Leading global premium automotive manufacturer, notably of Mercedes-Benz Cars (MBC). Market leader in heavy trucks, but with lower and more variable margins compared to MBC. Modernized and refreshed range of cars. Business benefits from captive finance activities. Exposure to cyclical demand for cars, trucks, and other vehicles. High capital intensity, price competition, and ongoing cost pressures. More stringent industry-wide 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 zero or very low S&P Global Ratings-adjusted debt, allowing for the maintenance of strong leverage metrics. Positive free operating cash flow (FOCF) and strong liquidity in the automotive operations. Supportive financial policy
