Level 22
Level 33
In millions of euros
Fair values of financial assets measured at cost
Receivables from financial services4
90,048
–
90,048
–
90,655
–
90,655
–
Fair values of financial liabilities measured at cost
Financing liabilities5
110,095
52,673
57,422
–
106,800
49,967
56,833
–
thereof bonds
62,207
52,673
9,534
–
55,643
49,967
5,676
–
thereof liabilities from ABS transactions
18,371
–
18,371
–
15,721
–
15,721
–
thereof other financing liabilities
29,517
–
29,517
–
35,436
–
35,436
–
1 Fair value measurement is based on quoted prices (unadjusted) in active markets for these or identical assets or liabilities.
2 Fair value measurement is based on inputs, that can be observed directly or indirectly on an active market.
3 Fair value measurement is based on inputs for which no observable market data is available.
4 The previous year’s figures have been corrected in accordance with IAS 8. Further information is included in Note 3.
5 For a more suitable presentation, reclassifications have been carried out between the balance sheet items. The reclassifications are described in Note 1.
Annual Report 2024 | Mercedes-Benz Group
384
Notes to the Consolidated Financial
Statements
Measurement categories
Carrying amounts of financial instruments according to measurement categories1
31 December
2024
2023
(adjusted)
In millions of euros
Financial assets measured at (amortized) cost
93,929
96,280
Receivables from financial services2, 6
68,842
69,784
Trade receivables
6,982
7,419
Cash and cash equivalents
14,517
15,972
Marketable debt securities and similar investments
898
92
Other receivables and miscellaneous other financial assets
2,690
3,013
Financial assets measured at fair value through profit or loss
6,812
6,607
Marketable debt securities and similar investments
5,952
5,611
Equity instruments and debt instruments
589
649
Other financial assets measured at fair value through profit or loss3
271
347
Financial assets measured at fair value through other comprehensive income
1,584
2,013
Marketable debt securities and similar investments
880
1,155
Equity instruments and debt instruments
704
858
Financial liabilities measured at (amortized) cost
130,883
129,002
Financing liabilities4, 7
110,583
107,310
Trade payables7
11,312
12,727
Miscellaneous other financial liabilities5, 7
4,333
4,729
Obligations from sales transactions
4,655
4,236
Other financial liabilities measured at fair value through profit or loss3
114
188
1 The carrying amounts of derivative financial instruments used in hedge accounting are not included in the table as these financial instruments are not assigned to a measurement category.
2 This does not include lease receivables of €19,108 million (2023: €19,235 million) as these are not assigned to a measurement category.
3 These amounts relate to derivative financial instruments that are not included in hedge accounting.
4 This does not include liabilities from lease transactions of €2,242 million (2023: €2,207 million) as these are not assigned to a measurement category.
5 This does not include financial guarantees of €1 million (2023: €4 million) as these are not assigned to a measurement category.
6 The previous year’s figures have been corrected in accordance with IAS 8. Further information is included in Note 3.
7 For a more suitable presentation, reclassifications have been carried out between the balance sheet items. The reclassifications are described in Note 1.
Annual Report 2024 | Mercedes-Benz Group
385
Notes to the Consolidated Financial
Statements
Net gains or losses
The following table shows the net gains/losses on
financial instruments included in the Consolidated
Statement of Income (excluding derivative financial
instruments used in hedge accounting).
Net gains/losses
2024
2023
In millions of euros
Equity and debt instruments recognized at
fair value through profit or loss
-63
-21
Other financial assets and other financial
liabilities measured at fair value through
profit or loss1
356
-49
Equity instruments recognized at fair value
through other comprehensive income
4
4
Other financial assets measured at fair
value through other comprehensive income
-3
–
Financial assets measured at (amortized)
cost
-626
-760
Financial liabilities measured at (amortized)
cost
-196
109
1 The amounts relate to derivative financial instruments that are not used in hedge
accounting.
Net gains/losses on equity and debt instruments
recognized at fair value through profit or loss primarily
comprise gains and losses attributable to changes in
the fair values of these instruments.
Net gains/losses on other financial assets and liabilities
measured at fair value through profit or loss comprise
gains and losses attributable to changes in their fair
values.
Net gains/losses on equity instruments recognized at
fair value through other comprehensive income
comprise dividend payments.
Net gains/losses on other financial assets measured
at fair value through other comprehensive income are
primarily attributable to exchange-rate effects.
Net gains/losses on financial assets measured at
(amortized) cost (excluding the interest income/
expense shown below) primarily comprise impairment
losses (including reversals of impairment losses) of
€633 million (2023: €406 million) that are charged to
cost of sales, selling expenses and other financial
income/expense. Foreign currency gains and losses are
also included.
Net gains/losses on financial liabilities measured at
(amortized) cost (excluding the interest income/
expense shown below) primarily comprise exchange-
rate effects.
Total interest income and
total interest expense
Total interest income and total interest expense for
financial assets or financial liabilities that are not
measured at fair value through profit or loss are shown
in the following table.
Total interest income and total interest expense
2024
2023
In millions of euros
Total interest income
6,211
5,528
thereof from financial assets and
liabilities measured at (amortized) costs
6,115
5,458
thereof from financial assets measured at
fair value through other comprehensive
income
96
70
Total interest expense
-4,089
-2,936
thereof from financial assets and
liabilities measured at (amortized) costs
-4,089
-2,936
thereof from financial assets measured at
fair value through other comprehensive
income
–
–
Annual Report 2024 | Mercedes-Benz Group
386
Notes to the Consolidated Financial
Statements
Information on derivative
financial instruments
Use of derivatives
The Mercedes-Benz Group uses derivative financial
instruments basically only for hedging financial risks
that arise from its operating or refinancing activities
or from its liquidity management. These are mainly
currency risks, interest rate risks and commodity price
risks, which have been defined as risk categories.
For these hedging purposes, the Group mainly uses
currency forward transactions, cross-currency interest
rate swaps, interest rate swaps and commodity
hedging contracts.
The following table shows the amounts for the
transactions designated as hedging instruments.
No commodity hedges were included in hedge
accounting in the reporting year.
Most of the transactions for which the effects from
the measurement of the hedging instrument and the
underlying transaction to a large extent offset each
other in the Consolidated Statement of Income were
not included in the hedge accounting.
Even if derivative financial instruments do not or no
longer qualify for hedge accounting, these instruments
still serve to hedge financial risks from business
operations.
Explanations of the hedging of exchange-rate risks,
interest rate risks and commodity price risks can be
found in Note 33.
Amounts for the transactions designated as hedging instruments
Currency risk
Interest rate risk
Interest rate risk
Cash flow hedges1
Cash flow hedges2
Fair-value hedges2
31 December
31 December
31 December
2024
2023
2024
2023
2024
2023
In millions of euros
Carrying amount of the hedging instruments
Other financial assets current
516
904
58
100
12
33
Other financial assets non-current
115
760
543
858
47
4
Other financial liabilities current
465
265
15
7
28
45
Other financial liabilities non-current
268
181
49
44
293
573
Fair value changes of the hedging instruments3
-534
1,877
-343
-628
354
625
1 Includes currency forwards.
2 Includes the following hedging instruments: interest rate swaps, cross-currency interest rate swaps.
3 Gains and losses from hedging instruments used for recognizing hedge ineffectiveness.
Annual Report 2024 | Mercedes-Benz Group
387
Notes to the Consolidated Financial
Statements
Cash flow hedges and hedges of net investments in
foreign operations
The Mercedes-Benz Group uses cash flow hedges
for hedging currency risks, interest rate risks and
commodity price risks. The amounts related to items
designated as cash flow hedges are shown in the
following table.
The Group also partially hedges the currency risk of
selected investments with the application of derivative
or non-derivative financial instruments. Neither in the
reporting year nor in the previous year were there any
active hedges of net investments in foreign operations.
Cash flow hedges and hedges of net investments in foreign operations
2024
2023
Currency risk
Interest rate
risk
Currency risk
Interest rate
risk
In millions of euros
Fair-value changes of the hedged items1
534
343
-1,879
628
Balance of the reserves for derivative financial instruments (before taxes)
Continuing hedges
178
519
1,858
870
Discontinued/terminated hedges
-174
–
42
–
thereof hedges of net investments in foreign operations
-270
–
-270
–
1 Fair-value changes of the hedged items used for recognizing hedge ineffectiveness.
Annual Report 2024 | Mercedes-Benz Group
388
Notes to the Consolidated Financial
Statements
The gains and losses on items designated as cash flow
hedges are shown in the following table.
There were no results attributable to the ineffective
portion of cash flow hedges in the year 2024 (2023 :
expenses of €2 million).
Gains and losses on cash flow hedges and hedges of net investments in foreign operations
Currency risk
Interest rate risk
In millions of euros
Line item in the Statement of Income in which the transfers are included
Revenues
Cost of
sales
Cost of
sales
Interest
expense
2024
Gains and losses recognized in other comprehensive income
-556
22
-35
-308
Transfer of gains and losses from reserves for derivative financial instruments to the statement of income
For hedges for which the hedged future cash flows are no longer expected to occur
-53
1
–
–
For hedges that have been transferred because the hedged item has affected profit or loss
-1,335
–
4
-27
2023
Gains and losses recognized in other comprehensive income
1,979
-100
-100
-528
Transfer of gains and losses from reserves for derivative financial instruments to the statement of income
For hedges for which the hedged future cash flows are no longer expected to occur
-70
3
-1
–
For hedges that have been transferred because the hedged item has affected profit or loss
-1,111
–
-13
29
Annual Report 2024 | Mercedes-Benz Group
389
Notes to the Consolidated Financial
Statements
Fair-value hedges
The Group uses fair-value hedges primarily for hedging
interest rate risks. The amounts of the items hedged
with fair-value hedges are included in the following
table.
Fair-value hedges
Interest rate risk
2024
2023
(adjusted)
In millions of euros
Carrying amounts of the hedged items
Financing liabilities current1
4,782
4,365
thereof hedge adjustments
-36
-44
Financing liabilities non-current1
10,613
14,261
thereof hedge adjustments
-294
-599
Fair-value changes of the hedged items2
-354
-625
Accumulated amount of hedge adjustments
from inactive hedges remaining in the
statement of financial position
3
8
1 For a more suitable presentation, reclassifications have been carried out between the
balance sheet items. The reclassifications are described in Note 1.
2 Fair-value changes of the hedged items used for recognizing hedge ineffectiveness.
Neither in the current year nor in the previous year
were there any results attributable to the ineffective
portion of the hedge with fair-value hedges.
Annual Report 2024 | Mercedes-Benz Group
390
Notes to the Consolidated Financial
Statements
Reserves for derivative financial instruments
The following table shows the reconciliation of the
reserves for derivative financial instruments (excluding
reserves for hedges of net investments in foreign
operations).
The balance of reserves for hedges of net investments
in foreign operations amounted to minus €189 million
(2023: minus € 189 million).
Reconciliation of reserves for derivative financial instruments
Reserves for derivative financial instruments
Thereof reserves for hedge costs
2024
2023
2024
2023
In millions of euros
Balance at 1 January
1,485
984
-658
-1,048
Unrealized gains/losses before taxes
-907
1,168
-32
-82
Currency risk
-574
1,799
-42
-79
Interest rate risk
-333
-631
10
-3
Reclassification to profit and loss before taxes
-772
-474
638
688
Currency risk
-749
-489
638
688
Interest rate risk
-23
15
–
–
Reclassification to cost of acquisition of non-financial assets before taxes1
-19
35
-45
-51
Currency risk – procurement
-19
37
-45
-51
Taxes on unrealized gains/losses and reclassifications as well as other changes
502
-228
-167
-165
Balance at 31 December
289
1,485
-264
-658
1 Prior year included minus €2 million related to the hedge of commodity price risks.
Annual Report 2024 | Mercedes-Benz Group
391
Notes to the Consolidated Financial
Statements
Nominal values of derivative financial instruments
used in hedge accounting
At 31 December 2024, the Mercedes-Benz Group
utilized derivative financial instruments with a maxi-
mum maturity of 72 and 113 months, respectively,
( 2023: 71 and 115 months) as hedges for currency risks
and interest rate risks.
The following table shows the nominal values of
derivative financial instruments used in hedge
accounting entered into for the purpose of hedging
currency risks and interest rate risks (as well as
commodity price risks in the previous year) that arise
from the Group’s operating and/or financing activities.
The maturities of the derivative financial instruments
generally correspond with those of the underlying
transactions. The realization of the underlying trans-
actions is expected to correspond with the maturities
of the hedging transactions shown in the following
table.
Nominal amounts of derivative financial instruments used in hedge accounting
31 December
31 December
2024
2023
Maturity of nominal amounts
Maturity of nominal amounts
< 1 year
1 year up to 5
years
> 5 years
Total
< 1 year
1 year up to 5
years
> 5 years
Total
In millions of euros
Currency risk
20,236
15,044
156
35,436
24,200
18,297
50
42,547
Interest rate risk
10,583
22,944
1,685
35,212
8,635
27,961
2,795
39,391
Fair-value hedges
4,687
9,997
935
15,619
4,403
13,144
1,593
19,140
Cash flow hedges
5,896
12,947
750
19,593
4,232
14,817
1,202
20,251
Annual Report 2024 | Mercedes-Benz Group
392
Notes to the Consolidated Financial
Statements
Average prices of hedging instruments used in
hedge accounting
The following table shows the average prices of
hedging instruments by risk category for the major
risks.
Average prices of hedging instruments for the major risks
31 December
2024
2023
Currency risk
USD per €
1.10
1.10
CNY per €
7.45
7.29
GBP per €
0.87
0.88
Interest rate risk
Fair-value hedges
Average interest rate – €
-1.82%
-2.95%
Average interest rate – USD
-2.23%
-2.99%
Cash flow hedges
Average interest rate – €
2.43%
3.72%
Average interest rate – USD
1.79%
3.21%
33. Management of financial risks
General information
on financial risks
As a result of its businesses and the global nature of
its operations, the Mercedes-Benz Group is exposed
to market price risks from changes in foreign currency
exchange rates and interest rates, while price risks
arise from the procurement of raw materials and
energy, for example. An equity price risk results from
investments in listed companies. In addition, the Group
is exposed to credit risks mainly from its financing
activities and from its business operations (trade
receivables). Furthermore, the Group is exposed to
country and liquidity risks relating to its credit and
market price risks or a deterioration of its business
operations or financial market disturbances. If these
financial risks materialize, they adversely affect the
Group’s profitability, liquidity and capital resources,
and financial position.
The Mercedes-Benz Group has established internal
policies for risk controlling procedures and for the
regulation of the use of financial instruments, including
a clear segregation of duties with regard to financial
activities, settlement, accounting and the related
controlling. The guidelines upon which the Group’s risk
management processes for financial risks are based are
designed to identify and analyse these risks throughout
the Group, to set appropriate risk limits and controls
and to monitor the risks by means of reliable and up-
to-date administrative and information systems. The
guidelines and systems are regularly reviewed and
adjusted in line with changes in markets and products.
The Group manages and monitors these risks primarily
through its operating and financing activities and, if
required, through the use of derivative financial in-
struments. The Mercedes-Benz Group uses derivative
financial instruments for hedging financial risks that
arise from its business operations or refinancing
activities or liquidity management. Without these
derivative financial instruments, the Group would be
exposed to higher financial risks. Additional information
on financial instruments and especially on the volume
of the derivative financial instruments used is included
in Note 32. The Mercedes-Benz Group regularly
evaluates its financial risks with due consideration of
changes in key economic indicators and up-to-date
market information.
The market sensitive instruments, including equity and
debt securities, that the plan assets hold to finance
pension and other post-employment healthcare
benefits, are not included in the following quantitative
and qualitative analysis. See Note 23 for additional
information on the Mercedes-Benz Group’s pension
and post-employment healthcare benefits.
Annual Report 2024 | Mercedes-Benz Group
393
Notes to the Consolidated Financial
Statements
Credit risk
Credit risk describes the risk of financial loss resulting
from a counterparty failing to meet its contractual
payment obligations. In addition to the direct risk of
default, credit risk considerations also include risks
from deterioration in creditworthiness and
concentration risks.
The maximum risk positions of financial assets which
are generally subject to credit risk are equal to their
carrying amounts at the balance sheet date (without
consideration of collateral, if available). There is also a
default risk from financial guarantees and irrevocable
loan commitments which have not been utilized as of
that date. The maximum callable amounts are shown
for the maximum risk position of the loan commitments
and the maximum possible payment obligations from
financial guarantees granted are shown for the financial
guarantees.
The following table shows the maximum risk positions
at the balance sheet date.
Maximum risk position of financial assets,
irrevocable loan commitments and financial guarantees1
Maximum risk position
Note
2024
2023
(adjusted)
In millions of euros
Liquid assets
22,246
22,830
Receivables from
financial services2
15
87,867
89,019
Trade
receivables
20
6,982
7,419
Derivative financial
instruments used in
hedge accounting
(assets only)
32
1,291
2,660
Derivative financial
instruments not used in
hedge accounting
(assets only)
32
271
347
Other receivables and
financial assets
32
2,690
3,013
Irrevocable loan
commitments
2,635
2,476
Financial guarantees
139
284
1 The maximum exposure information presented in the table refers to Group amounts,
including assets and liabilities held for sale.
2 The previous year’s figures have been corrected in accordance with IAS 8. Further
information is included in Note 3.
Liquid assets
Liquid assets consist of cash and cash equivalents and
marketable debt securities and similar investments.
With the investment of liquid assets, financial institu-
tions and issuers of securities are selected very care-
fully and diversified in accordance with a limit system.
Liquid assets are mainly held at financial institutions
within and outside Europe with high creditworthiness,
as bonds issued by German federal states and as
money market funds. In connection with investment
decisions, priority is placed on the borrower’s very high
creditworthiness and on balanced risk diversification.
The limits and their utilization are reassessed
continuously. In this assessment, the Mercedes-Benz
Group also considers the credit risk assessment of its
counterparties by the capital markets. In line with the
Group’s risk policy, most liquid assets are held in
investments with an external rating of “A” or better.
Liquid assets are thus not subject to a material credit
risk and are allocated to stage 1 of the impairment
model under IFRS, which is based on expected credit
risk.
Annual Report 2024 | Mercedes-Benz Group
394
Notes to the Consolidated Financial
Statements
Receivables from financial services
The Mercedes-Benz Group’s financing and leasing
activities are primarily focused on supporting the sales
of the Group’s automotive products. As a consequence
of these activities, the Group is exposed to credit risk,
which is monitored and managed based on defined
standards, guidelines and procedures. The Mercedes-
Benz Group manages its credit risk irrespective of
whether it is related to a financing contract or to an
operating lease or a finance lease contract. For this
reason, statements concerning the credit risk of
Mercedes-Benz Mobility refer to the entire financing
and leasing business, unless otherwise specified.
Exposure to credit risk from financing and lease ac-
tivities is monitored based on the portfolio subject to
credit risk. The portfolio subject to credit risk consists
of wholesale and retail receivables from financial
services and the portion of the operating lease port-
folio that is subject to credit risk. Receivables from
financial services comprise claims arising from finance
lease contracts and repayment claims from financing
loans. The operating lease portfolio is reported under
equipment on operating leases in the Group’s
Consolidated Statement of Financial Position. Lease
payments due from operating lease contracts are
recognized in receivables from financial services.
