Leading global premium automotive manufacturer, notably of Mercedes-Benz Cars (MBC). Market leader in heavy trucks. Modernized and refreshed range of cars. Slightly eroding profitability so far during 2016. 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. 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 framework, which includes moderate dividend payments and limited spending on acquisitions. The need for sizable capital expenditure (capex) to continue to invest in new vehicles. Substantial debt related to the captive
