Dear shareholders, dear shareholder representatives, ladies and gentlemen, on behalf of the Supervisory Board and the Board of Management, I would like to welcome you all and open the Virtual Annual General Meeting 2025 of the Mercedes-Benz Group AG. We are delighted that you have joined us. It is a special honor for me to welcome you for the first time as Chairman of the Supervisory Board. In this capacity, I will chair the meeting in accordance with the Articles of Association, and I look forward to a lively discussion. Ladies and gentlemen, the Board of Management has made use of the existing authorization in the Articles of Association and, after careful consideration, has decided to hold today's Annual General Meeting in virtual format.
The physical presence of the shareholders, to whom I refer below also collectively as shareholders solely for reasons of simplification, as well as the physical presence of their authorized representatives, is excluded. Only the proxies appointed by the company will be present on site. The Board of Management makes its decision in favor of the virtual format, taking into account the interests of both the company and its shareholders. Cost and sustainability considerations, the current agenda, and the positive experiences from the 2023 and 2024 Annual General Meetings were the deciding factors. Of course, we will ensure that shareholders' rights are fully safeguarded. Duly registered shareholders or their authorized representatives have the same rights to speak, ask questions, and propose motions as at the physical Annual General Meeting without incurring any personal or economic travel expenses.
The more efficient and simplified exercise of shareholders' rights in this way corresponds to the significantly lower personnel and cost expenditure for the company in the virtual format compared to physical implementation. In addition, both the shareholders and the company contribute to conserving resources when the Annual General Meeting is held virtually. At the same time, our 2023 and 2024 Annual General Meetings have shown that a higher proportion of the share capital participates in the vote in the new virtual format compared to the physical Annual General Meetings until 2019. Apart from myself and the Deputy Chairman of the Supervisory Board, Ergun Lümali, all members of the Board of Management are here in person today in the meeting room at the Mercedes-Benz Global Training Center in Stuttgart-Vaihingen, from where the Annual General Meeting is being broadcast.
With the exception of Liz Cantoni, who is unable due to urgent other commitments, all other Supervisory Board members have gathered in another room here in the building. From there, they will participate in this Annual General Meeting via video and audio transmission. Notary, Dr. Sünner, whom I would like to welcome to the room, will notarize today's Annual General Meeting. Ladies and gentlemen, via the Access Protected Investor portal, shareholders who have duly registered for the Annual General Meeting or their authorized representatives can connect to this Annual General Meeting electronically, exercise their shareholder rights, and follow the entire Annual General Meeting live in audio and video. Shareholders or authorized representatives entered in the share register who are not registered for the Annual General Meeting also have access to the Investor Portal.
However, without proper registration, you will not be able to connect electronically and exercise any shareholder rights at the Annual General Meeting. In this case, you can only follow the full length of the meeting live in audio and video as a spectator. This also applies to invited guests and accredited media representatives. The opening of the Annual General Meeting and the speeches by the Chairman of the Supervisory Board and the Chairman of the Management Board will also be broadcast live on the company's website for other interested parties. Only shareholders who have duly registered for the Annual General Meeting or authorized representatives who are connected electronically to this Annual General Meeting may register speeches in the Investor Portal, which must be presented by means of video communication. The opportunity to register speeches in the Investor Portal has been open since 9:30 A.M.
In addition, I hereby stipulate that the shareholders' right to information at this Annual General Meeting can only be exercised by means of video communication as part of a speech. This means that questions can only be effectively asked by means of video communication during the speech. If you wish to submit a motion, please formulate it in advance in the Investor Portal so that we can prepare for it. If it is not a counter motion that has already been made available in advance of the Annual General Meeting, the motion must still be presented orally in your speech. Only then will the motion be effective. Once you have registered your request to speak in the Investor Portal and after it has been processed, you can enter the virtual waiting room directly in the Investor Portal. A member of the technical team will contact you there.
When registering to speak, please also refer to the explanations in the invitation to this Annual General Meeting, as well as the information on using the Investor Portal and the information on video communication available on the company's website. You can register to speak via the Investor Portal as long as the list of speakers is not closed. However, please register your contribution as soon as possible so that we know approximately how many speakers we can expect. Shareholders who have duly registered for the Annual General Meeting and are connected electronically and their authorized representatives can use the Investor Portal to object to questions that they believe have not been answered adequately and to object to the resolutions of the Annual General Meeting for the record of the Notary. The Notary has access to the declarations received via the Investor Portal for the record.