The Mercedes-Benz Mobility segment has policies
setting the framework for effective risk management at
a global as well as a local level. In particular, these
policies deal with minimum requirements for all risk-
relevant credit processes, the definition of financing
products offered, the evaluation of the customers’
creditworthiness, requests for collateral and the
treatment of unsecured loans and non-performing
claims. The limitation of concentration risks is imple-
mented primarily by means of global limits, which refer
to customer exposures. To comply with these limits,
Mercedes-Benz Mobility applies approval standards
and measures to avoid concentration risks. Only one
customer was granted a credit line in the form of a
large loan. The Mercedes-Benz Mobility portfolio
consists of a large number of small and medium-sized
enterprises and private customers from more than
30 countries. At 31 December 2024, this segment
accounted for 71% of the portfolio.
With respect to its financing and lease activities, the
Group holds collateral for customer transactions
limiting actual credit risk through its fair value. The
value of collateral generally depends on the amount
of the financed assets. The financed vehicles usually
serve as collateral. Furthermore, Mercedes-Benz
Mobility limits credit risk from financing and lease
activities, for example through deposits from
customers.
For the assessment of the default risk of retail and
small business customers, scoring systems are applied
to evaluate their creditworthiness. Corporate cus-
tomers are evaluated using internal rating instruments.
Both evaluation processes use external credit bureau
data if available. The scoring and rating results as well
as the availability of security and other risk mitigation
instruments, such as deposits, guarantees and, to a
lesser extent, residual debt insurances, are essential
elements for credit decisions.
If, in connection with contracts, a worsening of pay-
ment behaviour or other causes of an increased credit
risk are recognized, collection procedures are initiated
by claims management to obtain the overdue payments
of the customer, to take possession of the asset
financed or leased or, alternatively, to renegotiate the
impaired contract. Internal restructuring policies for
loan and leasing contracts are based on the indicators
or criteria which, in the judgement of local manage-
ment, indicate that repayment will probably continue
and that the total proceeds expected to be derived
from the renegotiated contract exceed the expected
proceeds to be derived from immediate repossession
and remarketing. In the case of receivables from
financial services, significant modifications of financial
assets were only made in rare cases and to an
insignificant extent.
Annual Report 2024 | Mercedes-Benz Group
395
Notes to the Consolidated Financial
Statements
The allowance ratio remained stable compared to the
previous year. The credit loss ratio increased compared
to the previous year, mainly due to the continued
challenging lending environment in the United States.
For information on credit risks included in receivables
from financial services, see Note 15. Information on the
measurement of expected credit losses is provided in
Note 1.
Trade receivables
Trade receivables are mostly receivables from world-
wide sales of vehicles and spare parts. The credit risk
encompasses the default risk of customers, e.g. dealers
and general distribution companies, as well as other
corporate and private customers. In order to identify
credit risks, the Mercedes-Benz Group assesses the
creditworthiness of customers. The Mercedes-Benz
Group manages its credit risk from trade receivables
using appropriate IT applications and databases on the
basis of internal policies which have to be followed
Group-wide.
A significant proportion of the trade receivables from
each country’s domestic business is secured by various
country-specific types of collateral. This collateral
includes conditional sales, guarantees and sureties, as
well as mortgages and deposits from customers.
In the export business, the Mercedes-Benz Group
evaluates its customers’ creditworthiness by means of
an internal rating process with consideration of the
respective country risk. In this context, the Annual
Financial Statements and other relevant information,
such as the payment history of the general distribution
companies, are used and assessed.
Depending on the creditworthiness of the customers,
the Mercedes-Benz Group establishes credit limits and
limits credit risks with the following types of collateral:
– credit insurances,
– first-class bank guarantees and
– letters of credit.
These procedures are defined in an export credit
policy, which has Group-wide validity.
For impairments of trade receivables, the simplified
approach is applied, according to which these receiv-
ables are allocated to stage 2. The expected credit
losses until maturity for these trade receivables are
taken into account upon initial recognition.
Further information on trade receivables and the status
of loss allowances recognized is provided in Note 20.
Derivative financial instruments
The Group uses derivative financial instruments for
hedging financial risks that arise from its business
operations, financing activities or liquidity manage-
ment. The Mercedes-Benz Group manages its credit
risk exposure in connection with derivative financial
instruments through a limit system, which is based on
the review of each counterparty’s financial strength.
This system limits and diversifies the credit risk. As a
result, the Mercedes-Benz Group is exposed to credit
risk only to a small extent with respect to its derivative
financial instruments. In accordance with the Group’s
risk policy, most derivatives are contracted with
counterparties which have an external rating of “A” or
better.
Other receivables and financial assets
The Mercedes-Benz Group is exposed to credit risk
only to a small extent with respect to other receivables
and financial assets included in other financial assets
in 2024 and 2023.
Annual Report 2024 | Mercedes-Benz Group
396
Notes to the Consolidated Financial
Statements
Irrevocable loan commitments
The Mercedes-Benz Mobility segment in particular
is exposed to credit risks from irrevocable loan
commitments to end customers and retailers. At
31 December 2024, irrevocable loan commitments
amounted to €2,635 million (2023: €2,476 million).
These loan commitments have a maturity of less
than one year and are not subject to a material credit
risk based on the current state of knowledge.
Financial guarantees
The maximum potential obligations resulting from
financial guarantees amounted to €139 million at
31 December 2024 (2023: €284 million). Financial
guarantees represent contractual arrangements. These
guarantees generally provide that in the event of
default or non-payment by the primary debtor, the
Group, as the guarantor, will be required to settle such
financial obligations to the holder of the guarantee up
to a generally contractually agreed amount.
Country risk
Country risk is the risk of economic loss arising from
changes of political, economic, legal or social con-
ditions in the respective country, e.g. resulting from
sovereign measures such as expropriation or interdic-
tion of foreign currency transfers.
The Mercedes-Benz Group is exposed to country
risks mainly resulting from cross-border funding or
collateralization of Group companies and customers,
from investments in Group companies, associated
companies, joint ventures and joint operations as well
as from cross-border trade receivables. Country risks
also arise from cross-border cash deposits at financial
institutions.
The Mercedes-Benz Group manages these risks via
country exposure limits (e.g. for hard currency
portfolios of financial services entities). An internal
rating system serves as a basis for the Mercedes-Benz
Group’s risk-oriented country exposure management; it
assigns all countries to risk classes, with consideration
of external ratings.
Liquidity risk
Liquidity risk comprises the risk that a company cannot
meet its financial obligations in full.
The Mercedes-Benz Group manages its liquidity by
holding adequate volumes of liquid assets and by
maintaining syndicated credit facilities in addition to
the cash inflows generated by its business operations.
Additionally, the possibility to securitize receivables
(ABS transactions) also reduces the Group’s liquidity
risk. Liquid assets comprise cash and cash equivalents
and marketable debt securities and similar invest-
ments. The Group can dispose of these liquid assets at
short notice.
The Mercedes-Benz Group enables its suppliers to
sell receivables against Group companies under
reverse factoring programmes at their own discretion.
These programs are basically organized through
external intermediary structures that connect a large
number of suppliers with a large number of investors.
The payment terms remain unaffected by the financing.
Insofar as reverse factoring agreements are entered
into, they have no influence on the liquidity risk of the
Mercedes-Benz Group. Trade liabilities include
liabilities of €1,388 million (2023: €1,446 million) that
are included in reverse factoring and have been fully
financed by external investors. For liabilities which are
not included in reverse factoring, volume-weighted
payment terms between 20 and 40 days were agreed.
Liabilities included in reverse factoring had a volume-
weighted target of between 60 and 80 days. Individual
Annual Report 2024 | Mercedes-Benz Group
397
Notes to the Consolidated Financial
Statements
transactions amounting to approximately €300 million,
that will not be included in reverse factoring in the
future, are in a range of 170–190 days.
The funds raised are used to finance working capital
and capital expenditure as well as the cash needs
of the leasing and sales-financing business and unex-
pected liquidity needs. In accordance with internal
policies, the refunding of the leasing and sales-
financing business is generally carried out with
matching maturities so that financing liabilities have
the same maturity profile as the equipment on
operating leases and the receivables from financial
services.
At 31 December 2024, the liquidity of the Mercedes-
Benz Group amounted to €22.2 billion (2023:
€22.8 billion). In 2024, significant cash inflows re-
sulted from the business of the Mercedes-Benz Cars
and Mercedes-Benz Vans segments. Furthermore,
dividends received from Beijing Benz Automotive Co.,
Ltd. and Daimler Truck Holding AG in particular had a
positive effect on liquidity. Cash outflows resulted in
particular from investments in intangible assets and
property, plant and equipment, the dividend payment
to the shareholders of Mercedes-Benz Group AG,
payments made as part of the share buyback
programme and income taxes paid.
From an operating point of view, the management of
the Group’s liquidity exposures is centralized by a
daily cash-pooling process. This process enables the
Mercedes-Benz Group to manage its liquidity surplus
and liquidity requirements according to the actual
needs of the Group and of the companies of the Group.
The Group’s short-term and medium-term liquidity
management takes into account the maturities of
financial assets and financial liabilities and estimates of
cash flows from business operations.
In general, the Mercedes-Benz Group makes use of
a broad spectrum of financial instruments to cover
its funding requirements. Depending on funding
requirements and market conditions, the Mercedes-
Benz Group issues commercial paper, bonds (including
green bonds), debt obligations and financial instru-
ments secured by receivables in various currencies.
Bank credit facilities are also used to cover financing
requirements. Potential downgrades of the Mercedes-
Benz Group’s credit ratings could have a negative
impact on the Group’s financing. In June 2024, the
Mercedes-Benz Group has renewed its syndicated
credit facility with a volume of €11 billion with a
consortium of international banks. It grants the
Mercedes-Benz Group additional financial flexibility
until at least the year 2029. The syndicated credit line
had not been utilized as of the reporting date. In
addition, customer deposits at Mercedes-Benz Bank
are used as a further source of refinancing.
Information on the Group’s financing liabilities is also
provided in Note 25.
Annual Report 2024 | Mercedes-Benz Group
398
Notes to the Consolidated Financial
Statements
The following liquidity runoff shows how the cash flows
in connection with liabilities, derivative financial
instruments and irrevocable loan commitments and
financial guarantees as of 31 December 2024 may
affect the Group’s future liquidity situation.
Liquidity runoff at 31 December 2024 for liabilities and financial guarantees1
Total
2025
2026
2027
2028
2029
≥ 2030
In millions of euros
Financing liabilities2
122,698
41,840
31,019
20,596
6,449
6,284
16,510
thereof lease liabilities (undiscounted)
2,530
560
439
342
273
207
709
Derivative financial instruments3
1,409
831
394
187
18
-15
-6
thereof with gross settlement
979
603
284
132
-5
-18
-17
Cash outflows
29,942
18,504
7,320
3,027
711
240
140
Cash inflows
-28,963
-17,901
-7,036
-2,895
-716
-258
-157
thereof with net settlement
430
228
110
55
23
3
11
Cash outflows
430
228
110
55
23
3
11
Trade payables4
11,312
11,312
–
–
–
–
–
Miscellaneous other financial liabilities
4,322
3,495
220
193
141
150
123
Obligations from sales transactions
4,655
4,655
–
–
–
–
–
Irrevocable loan commitments5
2,635
2,635
–
–
–
–
–
Financial guarantees6
139
139
–
–
–
–
–
147,170
64,907
31,633
20,976
6,608
6,419
16,627
1 The amounts were calculated as follows:
(a) If the counterparty can request payment at different dates, the liability is included on the basis of the earliest date on which the Mercedes-Benz Group can be required to pay. The customer deposits of Mercedes-Benz Bank are mostly considered in this analysis to mature
within the first year.
(b) The interest payments of floating-interest financial instruments are estimated on the basis of forward rates.
2 The stated cash flows of financing liabilities consist of their undiscounted principal and interest payments.
3 The undiscounted sum of the cash flows of the derivative financial liabilities is shown for the respective year.
4 The cash outflows of trade payables are undiscounted.
5 The maximum available amounts are stated.
6 The maximum potential obligations under the issued financial guarantees are stated. It is assumed that the amounts are due within the first year.
Annual Report 2024 | Mercedes-Benz Group
399
Notes to the Consolidated Financial
Statements
Liquidity runoff at 31 December 2023 for liabilities and financial guarantees1
Total
2024
2025
2026
2027
2028
≥ 2029
(adjusted)
(adjusted)
In millions of euros
Financing liabilities2, 3
118,176
48,635
26,397
16,673
6,559
4,252
15,660
thereof lease liabilities (undiscounted)
2,444
500
430
341
275
217
681
Derivative financial instruments4
951
635
197
78
45
-1
-3
thereof with gross settlement
545
389
111
38
16
-6
-3
Cash outflows
19,129
14,157
2,913
1,161
630
220
48
Cash inflows
-18,584
-13,768
-2,802
-1,123
-614
-226
-51
thereof with net settlement
406
246
86
40
29
5
–
Cash outflows
406
246
86
40
29
5
–
Trade payables3, 5
12,705
12,703
1
1
–
–
–
Miscellaneous other financial liabilities3
4,675
3,899
305
192
142
87
50
Obligations from sales transactions
4,236
4,236
–
–
–
–
–
Irrevocable loan commitments6
2,476
2,476
–
–
–
–
–
Financial guarantees7
284
284
–
–
–
–
–
143,503
72,868
26,900
16,944
6,746
4,338
15,707
1 The amounts were calculated as follows:
(a) If the counterparty can request payment at different dates, the liability is included on the basis of the earliest date on which the Mercedes-Benz Group can be required to pay. The customer deposits of Mercedes-Benz Bank are mostly considered in this analysis to mature
within the first year.
(b) The interest payments of floating-interest financial instruments are estimated on the basis of forward rates.
2 The stated cash flows of financing liabilities consist of their undiscounted principal and interest payments.
3 For a more suitable presentation, reclassifications have been carried out between the balance sheet items. The reclassifications are described in Note 1.
4 The undiscounted sum of the payments of the derivative financial liabilities is shown for the respective year.
5 The cash outflows of trade payables are undiscounted.
6 The maximum available amounts are stated.
7 The maximum potential obligations under the issued financial guarantees are stated. It is assumed that the amounts are due within the first year.
Annual Report 2024 | Mercedes-Benz Group
400
Notes to the Consolidated Financial
Statements
Market price risks
The global nature of its business activities exposes
the Mercedes-Benz Group to significant market price
risks resulting from fluctuations in foreign currency
exchange rates and interest rates as well as commodity
and energy prices.
The Group is also exposed to equity price risks in
connection with its investments in listed companies.
The Mercedes-Benz Group manages market price risks
to minimize the impact of fluctuations in foreign ex-
change-rates, interest rates and commodity price risks
on the earnings of the Group and its segments. The
Group calculates its overall net exposure to these
market price risks to provide the basis for hedging
decisions, which include the selection of hedging
instruments and the determination of hedging volumes
and the corresponding periods. The hedging strategy is
specified at Group level and uniformly implemented in
the segments. Decisions regarding, for example, cur-
rencies and asset-liability management (interest rates)
are made by a committee that meets regularly. Net
exposures are the basis for the hedging strategies and
are updated regularly. The Mercedes-Benz Group
usually counteracts the risk of short-term fluctuations
in raw-material prices by means of price escalation
clauses in the supply contracts. Derivative instruments
are used in a small extend. Power purchase agreements
are also concluded to reduce electricity price risks.
Power purchase agreements are purchase agreements
for energy needs, including fixed purchase prices of the
electricity generated by a specific plant for generating
wind or solar power.
As part of its risk management system, the Mercedes-
Benz Group employs value-at-risk analyses. In per-
forming these analyses, the Mercedes-Benz Group
quantifies its market risk due to changes in foreign
currency exchange rates and interest rates on a regular
basis by predicting the potential loss over a holding
period and at a specific confidence level.
The value-at-risk calculations employed:
– Express potential losses in relation to fair value
changes and
– assume a 99% confidence level and a holding
period of five days.
At the Group level, the Mercedes-Benz Group
calculates the value at risk for exchange rate and
interest rate according to the variance-covariance
approach.
When calculating value at risk using the variance-
covariance approach, the Mercedes-Benz Group first
computes the current market value of the Group’s
financial instruments portfolio. Then the sensitivity of
the portfolio value to changes in the relevant market
risk factors, such as particular foreign currency
exchange rates or interest rates of specific maturities,
is quantified. Based on volatilities and correlations of
these market risk factors, which are obtained from the
RiskMetrics™ dataset, a statistical distribution of
potential changes in the portfolio value at the end of
the holding period is computed. The loss which is
reached or exceeded with a probability of only 1% can
be derived from this calculation and represents the
value at risk.
Exchange-rate risk
Transaction risk and currency risk management
The global nature of the Mercedes-Benz Group’s
business activities exposes cash flows to risks arising
from fluctuations in exchange rates. These risks
primarily relate to fluctuations between the euro and
the US dollar, the Chinese renminbi, the British pound
and other currencies such as currencies of growth
markets. In the operating vehicle business, the Group’s
exchange-rate risk primarily arises when revenue is
generated in a currency that is different from the
currency in which the costs of revenue are incurred
(transaction risk). It may be inadequate to cover the
costs if the value of the currency in which the revenue
is generated declined in the interim relative to the
value of the currency in which the costs were incurred.
The risk exposures serve as a basis for analysing
exchange-rate risks at Group level. In addition, the
Group is indirectly exposed to a transaction risk from
its equity-method investments.
Annual Report 2024 | Mercedes-Benz Group
401
Notes to the Consolidated Financial
Statements
The Group’s overall currency exposure is reduced by
natural hedging, which consists of the foreign currency
exposures of the business operations of different
entities and segments partially offsetting each other at
Group level. These natural hedges eliminate the need
for hedging to the extent of the matched exposures. To
provide an additional natural hedge against any
remaining transaction risk exposure, the Mercedes-
Benz Group generally strives to increase cash outflows
in the same currencies in which the Group has a net
excess inflow.
In order to mitigate the impact of currency exchange-
rate fluctuations for the business operations (future
transactions), the Mercedes-Benz Group continually
assesses its exposure to exchange-rate risks and
hedges a portion of those risks by using derivative
financial instruments. A committee manages the
Group’s exchange-rate risk and its hedging transactions
through currency derivatives. The committee consists
of representatives of the relevant segments and
corporate functions. The Corporate Treasury depart-
ment aggregates foreign currency exposures from the
companies of the Group and the operational units and
implements the committee’s decisions concerning
foreign currency hedging through transactions with
international financial institutions. If changes in
exposure lead to over-hedging, the hedges are usually
eliminated by taking suitable measures without delay.
In addition, the hedging relationships are reviewed for
any necessary termination of hedge accounting.
The Mercedes-Benz Group’s targeted hedge ratios for
forecast operating cash flows in foreign currencies are
generally determined using a step-by-step method.
Depending on the nature of the underlying risks, the
hedging rates decrease the further the expected cash
flows are in the future. On the one hand, the hedging
horizon is naturally limited by uncertainty related to
cash flows that lie far in the future; on the other hand,
it may also be limited by the fact that appropriate
currency contracts are not available. This step-by-step
method aims to limit risks for the Group from unfavour-
able movements in exchange rates while preserving
sufficient flexibility to participate in favourable devel-
opments. Based on this step-by-step method and
depending on the market outlook, the committee
determines the hedging horizon, which usually varies
from one year to five years, as well as the average
hedge ratios. At the end of 2024, the currency
management for calendar year 2025 showed an
unhedged position in the automotive business of 9% of
the underlying forecasted cash flows in US dollars, an
unhedged position of 23% of the underlying forecast
cash flows in British pounds and an unhedged position
of 12% of the underlying forecast cash flows in Chinese
renminbi.
