The Daimler Group invested €1.2 billion in property, plant and equipment in the third quarter of this year (Q3 2013: €1.1 billion). Most of that investment volume, €0.9 billion, was at the Mercedes-Benz Cars division (Q3 2013: €0.8 billion). The main area of capital expenditure was on production preparations for new models, in particular the new C-Class and its derivatives, the new SUV coupe, and investments for new transmissions and engine versions. Another area of capital expenditure was for the ongoing expansion of our international production and component plants.
The Daimler Group’s research and development spending in the third quarter of the year amounted to €1.4 billion (Q3 2013: €1.3 billion), of which €0.3 billion was capitalized (Q3 2013: €0.3 billion). Approximately two thirds of the research and development spending was at the Mercedes-Benz Cars segment. The main areas were new vehicle models, particularly fuel-efficient and environmentally friendly drive systems, and new safety technologies.