Ladies and gentlemen, I now would like to give you a brief overview of the proceedings of today's Annual General Meeting. After my own remarks are followed by the speech by CEO Ola Källenius. We have published the main content of his speech and my own in advance on the company's website. There you will also find the statement submitted by a shareholder in text form prior to the Annual General Meeting. After Ola Källenius' speech, we will enter into the general debate on all items on the agenda. We will then vote on all items on the agenda. As explained in the convening notice and the registration information, shareholders registered for the Annual General Meeting and their authorized representatives may exercise their voting rights exclusively by postal vote or by granting power of attorney and issuing instructions to the proxies appointed by the company.
You can still exercise your voting rights via the Investor Portal up to the time specified by me during the voting process or change a voting right that has already been exercised. Once the voting results have been determined, I will finalize and announce them. That is the process. The list of participants at today's Annual General Meeting includes the shareholders who have joined or are represented electronically at the Annual General Meeting and the representatives of shareholders who have joined electronically. The list of participants will also be made available to this group of people in the Investor Portal. It will be updated until the start of voting and will also be available here on site.
Dear shareholders, ladies and gentlemen, the past financial year was not an easy one for the automotive industry. It is undergoing a fundamental transformation towards electromobility and digitalization. At the same time, demand for combustion engines remains high, particularly in Europe and North America. The transition to emission-free driving will take longer than most experts and we ourselves predicted just a few years ago. This makes parallel investments in both technologies necessary, and it makes long-term planning more difficult. Political and economic forecasts are even more difficult at the moment. All you need to do is look at the newspaper every day. The issue of customs duties has been particularly unpredictable recently. Industry and Germany, as an exporting country, have benefited greatly from free trade. It is therefore already clear today that new tariffs will continue to be a burden on our business if they remain in this form.
Bureaucratic and regulatory requirements also had and continue to have a major influence on long-term planning. This is the case, for example, with the decision to ban combustion engines in the EU from 2035 onwards. Will it stay that way, or are there signs of an adjustment to market realities? One way or another, it has direct consequences for product planning. In addition, volatile markets, economic uncertainties, and a lack of growth impetus are making it more difficult to achieve the ambitious transformation targets. The reluctance to buy in China, a particularly important market for Mercedes-Benz, was particularly noticeable. Ladies and gentlemen, despite this whole range of really major challenges and uncertainties, Mercedes-Benz performed very well indeed in the past financial year. Mercedes-Benz remains one of the world's leading suppliers of premium and luxury vehicles, even in the highly competitive Chinese market.
Mercedes-Benz cars sold around 1.98 million passenger cars in 2024, together with a van division. This brings the company's annual sales to around 2.39 million vehicles. Even though this corresponds to a decline of 3%, it is significantly lower in percentage terms than that of comparable competitors. With a group of EUR 13.6 billion, earnings per share of EUR 10.2, and free cash flow of EUR 9.2 billion, we achieved solid financial results in the 2024 financial year. This was fueled by our fantastic products, but also by our rock-solid financial position. Internally, we are placing even greater emphasis on strict cost discipline and efficiency measures. It is a fact, however, that profitability and growth declined in 2024. However, it is also a fact that the result achieved was an outstanding team effort under the aforementioned conditions.
On behalf of the entire Supervisory Board, I would like to take this opportunity to thank Ola Källenius, his members on the Board of Management, and the entire Mercedes-Benz team. You've done a really great job in these difficult times, and you've achieved the best possible results. Chapeau. I would particularly like to seize this opportunity to thank my deputy Ergun Lümali for the trustful cooperation. It is open and characterized by great mutual respect. This goes for the entire Supervisory Board. The dialogue and exchange between us has always been constructive, results-oriented, and respectful. This has made it easy for me to familiarize myself with my new role as Chairman of the Supervisory Board from day one. The employee and employee sides have different roles to play, but they have a common goal. We all want the best for Mercedes-Benz.
We all know that only a successful economic future safeguards good and secure jobs. We want to continue working together on this basis. We will tackle the challenges with courage, determination, and self-confidence. One key challenge is our ambition 2039 as part of our sustainable business strategy. Our ambitious goal by then is to achieve CO2 neutrality for the entire new vehicle fleet across all stages of the value chain and the entire life cycle. This is our contribution to social responsibility for the planet on which we live. There are also economic reasons for this. We are convinced that the battery electric drive is more efficient and will be the world's leading technology in the long term. We want and must play a leading role in developing this technology.
I know that in Germany, in particular, we still need a lot of convincing, and politicians have not always been as supportive as we had hoped, so that the electric car is perceived as a promising form of mobility for the future. Trust is the most important currency here. This includes the strong political will to create and maintain reliable incentive systems. In addition, the expansion of the charging infrastructure must progress more quickly so that charging does not trigger fears or negatively influence purchasing decisions. At Mercedes-Benz, we are doing our homework to ensure a sustainable future. We are currently setting up our own Mercedes-Benz charging infrastructure in key markets and with the CLA. We presented the One-Liter Car of Electric Mobility to the global public in Rome in March. I was able to see that for myself on site.