To cover foreign currency exposure risks of the vehicle
business operations forward foreign exchange con-
tracts are primarily used. Value at risk is used to
measure the exchange-rate risk inherent in these
derivative financial instruments.
The following table shows the period-end, high, low
and average value-at-risk figures of the exchange-rate
risks for the 2024 and 2023 portfolios of derivative
financial instruments, which were entered into pri-
marily in connection with the vehicle business
operations and the trade receivables and payables
existing at the end of quarter. Average exposure has
been computed on an end-of-quarter basis. The other
transactions underlying the derivative financial instru-
ments are not included in the following value-at-risk
presentation, since they comprise forecast cash flows.
See also table Nominal amounts of derivative financial
instruments used in hedge accounting in Note 32.
Annual Report 2024 | Mercedes-Benz Group
402
Notes to the Consolidated Financial
Statements
Hedge accounting
When designating derivative financial instruments, a
hedge ratio of 1 is applied. In addition, the respective
volume and currency of the hedge and the underlying
transaction as well as maturity dates are matched. The
Group ensures an economic relationship between the
underlying transaction and the hedging instrument by
ensuring consistency of currency, volume and maturity.
Option premiums and also forward components are
not designated into the hedging relationship, but the
hedging costs are deferred in other comprehensive
income and recognized in profit or loss at the due
date of the underlying transaction or recognized as
adjustment of acquisition cost of non-financial assets.
The effectiveness of the hedge is assessed at the start
of and during the hedging relationship. Possible
sources of ineffectiveness of the hedging relationship
are:
– Changes in the credit risk on the measurement of
the used hedging instruments.
– Changes in the timing of the hedged transactions.
Please refer to table Cash flow hedges and hedges of
net investments in foreign operations in Note 32. There
were no material effects on earnings in the years 2024
and 2023.
Value at risk for exchange-rate risk and interest rate risk
2024
2023
Year-end
High
Low
Average
Year-end
High
Low
Average
In millions of euros
Exchange-rate risk
405
405
235
331
612
1,109
539
711
Interest rate risk
138
166
138
152
189
295
175
214
Annual Report 2024 | Mercedes-Benz Group
403
Notes to the Consolidated Financial
Statements
The development of the value at risk from foreign
currency hedging in 2024 was primarily shaped by a
decrease in the volume of hedging transactions and
volatilities.
The Group’s investments in liquid assets or refinancing
activities are generally selected so that possible
currency risks are minimized. Transaction risks arising
from liquid assets or payables in foreign currencies
that result from the Group’s investment or refinancing
on money and capital markets are generally hedged
against currency risks at the time of investing or
refinancing in accordance with the Mercedes-Benz
Group’s internal policies. The Group uses appropriate
derivative financial instruments (e.g. cross-currency
interest rate swaps) to hedge against currency risk.
Because currency risks from liquidity investments or
liabilities in foreign currencies are generally fully offset
due to the Group’s investment or refinancing and the
derivative financial instruments used in this regard,
these financial instruments were not included in the
value-at-risk calculation presented.
Effects of currency (translation risk)
For purposes of Mercedes-Benz Group’s Consolidated
Financial Statements, the income and expenses and
the assets and liabilities of subsidiaries located outside
the Eurozone are converted into euros. Therefore,
period-to-period changes in exchange rates may cause
translation effects that have a significant impact on, for
example, revenue, segment profit/loss (EBIT) and as-
sets and liabilities of the Group. Unlike exchange-rate
transaction risk, currency translation risk does not
necessarily affect future cash flows. The Group’s equity
position reflects changes in carrying amounts caused
by exchange rates. In general, the Mercedes-Benz
Group does not hedge against currency translation risk.
Interest rate risk
The Mercedes-Benz Group uses a variety of interest
rate sensitive financial instruments to manage the
liquidity needs of the Group. However, the majority of
interest rate sensitive assets and liabilities results from
the financial services business of Mercedes-Benz
Mobility. The Mercedes-Benz Mobility companies enter
into transactions with customers that primarily result in
fixed-rate receivables. The Mercedes-Benz Group’s
general policy is to match the refinancing of interest-
bearing assets in terms of maturities and interest rates
wherever economically feasible. For a narrowly limited
portion of the receivables portfolio in selected and
developed markets, Mercedes-Benz Mobility does not
match refinancing in terms of maturities in order to
take advantage of market opportunities. This results in
the Mercedes-Benz Group being exposed to interest
rate risks.
A committee consisting of representatives of the rele-
vant segments and the corporate functions manages
the interest rate risk by setting targets for the interest
rate risk position. The Corporate Treasury department
and the local Mercedes-Benz Group companies are
jointly responsible for achieving these targets. As
separate functions, the Treasury Controlling and the
Mercedes-Benz Mobility Controlling & Reporting
department monitor target achievement on a monthly
basis. In order to achieve the targeted interest rate risk
positions in terms of maturities and interest rate fixing
periods, the Mercedes-Benz Group also uses derivative
financial instruments such as interest rate swaps. The
interest rate risk position is assessed by comparing
assets and liabilities for corresponding maturities,
including the impact of the relevant derivative financial
instruments.
Annual Report 2024 | Mercedes-Benz Group
404
Notes to the Consolidated Financial
Statements
Derivative financial instruments are also used in con-
junction with the refinancing related to the automotive
segments and liquidity management. The Mercedes-
Benz Group steers the funding activities of the
automotive segments and the financial services
business at Group level.
The table Value at risk for exchange-rate risk and
interest rate risk shows the period-end, high, low and
average value-at-risk figures of the interest rate risk for
the 2024 and 2023 portfolios of interest rate sensitive
primary financial instruments and derivative financial
instruments of the Group, including the financial instru-
ments of the financial services business. Liabilities
from leasing contracts for which the Mercedes-Benz
Group acts as a lessee are not included in the value at-
risk of the interest rate risk. Average exposure has
been computed on an end-of-quarter basis.
In the course of 2024, changes in the value at risk of
interest rate sensitive financial instruments were
primarily determined by the development of interest
rate volatilities.
Hedge accounting
When designating derivative hedging instruments, the
Mercedes-Benz Group generally applies a hedge ratio
of 1. The respective volumes, interest curves, cur-
rencies and maturity dates of the underlying trans-
action and the hedging instrument are generally
matched. In the case of combined derivative financial
instruments for interest currency hedges, the cross-
currency basis spread is not designated into the hedge
relationship, but deferred as a hedging cost in other
comprehensive income and recognized in profit or loss
over the hedge term. The Group ensures an economic
relationship between the underlying transaction and
the hedging instrument by ensuring consistency of
interest rates, payment dates, maturity terms and
nominal amounts. In the case of hedging for ABS
transactions of private placements, the risk of the
market interest rate component is partly protected,
which historically mainly covers the change in value of
the total interest rate. The effectiveness of the hedge
is assessed at the beginning and during the hedging
relationship using the hypothetical derivative method.
Possible sources of ineffectiveness of the hedging
relationship are:
– Effects of the credit risk on the fair value of the
hedging instruments in use.
– No perfect match for individual parameters of the
underlying hedged transactions and the hedging
instruments used.
– Premiums on hedging instruments for hedging ABS
transactions.
There were no material effects on earnings in the years
2024 and 2023.
Commodity-price risk
The Mercedes-Benz Group is exposed to the risks
of changes in market prices (e.g. for raw materials and
energy) in connection with procuring manufacturing
supplies used in production. The Mercedes-Benz Group
usually counteracts the risk of short-term fluctuations
in market prices by means of short and medium-term
price escalation clauses or fixing of purchase prices in
the supply contracts. The Mercedes-Benz Group con-
cludes e.g. power purchase agreements for wind and
solar energy in order to protect itself from fluctuations
in energy prices and ensure long-term, sustainable
procurement of electricity.
A small portion of the raw-material price risk relating
to the forecast procurement of lithium compounds for
high-voltage batteries was hedged with the use of
derivative financial instruments. These hedging trans-
actions are not designated in a hedging relationship
due to the small volume and no value at risk is
reported for commodity price risk.
Annual Report 2024 | Mercedes-Benz Group
405
Notes to the Consolidated Financial
Statements
Derivative financial instruments without
hedge accounting
In 2024, the nominal volumes of hedging instruments
not designated in a hedging relationship, amounted
to €10 billion (2023: €9 billion) for derivatives used
to hedge interest rate risks and €13 billion (2023:
€13 billion) for derivatives used to hedge exchange-rate
risks, as well as €650 million (2023: €644 million) for
derivatives used to hedge market price risks (energy
and raw materials).
Equity-price risk
The Mercedes-Benz Group predominantly holds invest-
ments in shares of companies which are classified as
long-term investments, some of which are accounted
for in the Consolidated Financial Statements using the
equity method, such as the share in Daimler Truck
Holding AG and BAIC Motor Corporation Ltd. These
investments are therefore not included in a market risk
assessment by the Group.
34. Segment reporting
Reported segments
The Group comprises the segments Mercedes-Benz
Cars, Mercedes-Benz Vans and Mercedes-Benz
Mobility.
The breakdown of the segments corresponds to the
internal organizational and reporting structure. The
vehicle segments develop and manufacture premium
and luxury cars. In addition to the Mercedes-Benz
brand, the brand portfolio of the Mercedes-Benz Cars
segment encompasses the brands Mercedes-AMG and
Mercedes-Maybach, as well as the G-Class product
brand.
At Mercedes-Benz Vans, the vans are sold under the
Mercedes-Benz brand. Corresponding spare parts and
accessories are also sold.
The Mercedes-Benz Mobility segment supports the
sales of the Mercedes-Benz Group’s automotive brands
worldwide. The product range primarily includes
customized mobility and financial services: from
leasing and financing packages for end customers and
dealers to insurance solutions, flexible subscription
and rental models and fleet management services for
business customers, with the latter primarily offered
via the Athlon brand. Furthermore, Mercedes-Benz
Mobility is active in the area of innovative and digital
mobility services, seamless payment methods as well
as the expansion of the charging infrastructure.
Reconciliation
The reconciliation mainly includes equity investments
not allocated to the segments (e.g. Daimler Truck
Holding AG) and items at the corporate level. In
addition, the reconciliation includes the effects on
earnings of eliminating intra-Group transactions
between the segments. Since 1 January 2024, effects
from the intra-Group refinancing of the financial
services business have been shown in the segment
Mercedes-Benz Cars. This results in earnings of
€398 million in 2024.
Annual Report 2024 | Mercedes-Benz Group
406
Notes to the Consolidated Financial
Statements
Internal management and
reporting structure
The internal management and reporting structure
at the Mercedes-Benz Group is principally based on
the accounting policies according to IFRS that are
described in Note 1.
The measure of the Group’s net profit or loss used by
the Mercedes-Benz Group’s management and reporting
structure is referred to as EBIT. EBIT comprises gross
profit, selling and general administrative expenses,
research and non-capitalized development costs, other
operating income/expense, and the gains/losses on
equity-method investments, as well as other financial
income/expense.
In justified individual cases, effects on the Group’s
Consolidated Statement of Income, Consolidated
Statement of Financial Position, and Consolidated
Statement of Cash Flows are not allocated to the cor-
responding segment based on a legal point of view, but
the segment report rather follows an economic
approach.
Intersegment revenue is principally recorded at prices
that approximate market terms.
Transactions between the segments are generally
eliminated in the reconciliation. Some simplifications
have been made in the segment reporting with regard
to accounting for leasing agreements in connection
with intra-Group transactions.
Segment assets principally comprise all assets. The
assets of the Mercedes-Benz Cars and Mercedes-Benz
Vans segments exclude income tax assets, assets
from defined benefit pension plans and other post-
employment benefit plans, and certain financial
instruments (including liquidity).
Segment liabilities principally comprise all liabilities.
The Mercedes-Benz Cars and Mercedes-Benz Vans
reporting segments’ liabilities exclude liabilities arising
from income taxes, pensions and similar obligations
and certain financial instruments (including financing).
The residual-value risks associated with the Group’s
operating leases and receivables from financial
services are generally borne by the segments which
manufactured the leased vehicles. Risk sharing is
based on agreements between Mercedes-Benz Cars,
Mercedes-Benz Vans and Mercedes-Benz Mobility; the
terms vary by segment and geographic region.
Non-current assets consist of intangible assets,
property, plant and equipment, and equipment on
operating leases.
In addition to scheduled items, depreciation and
amortization on non-current assets may also include
impairments insofar as they do not relate to goodwill
impairment according to IAS 36. Amortization of
capitalized borrowing costs is not included.
Annual Report 2024 | Mercedes-Benz Group
407
Notes to the Consolidated Financial
Statements
The segment information has been expanded in
particular to include the functional costs and is as
follows for the years 2024 and 2023.
Segment information
Mercedes-Benz Cars
Mercedes-Benz Vans
Mercedes-Benz Mobility
Total Segments
Reconciliation
Mercedes-Benz Group
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
(adjusted)
(adjusted)
(adjusted)
(adjusted)
(adjusted)
(adjusted)
In millions of euros
External revenue1
102,483
107,805
18,612
19,661
24,499
24,924
145,594
152,390
–
–
145,594
152,390
Intra-Group revenue1
5,278
4,951
708
627
584
647
6,570
6,225
-6,570
-6,225
–
–
Total revenue1
107,761
112,756
19,320
20,288
25,083
25,571
152,164
158,615
-6,570
-6,225
145,594
152,390
Cost of sales1, 2
-86,191
-85,970
-14,669
-15,235
-22,754
-22,483
-123,614
-123,688
6,596
6,302
-117,018
-117,386
Selling expenses2
-8,053
-8,094
-1,479
-1,528
-616
-685
-10,148
-10,307
155
37
-9,993
-10,270
General administrative expenses2
-1,481
-1,580
-257
-244
-755
-793
-2,493
-2,617
-36
-154
-2,529
-2,771
Research and non-capitalized development costs
-5,187
-5,682
-433
-524
–
–
-5,620
-6,206
40
-24
-5,580
-6,230
Gains/losses on equity-method investments, net
398
1,355
56
126
-2
-155
452
1,326
686
803
1,138
2,129
Other income/expense
1,213
1,439
394
255
178
-153
1,785
1,541
202
257
1,987
1,798
Segment profit/loss (EBIT)
8,460
14,224
2,932
3,138
1,134
1,302
12,526
18,664
1,073
996
13,599
19,660
Segment assets
92,365
93,435
11,410
10,486
149,251
145,057
253,026
248,978
-8,590
-8,152
244,436
240,826
Carrying amounts of equity-method investments
3,287
3,922
292
325
325
208
3,904
4,455
8,882
8,649
12,786
13,104
Additions to non-current assets
15,338
14,939
2,353
1,570
15,982
13,541
33,673
30,050
-282
-225
33,391
29,825
Depreciation and amortization of non-current assets
7,770
7,386
690
608
6,278
5,778
14,738
13,772
-58
-75
14,680
13,697
Segment liabilities
50,984
51,668
9,802
9,232
135,889
132,043
196,675
192,943
-13,736
-11,813
182,939
181,130
1 The previous year’s figures for Mercedes-Benz Mobility, the reconciliation and the Mercedes-Benz Group have been corrected in accordance with IAS 8. Further information is included in Note 3.
2 For a more suitable presentation, reclassifications in the functional costs have been carried out for Mercedes-Benz Cars, Mercedes-Benz Vans and the reconciliation. The reclassifications are described in Note 1.
Annual Report 2024 | Mercedes-Benz Group
408
Notes to the Consolidated Financial
Statements
Reconciliation
The following table shows the reconciliation of EBIT
according to segment reporting to the Consolidated
Statement of Income.
Reconciliation of EBIT to Group figures
2024
2023
In millions of euros
Total of segments’ profit/loss (EBIT)
12,526
18,664
Gains/losses on equity-method
investments, net
686
803
Other reconciling items
197
55
Eliminations
190
138
EBIT as shown in the Consolidated
Statement of Income/Loss
13,599
19,660
The gains/losses on equity-method investments
includes the positive profit contribution of €711 million
(2023: €797 million) from Daimler Truck Holding AG.
The line item other reconciling items includes further
items at the corporate level. In 2024, there was in
particular a positive effect on earnings of €223 million
(2023: €68 million) from the revaluation of the lia-
bilities recognized in the context of the share buyback
programmes.
The reconciliation of segment assets and liabilities to
relevant amounts for the Group is shown in the next
table.
Reconciliation of segment assets and liabilities to Group figures
2024
2023
In millions of euros
Total of segment assets
253,026
248,978
Equity-method investment in DTHAG
8,655
8,425
Other equity-method investments1
227
224
Income tax assets2
3,867
3,448
Other reconciling items and eliminations
-21,339
-20,249
Segment assets Group
244,436
240,826
Unallocated financial instruments
(including liquidity) and assets from
pensions and similar obligations2
20,574
22,196
Total assets Group
265,010
263,022
Total of segment liabilities
196,675
192,943
Income tax liabilities2
7,827
8,226
Other reconciling items and eliminations
-21,563
-20,039
Segment liabilities Group
182,939
181,130
Unallocated financial instruments
and liabilities from pensions
and similar obligations 2
-11,559
-10,924
Total equity Group
93,630
92,816
Total equity and liabilities Group
265,010
263,022
1 This mainly comprises the equity-method carrying amount of BAIC Motor.
2 Unless these are attributable to Mercedes-Benz Mobility.
Annual Report 2024 | Mercedes-Benz Group
409
Notes to the Consolidated Financial
Statements
Revenue and non-current assets
by region
With respect to information on geographical regions,
revenue is allocated to countries based on the location
of the customer; non-current assets are presented
according to the physical location of these assets.
Revenue from external customers and non-current
assets by region are shown in the following table.
Revenue and non-current assets by region
Revenue
Non-current assets
2024
2023
2024
2023
(adjusted)
In millions of euros
Europe1
58,764
61,067
67,870
64,719
thereof Germany1
21,707
24,631
47,534
46,511
North America
38,917
40,488
20,747
18,430
thereof United States
34,900
36,041
18,761
16,526
Asia
39,643
43,382
1,784
1,497
thereof China
23,139
25,284
523
507
Other markets
8,270
7,453
792
749
145,594
152,390
91,193
85,395
1 The previous year’s figures have been corrected in accordance with IAS 8. Further information is included in Note 3.
Annual Report 2024 | Mercedes-Benz Group
410
Notes to the Consolidated Financial
Statements
35. Capital management
Net assets and value added represent the basis for
capital management at the Mercedes-Benz Group.
Although individual companies in the Mercedes-Benz
Mobility segment are subject to the capital require-
ments of the respective banking supervision,
Mercedes-Benz Group AG is not subject to external
minimum capital requirements.
The assets and liabilities of the segments in accord-
ance with IFRS provide the basis for the determination
of net assets at Group level. Mercedes-Benz Cars and
Mercedes-Benz Vans are accountable for the net
operating assets; all assets, liabilities and provisions
for which they are responsible for in day-to-day
operations are therefore allocated to them. Perfor-
mance measurement at Mercedes-Benz Mobility is
on an equity basis, in line with the usual practice in
the banking business. Net assets at Group level
additionally include assets and liabilities from income
taxes as well as other corporate items and eliminations.
Average annual net assets are calculated on the basis
of average quarterly net assets. The average quarterly
net assets are calculated as an average of the net
assets at the beginning and the end of the quarter.
