Abstract
We assume for the analysis of the group that the impact of IFRS in year 2004 is insignificant given that IFRS and US GAAP are closed. Moreover a complete analysis was impossible given that we didn't have all the figures before 2004. From 1998 to 2006 we can see that inventories increased from $11,796 to $17,750. At the same time Sales increased, slightly, from $131,782 to $151,589 thus the inventory turnover in terms of the number of days increased from 37 to 43 days with a top in 2005 at 47 days. In 2000, the increase in inventories was mainly due to higher stocks of used vehicles at Commercial Vehicles, especially in North America. Mercedes-Benz Passenger Cars also contributed to the increase in inventories due to the growth in business and upcoming new product launches. In 2001 the increase in inventories was primarily caused by the market launch of new products in the Mercedes-Benz Passenger Cars & smart segment (€0.9 billion). The de-consolidation of the Adtranz Group had an offsetting effect of €0.5 billion. In 2002 inventories increased by 10.3 billion, in particular as a result of pending market launches for new products in the Mercedes Car Group and higher levels of used vehicles in the Services Division. On the other hand, the inventory in the Chrysler Group Division decreased.