The car will shape a new era with a range of 792 km according to WLTP and the ability to recharge up to 325 km in just 10 minutes. The CLA is also at the cutting edge of digitalization. The pioneering MB.OS operating system has been installed in it for the first time. It sets new standards in the areas of infotainment and automated driving functions. Level 2 urban, i.e., semi-automated driving in an urban environment, is now technically feasible. Ola will go into a little more detail on the subject of products in a moment. Our homework also includes investments in our product facilities. Examples include the opening of the campus in Stuttgart and the battery recycling plant in Kuppenheim in Baden. As a chemist, I'm particularly pleased about the latter investment. Kuppenheim is unique in Europe thanks to its innovative recycling process.
It is a plant for the future, not only in ecological but also economical terms. The mechanical hydrometallurgical process used enables high recovery rates over 96% of valuable metals such as lithium, nickel, and cobalt. These metals are essential for the production of new batteries for electric vehicles, for example, and thus create an important recycling loop for e-mobility. In line with this, high-performance battery cells with Mercedes-Benz DNA are being developed at the new eCampus Competence Center in Stuttgart-Untertürkheim, which in turn could reduce battery costs for future electric vehicles by over 30% in the coming years. Overall, the company has defined six focus areas of sustainability that are essential for the company. In addition to decarbonization, resource use, and circular economy, these also include human rights, road safety, digital trust, and the people at Mercedes-Benz.
Mercedes-Benz is also involved in charitable work beyond its own business activities. Our donations for the global support program B-Visioniers are entering the third year. The funds for this program come from the proceeds of the auction of the most valuable car in history, the SLA Uhlenhaut Coupé. The program supports thousands of young people from all over the world in the development and implementation of sustainability projects with knowledge, coaching, and scholarships. This year, 1,000 new environmental innovators will be accepted into the funding program. Here is a brief insight. I applied to B-Visioniers with an idea for a sustainable building material made with upcycled sawdust, a major source of waste. I want to turn waste back into materials. How we produce energy and food is not circular.
I want to change that, and this is why I founded a startup to develop bio-gas systems and organic fertilizer as a byproduct. We have thrown so much waste into our waters that they are no longer sources of light, but of pollution. That's what I want to change. Shark is a robot that cleans water from trash pollution in rivers. Mercedes-Benz proudly supports B-Visioniers, a fellowship to support young pioneers in realizing their visions of a sustainable future. By funding B-Visioniers with donations, Mercedes-Benz is fostering the key pillars of our corporate citizenship strategy: ecological sustainability and community empowerment. Ladies and gentlemen, your company is also supposed to operate sustainably, so it must have healthy finances and offer attractive returns that are of interest to long-term investors. The Supervisory Board and the Board of Management are convinced that Mercedes-Benz still has great potential.
This is why the company made a fundamental decision in February 2024 to buy back shares. The future free cash flow of the industrial business, which exceeds the dividend payout ratio of around 40% of the Mercedes-Benz Group's consolidated net profit for the previous year, is to be used to finance share buybacks. The aim is to cancel these shares. The share buyback program reflects our confidence in the strength and long-term positive development of the company. Against this background, the company has decided, subject to authorization by today's AGM, to once again buy back treasury shares worth up to EUR 5 billion over a period of up to 24 months. The timing of the share buyback is to be based on the market environment and depends on the expected free cash flow generation.
Ladies and gentlemen, in the interests of an attractive long-term dividend policy, the Executive Board and Supervisory Board therefore propose to you, dear shareholders, that an attractive dividend of EUR 4.3 per dividend-bearing share be distributed, particularly in this environment. Even if the challenges in the current year remain great, Mercedes-Benz is well prepared to tackle them. We have cut costs in recent years. We are working more efficiently, and we are continuously reducing complexity. We have also decided to further reduce costs and increase flexibility. This makes us leaner, stronger, and more resistant to further dark clouds on the horizon. However, it also strengthens us in the face of new, fast, and sometimes aggressive competition, particularly from China. Greater efficiency gives us the opportunity to invest the money where it will generate future returns and contribute to fulfilling our promise to customers to build the most desirable cars.
I don't think I'm giving too much away when I tell you that you can look forward to a historic product campaign. Back to the activities of the Supervisory Board, which also played its part in developing the company in 2024. We have set an important course in the Supervisory Board, for example, with the reorganization of the members of the Board of Management. This year, we are bidding farewell to three highly esteemed members of the Board of Management as they retire. We are talking about Sabine Kohleisen, Board Member for Human Resources and Labor Director, Hubertus Troska, Board Member for Greater China, and Renata Jungo Brünger, Board Member for Integrity, Governance and Sustainability.