Average net assets
2024
2023
In millions of euros
Mercedes-Benz Cars
41,905
41,407
Mercedes-Benz Vans
1,632
1,253
Mercedes-Benz Mobility1
12,993
13,774
Net assets of the segments
56,530
56,434
Equity-method investment in DTHAG
8,466
8,221
Other equity-method investments2
230
253
Assets and liabilities from income taxes3
-4,717
-5,159
Other corporate items and eliminations
-19
94
Net assets Mercedes-Benz Group
60,490
59,843
1 Equity.
2 Unless allocated to the segments.
3 To the extent not allocated to Mercedes-Benz Mobility.
The cost of capital of the Group’s average net assets is
reflected in value added. Value added shows the extent
to which the Group achieves or exceeds the minimum
return requirements of the shareholders, thus creating
additional value. The required rate of return on net
assets, and thus the cost of capital rate, is derived
from the minimum rates of return that equity investors
and lenders expect on their invested capital. In the
reporting year, the cost of capital rate used for the
internal capital management amounted to 9.5%
(2023: 9.0%) after taxes.
The objective of capital management is to increase
value added, among other things, by optimizing the
cost of capital. This is achieved on the one hand by
optimizing the net assets, e.g. working capital, which is
within the operational responsibility of the segments.
On the other hand, taking into account legal regula-
tions, the Mercedes-Benz Group strives to optimize the
costs and risks of its capital structure, and conse-
quently, the cost of capital rate. An example of this is
an appropriate level of liquidity, oriented towards the
operational requirements.
Annual Report 2024 | Mercedes-Benz Group
411
Notes to the Consolidated Financial
Statements
36. Earnings per share
The calculation of basic and diluted earnings per share
is based on net profit attributable to shareholders
of Mercedes-Benz Group AG. The profit attributable to
shareholders of Mercedes-Benz Group AG (basic
and diluted) amounts to €10,207 million (2023:
€14,261 million). The weighted average number of
shares outstanding (basic and diluted) whose decrease
is due to the share buyback programmes completed in
the reporting year amounts to 1,002.0 million issued
shares (2023: 1,059.6 million issued shares). As a result,
earnings per share amount to €10.19 (2023: €13.46) in
2024.
37. Related-party disclosures
Related parties (companies or persons) are deemed to
be associated companies, joint ventures and uncon-
solidated subsidiaries as well as persons who exercise
a significant influence on the financial and business
policy of the Mercedes-Benz Group. The latter category
includes all persons in key positions and their close
family members.
At the Mercedes-Benz Group, those persons are the
members of the Board of Management and of the
Supervisory Board of Mercedes-Benz Group AG and
their close family members.
Business transactions with related parties are generally
carried out at market terms.
Transactions with related parties
Income from sales
of goods and services
and other income
Expense from purchases
of goods and services
and other expense
Receivables and
right-of-use assets
Liabilities and provisions1
31 December
31 December
2024
2023
2024
2023
2024
2023
2024
2023
In millions of euros
Associated companies
16,022
16,800
2,067
2,337
3,749
4,351
432
541
thereof Daimler Truck2
791
943
1,302
1,751
1,186
1,682
203
299
thereof LSHAI/LSHAH
7,533
9,257
326
287
946
1,227
13
12
thereof BBAC
7,671
6,581
428
298
1,562
1,396
208
221
Joint ventures
588
469
34
31
120
223
4
17
Companies controlled by related persons
1
–
450
185
–
–
56
65
1 Including liabilities from default risks from guarantees for related parties.
2 Services by corporate functions (e.g. IT, Logistics and HR) are temporarily included in addition to relationships in the scope of ordinary business, for example, the purchase and sale of goods and services and leasing agreements.
Annual Report 2024 | Mercedes-Benz Group
412
Notes to the Consolidated Financial
Statements
Associated companies
A large portion of the Group’s transactions with asso-
ciated companies relate to business relationships with
the Daimler Truck Holding AG (Daimler Truck), which is
allocated to the reconciliation, and with LSH Auto
International Limited (LSHAI) and LSH Auto Holding
Limited (LSHAH) as well as Beijing Benz Automotive
Co., Ltd. (BBAC), which are allocated to the Mercedes-
Benz Cars segment.
In 2024 LSHAI was reorganized into two legally inde-
pendent entities, LSHAI and LSHAH. LSHAI continues
sales in China, while LSHAH has taken over the busi-
ness for all other countries.
There are numerous relationships in the scope of
ordinary business between the Mercedes-Benz Group
and Daimler Truck, for example, the purchase and sale
of goods and services and leasing agreements. In
addition, there is an interim provision of services by
corporate functions that are included under other
operating income.
In the Mercedes-Benz Mobility segment, the leasing
and sales-financing business for Daimler Truck’s
commercial vehicles will be continued in some markets.
To this end, Mercedes-Benz Mobility acquires these
vehicles from Daimler Truck and leases them to the
end customers. Insofar as a mandatory vehicle return
to Daimler Truck has been agreed, a leasing contract
(head lease) between Mercedes-Benz Mobility and
Daimler Truck is shown. The contract between
Mercedes-Benz Mobility and the end customer con-
stitutes a sublease in this respect. The receivables and
right-of-use assets shown in the table include demands
for the repurchase of vehicles of €843 million (2023:
€1,121 million) shown in receivables from financial
services and right-of-use assets of €103 million (2023:
€268 million) vis-à-vis Daimler Truck shown in equip-
ment on operating leases. These right-of-use assets
were depreciated as planned by €124 million in 2024
(2023: €217 million).
In addition, the Mercedes-Benz Group holds a minority
interest of €220 million (2023: €207 million) in real
estate companies controlled by Daimler Truck Group,
which is shown as debt instruments in other financial
assets.
In 2019, the assets and liabilities of Mercedes-Benz
Group AG (formerly Daimler AG) were spun off into
the legally independent units Mercedes-Benz AG and
Daimler Truck AG. In this context, Mercedes-Benz
Group AG, Mercedes-Benz AG and Daimler Truck AG, as
legal entities involved in the spin-off, are jointly and
severally liable for the liabilities of Mercedes-Benz
Group AG that arose before the spin-off took effect, in
accordance with Section 133 Subsections 1 and 3 of the
German Transformation Act (UmwG). The provisions
existing in this context, in particular the procedure
for regulating the internal settlements between the
participating legal entities, are regulated in the hive-
down agreement of 25 March 2019. The period is ten
years for pension obligations based on the Company
Pensions Act that existed before the hive-down took
effect. Mercedes- Benz Group AG and Mercedes-Benz
AG do not expect any outflow of liquidity due to a
sufficient volume of the special-purpose assets being
available to the other legal entity. All other liability
claims arising from subsequent liability expired in the
reporting year.
Joint ventures
On 12 May 2022, Mercedes-Benz AG signed an agree-
ment with PSA Automobiles SA, Opel Automobile
GmbH, Saft EV SAS and Saft Groupe to acquire a
33.33% stake in Automotive Cells Company SE (ACC)
through a capital contribution of approximately
€390 million. Due to several disproportionate increases
in the shareholding in the 2024 financial year, the
shareholding in ACC as of 31 December 2024 is
30.58%. In addition the Group committed to providing
further funds totalling up to €810 million.
Annual Report 2024 | Mercedes-Benz Group
413
Notes to the Consolidated Financial
Statements
At 31 December 2024, up to €545 million of contrac-
tually committed funds had not been drawn down
(2023: €867 million). The decrease compared to the
prior year is due to the call of €155 million (thereof
€130 million as equity) of the funding commitments by
ACC and changes in guarantee commitments. As of
31 December 2024, there are also off-balance-sheet
obligations of €256 million (2023: €256 million).
On 1 July 2022, an agreement became effective in
favour of smart Automobile Co., Ltd. (smart), a joint
venture of Mercedes-Benz AG and Zhejiang Geely
Holding Group Co., Ltd. This agreement obliges the
shareholders to provide financial support up to a
maximum amount of €593 million each in the event
that smart is not able to perform its payment
obligations under a syndicated loan agreement. smart
is allocated to the Mercedes-Benz Cars segment.
Note 14 provides further details of the business
activities of the significant associated companies and
joint ventures.
Related persons
Throughout the world, the Group has business relation-
ships with numerous entities that are customers
and/or suppliers of the Group. Those customers and/or
suppliers include companies that have a connection
with some of the members of the Board of Manage-
ment or of the Supervisory Board and close family
members of those board members of Mercedes-Benz
Group AG or of its subsidiaries. Board of Management
and Supervisory Board members and close family
members of those board members may also purchase
goods and services from Mercedes-Benz Group AG or
its subsidiaries as customers.
Mr Stefan Pierer has been a member of the Supervisory
Board of Mercedes-Benz Group AG and Mercedes-Benz
AG since May 2023. The Mercedes-Benz Group main-
tains supply and service relationships with some com-
panies in the Pierer Group. The Pierer Group includes
Leoni AG and the SHW Group, two international
automotive suppliers, as well as other companies. The
table Transactions with related parties shows the
information on the volume of goods and services
supplied by these companies in the line Companies
controlled by related persons. In September 2024,
a contract for the sale of 50.1% of the shares in
Leoni AG was signed. The completion is subject to
antitrust approval.
Contributions to plan assets
Mercedes-Benz Pension Trust e.V. manages the plan
assets on a fiduciary basis to cover pension obligations
in Germany and is therefore a related party of the
Mercedes-Benz Group. Another related party is
Mercedes-Benz Pensionsfonds AG. Mercedes-Benz
Group AG bears non-significant expenses and provides
services for both companies. See also Note 23 for
further information.
Annual Report 2024 | Mercedes-Benz Group
414
Notes to the Consolidated Financial
Statements
38. Remuneration of the members
of the Board of Management and
the Supervisory Board
Remuneration of the members of the Board of
Management of Mercedes-Benz Group AG
The table below shows the remuneration granted
during 2024 to the members of the Board of
Management who were active in 2024. The figures
were recorded in accordance with IFRS.
Remuneration of the members of the Board of Management
2024
2023
In millions of euros
Fixed remuneration
11
10
Variable remuneration
Short-term variable remuneration
(100% of annual bonus)1
12
16
Long-term variable remuneration (PPSP)
12
16
Post-employment
benefits (service cost)
3
2
38
44
1 The short-term variable remuneration is paid in March of the following year.
Expenses for long-term variable remuneration of the
Board of Management, as shown in the table, result
from the ongoing measurement at fair value at each
balance sheet date of all rights granted and not yet due
under the stock-based Performance Phantom Share
Plans (PPSP), i.e., for the plans of the years 2021 to
2024. In 2024, the active members of the Board of
Management were granted 198,702 (2023 : 181,341)
phantom shares in connection with the PPSP; the fair
value of these phantom shares at the grant date was
€13 million (2023: €13 million). See Note 22 for addi-
tional information on share-based payment of the
members of the Board of Management.
Payments made in 2024 to former members of the
Board of Management and their survivors amounted to
a total of €22 million (2023: €20 million).
As of 31 December 2024, provisions of €26 million
(2023: 21 million) have been made for pension obliga-
tions to active members of the Board of Management.
The pension provisions for former members of the
Board of Management and their survivors amounted
to €246 million as of 31 December 2024 (2023:
€265 million).
In accordance with Section 314 Subsection 1 No. 6a of
the German Commercial Code (HGB), the overall
remuneration granted to the members of the Board of
Management (excluding service cost resulting from
entitlements to post-employment benefits) amounted
to €36 million (2023: €39 million), including the stock-
based remuneration with a fair value of €13 million
(2023: €13 million).
The members of the Board of Management do not
receive any remuneration for their board activities on
the boards of the subsidiaries. These activities are
remunerated with the remuneration at Mercedes-Benz
Group AG.
No advances or loans were granted or waived to
members of the Board of Management in 2024.
Remuneration of the members of the
Supervisory Board of Mercedes-Benz Group AG
The members of the Supervisory Board are solely
granted short-term fixed remuneration for their board
and committee activities. This remuneration amounted
to €6 million (2023: €6 million); the amount the mem-
bers receive depends on their respective function in
the Supervisory Board.
With the exception of the remuneration paid to the
members of the Supervisory Board representing the
employees in accordance with their contracts of
employment, no remuneration was paid to the mem-
bers of the Supervisory Board for services provided
personally beyond their board and committee activities
in 2024, in particular for advisory or agency services.
In addition, advances or loans were neither granted nor
waived to members of the Supervisory Board.
Individualized information on the remuneration of the
members of the Board of Management and of the
Supervisory Board is disclosed in the Remuneration
Report.
Annual Report 2024 | Mercedes-Benz Group
415
Notes to the Consolidated Financial
Statements
39. Auditor fees
At the Annual General Meeting on May 3, 2023, the
shareholders of Mercedes-Benz Group AG elected
PricewaterhouseCoopers GmbH Wirtschaftsprüfungs-
gesellschaft as auditor and Group auditor for the first
time, starting with the financial year 2024. The follow-
ing table shows the fees recorded as expenses for the
2024 financial year for PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft (PwC GmbH) and the
companies of the global PwC network (PwC worldwide)
for services provided to Mercedes-Benz Group AG,
the consolidated subsidiaries and the proportionately
consolidated joint operations.
The fees for audit services comprise in particular fees
for the statutory audit of the Annual and Consolidated
Financial Statements and the subsidiaries included
in the Consolidated Financial Statements, fees for the
reviews of the Interim Financial Statements and fees
for additional audit services.
The fees shown under other attestation services
relate in particular to reviews of information systems
and processes as well as the issuance of comfort
letters.
Other services mainly include professional services in
connection with strategic projects.
Auditor fees
2024
In millions of euros
PwC
worldwide
thereof
PwC GmbH
Audit services
34
19
Other attestation services
2
2
Other services
3
2
39
23
40. Events after the
reporting period
Sale of production and sales capacities in Argentina
In February 2025, The Board of Management of
Mercedes-Benz Group AG resolved to sell the pro-
duction and sales capacities in Argentina. The contract
was also signed in February 2025. The transaction is
expected to be completed in mid-2025. The trans-
action is expected to give rise to other operating
expense of around €0.4 billion in 2025, as well as a
disposal of assets of around €0.5 billion and liabilities
of around €0.2 billion. The expenses mainly relate to
the Mercedes-Benz Vans segment.
Decision on new share buyback programme
At its meeting on 19 February 2025, the Supervisory
Board approved a further share buyback programme
agreed on by the Board of Management with a
maximum volume of up to €5 billion over a period of up
to 24 months. The share buyback is based on and in
accordance with the general share buyback policy and
is subject to renewed authorization by the General
Meeting in May 2025 to buy back own shares up to a
maximum of 10% of the share capital.
Annual Report 2024 | Mercedes-Benz Group
416
Notes to the Consolidated Financial
Statements
41. German Corporate
Governance Code
The Board of Management and the Supervisory Board
of Mercedes-Benz Group AG have issued a declaration
pursuant to Section 161 of the German Stock Corpora-
tion Act (AktG) and have made it permanently available
to their shareholders on the Group’s website.
42. Information on investments
The statement of investments of the Group pursuant
to Section 313 Subsection 2 Nos. 1–6 of the German
Commercial Code (HGB) is presented in the following
table. In general, cooperations without an equity
interest are not reported. Information on equity and
earnings and information on investments pursuant
to Section 313 Subsection 2 No. 4 of the German
Commercial Code (HGB) is omitted insofar as, pursuant
to Section 313 Subsection 3 Sentence 4 of the HGB,
such information is of minor relevance for a fair
presentation of the profitability, liquidity and capital
resources, and financial position of the Group. In
addition, the statement of investments indicates which
consolidated companies make use of the exemption
pursuant to Section 264 Subsection 3 of the HGB and/
or Section 264b of the HGB. The Consolidated Financial
Statements of Mercedes-Benz Group AG release those
subsidiaries from the requirements that would
otherwise apply.
Annual Report 2024 | Mercedes-Benz Group
417
Notes to the Consolidated Financial
Statements
Name of the company
Domicile, country/region
Equity interest in percent1
Footnote
I. Consolidated subsidiaries
Accumotive GmbH & Co. KG
Kamenz, Germany
100.00
5
Alpha 1 Mercedes-Benz Grundstücksverwaltung GmbH
Schönefeld, Germany
100.00
5
Alpha 2 Mercedes-Benz Grundstücksverwaltung GmbH & Co. OHG
Schönefeld, Germany
100.00
5, 7
Alpha 3 Mercedes-Benz Grundstücksverwaltung GmbH & Co. OHG
Schönefeld, Germany
100.00
5, 7
Alpha 4 Mercedes-Benz Grundstücksverwaltung GmbH & Co. OHG
Schönefeld, Germany
100.00
5, 7
Alpha 5 Mercedes-Benz Grundstücksverwaltung GmbH & Co. OHG
Schönefeld, Germany
100.00
5, 7
Alpha 6 Mercedes-Benz Grundstücksverwaltung GmbH & Co. OHG
Schönefeld, Germany
100.00
5, 7
Alpha 7 Mercedes-Benz Grundstücksverwaltung GmbH & Co. OHG
Schönefeld, Germany
100.00
5, 7
Athlon Beheer International B.V.
Schiphol, Netherlands
100.00
Athlon Car Lease Belgium N.V.
Machelen, Belgium
100.00
Athlon Car Lease International B.V.
Schiphol, Netherlands
100.00
Athlon Car Lease Italy S.R.L.
Rome, Italy
100.00
Athlon Car Lease Nederland B.V.
Schiphol, Netherlands
100.00
Athlon Car Lease Polska Sp. z o.o.
Warsaw, Poland
100.00
Athlon Car Lease Portugal, lda
Sintra, Portugal
100.00
Athlon Car Lease Rental Services B.V.
Schiphol, Netherlands
100.00
Athlon Car Lease Rental Services Belgium N.V.
Machelen, Belgium
100.00
Athlon Car Lease S.A.S.
Le Bourget, France
100.00
Athlon Car Lease Spain, S.A.
Alcobendas, Spain
100.00
Athlon France S.A.S.
Le Bourget, France
100.00
Athlon Germany GmbH
Düsseldorf, Germany
100.00
Athlon Mobility Consultancy N.V.
Machelen, Belgium
100.00
Athlon Mobility Services UK Limited
Milton Keynes, United Kingdom
100.00
Athlon Rental Germany GmbH
Düsseldorf, Germany
100.00
CARS Technik & Logistik GmbH
Wiedemar, Germany
100.00
5
Daimler Fleet Management South Africa (Pty.) Ltd. i. L.
Pretoria, South Africa
65.00
4
Daimler Vans USA, LLC
Wilmington, USA
100.00
Daimler Vermögens- und Beteiligungsgesellschaft mbH
Stuttgart, Germany
100.00
5
Delta Mercedes-Benz Grundstücksverwaltung GmbH & Co. OHG
Schönefeld, Germany
100.00
5, 7
EHG Elektroholding GmbH
Stuttgart, Germany
100.00
5
Epsilon Mercedes-Benz Grundstücksverwaltung GmbH & Co. OHG
Schönefeld, Germany
100.00
5, 7
FOTIC – MB Leasing No. 6 Single Fund Trust
Beijing, China
0.00
3
Friesland Lease B.V.
Drachten, Netherlands
51.11
Annual Report 2024 | Mercedes-Benz Group
418
Notes to the Consolidated Financial
Statements
Name of the company
Domicile, country/region
Equity interest in percent1
Footnote
Interleasing Luxembourg S.A.
