Leading position as a global premium automotive manufacturer, with solid brands and a strong track record of product development and extension. Good geographic spread of operations. Higher segment growth rates and better pricing compared with the volume market. Above-average profitability, but margin pressures from high research and development costs. Business benefits from captive finance activities. Slowdown in demand growth in China. More stringent industrywide regulation and environmental standards and declining sector demand for diesel. Emerging challenges from electrification, autonomous driving, digital disruptions, new forms of mobility, and new market entrants. Our expectation of ongoing positive free cash flow generation, and strong liquidity in the automotive operations. Zero or low levels of adjusted debt expected to continue in 2017 and 2018.