As a shaper of personnel change and the far-reaching transformation and digitalization of the HR department, Sabine Kohleisen and her team have set the course for Mercedes-Benz to become one of the most attractive employers in Germany. Under Hubertus Troska, sales in China more than tripled, and the local production network and research were massively expanded. With exceptional cultural sensitivity and diplomatic skills, he was our ambassador in China. Renata Jungo Brünger has restructured the governance approach and driven forward the systematic anchoring of sustainability in the corporate strategy. Together with her team, she has firmly established a highly effective and valued compliance system. In recent years, she has also managed complex legal proceedings, particularly in the areas of diesel and cartels, in a highly professional manner and ensured legal certainty in the best interests of the company.
It would go beyond the scope of this event to even begin to recognize all of their achievements here. All three have shaped the company to the highest degree over many years with great commitment, unparalleled loyalty, and outstanding professional expertise. We owe them a great debt of gratitude. I would also like to thank everyone for their personal flexibility, without which the change of Beighton would not have been possible. With the appointment of the new Executive Board members, Matthias Geiss in Marketing and Sales, Oliver Turner in Greater China, and Ola Källenius in Integrity, Governance and Sustainability, we are rejuvenating the board, and at the same time, we are sending a clear signal to the company and the capital market that we are systematically continuing the transformation. In Matthias Geiss and Oliver Turner, we've been able to recruit two highly experienced and technically outstanding Mercedes managers.
They have achieved extraordinary things in their roles. We trust them to provide new valuable impetus for the company in key areas of sales and China. Ola Källenius is also a Mercedes product, as it were. We succeeded in bringing him back to the company from Continental AG by the 1st of October. He has a broad range of experience, a perspective on the entire value chain, and understands our suppliers. This makes him the ideal successor for the Integrity, Governance and Sustainability Department. Britta Seeger, whose contract was extended last year until December 2029, succeeded Sabine Kohleisen as Chief Human Resources Officer and Labor Director on the 1st of May. Ms. Seeger has been responsible for key strategic decisions in global sales for the past eight years.
We are certain that she will continue to set valuable trends in her new role and contribute to the success of the company, especially in the important cooperation with the employee representatives. With this competent and committed Management Board team, we are optimally aligning the company for the future. We have no doubt that they are the right persons for the job, and we look forward to a successful collaboration. In order to set the right course as a Supervisory Board, you should always be on the ball. I'm firmly convinced of this. Only those who broaden their own expertise and think out of the box can assess things correctly. You can't do that from your desk alone. This is why, for example, we deliberately moved the Supervisory Board strategy days to China last autumn. We had the opportunity to see on site what China speed means in reality.
That's why we also drove vehicles from the new competitors ourselves, who are challenging us in terms of design quality and technology and with aggressive pricing. You always have to see things for yourself on site. For me, this also includes product presentations, such as the recent CLA presentation in Rome, test drives of new models, the opening of production sites, or the dialogue with analysts and shareholders. All height means being closely involved and able to make a statement, even on technical product topics such as the MB.OS operating system. I'm very grateful to the Board of Management chaired by Ola Källenius for enabling us to do just that. In this way, we can be a competent and constructively critical advisor to the Board of Management. We want to continue along these lines in the future.
This style also includes reliability and continuity on the part of the Supervisory Board. I'm therefore very pleased that the five members, whose mandates end at the 2025 AGM, are prepared to once again contribute their great commitment and expertise. We propose that the AGM reappoint Ben van Berden, Liz Cantoni, Tim Heitges, and Olaf Koch for a four-year term of office, and Professor Dr. Helene Swann for a one-year term of office. On the employee representative side, Roman Romanovsky and Dr. Frank Weber stepped down from the Supervisory Board on the 31st of May 2024. They were succeeded, or will be succeeded, on the 1st of June 2024 by Sebastian Fay and Pia Simon. Roman Zitzelsberger also stepped down on the 31st of December 2024. His successor, Barbara Resch, was appointed with effect from the 1st of January 2025.
We would like to sincerely thank the departing members for their many years of commitment and welcome the three new Supervisory Board members to our midst. We also want to present an adjusted Executive Board remuneration system to this year's AGM. This is to take effect from 2026. Previously, the annual bonus, that is, the short-term variable remuneration, was based on three categories of performance criteria: financial performance criteria, non-financial performance criteria, and transformation targets. The new system will be clearer, more demanding, and easier to measure, with a strong focus on ESG goals, that is, environmental, social, and corporate governance. The adjustments essentially consist of merging transformation targets and non-financial targets for the annual bonus. The non-financial targets are given greater importance. In future, non-financial target achievement will be weighted at 30% and financial target achievement at 70%.