Windhof, Luxembourg
100.00
Koppieview Property (Pty) Ltd
Pretoria, South Africa
100.00
LBBW AM – Daimler Re Insurance
Luxembourg, Luxembourg
0.00
3
LBBW AM – MBVEXW
Stuttgart, Germany
0.00
3
MBarc Credit Canada Inc.
Mississauga, Canada
100.00
MBition GmbH
Berlin, Germany
100.00
5
MDC Power GmbH
Kölleda, Germany
100.00
5
Mercedes AMG High Performance Powertrains Ltd
Brixworth, United Kingdom
100.00
Mercedes pay GmbH
Stuttgart, Germany
100.00
5
Mercedes-AMG GmbH
Affalterbach, Germany
100.00
5
Mercedes-Benz (Beijing) Parts Trading and Services Co., Ltd.
Beijing, China
100.00
Mercedes-Benz (China) Ltd.
Beijing, China
75.00
Mercedes-Benz (Thailand) Limited
Bangkok, Thailand
100.00
Mercedes-Benz AG
Stuttgart, Germany
100.00
5
Mercedes-Benz Argentina S.A.U.
Buenos Aires, Argentina
100.00
Mercedes-Benz Asia GmbH
Stuttgart, Germany
100.00
5
Mercedes-Benz Assuradeuren B.V.
Utrecht, Netherlands
100.00
Mercedes-Benz Australia/Pacific Pty Ltd
Melbourne, Australia
100.00
Mercedes-Benz Auto Finance Ltd.
Beijing, China
100.00
Mercedes-Benz Auto Lease Trust 2023-A
Wilmington, USA
0.00
3
Mercedes-Benz Auto Lease Trust 2024-A
Wilmington, USA
0.00
3
Mercedes-Benz Auto Lease Trust 2024-B
Wilmington, USA
0.00
3
Mercedes-Benz Auto Receivables Trust 2021-1
Farmington Hills, USA
0.00
3
Mercedes-Benz Auto Receivables Trust 2022-1
Farmington Hills, USA
0.00
3
Mercedes-Benz Auto Receivables Trust 2023-1
Farmington Hills, USA
0.00
3
Mercedes-Benz Auto Receivables Trust 2023-2
Farmington Hills, USA
0.00
3
Mercedes-Benz Auto Receivables Trust 2024-1
Farmington Hills, USA
0.00
3
Mercedes-Benz Automotive Mobility GmbH
Berlin, Germany
100.00
5
Mercedes-Benz Bank AG
Stuttgart, Germany
100.00
Mercedes-Benz Bank GmbH
Eugendorf, Austria
100.00
Mercedes-Benz Bank Service Center GmbH
Berlin, Germany
100.00
5
Mercedes-Benz Banking Service GmbH
Saarbrücken, Germany
100.00
5
Mercedes-Benz Belgium Luxembourg S.A.
Brussels, Belgium
100.00
Mercedes-Benz Broker Biztositási Alkusz Hungary Kft.
Budapest, Hungary
100.00
Annual Report 2024 | Mercedes-Benz Group
419
Notes to the Consolidated Financial
Statements
Name of the company
Domicile, country/region
Equity interest in percent1
Footnote
Mercedes-Benz Brooklands Limited
Milton Keynes, United Kingdom
100.00
Mercedes-Benz Canada Inc.
Mississauga, Canada
100.00
Mercedes-Benz Capital Investments B.V.
Utrecht, Netherlands
100.00
Mercedes-Benz Cars & Vans Brasil Ltda.
São Paulo, Brazil
100.00
Mercedes-Benz Connectivity Services GmbH
Stuttgart, Germany
100.00
5
Mercedes-Benz Corporate Investments, LLC
Wilmington, USA
100.00
Mercedes-Benz Credit Pénzügyi Szolgáltató Hungary Zrt.
Budapest, Hungary
100.00
Mercedes-Benz Customer Assistance Center Maastricht N.V.
Maastricht, Netherlands
100.00
Mercedes-Benz Customer Solutions GmbH
Stuttgart, Germany
100.00
5
Mercedes-Benz Danmark A/S
Copenhagen, Denmark
100.00
Mercedes-Benz Espana, S.A.U.
Alcobendas, Spain
100.00
Mercedes-Benz ExTra LLC
Wilmington, USA
100.00
Mercedes-Benz Finance Canada Inc.
Montreal, Canada
100.00
Mercedes-Benz Finance Co., Ltd.
Chiba, Japan
95.11
Mercedes-Benz Finance North America LLC
Wilmington, USA
100.00
Mercedes-Benz Financial Services Australia Pty. Ltd.
Melbourne, Australia
100.00
Mercedes-Benz Financial Services Austria GmbH
Eugendorf, Austria
100.00
Mercedes-Benz Financial Services BeLux NV
Brussels, Belgium
100.00
Mercedes-Benz Financial Services Canada Corporation
Mississauga, Canada
100.00
Mercedes-Benz Financial Services Ceská republika s.r.o.
Prague, Czech Republic
100.00
Mercedes-Benz Financial Services España, E.F.C., S.A.
Alcobendas, Spain
100.00
Mercedes-Benz Financial Services France S.A.
Montigny-le-Bretonneux, France
100.00
Mercedes-Benz Financial Services Hong Kong Ltd.
Hong Kong, China
80.00
Mercedes-Benz Financial Services India Private Limited
Chennai, India
100.00
Mercedes-Benz Financial Services Investment Company LLC
Wilmington, USA
100.00
Mercedes-Benz Financial Services Italia S.p.A.
Rome, Italy
100.00
Mercedes-Benz Financial Services Korea Ltd.
Seoul, South Korea
80.00
Mercedes-Benz Financial Services Nederland B.V.
Nieuwegein, Netherlands
100.00
Mercedes-Benz Financial Services New Zealand Ltd
Auckland, New Zealand
100.00
Mercedes-Benz Financial Services Portugal – Sociedade Financeira de Crédito S.A.
Mem Martins, Portugal
100.00
Mercedes-Benz Financial Services Schweiz AG
Schlieren, Switzerland
100.00
Mercedes-Benz Financial Services Singapore Ltd.
Singapore, Singapore
100.00
Mercedes-Benz Financial Services Slovakia s.r.o.
Bratislava, Slovakia
75.00
Mercedes-Benz Financial Services South Africa (Pty) Ltd
Pretoria, South Africa
100.00
Annual Report 2024 | Mercedes-Benz Group
420
Notes to the Consolidated Financial
Statements
Name of the company
Domicile, country/region
Equity interest in percent1
Footnote
Mercedes-Benz Financial Services Sp. z o.o.
Warsaw, Poland
100.00
Mercedes-Benz Financial Services Taiwan Ltd.
Taipei, Taiwan, China
51.00
Mercedes-Benz Financial Services UK Limited
Milton Keynes, United Kingdom
100.00
Mercedes-Benz Financial Services USA LLC
Wilmington, USA
100.00
Mercedes-Benz Finans Danmark A/S
Copenhagen, Denmark
100.00
Mercedes-Benz Finans Sverige AB
Malmö, Sweden
100.00
Mercedes-Benz Finansman Türk A.S.
Istanbul, Turkey
100.00
Mercedes-Benz Fleet Management Singapore Pte. Ltd.
Singapore, Singapore
100.00
Mercedes-Benz France S.A.S.
Montigny-le-Bretonneux, France
100.00
Mercedes-Benz Group Australia/Pacific Pty Ltd
Melbourne, Australia
100.00
Mercedes-Benz Group China Ltd.
Beijing, China
100.00
Mercedes-Benz Group Services Berlin GmbH
Berlin, Germany
100.00
5
Mercedes-Benz Group Services Madrid, S.A.U.
San Sebastián de los Reyes, Spain
100.00
Mercedes-Benz Group Services Phils., Inc.
Cebu City, Philippines
100.00
Mercedes-Benz Grund Services GmbH
Schönefeld, Germany
100.00
5
Mercedes-Benz High Power Charging Europe GmbH
Stuttgart, Germany
100.00
5
Mercedes-Benz Holdings UK Limited
Milton Keynes, United Kingdom
100.00
Mercedes-Benz Hong Kong Limited
Hong Kong, China
100.00
Mercedes-Benz HPC North America LLC
Wilmington, USA
80.00
Mercedes-Benz India Private Limited
Pune, India
100.00
Mercedes-Benz Insurance Agency LLC
Wilmington, USA
100.00
Mercedes-Benz Insurance Broker S.R.L.
Voluntari, Romania
100.00
Mercedes-Benz Insurance Services GmbH
Stuttgart, Germany
100.00
5
Mercedes-Benz Insurance Services Nederland B.V.
Utrecht, Netherlands
100.00
Mercedes-Benz Insurance Services Taiwan Ltd.
Taipei, Taiwan, China
100.00
Mercedes-Benz Insurance Services UK Limited
Milton Keynes, United Kingdom
100.00
Mercedes-Benz Intellectual Property GmbH & Co. KG
Stuttgart, Germany
100.00
5
Mercedes-Benz International Finance B.V.
Utrecht, Netherlands
100.00
Mercedes-Benz Italia S.p.A.
Rome, Italy
100.00
Mercedes-Benz Japan G.K.
Chiba, Japan
100.00
Mercedes-Benz Korea Limited
Seoul, South Korea
51.00
Mercedes-Benz Lease Italia S.r.l.
Rome, Italy
100.00
Mercedes-Benz Leasing Co., Ltd.
Beijing, China
65.00
Mercedes-Benz Leasing Deutschland GmbH
Stuttgart, Germany
100.00
Annual Report 2024 | Mercedes-Benz Group
421
Notes to the Consolidated Financial
Statements
Name of the company
Domicile, country/region
Equity interest in percent1
Footnote
Mercedes-Benz Leasing GmbH
Stuttgart, Germany
100.00
Mercedes-Benz Leasing IFN S.A.
Bucharest, Romania
100.00
Mercedes-Benz Leasing Kft.
Budapest, Hungary
100.00
Mercedes-Benz Leasing Polska Sp. z o.o.
Warsaw, Poland
100.00
Mercedes-Benz Leasing Treuhand GmbH
Stuttgart, Germany
100.00
5
Mercedes-Benz LT GmbH
Böblingen, Germany
100.00
5
Mercedes-Benz Ludwigsfelde Anlagenverwaltung GmbH & Co. OHG
Schönefeld, Germany
100.00
5, 7
Mercedes-Benz Ludwigsfelde GmbH
Ludwigsfelde, Germany
100.00
5
Mercedes-Benz Malaysia Sdn. Bhd.
Puchong, Malaysia
100.00
Mercedes-Benz Manhattan, Inc.
Wilmington, USA
100.00
Mercedes-Benz Manufacturing (Thailand) Limited
Bangkok, Thailand
100.00
Mercedes-Benz Manufacturing Hungary Kft.
Kecskemét, Hungary
100.00
Mercedes-Benz Manufacturing Poland sp. z o.o.
Jawor, Poland
100.00
Mercedes-Benz Master Owner Trust
Wilmington, USA
0.00
3
Mercedes-Benz Mitarbeiter-Fahrzeuge Leasing GmbH
Stuttgart, Germany
100.00
5
Mercedes-Benz Mobility & Technology Service (Beijing) Co., Ltd.
Beijing, China
100.00
Mercedes-Benz Mobility (Thailand) Co., Ltd.
Bangkok, Thailand
100.00
Mercedes-Benz Mobility AG
Stuttgart, Germany
100.00
5
MERCEDES-BENZ MOBILITY AUSTRALIA PTY LTD
Melbourne, Australia
100.00
Mercedes-Benz Mobility Beteiligungsgesellschaft mbH
Stuttgart, Germany
100.00
5
Mercedes-Benz Mobility Korea Ltd.
Seoul, South Korea
100.00
MERCEDES-BENZ MOBILITY MEXICO, S. DE R.L. DE C.V.
Mexico City, Mexico
100.00
Mercedes-Benz Mobility Services GmbH
Stuttgart, Germany
100.00
5
Mercedes-Benz México International, S. de R.L. de C.V.
Mexico City, Mexico
100.00
Mercedes-Benz México, S. de R.L. de C.V.
Mexico City, Mexico
100.00
Mercedes-Benz Nederland B.V.
Utrecht, Netherlands
100.00
Mercedes-Benz Nederland Holding B.V.
Utrecht, Netherlands
100.00
Mercedes-Benz New Zealand Ltd
Auckland, New Zealand
100.00
Mercedes-Benz North America Corporation
Wilmington, USA
100.00
Mercedes-Benz North America Finance LLC
Newark, USA
100.00
Mercedes-Benz Otomotiv Ticaret ve Hizmetler A.S.
Istanbul, Turkey
66.91
Mercedes-Benz Parts Brand GmbH
Stuttgart, Germany
100.00
5
Mercedes-Benz Parts Logistics Asia Pacific Sdn. Bhd.
Puchong, Malaysia
100.00
Mercedes-Benz Parts Logistics Ibérica, S.L.U.
Azuqueca de Henares, Spain
100.00
Annual Report 2024 | Mercedes-Benz Group
422
Notes to the Consolidated Financial
Statements
Name of the company
Domicile, country/region
Equity interest in percent1
Footnote
Mercedes-Benz Parts Logistics UK Limited
Milton Keynes, United Kingdom
100.00
Mercedes-Benz Parts Manufacturing & Services Ltd.
Shanghai, China
100.00
Mercedes-Benz Polska Sp. z o.o.
Warsaw, Poland
100.00
Mercedes-Benz Portugal, S.A.
Sintra, Portugal
100.00
Mercedes-Benz Real Estate GmbH
Berlin, Germany
100.00
5
Mercedes-Benz Reinsurance S.A. Luxembourg
Luxembourg, Luxembourg
100.00
Mercedes-Benz Renting, S.A.
Alcobendas, Spain
100.00
Mercedes-Benz Research & Development North America, Inc.
Wilmington, USA
100.00
Mercedes-Benz Research and Development India Private Limited
Bangalore, India
100.00
Mercedes-Benz Retail Group UK Limited
Milton Keynes, United Kingdom
100.00
Mercedes-Benz Retail Receivables LLC
Farmington Hills, USA
100.00
Mercedes-Benz Romania S.R.L.
Bucharest, Romania
100.00
Mercedes-Benz Schweiz AG
Schlieren, Switzerland
100.00
Mercedes-Benz Service Leasing S.R.L.
Bucharest, Romania
100.00
Mercedes-Benz Services Correduria de Seguros, S.A.
Alcobendas, Spain
100.00
Mercedes-Benz Services Malaysia Sdn Bhd
Selangor, Malaysia
100.00
Mercedes-Benz Sigorta Aracilik Hizmetleri A.S.
Istanbul, Turkey
100.00
Mercedes-Benz Singapore Pte. Ltd.
Singapore, Singapore
100.00
Mercedes-Benz South Africa Ltd
Pretoria, South Africa
100.00
Mercedes-Benz Sverige AB
Malmö, Sweden
100.00
Mercedes-Benz Taiwan Ltd.
Taipei, Taiwan, China
51.00
Mercedes-Benz Tech Innovation GmbH
Ulm, Germany
100.00
5
Mercedes-Benz Trust Holdings LLC
Farmington Hills, USA
100.00
Mercedes-Benz Trust Leasing Conduit LLC
Wilmington, USA
100.00
Mercedes-Benz Trust Leasing LLC
Farmington Hills, USA
100.00
Mercedes-Benz U.S. International, Inc.
Vance, USA
100.00
Mercedes-Benz Ubezpieczenia Sp. z o.o.
Warsaw, Poland
100.00
Mercedes-Benz UK Limited
Milton Keynes, United Kingdom
100.00
Mercedes-Benz USA, LLC
Wilmington, USA
100.00
Mercedes-Benz Vans Hong Kong Limited
Hong Kong, China
67.55
Mercedes-Benz Vans UK Limited
Milton Keynes, United Kingdom
100.00
Mercedes-Benz Vans, LLC
Wilmington, USA
100.00
Mercedes-Benz Vermögens- und Beteiligungsgesellschaft mbH
Stuttgart, Germany
100.00
5
Mercedes-Benz Versicherung AG
Stuttgart, Germany
100.00
Annual Report 2024 | Mercedes-Benz Group
423
Notes to the Consolidated Financial
Statements
Name of the company
Domicile, country/region
Equity interest in percent1
Footnote
Mercedes-Benz Versicherungsservice GmbH
Berlin, Germany
100.00
5
Mercedes-Benz Verwaltungsgesellschaft für Grundbesitz mbH
Schönefeld, Germany
100.00
5
Mercedes-Benz Vietnam Ltd.
Ho Chi Minh City, Vietnam
70.00
Mercedes-Benz Warszawa Sp. z o.o.
Warsaw, Poland
100.00
Mercedes-Benz Wholesale Receivables LLC
Wilmington, USA
100.00
Mercedes-Benz Österreich GmbH
Eugendorf, Austria
100.00
Mercedes-Benz Česká republika s.r.o.
Prague, Czech Republic
100.00
Mercedes-Benz – Aluguer de Veículos, Lda.
Mem Martins, Portugal
100.00
MN8 Charging LLC
Wilmington, USA
20.00
3
Movinx Americas Company, Inc.
Schaumburg, USA
100.00
Movinx GmbH
Berlin, Germany
100.00
Movinx UK Ltd.
London, United Kingdom
100.00
Multifleet G.I.E.
Le Bourget, France
50.10
Silver Arrow Athlon NL 2021-1
Utrecht, Netherlands
0.00
3
Silver Arrow Australia Trust 2019-1
Melbourne, Australia
0.00
3
Silver Arrow Australia Trust 2020-1
Melbourne, Australia
0.00
3
Silver Arrow Australia Trust 2024-1
Melbourne, Australia
0.00
3
Silver Arrow Canada GP Inc.
Mississauga, Canada
100.00
Silver Arrow Canada LP
Mississauga, Canada
100.00
7
SILVER ARROW CHINA 2022-2 RETAIL AUTO LOAN ASSET BACKED NOTES TRUST
Beijing, China
0.00
3
SILVER ARROW CHINA 2023-1 RETAIL AUTO LOAN ASSET BACKED NOTES TRUST
Beijing, China
0.00
3
SILVER ARROW CHINA 2023-2 RETAIL AUTO LOAN ASSET BACKED NOTES TRUST
Beijing, China
0.00
3
SILVER ARROW CHINA 2024-1 RETAIL AUTO LOAN ASSET BACKED NOTES TRUST
Beijing, China
0.00
3
SILVER ARROW CHINA 2024-2 RETAIL AUTO LOAN GREEN ASSET BACKED NOTES TRUST
Beijing, China
0.00
3
SILVER ARROW CHINA 2024-3 RETAIL AUTO LOAN ASSET BACKED NOTES TRUST
Beijing, China
0.00
3
Silver Arrow China Mercedes-Benz Leasing Co., Ltd. 2023-1
Beijing, China
0.00
3
Silver Arrow Japan 2022-1
Tokyo, Japan
0.00
3
Silver Arrow Japan 2024-1
Tokyo, Japan
0.00
3
Silver Arrow Lease Facility Trust
Wilmington, USA
0.00
3
Silver Arrow Merfina 2024-1 s.r.l.
Rome, Italy
0.00
3
Silver Arrow S.A.
Luxembourg, Luxembourg
0.00
3
Star Assembly SRL
Sebeș, Romania
100.00
Ucafleet S.A.S.
Le Bourget, France
65.00
Vierzehnte Vermögensverwaltungsgesellschaft DVB mbH
Stuttgart, Germany
100.00
5
Wagenplan B.V.
Almere, Netherlands
60.00
YASA Limited
Kidlington, United Kingdom
100.00
Annual Report 2024 | Mercedes-Benz Group
424
Notes to the Consolidated Financial
Statements
Name of the company
Domicile, country/region
Equity interest in percent1
Footnote
II. Unconsolidated subsidiaries
Accumotive Verwaltungs-GmbH
Kamenz, Germany
100.00
AEG Olympia Office GmbH
Stuttgart, Germany
100.00
Affalterbach Racing GmbH
Affalterbach, Germany
100.00
Alpha 2024 Mercedes-Benz Grundstücksverwaltung GmbH
Schönefeld, Germany
100.00
Anota Fahrzeug Service- und Vertriebsgesellschaft mbH
Berlin, Germany
100.00
Circulo Cerrado S.A. de Ahorro para Fines Determinados
Buenos Aires, Argentina
62.49
Cúspide GmbH
Stuttgart, Germany
100.00
Lapland Car Test Aktiebolag
Arvidsjaur, Sweden
100.00
LEONIE DMS DVB GmbH
Stuttgart, Germany
100.00
Li-Tec Battery GmbH
Kamenz, Germany
100.00
MB GTC GmbH Mercedes-Benz Gebrauchtteile Center
Neuhausen auf den Fildern, Germany
100.00
MBition Sofia EOOD
Sofia, Bulgaria
100.00
Mercedes pay AG – in Liquidation
Zug, Switzerland
100.00
4
Mercedes pay USA LLC
Wilmington, USA
100.00
Mercedes-Benz Assignment Services Americas, LLC
Wilmington, USA
100.00
Mercedes-Benz Business Services Sdn Bhd
Puchong, Malaysia
100.00
Mercedes-Benz Cars Middle East FZE
Dubai, United Arab Emirates
100.00
Mercedes-Benz Consulting GmbH
Leinfelden-Echterdingen, Germany
100.00
Mercedes-Benz Digital Tech Ltd.
Shanghai, China
100.00
Mercedes-Benz Distribution Vietnam Company Limited
Ho Chi Minh City, Vietnam
100.00
Mercedes-Benz Egypt S.A.E.
New Cairo, Egypt
100.00
Mercedes-Benz Energy GmbH
Großröhrsdorf, Germany
100.00
Mercedes-Benz Financial Services UK (Trustees) Limited
Milton Keynes, United Kingdom
100.00
Mercedes-Benz G GmbH
Raaba, Austria
100.00
Mercedes-Benz Gastronomie GmbH
Stuttgart, Germany
100.00
Mercedes-Benz Group Services Poland Sp. z o.o.
Krakow, Poland
100.00
Mercedes-Benz Heritage GmbH
Stuttgart, Germany
100.00
Mercedes-Benz High Power Charging Japan G.K.
Chiba, Japan
100.00
Mercedes-Benz High Power Charging Overseas GmbH
Stuttgart, Germany
100.00
Mercedes-Benz HPC Canada ULC
Vancouver, Canada
100.00
Mercedes-Benz Hungária Kft.
Budapest, Hungary
100.00
Mercedes-Benz IDC Europe S.A.S.U.
Valbonne, France
100.00
Mercedes-Benz Intellectual Property Management GmbH
Stuttgart, Germany
100.00
Mercedes-Benz Logistics and Distribution Egypt L.L.C.
New Cairo, Egypt
100.00
Mercedes-Benz Manufacturing and Import Egypt L.L.C.
New Cairo, Egypt
100.00
Annual Report 2024 | Mercedes-Benz Group
425
Notes to the Consolidated Financial
Statements
Name of the company
Domicile, country/region
Equity interest in percent1
Footnote
Mercedes-Benz Pensionsfonds AG
Stuttgart, Germany
100.00
6
Mercedes-Benz Purchasing Coordination Corporation
Wilmington, USA
100.00
Mercedes-Benz Research & Development Tel Aviv Ltd.
Tel Aviv, Israel
100.00
Mercedes-Benz Second Life Solutions LLC
Wilmington, USA
100.00
Mercedes-Benz Slovakia s.r.o.
Bratislava, Slovakia
100.00
Mercedes-Benz Tech Motion GmbH
Böblingen, Germany
100.00
Mercedes-Benz UK Share Trustee Ltd.
Milton Keynes, United Kingdom
100.00
Mercedes-Benz UK Trustees Limited
Milton Keynes, United Kingdom
100.00
Mercedes-Benz Unterstützungskasse GmbH
Stuttgart, Germany
100.00
Mercedes-Benz Venezuela S.A.
Valencia, Venezuela
100.00
4
Mercedes-Benz.io GmbH
Stuttgart, Germany
100.00
Mercedes-Benz.io Portugal Unipessoal Lda.
Lisbon, Portugal
100.00
Montajes y Estampaciones Metálicas, S.L.
Esparreguera, Spain
51.00
NAG Nationale Automobil-Gesellschaft Aktiengesellschaft
Stuttgart, Germany
100.00
Porcher & Meffert Grundstücksgesellschaft mbH & Co. Stuttgart OHG
Schönefeld, Germany
100.00
7
PT Mercedes-Benz Consulting Services Indonesia
Bogor, Indonesia
100.00
Star Transmission SRL
Cugir, Romania
100.00
STARKOM, proizvodnja in trgovina d.o.o.
Maribor, Slovenia
100.00
III. Joint operations accounted for using proportionate consolidation
Cooperation Manufacturing Plant Aguascalientes, S.A.P.I de C.V.
Aguascalientes, Mexico
54.01
IV. Joint ventures accounted for using the equity method
Automotive Cells Company SE
Bruges, France
30.58
Beijing Ionchi New Energy Technology Ltd.
Beijing, China
50.00
Enbase Power GmbH
Munich, Germany
25.10
Fujian Benz Automotive Co., Ltd.
Fuzhou, China
50.00
MB Service Japan Co., Ltd.
Hitachi, Japan
33.40
SMART MOBILITY PTE. LTD.
Singapore, Singapore
43.46
StarRides Technology Co., Ltd.
Hangzhou, China
50.00
YOUR NOW Holding GmbH
Munich, Germany
50.00
Annual Report 2024 | Mercedes-Benz Group
426
Notes to the Consolidated Financial
Statements
Name of the company
Domicile, country/region
Equity interest in percent1
Footnote
V. Associated companies accounted for using the equity method
BAIC Motor Corporation Ltd.
Beijing, China
9.55
Beijing Benz Automotive Co., Ltd.
Beijing, China
49.00
Blacklane GmbH
Berlin, Germany
28.46
Bolt Technology OÜ
Tallinn, Estonia
7.41
Daimler Truck Holding AG
Leinfelden-Echterdingen, Germany
31.59
IONITY Holding GmbH & Co. KG
Munich, Germany
15.12
Ionna LLC
Durham, USA
14.29
LSH Auto Holdings Limited
Hong Kong, China
15.00
LSH Auto International Limited
Hong Kong, China
15.00
Mercedes-Benz Grand Prix Ltd.
Brackley, United Kingdom
33.33
There Holding B.V.
Rijswijk, Netherlands
30.59
VI. Joint operations, joint ventures, associated companies accounted for at (amortized) cost and substantial other investments
recognized at fair value2
ASOCIACIÓN VASCA PARA EL DESARROLLO DE TECNOLOGÍAS DE FABRICACIÓN AVANZADA EN AUTOMOCIÓN
Vitoria, Spain
0.00
Aston Martin Lagonda Global Holdings Plc
Gaydon, United Kingdom
8.15
BDF IP Holdings Ltd.
Burnaby, Canada
33.00
Beijing Mercedes-Benz Sales Service Co., Ltd.
Beijing, China
51.00
BTV technologies GmbH
Unna, Germany
40.00
ChargePoint Holdings Inc.
Campbell, USA
2.40
Daimler Buses Grundstücksverwaltung GmbH & Co. OHG
Schönefeld, Germany
10.12
7
Earlybird DWES Fund VI GmbH & Co. KG
Munich, Germany
6.45
Esslinger Wohnungsbau GmbH
Esslingen am Neckar, Germany
26.57
European Center for Information and Communication Technologies – EICT GmbH
Berlin, Germany
33.33
Factorial Inc.
Woodbury, USA
9.44
Gamma 1 Daimler Truck Grundstücksverwaltung GmbH & Co. OHG
Schönefeld, Germany
10.10
7
Gamma 2 Daimler Truck Grundstücksverwaltung GmbH & Co. OHG
Schönefeld, Germany
10.10
7
Gamma 3 Daimler Truck Grundstücksverwaltung GmbH & Co. OHG
Schönefeld, Germany
10.10
7
Gamma 4 Daimler Truck Grundstücksverwaltung GmbH & Co. OHG
Schönefeld, Germany
10.10
7
Grundstücksgesellschaft Schlossplatz 1 mbH & Co. KG
Berlin, Germany
18.37
7
hap2U SAS
Pontcharra, France
34.59
4
Momenta Global Limited
Grand Cayman, Cayman Islands
6.97
Ondine Tech Fund 1 L.P.
George Town, Cayman Islands
43.23
PDB – Partnership for Dummy Technology and Biomechanics GbR
Ingolstadt, Germany
20.00
7
Annual Report 2024 | Mercedes-Benz Group
427
Notes to the Consolidated Financial
Statements
Name of the company
Domicile, country/region
Equity interest in percent1
Footnote
Power Supply Systems GmbH
Stuttgart, Germany
24.90
Sila Nanotechnologies Inc.
Dover, USA
6.57
SK Gaming Beteiligungs GmbH
Cologne, Germany
24.17
smart-BRABUS GmbH i.L.
Bottrop, Germany
50.00
4
STARCAM s.r.o.
Most, Czech Republic
51.00
The Mobility House AG
Zurich, Switzerland
11.53
VfB Stuttgart 1893 AG
Stuttgart, Germany
10.41
Volocopter GmbH
Bruchsal, Germany
5.84
1 Shareholding pursuant to Section 16 of the German Stock Corporation Act (AktG).
2 For the accounting of unconsolidated subsidiaries, joint operations, joint ventures and associated companies, we refer to Note 1.
3 Control due to economic circumstances.
4 In liquidation.
5 Qualification for exemption pursuant to Section 264 Subsection 3 and Section 264b of the German Commercial Code (HGB).
6 Control over the investment of the assets. No consolidation of the assets due to the contractual situation.
7 Mercedes-Benz Group AG or one or several consolidated subsidiaries is/are the partner(s) with unlimited liability.
The Board of Management
Stuttgart, 11 March 2025
Ola Källenius
Dr Jörg Burzer
Mathias Geisen
Renata Jungo Brüngger
Sabine Kohleisen
Markus Schäfer
Britta Seeger
Oliver Thöne
Hubertus Troska
Harald Wilhelm
FURTHER
INFORMATION
FURTHER INFORMATION
Assurance Report of the
Independent German Public
Auditor
Annual Report 2024 | Mercedes-Benz Group
432
Responsibility Statement
of the Legal Representatives
Responsibility Statement of the Legal Representatives
To the best of our knowledge, and in accordance with
the applicable reporting principles, the Consolidated
Financial Statements give a true and fair view of
the profitability, liquidity and capital resources, and
financial position of the Group, and the Group
management report, which has been combined with the
management report for Mercedes-Benz Group AG,
includes a fair review of the development and
performance of the business and the position of the
Group, together with a description of the principal
opportunities and risks associated with the expected
development of the Group.
Stuttgart, 11 March 2025
Ola Källenius
Dr Jörg Burzer
Mathias Geisen
Renata Jungo Brüngger
Sabine Kohleisen
Markus Schäfer
Britta Seeger
Oliver Thöne
Hubertus Troska
Harald Wilhelm
Independent Auditor’s Report
To Mercedes-Benz Group AG,
Stuttgart
Report on the Audit of the
Consolidated Financial Statements
and of the Group Management
Report
Audit Opinions
We have audited the consolidated financial statements
of Mercedes-Benz Group AG, Stuttgart, and its subsidi-
aries (the Group), which comprise the consolidated
statement of financial position as at December 31,
2024, and the consolidated statement of comprehen-
sive income/loss, the consolidated statement of
income/loss, the consolidated statement of changes in
equity and the consolidated statement of cash flows
for the financial year from January 1 to December 31,
2024, and notes to the consolidated financial
statements, including material accounting policy
information. In addition, we have audited the group
management report of Mercedes-Benz Group AG,
which is combined with the Company’s management
report, for the financial year from January 1 to
December 31, 2024. In accordance with the German
legal requirements, we have not audited the content of
those parts of the group management report listed in
the “Other Information” section of our auditor’s report.
In our opinion, on the basis of the knowledge obtained
in the audit,
– the accompanying consolidated financial state-
ments comply, in all material respects, with the IFRS
Accounting Standards issued by the International
Accounting Standards Board (IASB) (hereinafter
referred to as “IFRS Accounting Standards”) as
adopted by the EU, and the additional requirements
of German commercial law pursuant to § [Article]
315e Abs. [paragraph] 1 HGB [Handelsgesetzbuch:
German Commercial Code] and, in compliance with
these requirements, give a true and fair view of the
assets, liabilities, and financial position of the Group
as at December 31, 2024, and of its financial
performance for the financial year from January 1 to
December 31, 2024, and
– the accompanying group management report as a
whole provides an appropriate view of the Group’s
position. In all material respects, this group
management report is consistent with the
consolidated financial statements, complies with
German legal requirements and appropriately
presents the opportunities and risks of future
development. Our audit opinion on the group
management report does not cover the content of
those parts of the group management report listed
in the “Other Information” section of our auditor’s
report.
Pursuant to § 322 Abs. 3 Satz [sentence] 1 HGB, we
declare that our audit has not led to any reservations
relating to the legal compliance of the consolidated
financial statements and of the group management
report.
Basis for the Audit Opinions
We conducted our audit of the consolidated financial
statements and of the group management report in
accordance with § 317 HGB and the EU Audit Regulation
(No. 537/2014, referred to subsequently as “EU Audit
Regulation”) in compliance with German Generally
Accepted Standards for Financial Statement Audits
promulgated by the Institut der Wirtschaftsprüfer
[Institute of Public Auditors in Germany] (IDW). We
performed the audit of the consolidated financial
statements in supplementary compliance with the
International Standards on Auditing (ISAs). Our
responsibilities under those requirements, principles
and standards are further described in the “Auditor’s
Responsibilities for the Audit of the Consolidated
Financial Statements and of the Group Management
Report” section of our auditor’s report. We are
independent of the group entities in accordance with
the requirements of European law and German
commercial and professional law, and we have fulfilled
our other German professional responsibilities in
accordance with these requirements. In addition, in
accordance with Article 10 (2) point (f) of the EU Audit
Regulation, we declare that we have not provided non-
audit services prohibited under Article 5 (1) of the EU
Audit Regulation. We believe that the audit evidence
we have obtained is sufficient and appropriate to
provide a basis for our audit opinions on the con-
solidated financial statements and on the group
management report.
Key Audit Matters in the Audit of the Consolidated
Financial Statements
Key audit matters are those matters that, in our
professional judgment, were of most significance in our
audit of the consolidated financial statements for the
financial year from January 1 to December 31, 2024.
These matters were addressed in the context of our
audit of the consolidated financial statements as a
whole, and in forming our audit opinion thereon; we do
not provide a separate audit opinion on these matters.
In our view, the matters of most significance in our
audit were as follows:
❶ Impairment risk in relation to operating leases
❷ Loss allowances on receivables from financial
services
❸ Measurement of the provisions for product
warranties
❹ Accounting treatment of legal proceedings
connected with diesel emission behaviour
Our presentation of these key audit matters has been
structured in each case as follows:
① Matter and issue
② Audit approach and findings
③ Reference to further information
Hereinafter we present the key audit matters:
❶ Impairment risk in relation to operating leases
① As at the end of the reporting period, the operating
leases reported under the “Equipment on operating
leases” item in the statement of financial position
totaled EUR 45,220 million (approximately 17.1% of
total assets). These include Mercedes-Benz cars
purchased by non-Group dealers that are leased to
end customers through the Mercedes-Benz Group
under operating leases. These leased assets are
measured at cost and depreciated on a straight-line
basis to their expected residual values over the
term of the lease. A key estimated value for sub-
sequent measurement is the expected residual
value of the leased assets. The Mercedes-Benz
Group calculates residual values using internally
available data on historical values, current market
data and data from external market research
institutes. The estimates of residual value also
include regulatory changes in the individual markets
and changes in customer behaviour, including due
to climate policy considerations. The estimation of
future residual values is subject to judgment due to
the large number of assumptions to be made by
the Board of Management and the amount of data
incorporated in the determination.
Against this background and due to the resulting
significant uncertainties with regard to estimates in
the context of measuring the residual values of
the leased products, this matter was of particular
significance in the context of our audit.
② Our audit included inquiries and inspections of
documentation pertaining to internal calculation
methods to obtain an understanding of the
development of operating leases, the underlying
residual value risks as well as the business
processes for the identification, management,
monitoring and measurement of residual value risks.
We furthermore reviewed the appropriateness of
the internal control system, in particular in relation
to the calculation of expected residual values. In
addition, we evaluated the appropriateness of
the methods, the model assumptions as well as
the parameters used to measure the residual
values based on the validation carried out by the
Mercedes-Benz Group. For this purpose, we
consulted the Mercedes-Benz Group’s experts
responsible for managing and monitoring residual
value risks, and inspected the internal analysis on
residual value developments and the validation
results. We compared the residual values deter-
mined using these methods with data from external
market research institutions, and compared past
results with actual developments in residual values.
We ensured the mathematical accuracy of the
residual values by verifying key calculation steps.
The methods and processes for determining the
expected residual values of externally acquired
leased assets underlying the valuation are
appropriate according to our opinion and the
assumptions and parameters incorporated in
the procedure to calculate residual values are
appropriate as a whole.
③ The Company’s disclosures relating to accounting
policies, assumptions, judgments and estimates
applied are contained in sections “1. Material
accounting policies”, “2. Accounting estimates and
management judgments” and “13. Equipment on
operating leases” of the notes to the financial
statements.
❷ Loss allowances on receivables from financial
services
① Receivables from financial services totaling EUR
87,867 million (33.2% of total assets) are reported
in the Company’s consolidated financial statements.
These primarily comprise receivables from sales
financing with customers and dealers and receiv-
ables from finance leases. Loss allowances
amounting to EUR 1,105 million were recognized for
these receivables as at the December 31, 2024
reporting date.
The loss allowances are measured in a three-stage
procedure and are determined in particular by the
structure and quality of the receivables, expecta-
tions as to future macroeconomic developments in
the context of scenario analyses, and the Board of
Management’s estimates of future defaults. Histori-
cal probabilities of default and loss rates, the out-
standing amount of the receivables and recoveries
still expected are taken into account, as is any
existing collateral.
The amounts of the loss allowances on receivables
are highly significant for the assets, liabilities and
financial performance of the Company and they
involve considerable judgment on the part of the
Board of Management, in particular due to the
measurement inputs which are subject to material
uncertainties. Against this background, this matter
was of particular significance in the context of our
audit.
② As part of our audit, we first of all assessed the
design of the Company’s relevant internal control
system and on that basis tested whether the
controls functioned effectively. In doing so, we
considered the business organization, the IT
systems and the relevant measurement models.
A key component of our audit was to assess in
particular the appropriateness of the risk classifica-
tion procedures and the risk provisioning parameters
used. We also analyzed the validations of para-
meters that the Company regularly conducted. To
assess the credit risk, we also used targeted
sampling of individual cases to verify among other
things that the attributes for assignment to the
respective risk categories were suitably available
and the loss allowances had been calculated using
the parameters defined for these risk categories.