In future, it will no longer be possible to compensate for poor performance in one category by overperforming in another. In the future, the share of our EV and hybrid cars in sales will be taken into account alongside the other criteria and the non-financial targets. The same applies to occupational safety. Climate protection and air pollution control, e.g., CO2 emissions, are in turn relevant as part of the ESG performance criteria for the long-term variable remuneration of the members of the BOM, the so-called Performance Phantom Share Plan. Even as CEO of BASF, decarbonization was a matter close to my heart, and it is now at Mercedes-Benz as well. I firmly believe that the proposed changes to the remuneration system will increase the incentive for the Board of Management to act even more sustainably.
Ladies and gentlemen, I would like to address two legal matters that have been occupying our company for some time. The Supervisory Board's investigation into the possible liability of current and former members of the Board of Management in the diesel emissions matter, which has been ongoing for several years, has been concluded. The investigation has shown that there are no claims against members of the Board of Management. This result is in line with the findings of the authorities and courts. Antitrust matters are another important topic for the Supervisory Board. In the proceedings concluded by the EU Commission and the South Korean Antitrust Authority, the company did not have to pay any fines thanks to its cooperation with the authorities.
No fines were imposed on the company in the course of the investigations into the disposal of end-of-life vehicles by the European Commission and the U.K. Antitrust Authority, CMA. In each case, our company cooperated fully with the authorities at an early stage. The Supervisory Board has fully complied with its monitoring duties under stock corporation law. This was confirmed again in February 2025 by a supplementary expert opinion from Professor Dr. Matthias Habersack. For the detailed report of the Supervisory Board on the past financial year, please refer to the annual report 2024 from page 9 onwards, which is available on the company's website. Dear shareholders, I began my speech talking about the many changes and challenges that are currently affecting and occupying us, not only at Mercedes-Benz.
However, there was also a positive constant to celebrate in the last financial year: 75 years of the Basic Law and 75 years of the Federal Republic of Germany. The values and standards of this Basic Law have characterized Germany for decades and made it successful. Why is this topic close to my heart? We realize that these values cannot be taken for granted. They must be brought to life every day with words and deeds. Together with numerous other companies, Mercedes-Benz has launched the "We Stand for Values" campaign and is actively committed to human rights, cosmopolitanism, and tolerance. Together with the Works Council, we have been supporting the "Respect" initiative for many years. We say it loud and clear: Intolerance, racism, and marginalization have no place at Mercedes-Benz. Only together are we strong and will remain strong.
Ladies and gentlemen, Mercedes-Benz has everything it needs for a successful future: innovative technologies and products, financial solidity, and a focus on a profitable, sustainable, and resilient business model, supported by a team that wants to win. We are therefore looking ahead with determination and confidence. We are rolling up our sleeves and turning opportunities into successes. I would like to thank you, our shareholders, for the trust you have placed in us and the Supervisory Board and Management Board for their good and successful collaboration. Ladies and gentlemen, before I hand over to Ola Källenius, I would like to make a few formal remarks. Today's agenda with the management's proposed resolutions was published in the Federal Gazette when this AGM was convened on the 19th of March 2025.
Since that day and also today, the convening notice, together with the documents to be made available and further information, is available on the company's website. The counter-motions to be made accessible by the Dachverband der kritischen Aktionärinnen und Aktionäre e.V., which have been received for today's agenda items, have also been published on the company's website. I will come back to these motions in connection with the vote. With regard to item one of today's agenda, I'd like to point out that the Annual Financial Statements of Mercedes-Benz Group AG, the Consolidated Financial Statements, and the Consolidated Management Report of the company and the group for the 2024 financial year have been audited by PricewaterhouseCoopers GmbH, Wirtschaftsprüfungsgesellschaft Frankfurt am Main, and have been issued with an unqualified auditor's opinion.
The Supervisory Board has approved the Annual Financial Statements of Mercedes-Benz Group AG and the Consolidated Financial Statements following its own review. The 2024 Annual Financial Statements of Mercedes-Benz Group AG have thus been adopted. The Remuneration Report for the 2024 financial year, which will be submitted to the AGM for approval under Agenda Item 6, has been audited by PricewaterhouseCoopers to ensure that the legally required disclosures have been made. In addition to these legal requirements, the audit was also based on content criteria. The Remuneration Report was issued with an unqualified auditor's opinion. Ladies and gentlemen, our CEO Ola Källenius will now report on the past financial year and provide an outlook for the future. Ola, the stage is yours.