On the basis of our audit procedures, we satisfied
ourselves overall that the assumptions made by the
Board of Management for the purpose of testing the
receivables for impairment are appropriate, and
that the controls implemented by the Company are
appropriate and effective.
③ The Company’s disclosures relating to loss allow-
ances on receivables from financial services are
contained in section 2 “Accounting estimates and
management judgments” to the consolidated
financial statements. Further disclosures relating
to loss allowances on receivables from financial
services can be found in section 1 “Material
accounting policies”, section 15 “Receivables from
financial services” and section 33 “Management of
financial risks” to the consolidated financial
statements, and in the section entitled “Financial
risks and opportunities” in the Group management
report.
❸ Measurement of the provisions for product
warranties
① The Mercedes-Benz Group grants various types of
product warranties that usually guarantee the
performance of a product or service for a defined
period.
The provisions for product warranties amount to
EUR 6,934 million and are reported under the
provisions for other risks. They are generally
recognized when a vehicle is sold.
The provisions for these product warranties include
both expected expenses under statutory and
contractual warranty claims and expected expenses
for goodwill concessions and product recalls.
Determining the amount of the provisions requires
assumptions to be made about the nature and
extent of future warranty claims, goodwill
concessions and potential recalls per model series.
These estimates are based on past experience of
potential and actual claims. The estimates also
include assumptions about the amount of potential
repair costs per vehicle and the effects of potential
time or kilometer limits. An estimate is also made of
the discount rate. The provisions are regularly
modified to reflect new information.
A particular source of material estimate
uncertainties in calculating the amount of the
provisions is the future claims occurrence.
Against this background, the Board of Management’
measurement of the provisions for product
warranties was subject to considerable judgment
and as such was of particular significance in the
context of our audit.
② In order to evaluate the overall appropriateness of
calculating the provisions for product warranties,
our audit involved gaining an understanding of the
processes used to determine the provisions and
assessing the relevant methods and assumptions
used to measure it. In particular, we have assessed
the assumptions regarding expected potential
claims and claims experience based on warranty
claims and goodwill concessions actually made. We
used historical analyses to assess the forecast
accuracy for relevant product warranties. In addi-
tion, we checked that updated assessments of
future repair costs and techniques were taken into
material consideration for these relevant product
warranties. We used actual sales to evaluate, on a
test basis, the underlying numerical data on
vehicles. Furthermore, we verified that the term-
congruent interest rates were properly derived.
In our view, taking into consideration the informa-
tion available, the valuation parameters and under-
lying assumptions used by the Board of Manage-
ment is appropriate overall for the purpose of prop-
erly measuring the provision for product warranties.
③ The Company’s disclosures relating to the account-
ing policies applied are contained in sections “1.
Material accounting policies” and “2. Accounting
estimates and management judgments” of the notes
to the consolidated financial statements. Further
disclosures on the product warranties can be found
in section “24. Provisions for other risks” of the
notes to the consolidated financial statements and
in the section entitled “Company-specific risks and
opportunities – Warranty and goodwill cases” in the
Group management report.
❹ Accounting treatment of legal proceedings
connected with diesel emission behaviour
① Mercedes-Benz Group face a number of court
cases, claims and official investigations and orders
(legal proceedings) relating to a range of topics. If
such legal proceedings are concluded or otherwise
settled to the detriment of Mercedes-Benz Group,
this may result in a considerable financial burden –
for instance due to compensation payments,
remediation work, recalls, fines or other cost-
intensive actions. These legal proceedings concern
in particular lawsuits from consumers and investors
and governmental proceedings and orders in
connection with diesel emissions.
Mercedes-Benz Group recognize provisions for
potential or pending proceedings. The assessment
as at the end of the reporting period of whether
there is a present obligation as a result of a past
event, whether a future outflow of resources is
probable and the amount of the obligation can be
reliably estimated, and hence whether and in what
amount a provision must be recognized, depends to
a large extent on estimates made by the Board of
Management.
Against this background, the Board of Management'
accounting treatment of legal proceedings in con-
nection with diesel emission behaviour is subject to
significant judgment, and as such of particular
significance in the context of our audit.
② Our audit procedures included assessing the pro-
cesses put in place by the Company to capture the
risks and proceedings, estimate the outcome and
present the legal proceedings in the financial
statements.
To assess the recognition and measurement of the
provisions, we involved our own legal experts and
held discussions with the internal legal department,
other departments familiar with the issues and the
Company’s external lawyers to brief us on current
developments and the grounds for arriving at the
corresponding estimates. In addition, we used a
risk-based selection of legal proceedings to assess
the underlying official and/or court documents, the
opinions from lawyers and the calculation of the
provisions recognized. We furthermore interviewed
the Company’s Board of Management and appraised
their assessment of the outcome of the proceed-
ings.
As at the end of the reporting period, external
lawyers’ assessments of the material proceedings
were available that support the risk assessment
made by the Board of Management. To the extent
an agreement has since been reached or judgments
have been handed down in individual matters, we
compared the amounts originally estimated with
the final obligations, thereby gaining an insight into
the quality of the estimates. As a final step, we
assessed whether the legal proceedings in question
were appropriately presented in the notes to the
consolidated financial statements and in the group
management report.
Overall, the estimates made by the Board of
Management for the accounting treatment of legal
proceedings in connection with diesel emission
behaviour are appropriate for the correct
recognition and measurement of the provisions.
③ The Company’s statements on the accounting
policies are contained in section “1. Material
accounting policies” and “2. Accounting estimates
and management judgments”. Further disclosures
on the legal proceedings can be found in sections
“24. Provisions for other risks” and “30. Legal
proceedings”, and in the section entitled “Legal and
tax risks and opportunities – Legal risks” in the
group management report.
Other Information
The Board of Management is responsible for the other
information. The other information comprises the
following non-audited parts (in terms of content) of the
group management report:
– The section “Sustainability Statement” of the
management report with the group Sustainability
Statement, which is subject of a separate assurance
engagement to obtain limited and reasonable
assurance
– The section “Appropriateness and effectiveness of
the internal control and risk management system of
the management report”
The other information comprises further
– The statement on corporate governance pursuant to
§ 289f HGB and § 315d HGB
– all remaining parts of the annual report – excluding
cross-references to external information – with the
exception of the audited consolidated financial
statements, the audited group management report
and our auditor’s report.
Our audit opinions on the consolidated financial
statements and on the group management report do
not cover the other information, and consequently we
do not express an audit opinion or any other form of
assurance conclusion thereon.
In connection with our audit, our responsibility is to
read the other information mentioned above and, in so
doing, to consider whether the other information
– is materially inconsistent with the consolidated
financial statements, with the group management
report disclosures audited in terms of content or
with our knowledge obtained in the audit, or
– otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude
that there is a material misstatement of this other
information, we are required to report that fact. We
have nothing to report in this regard.
Responsibilities of the Board of Management and
the Supervisory Board for the Consolidated
Financial Statements and the Group Management
Report
The Board of Management is responsible for the
preparation of the consolidated financial statements
that comply, in all material respects, with IFRS
Accounting Standards as adopted by the EU and the
additional requirements of German commercial law
pursuant to § 315e Abs. 1 HGB and that the
consolidated financial statements, in compliance with
these requirements, give a true and fair view of the
assets, liabilities, financial position, and financial
performance of the Group. In addition the Board of
Management is responsible for such internal control as
they have determined necessary to enable the
preparation of consolidated financial statements that
are free from material misstatement, whether due to
fraud (i.e., fraudulent financial reporting and
misappropriation of assets) or error.
In preparing the consolidated financial statements, the
Board of Management is responsible for assessing the
Group’s ability to continue as a going concern. They
also have the responsibility for disclosing, as
applicable, matters related to going concern. In
addition, they are responsible for financial reporting
based on the going concern basis of accounting unless
there is an intention to liquidate the Group or to cease
operations, or there is no realistic alternative but to do
so.
Furthermore, the Board of Management is responsible
for the preparation of the group management report
that, as a whole, provides an appropriate view of the
Group’s position and is, in all material respects,
consistent with the consolidated financial statements,
complies with German legal requirements, and
appropriately presents the opportunities and risks of
future development. In addition, the Board of
Management is responsible for such arrangements and
measures (systems) as they have considered necessary
to enable the preparation of a group management
report that is in accordance with the applicable German
legal requirements, and to be able to provide sufficient
appropriate evidence for the assertions in the group
management report.
The supervisory board is responsible for overseeing the
Group’s financial reporting process for the preparation
of the consolidated financial statements and of the
group management report.
Auditor’s Responsibilities for the Audit
of the Consolidated Financial Statements
and of the Group Management Report
Our objectives are to obtain reasonable assurance
about whether the consolidated financial statements as
a whole are free from material misstatement, whether
due to fraud or error, and whether the group
management report as a whole provides an appropriate
view of the Group’s position and, in all material
respects, is consistent with the consolidated financial
statements and the knowledge obtained in the audit,
complies with the German legal requirements and
appropriately presents the opportunities and risks of
future development, as well as to issue an auditor’s
report that includes our audit opinions on the
consolidated financial statements and on the group
management report.
Reasonable assurance is a high level of assurance, but
is not a guarantee that an audit conducted in
accordance with § 317 HGB and the EU Audit Regulation
and in compliance with German Generally Accepted
Standards for Financial Statement Audits promulgated
by the Institut der Wirtschaftsprüfer (IDW) and
supplementary compliance with the ISAs will always
detect a material misstatement. Misstatements can
arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of
users taken on the basis of these consolidated financial
statements and this group management report.
We exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
– Identify and assess the risks of material mis-
statement of the consolidated financial statements
and of the group management report, whether due
to fraud or error, design and perform audit
procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to
provide a basis for our audit opinions. The risk of
not detecting a material misstatement resulting
from malicious acts is higher than for one resulting
from error, as malicious acts may involve collusion,
forgery, intentional omissions, misrepresentations,
or the override of internal controls.
– Obtain an understanding of internal control relevant
to the audit of the consolidated financial state-
ments and of arrangements and measures relevant
to the audit of the group management report in
order to design audit procedures that are
appropriate in the circumstances, but not for the
purpose of expressing an audit opinion on the
effectiveness of these arrangements and measures.
– Evaluate the appropriateness of accounting policies
used by the Board of Management and the
reasonableness of estimates made by the Board of
Management and related disclosures.
– Conclude on the appropriateness of the Board of
Management’s use of the going concern basis of
accounting and, based on the audit evidence
obtained, whether a material uncertainty exists
related to events or conditions that may cast
significant doubt on the Group’s ability to continue
as a going concern. If we conclude that a material
uncertainty exists, we are required to draw
attention in the auditor’s report to the related
disclosures in the consolidated financial statements
and in the group management report or, if such
disclosures are inadequate, to modify our
respective audit opinions. Our conclusions are
based on the audit evidence obtained up to the
date of our auditor’s report. However, future events
or conditions may cause the Group to cease to be
able to continue as a going concern.
– Evaluate the overall presentation, structure and
content of the consolidated financial statements,
including the disclosures, and whether the consoli-
dated financial statements present the underlying
transactions and events in a manner that the
consolidated financial statements give a true and
fair view of the assets, liabilities, financial position
and financial performance of the Group in
compliance with IFRS Accounting Standards as
adopted by the EU and the additional requirements
of German commercial law pursuant to § 315e Abs. 1
HGB.
– We plan and perform the audit of the consolidated
financial statements to obtain sufficient appropriate
audit evidence regarding the financial information
of the entities or subdivisions within the Group to
express opinions on the consolidated financial
statements and on the group management report.
We are responsible for the direction, supervision
and performance of the group audit. We remain
solely responsible for our audit opinions.
– Evaluate the consistency of the group management
report with the consolidated financial statements,
its conformity with German law, and the view of the
Group’s position it provides.
– Perform audit procedures on the prospective
information presented by the Board of Management
in the group management report. On the basis of
sufficient appropriate audit evidence we evaluate,
in particular, the significant assumptions used by
the Board of Management as a basis for the
prospective information, and evaluate the proper
derivation of the prospective information from
these assumptions. We do not express a separate
audit opinion on the prospective information and on
the assumptions used as a basis. There is a
substantial unavoidable risk that future events will
differ materially from the prospective information.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings,
including any significant deficiencies in internal control
that we identify during our audit.
We also provide those charged with governance with a
statement that we have complied with the relevant
independence requirements, and communicate with
them all relationships and other matters that may
reasonably be thought to bear on our independence,
and where applicable, actions taken to eliminate
threats or safeguards applied.
From the matters communicated with those charged
with governance, we determine those matters that
were of most significance in the audit of the
consolidated financial statements of the current period
and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or
regulation precludes public disclosure about the
matter.
Other Legal and
Regulatory Requirements
Report on the Assurance on the Electronic
Rendering of the Consolidated Financial Statements
and the Group Management Report Prepared for
Publication Purposes in Accordance with § 317 Abs.
3a HGB
Assurance Opinion
We have performed assurance work in accordance with
§ 317 Abs. 3a HGB to obtain reasonable assurance as to
whether the rendering of the consolidated financial
statements and the group management report
(hereinafter the “ESEF documents”) contained in the
electronic file Mercedes-Benz_Group_AG_KA+LB_ESEF
-2024-12-31.zip and prepared for publication purposes
complies in all material respects with the requirements
of § 328 Abs. 1 HGB for the electronic reporting format
(“ESEF format”). In accordance with German legal
requirements, this assurance work extends only to the
conversion of the information contained in the
consolidated financial statements and the group
management report into the ESEF format and therefore
relates neither to the information contained within
these renderings nor to any other information
contained in the electronic file identified above.
In our opinion, the rendering of the consolidated
financial statements and the group management report
contained in the electronic file identified above and
prepared for publication purposes complies in all
material respects with the requirements of § 328 Abs. 1
HGB for the electronic reporting format. Beyond this
assurance opinion and our audit opinion on the
accompanying consolidated financial statements and
the accompanying group management report for the
financial year from  January 1 to December 31, 2024
contained in the “Report on the Audit of the
Consolidated Financial Statements and of the Group
Management Report” above, we do not express any
assurance opinion on the information contained within
these renderings or on the other information contained
in the electronic file identified above.
Basis for the Assurance Opinion
We conducted our assurance work on the rendering of
the consolidated financial statements and the group
management report contained in the electronic file
identified above in accordance with § 317 Abs. 3a HGB
and the IDW Assurance Standard: Assurance Work
on the Electronic Rendering of Financial Statements
and Management Reports, Prepared for Publication
Purposes in Accordance with § 317 Abs. 3a HGB (IDW
PS 410 (06.2022)) and the International Standard on
Assurance Engagements 3000 (Revised). Our responsi-
bility in accordance therewith is further described in
the “Group Auditor’s Responsibilities for the Assurance
Work on the ESEF Documents” section. Our audit firm
has applied the IDW Standard on Quality Management:
Requirements for Quality Management in the Audit
Firm (IDW QMS 1 (09.2022)).
Responsibilities of the Board of Management and
the Supervisory Board for the ESEF Documents
The Board of Management of the Company is
responsible for the preparation of the ESEF documents
including the electronic renderings of the consolidated
financial statements and the group management report
in accordance with § 328 Abs. 1 Satz 4 Nr. [number] 1
HGB and for the tagging of the consolidated financial
statements in accordance with § 328 Abs. 1 Satz 4 Nr. 2
HGB.
In addition, the Board of Management of the Company
is responsible for such internal control as they have
considered necessary to enable the preparation of
ESEF documents that are free from material non-
compliance with the requirements of § 328 Abs. 1 HGB
for the electronic reporting format, whether due to
fraud or error.
The supervisory board is responsible for overseeing the
process for preparing the ESEF documents as part of
the financial reporting process.
Group Auditor’s Responsibilities for the Assurance
Work on the ESEF Documents
Our objective is to obtain reasonable assurance about
whether the ESEF documents are free from material
non-compliance with the requirements of § 328 Abs. 1
HGB, whether due to fraud or error. We exercise
professional judgment and maintain professional
skepticism throughout the assurance work. We also:
– Identify and assess the risks of material non-
compliance with the requirements of § 328 Abs. 1
HGB, whether due to fraud or error, design and
perform assurance procedures responsive to those
risks, and obtain assurance evidence that is
sufficient and appropriate to provide a basis for our
assurance opinion.
– Obtain an understanding of internal control relevant
to the assurance work on the ESEF documents
in order to design assurance procedures that are
appropriate in the circumstances, but not for
the purpose of expressing an assurance opinion
on the effectiveness of these controls.
– Evaluate the technical validity of the ESEF docu-
ments, i.e., whether the electronic file containing
the ESEF documents meets the requirements of the
Delegated Regulation (EU) 2019/815 in the version
in force at the date of the consolidated financial
statements on the technical specification for this
electronic file.
– Evaluate whether the ESEF documents provide an
XHTML rendering with content equivalent to the
audited consolidated financial statements and to
the audited group management report.
– Evaluate whether the tagging of the ESEF
documents with Inline XBRL technology (iXBRL) in
accordance with the requirements of Articles 4 and
6 of the Delegated Regulation (EU) 2019/815, in the
version in force at the date of the consolidated
financial statements, enables an appropriate and
complete machine-readable XBRL copy of the
XHTML rendering.
Further Information pursuant to Article 10 of
the EU Audit Regulation
We were elected as group auditor by the annual
general meeting on May 3, 2023. We were engaged by
the supervisory board on April 16, 2024. We have been
the group auditor of Mercedes-Benz Group AG,
Stuttgart, without interruption since the financial year
2024.
We declare that the audit opinions expressed in this
auditor’s report are consistent with the additional
report to the audit committee pursuant to Article 11 of
the EU Audit Regulation (long-form audit report).
Reference to an Other Matter –
Use of the Auditor’s Report
Our auditor’s report must always be read together
with the audited consolidated financial statements and
the audited group management report as well as the
assured ESEF documents. The consolidated financial
statements and the group management report con-
verted to the ESEF format – including the versions to
be filed in the Company Register – are merely elec-
tronic renderings of the audited consolidated financial
statements and the audited group management report
and do not take their place. In particular, the “Report
on the Assurance on the Electronic Rendering of the
Consolidated Financial Statements and the Group
Management Report Prepared for Publication Purposes
in Accordance with § 317 Abs. 3a HGB” and our
assurance opinion contained therein are to be used
solely together with the assured ESEF documents made
available in electronic form.
German Public Auditor Responsible
for the Engagement
The German Public Auditor responsible for the
engagement is Thomas Tandetzki.
Stuttgart, March 11, 2025
PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft
Dietmar PrümmThomas Tandetzki
WirtschaftsprüferWirtschaftsprüfer
[German Public Auditor][German Public Auditor]
Annual Report 2024 | Mercedes-Benz Group
444
Assurance Report of the 
Independent German Public Auditor
Assurance Report of the
Independent German Public Auditor
on an Assurance Engagement to obtain Limited and Reasonable Assurance in relation to the Group
Sustainability Statement
To Mercedes-Benz Group AG,
Stuttgart
Assurance Conclusions
We have conducted a limited assurance engagement
on the group sustainability statement of Mercedes-
Benz Group AG, Stuttgart, (hereinafter the “Company”)
taking into account, as set forth in the subsequent
paragraph, the reasonable assurance engagement on
the disclosures marked with * in the group
sustainability statement included in section
“Sustainability Statement” of the group management
report, which is combined with the Company’s
management report, for the financial year from
1 January to 31 December 2024 (hereinafter the “Group
Sustainability Statement”). The Group Sustainability
Statement has been prepared to fulfil the requirements
of Directive (EU) 2022/2464 of the European
Parliament and of the Council of 14 December 2022
(Corporate Sustainability Reporting Directive, CSRD)
and Article 8 of Regulation (EU) 2020/852 as well as §§
[Articles] 289b to 289e HGB [Handelsgesetzbuch:
German Commercial Code] and §§ 315b to 315c HGB to
prepare a combined non-financial statement.