Ladies and gentlemen, how do we see Mercedes-Benz? We, the Board of Management, you, the shareholders. That's what we'll be discussing today.
How does a Mercedes-Benz actually see? The answer is simple. Pretty much the same as Mina. [Foreign language] . With that, let's bring the picture back into focus. Welcome for our annual general meeting. Anyone who works for Mercedes-Benz bears responsibility for this company, for this brand, while always thinking long term.
One day, we want to hand Mercedes over to the next generation in an even better state. To achieve that, we have a clear plan. It consists of five key elements. We put the customer at the center. We're introducing a new generation of Mercedes technology. We're initiating the biggest product launch program in our history. We're strengthening the resilience of our business, and we're generating attractive returns for you. That is what I would like to talk about today. Let us start right at the beginning. One hundred years ago, a symbol was born: the three-pointed star within a laurel wreath. It continues to grace our vehicles to this day. Today, Mercedes-Benz is the most valuable luxury car brand in the world. Why? What makes it so special? A thousand extraordinary details, perfectly combined for genuine Mercedes moments.
Mercedes stands for prestige, for safety, for quality and technical excellence, for effortless comfort, for technologies that deliver real value to our customers. We're committed to delivering on these promises time and time over, with every new model, with every innovation, with every interaction with our brand. This is why we're investing specifically in our locations. New York, for example. We've been present in Manhattan for over 70 years. Thanks to a comprehensive redesign of our brand presence, a visit there has now become an unforgettable experience. Another example: a unique AMG Experience Center is being created in Qiddiya City, Saudi Arabia. Fans of sports cars, motorsports, and adrenaline will have something to look forward to. At the same time, we are continuing to expand our digital sales. We're now offering an online presence in more than 40 markets, whether online, offline, or both.
At Mercedes, customers decide what's the best fit for them. The same applies to their choice of technologies. We're now introducing a new generation of Mercedes-Benz high-tech across all relevant areas. This is the second point of our plan. Our goal remains clear: new Mercedes-Benz vehicles are supposed to be CO2 neutral across their entire life cycle in the long term. Even though the transformation is currently progressing at a slower pace, we're staying on course. With the EQS, we've set a technological milestone. With the new CLA, we're going even further. At 12.2 kilowatt-hours per 100 kilometers, the CLA is the most efficient series production vehicle we have ever built. You could say it's the one-liter car of the electric age, a masterpiece by our engineers. The CLA has a range of up to 792 kilometers. From Stuttgart to my Swedish homeland, it's around 1,100 kilometers.
I visit my family there every summer. With the CLA, this is possible with just one charging stop. So much for range anxiety. There is something else. With the CLA, the price gap between electric vehicles and combustion engines will be getting smaller. The running costs of most electric vehicles are already lower anyway. If you are still unsure, no problem. The CLA is also available with our new electrified high-tech hybrid engine. The petrol engine is so efficient that there is no longer any need for a diesel. In the coming years, we will offer both state-of-the-art electric vehicles and state-of-the-art electrified combustion engines. Our plants are set up flexibly, allowing us to respond quickly to market developments. The core of our sustainability efforts is the product itself. We are also working across the entire value chain from beginning to end.
At our eCampus in Stuttgart-Untertürkheim, we've been intensifying our research into battery cells since last July. Charging performance and energy density are being further improved. Energy consumption and battery costs are being reduced. With our new recycling plant in Kuppenheim, we're closing the battery loop. It allows us to recover more than 96% of a battery. In addition to having the most innovative drive technologies, we also aim to lead in the digital experience. Here, too, the CLA is nothing short of a revolution. It's a supercomputer on wheels. One example is its computing power. In 1969, a computer performing fewer than 100,000 calculations per second helped humankind reach the moon. Today, we have chips like these. A single chip can now perform 254 trillion calculations per second. That's 254 followed by 12 zeros. Four chips are built into the new CLA.
They are part of MB.OS, and that's our new operating system, the brain of our cars. The intelligent combination of hardware and software. With that, we are ushering in a new era. We developed MB.OS ourselves, and some of the world's best partners are on board. With Google, for example, we deliver the best navigation experience in our cars. Our partnership with Disney Plus offers even more entertainment. In China, we're expanding our infotainment, including a collaboration with ByteDance. Our new vehicles are smarter than ever before. Thanks to artificial intelligence, they become personal assistants. Over time, they will continue to improve. The software stays up to date with updates, but without the need to visit a workshop. We are making a huge leap forward in automated driving. The CLA will offer even better support in urban traffic in the future.
Basically, all I need to do is select my destination. To set off, I simply tap the accelerator pedal. I'm still responsible, of course, but the car makes everything so much easier. Starting, stopping, turning, signaling, overtaking, merging, making U-turns. The car is able to do all of this. The system can manage complex scenarios in urban traffic, junctions and traffic lights, roadworks and roundabouts. Even when I'm steering the car myself, the system remains active. In China, this feature will be available from this year. The U.S. are expected to follow suit next year. As soon as regulations permit, we'll be introducing the technology in Europe. In China, we are going even further. In Beijing, we are already testing fully automated level 4 driving. We're the first international manufacturer authorized to do so. The technology of today is the result of years of research and development.
As early as the 1980s, we laid the foundations for automated driving with the Prometheus project. We're now working on the innovations of the future. Let me give you three small examples. We're working on a solar paint. A coat of that paint is thinner than a human hair, and it can be applied to the bodywork like a paste. On a medium-sized SUV, under ideal conditions, the paint would be able to generate enough energy for up to 12,000 km per year. That means even greater range. A second example is the so-called in-drive brake. It is no longer positioned traditionally at the wheel, but it has been integrated into the electric motor and transmission unit. This brake experiences minimal wear. It doesn't rust. It is virtually maintenance-free. In short, the brake remains intact until the vehicle is scrapped.
The third example has been inspired by the unbeatable efficiency of the human brain. Efficiency is a crucial benchmark for electric vehicles. Increasingly also in terms of the energy consumption of digital applications. Neuromorphic computing replicates the functioning of the brain. It could, for example, reduce the energy required for data processing during automated driving by up to 90%. Such innovations will not go into series production tomorrow, but perhaps the day after that. Groundbreaking technologies form the basis for the biggest product launch program in the history of Mercedes-Benz. This is the third pillar of a successful future for our company. We build the most desirable cars in the world. That is our ambition across every segment in which we are represented. One decisive factor in this is design. It's always been like that, and it'll always stay true.
Most recently, we introduced the Maybach SL and the AMG Pure Speed, two new models with the potential to become classics. Next year, we will launch a new design language. It will further develop what has characterized Mercedes for decades: composure and timeless style. Anyone who sees one of our cars in their rearview mirror will immediately recognize that is a Mercedes. The design will be consistent across the range. In the future, customers will first choose a model and then select their preferred drivetrain. This CLA is electric. I reckon you would not be able to tell the difference from a combustion engine CLA. The new design is one piece of a much broader renewal. By 2027, we will present dozens of new vehicles. The CLA, therefore, marks the beginning of that. It has been available for order in Europe since last week. I have already spoken about its range and efficiency.
In terms of charging speed, we are getting closer to the experience of refueling at the gas pump. Since the beginning of my speech, the car could have already recharged around 300 km. This, too, is a top-class value in its class. It also makes the CLA the role model for the next generation of vehicles, including those in the upper segments. The GLC is our best seller. Our customers simply love it. We intend to continue the success story with its electric version. We will unveil the car at the IAA in September of this year. In 2026, the new GLA will make its debut. For the first time, we will produce the long-wheelbase version in China for the Chinese market. The rear-seat comfort will be unique. For decades, the S-Class has epitomized elegance and engineering excellence. It is the undisputed market leader in its category.
We will further strengthen this position. In 2026, the fundamentally redesigned S-Class will be launched. In 2027, we will introduce the Electric E-Class. Drivetrain, assistance systems, sensor space, comfort, the Electric E-Class will push the boundaries of its segment. We are massively enhancing the substance of our entire product range, from drivetrain efficiency to vehicle intelligence. At the same time, we are defining new segments. The latest example is the following. It's the VISION V. We presented it two weeks ago in Shanghai. The VISION V showcases what luxurious mobility looks like. It's a private lounge on wheels. First class for the road. At the touch of a button, the interior transforms into a home cinema, a workspace, or a karaoke bar. We see enormous potential for this vehicle in Asia, but also in other regions of the world.
The VISION V is a concept vehicle, but much of it will go into series production, starting as early as next year. Stay tuned. To achieve this, we need the innovative power of our engineers, and we need the necessary financial strength. This is the fourth factor for a successful future of Mercedes-Benz. We are currently investing around EUR 14 billion per year in our locations and in development. First, we have to earn the money in order to be able to do that. That is why we aim to make our business even more resilient. To this effect, we have launched a comprehensive program. It is called Next Level Performance. As part of this program, we intend to do the following. We intend to position ourselves optimally towards our customers. We want to ensure an exceptional brand experience, and we aim to continue to develop our strong corporate culture.