Based on the particular engagement, we have
conducted a reasonable assurance engagement on the
disclosures
– Total number of employees
– Gender distribution at top management level (level
1-3) (absolute)
– Mercedes-Benz CO2 emissions on average
passenger cars and light commercial vehicles in
Europe (in g/km) – company-specific
– Mercedes-Benz greenhouse gas figures passenger
cars, light-duty trucks and medium-duty vehicles in
the US (in g CO2/mi) – company-specific
– Mercedes-Benz fleet consumption passenger cars
(imported) in China (in l/100 km) – company-
specific
marked with * (together hereinafter the “Disclosures
marked with *”) in the Group Sustainability Statement.
A reasonable assurance engagement on these disclo-
sures fulfils the requirements for a limited assurance
engagement and, in accordance with Recital 60 to the
CSRD, thereby complies with the requirements of the
CSRD relating to assurance of the Group Sustainability
Statement. Based on the procedures performed and
the evidence obtained as part of our limited assurance
engagement, nothing has come to our attention that
causes us to believe that the accompanying Group
Sustainability Statement, taking into account the Dis-
closures in the Group Sustainability Statement marked
with * and subject to a reasonable assurance engage-
ment, is not prepared, in all material respects, in
accordance with the requirements of the CSRD and
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Article 8 of Regulation (EU) 2020/852, § 315c in
conjunction with §§ 289c to 289e HGB to prepare a
combined non-financial statement as well as with the
supplementary criteria presented by the Board of
Management of the Company. This assurance
conclusion includes that no matters have come to our
attention that cause us to believe:
– that the accompanying Group Sustainability State-
ment does not comply, in all material respects, with
the European Sustainability Reporting Standards
(ESRS), including that the process carried out by the
Company to identify the information to be included
in the Group Sustainability Statement (hereinafter
the “materiality assessment”) is not, in all material
respects, in accordance with the description set out
in section “Identification of material impacts, risks
and opportunities” of the Group Sustainability
Statement, or
– that the disclosures set out in section “EU
Taxonomy” of the Group Sustainability Statement
do not comply, in all material respects, with
Article 8 of Regulation (EU) 2020/852.
In our opinion, on the basis of our reasonable assur-
ance engagement, the Disclosures marked with * in the
Group Sustainability Statement were prepared, in all
material respects, in accordance with the requirements
applicable to these disclosures and the supplementary
criteria presented by the Board of Management of the
Company.
Basis for the Assurance Conclusions
We conducted our limited assurance engagement in
accordance with the International Standard on
Assurance Engagements (ISAE) 3000 (Revised):
Assurance Engagements Other Than Audits or Reviews
of Historical Financial Information, issued by the
International Auditing and Assurance Standards Board
(IAASB).
The procedures in a limited assurance engagement
vary in nature and timing from, and are less in extent
than for, a reasonable assurance engagement.
Consequently, the level of assurance obtained is sub-
stantially lower than the assurance that would have
been obtained had a reasonable assurance
engagement been performed.
Our responsibilities under ISAE 3000 (Revised) are
further described in the “German Public Auditor’s
Responsibilities for the Assurance Engagement on the
Group Sustainability Statement” section.
We are independent of the Company in accordance
with the requirements of European law and German
commercial and professional law, and we have fulfilled
our other German professional responsibilities in
accordance with these requirements. Our audit firm has
complied with the quality management system require-
ments of the IDW Standard on Quality Management:
Requirements for Quality Management in the Audit
Firm (IDW QMS 1 (09.2022)) issued by the Institut der
Wirtschaftsprüfer (Institute of Public Auditors in
Germany; IDW). We believe that the evidence we have
obtained is sufficient and appropriate to provide a
basis for our assurance conclusions.
Responsibility of the Board of Management and the
Supervisory Board for the Group Sustainability
Statement
The Board of Management are responsible for the
preparation of the Group Sustainability Statement in
accordance with the requirements of the CSRD and the
relevant German legal and other European regulations
as well as with the supplementary criteria presented by
the Board of Management of the Company. They are
also responsible for the design, implementation and
maintenance of such internal controls that they have
considered necessary to enable the preparation of a
Group Sustainability Statement in accordance with
these regulations that is free from material
misstatement, whether due to fraud (i.e., manipulation
of the Group Sustainability Statement) or error.
This responsibility of the Board of Management
includes establishing and maintaining the materiality
assessment process, selecting and applying appro-
priate reporting policies for preparing the Group
Sustainability Statement, as well as making assump-
tions and estimates and ascertaining forward-looking
information for individual sustainability-related
disclosures.
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The Supervisory Board is responsible for overseeing
the process for the preparation of the Group
Sustainability Statement.
Inherent Limitations in the Preparation of the Group
Sustainability Statement
The CSRD and the relevant German statutory and
other European regulations contain wording and terms
that are still subject to considerable interpretation
uncertainties and for which no authoritative, com-
prehensive interpretations have yet been published.
Therefore, the Board of Management has disclosed
their interpretations of such wording and terms in
section “General Information” of the Group
Sustainability Statement. The Board of Management is
responsible for the defensibility of these interpre-
tations. As such wording and terms may be interpreted
differently by regulators or courts, the legal conformity
of measurements or evaluations of sustainability
matters based on these interpretations is uncertain.
These inherent limitations also affect the assurance
engagement on the Group Sustainability Statement.
German Public Auditor’s Responsibilities for the
Assurance Engagement on the Group Sustainability
Statement
Our objectives are
a) to express a limited assurance conclusion, based
on the assurance engagement we have conducted,
on whether any matters have come to our attention
that cause us to believe that the Group Sustain-
ability Statement, taking into account the Disclo-
sures in the Group Sustainability Statement marked
with * and subject to a reasonable assurance
engagement, has not been prepared, in all material
respects, in accordance with the CSRD and the
relevant German legal and other European regula-
tions as well as with the supplementary criteria
presented by the Board of Management of the
Company, and to issue an assurance report that
includes our assurance conclusion on the Group
Sustainability Statement, taking into account the
Disclosures in the Group Sustainability Statement
marked with * and subject to a reasonable
assurance engagement.
b) to express a reasonable assurance opinion, based
on the assurance engagement we have conducted
on whether the Disclosures marked with * in the
Group Sustainability Statement are prepared, in all
material respects, in accordance with the require-
ments applicable to these disclosures and the
supplementary criteria presented by the Board of
Management of the Company.
As part of a limited assurance engagement in
accordance with ISAE 3000 (Revised), we exercise
professional judgment and maintain professional
skepticism. We also:
a) for the limited assurance engagement
– obtain an understanding of the process to
prepare the Group Sustainability Statement,
including the materiality assessment process
carried out by the Company to identify the
information to be included in the Group
Sustainability Statement.
– identify disclosures where a material
misstatement due to fraud or error is likely to
arise, design and perform procedures to address
these disclosures and obtain limited assurance
to support the assurance conclusion. The risk of
not detecting a material misstatement resulting
from fraud is higher than the risk of not detec-
ting a material misstatement resulting from
error, as fraud may involve collusion, forgery,
intentional omissions, misleading representa-
tions, or the override of internal controls. In
addition, the risk of not detecting a material
misstatement within value chain information
from sources not under the control of the com-
pany (value chain information) is generally
higher than the risk of not detecting a material
misstatement of value chain information from
sources under the control of the company, as
both the Board of Management of the Company
and we, as assurance practitioners, are ordinarily
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subject to limitations on direct access to the
sources of value chain information.
– consider the forward-looking information,
including the appropriateness of the underlying
assumptions. There is a substantial unavoidable
risk that future events will differ materially from
the forward-looking information.
b) for the reasonable assurance engagement
– perform risk assessment procedures, including
obtaining an understanding of the internal
controls that are relevant to the assurance
engagement on the Disclosures marked with * in
the Group Sustainability Statement in order to
identify and assess the risks of material mis-
statement at the assertion level due to fraud or
error, but not for the purpose of expressing an
assurance opinion on the effectiveness of these
internal controls of the Company. The risk of not
detecting a material misstatement resulting from
fraud is higher than the risk of not detecting a
material misstatement resulting from error, as
fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or override of
internal control. In addition, the risk of not
detecting a material misstatement in information
obtained from sources in the value chain not
within the entity’s control (value chain informa-
tion) is ordinarily higher than the risk of not
detecting a material misstatement in information
obtained from sources within the entity’s con-
trol, as both the entity’s Board of Management
and we as practitioners are ordinarily subject to
restrictions on direct access to the sources of
the value chain information.
– evaluate the appropriate derivation of the
forward-looking information from the significant
assumptions and the appropriateness of these
assumptions. We do not express a separate
assurance opinion either on the forward-looking
information nor on the assumptions on which
they are based. There is a substantial
unavoidable risk that future events will differ
materially from the forward-looking information.
Summary of the Procedures Performed by the
German Public Auditor
A assurance engagement involves the performance of
procedures to obtain evidence about the sustainability
information. The nature, timing and extent of the
selected procedures are subject to our professional
judgement.
a) In conducting our limited assurance engagement,
we have, amongst other things:
– evaluated the suitability of the criteria as a
whole presented by the Board of Management in
the Group Sustainability Statement.inquired of
the executive directors and relevant employees
involved in the preparation of the Group
Sustainability Statement about the preparation
process, including the materiality assessment
process carried out by the company to identify
the information to be included in the Group
Sustainability Statement, and about the internal
controls relating to this process.
– evaluated the reporting policies used by the
Board of Management to prepare the Group
Sustainability Statement.
– evaluated the reasonableness of the estimates
and the related disclosures provided by the
Board of Management. If, in accordance with the
ESRS, the Board of Management estimates the
value chain information to be reported for a case
in which the Board of Management is unable to
obtain the information from the value chain
despite making reasonable efforts, our assur-
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ance engagement is limited to evaluating
whether the Board of Management has under-
taken these estimates in accordance with the
ESRS and assessing the reasonableness of these
estimates, but does not include identifying
information in the value chain that the Board of
Management has been unable to obtain.
– performed analytical procedures and made
inquiries in relation to selected information in
the Group Sustainability Statement.
– performed site visits.
– considered the presentation of the information
in the Group Sustainability Statement.
– considered the process for identifying
taxonomy-eligible and taxonomy-aligned
economic activities and the corresponding
disclosures in the Group Sustainability
Statement.
b) In conducting our reasonable assurance engage-
ment, we have performed the assurance procedures
listed under a) to a greater extent and, amongst
other things:
– evaluated the preparation process and the
internal controls relating to this process.
– tested the operating effectiveness of selected
internal controls.
– performed test of details on selected
disclosures in the Group Sustainability
Statement on a sample basis.
Restriction of Use
We draw attention to the fact that the assurance
engagement was conducted for the Company’s
purposes and that the report is intended solely to
inform the Company about the result of the assurance
engagement. Accordingly, the report is not intended
to be used by third parties for making (financial)
decisions based on it. Our responsibility is solely
towards the Company. We do not accept any respon-
sibility, duty of care or liability towards third parties.
Stuttgart, March 11, 2025
PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft
Dietmar PrümmThomas Tandetzki
WirtschaftsprüferWirtschaftsprüfer
[German Public Auditor][German Public Auditor]
Key Figures
Financial Key Figures for the Mercedes-Benz Group
2024
2023
24/23
In millions of euros
(adjusted)
% change
Revenue1
145,594
152,390
-4
EBIT
13,599
19,660
-31
Adjusted EBIT
13,713
20,004
-31
Net profit
10,409
14,531
-28
Earnings per share (in euros)2
10.19
13.46
-24
Dividend per share (in euros)
4.30
5.30
-19
Free cash flow of the industrial business
9,152
11,316
-19
Adjusted free cash flow of the industrial business
9,421
11,720
-20
Net liquidity of the industrial business (31 December)
31,417
31,069
+1
Investments in property, plant and equipment
4,039
3,745
+8
Research and development expenditure
9,717
9,996
-3
1 The prior-year figures have been corrected in accordance with IAS 8. Further information can be found in Note 3.
2 Based on net profit attributable to shareholders of Mercedes-Benz Group AG.
Financial Key Figures for the Segments
Mercedes-Benz Cars
Mercedes-Benz Vans
2024
2023
24/23
2024
2023
24/23
In millions of euros
% change
% change
Revenue
107,761
112,756
-4
19,320
20,288
-5
EBIT
8,460
14,224
-41
2,932
3,138
-7
Adjusted EBIT
8,677
14,252
-39
2,825
3,063
-8
Return on sales (in %)
7.9
12.6
.
15.2
15.5
.
Adjusted return on sales (in %)
8.1
12.6
.
14.6
15.1
.
CFBIT
8,963
12,336
-27
2,705
2,817
-4
Adjusted CFBIT
9,095
12,535
-27
2,838
3,018
-6
Adjusted cash conversion rate1
104.8
88.0
.
100.5
98.5
.
Investments in property, plant and equipment
3,392
3,345
+1
571
351
+63
Research and development expenditure
8,744
9,099
-4
1,012
873
+16
thereof capitalized development costs
3,557
3,417
4
580
349
+66
Mercedes-Benz Mobility
Revenue2
25,083
25,571
-2
EBIT
1,134
1,302
-13
Adjusted EBIT
1,134
1,695
-33
Return on equity (in %)
8.7
9.5
.
Adjusted return on equity (in %)
8.7
12.3
.
New business
59,486
62,014
-4
Contract volume (31 December)
138,095
135,027
+2
1 The adjusted cash conversion rate is the ratio of adjusted CFBIT to adjusted EBIT.
2 The prior-year figures for Mercedes-Benz Mobility have been corrected in accordance with IAS 8. Further information can be found in Note 3.
Non-Financial Key Figures
2024
Environmental information
Mercedes-Benz Cars unit sales
1,983,403
Share of electrified vehicles, Mercedes-Benz Cars (in %)
18.5
Share of all-electric vehicles, Mercedes-Benz Cars (in %)
9.3
Mercedes-Benz Vans unit sales
405,610
Share of electrified vehicles, Mercedes-Benz Vans (in %)1
4.8
CO2 emissions of the new passenger car fleet (category M1) in Europe (in g/km)2, 3
103
CO2 emissions of the new passenger car fleet in the United States (in g CO2/mi)3
180
Fuel consumption of the new car fleet in China (in l/100km)3, 4
8.4
CO2 emissions of the new light commercial vehicle fleet (category N1) in Europe (in g/km)3
204
CO2 emissions of the new light-duty truck fleet in the United States (in g CO2/mi)3
265
CO2 emissions in production – market-based (Scope 1 and Scope 2) (in 1,000 t)5
423
Energy consumption in production per vehicle Mercedes-Benz Cars (in MWh/vehicle)
2.7
Energy consumption in production per vehicle Mercedes-Benz Vans (in MWh/vehicle)
2.3
Waste volume in production per vehicle Mercedes-Benz Cars (in kg/vehicle)
367
Waste volume in production per vehicle Mercedes-Benz Vans (in kg/vehicle)
89
Water consumption in production per vehicle Mercedes-Benz Cars (in m3/vehicle)6
3.8
Water consumption in production per vehicle Mercedes-Benz Vans (in m3/vehicle)6
3.6
Social information
Own workforce
Employees Mercedes-Benz Group7
175,264
Share of women in management positions, Mercedes-Benz Group Level 1 – Level 3 (in %)
26.4
Workers in the value chain (human rights)
Review of critical raw materials (in %)8
65
1 This figure refers exclusively to all-electric vehicles.
2 Taking into account the vehicles of the joint venture smart Automobile Co., Ltd. in the Mercedes-Benz CO2 pool.
3 Internal values.
4 Value with off-cycle technologies.
5 For the market-based accounting approach, the Mercedes-Benz Group collects the CO2 emission factors of the local electricity and district heating tariffs or electricity and district heating suppliers at its locations worldwide.
6 Calculated according to the Mercedes-Benz calculation method.
7 Active workforce including holiday workers excluding thesis writers, interns, working students, PhD students, senior experts and trainees as of 31 December 2024.
8 The Mercedes-Benz Group has prioritized 24 high-risk materials that have been reviewed in a raw material assessment. The key figure shows the overall progress of the evaluation process across all 24 raw materials.
Further key figures are available in the “Environmental information”,  “Social information” and  “Governance information” sections in the “Sustainability Statement” chapter.
Further Information
Further information about the
Mercedes-Benz Group-share can be found at
🌐 group.mercedes-benz.com/investors
The Mercedes-Benz Group AG Annual and Interim
Reports and company financial statements are also
available there. In addition, you can find the latest
news, the financial calendar, presentations, various
overviews of key figures, information on the share
price and additional services.
The reports are published in German and English.
The German version is binding.
For sustainability reasons, the Annual and Interim
Reports are not printed in hard copy. All Annual
and Interim Reports are made available online for
download in PDF format.
🌐 group.mercedes-benz.com/investors/reports-news
Mercedes-Benz Group AG
70546 Stuttgart
Tel. +49 711 17 0
🌐 group.mercedes-benz.com/en
Forward-looking statements
This document contains forward-looking statements that reflect our current views about
future events. The words “anticipate”, “assume”, “believe”, “estimate”, “expect”, “intend”,
“may”, “can”, “could”, “plan”, “project”, “should” and similar expressions are used to
identify forward-looking statements. These statements are subject to many risks and
uncertainties, including an adverse development of global economic conditions, in
particular a negative change in market conditions in our most important markets; a
deterioration of our refinancing possibilities on the credit and financial markets; events of
force majeure including natural disasters, pandemics, acts of terrorism, political unrest,
armed conflicts, industrial accidents and their effects on our sales, purchasing, production
or financial services activities; changes in currency exchange rates, customs and foreign
trade provisions; changes in laws, regulations and government policies (or changes in their
interpretation), particularly those relating to vehicle emissions, fuel economy and safety or
to the communication regarding sustainability topics (environmental, social or governance
topics); price increases for fuel, raw materials or energy; disruption of production due to
shortages of materials or energy, labour strikes or supplier insolvencies; a shift in
consumer preferences towards smaller, lower-margin vehicles; a limited demand for all-
electric vehicles; a possible lack of acceptance of our products or services which limits our
ability to achieve prices and adequately utilize our production capacities; a decline in
resale prices of used vehicles; the effective implementation of cost-reduction and
efficiency-optimization measures; the business outlook for companies in which we hold a
significant equity interest; the successful implementation of strategic cooperations and
joint ventures; the resolution of pending governmental investigations or of investigations
requested by governments and the outcome of pending or threatened future legal
proceedings; and other risks and uncertainties, some of which are described under the
heading “Risk and Opportunity Report” in this Annual Report. If any of these risks and
uncertainties materializes or if the assumptions underlying any of our for- ward-looking
statements prove to be incorrect, the 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 since they are based solely on the
circumstances at the date of publication.
Statements regarding consumption values
Stated consumption values were determined in accordance with the prescribed WLTP
(Worldwide harmonised Light vehicles Test Procedure) measurement procedure.
Mercedes-Benz Group AG, Mercedesstraße 120, 70372 Stuttgart, Germany