It also relates to our strategy for the world's most important market, that is China. In recent years, we have dominated the premium and luxury vehicle market in China. Now, too, we are facing up to the intense competition and stepping up our commitment. We introduce even more products to the market that are tailored to the preferences of our Chinese customers, and we will increase local development and production. Next Level Performance is therefore much more than just saving costs. Saving is also part of it. We will prioritize investments and improve efficiency. For our German sites, the company's management and Works Council have agreed on a balanced package. These measures will make us more competitive. On this basis, we have extended employment security in Germany until the end of 2034. We all know the best guarantee for the future is outstanding cars.
Having outstanding cars and producing them at competitive costs. This also ensures that Mercedes-Benz remains an attractive investment for shareholders. This is a true measurement for our success as a company. This is my fifth point. Between 2019 and 2024, we generated over EUR 45 billion in cash flow. We have shared the success with you, our shareholders. Let's assume you invested EUR 100 in the company in 2019. That is the equivalent of two Daimler shares at that time. Taking into account dividends, share buybacks, and the additional shares from the spinoff of Daimler Truck, your EUR 100 would have doubled by the end of last year. We are maintaining this dividend policy. For 2024, we are proposing a dividend of EUR 4.30, representing a payout ratio of 41%. We remain committed to our capital allocation framework.
However, the timing of share buybacks will be based on the market environment. To this effect, dear shareholders, we kindly ask for your renewed authorization today. Ladies and gentlemen, the political climate is weighing on the global economy, financial markets, and companies, including ours. Last week, we presented our quarterly results. While doing that, we emphasized the following: the situation is extremely volatile, and that is why the future remains unpredictable. We intend to cushion such turbulence as best as we can. For instance, we have relied on local production for a long time, and we want to therefore build the cars where they are sold, and we will intensify this approach. At the same time, we will continue to advocate for free trade. Mercedes-Benz, like the entire automotive industry, has benefited from open markets. I have therefore repeatedly spoken out loudly and clearly in favor of open markets.
I will continue to advocate for the interests of your company at every level. A few months ago, I was elected president of the European Automobile Manufacturers Association, ACEA in short. This role opens up new opportunities to shape the future. This applies to trade as well as competitiveness. We firmly stand by the goal of sustainable mobility. There is one thing that is clear to me. We need a realistic and technology-open path towards decarbonization in the automotive industry. A path that is driven by the market and not by penalties. I want to help bridge the gap between political ambitions and economic reality for that reason. Germany must once again become the driving force of Europe. That is my greatest wish also for the new federal government, which has been in office since yesterday. Greater financial flexibility can help push the country forward.
However, it doesn't strengthen competitiveness on its own. For that, we need structural reforms and an ambitious industrial policy. We need lower energy prices, fewer bureaucratic hurdles, a major digitalization campaign, and more flexible labor market regulations. The start has been promising. Two weeks ago, Vice Chancellor Klingbeil visited us in Sindelfingen. The commitment to the car as a means of mobility and to Germany as an industrial location is important. We need to see to action, therefore. Ladies and gentlemen, my speech today has been about 20 minutes. The annual report has 453 pages. Ultimately, it boils down to this: focus on the customer, produce the most desirable cars, develop and deliver groundbreaking technologies, having a profitable company, and being an attractive investment. That is what Mercedes is all about. That is our promise. That is what we intend to deliver.
Our success also has another dimension, a greater one. Let me end with a short story. I receive a lot of letters. Sometimes the letters are a bit more enthusiastic, sometimes less so. This particular message moved me deeply. This is the Peregrine family from Mission Viejo, California. On the evening of August 3, 2024, at 8:00 P.M., the daughter Leah was out with a friend, driving the family's C-Class. Suddenly, she lost control of the vehicle. She slammed into a crash barrier. The car rolled over several times. On impact, the vehicle even caught fire. The fire protection wall, however, kept the flames away from the passenger cell. The side airbags formed a barrier against the shattered glass. They were able to exit the vehicle through the driver's door. This is what the car looked like.
The doctors at the hospital said that fewer than 10% of people survive an accident like this. Leah and her friend only suffered a few scrapes. Her father, John, wrote to me saying, "One could only call this a miracle." He would say that it was the safety technology of Mercedes-Benz that saved their lives. The Peregrine family, in any case, will remain loyal Mercedes customers for life. Recently, they even picked up their new GLC. It is for stories like these that we at Mercedes-Benz get up every day. That is why my colleagues and I give our best. We are delighted that you are with us on this journey. Thank you very much for your attention.
Thank you very much, Ola. Ladies and gentlemen, this brings us to the end of the first part of this virtual annual general meeting, which was broadcast to the general public. From now on, the live stream will only be open to shareholders entered in the share register, their representatives, invited guests, and accredited media representatives.