A very warm welcome. Good morning. In a few minutes, our AGM 2026 of Mercedes-Benz Group AG will start. I'm Yasmin Blair, and I'm happy to be your host today. I'm especially delighted to welcome these two gentlemen. Good morning to the Chairperson of the Supervisory Board, Dr. Martin Brudermüller. Nice to see you, Martin, and of course, Ola Källenius, CEO.
Good morning. As I said, we will start within a few minutes, and you'll realize that we have a very busy agenda. A lot has happened recently within Mercedes-Benz. Many new vehicles, a few world premieres, and we will see them jointly today. I must not tell you too much today, but there might be one world first today. Of course, it's also exciting what you will have to share with us. Your speeches are a highlight of the AGM.
Martin, you're here for the second time in your capacity as chair of the meeting. What will be different this year?
Well, actually, yes. It's the second time that I'm here at this AGM, so I do have a bit of practice. Our AGM always is a very special event. It's a very important platform for us because it gives us the opportunity to have an exchange with our shareholders. So I'm looking forward to having this exchange with our shareholders today. We never know how long it takes, but my speech will be shorter.
Well, it's always good to be short and brief, and excitement, suspense, this is really what we see currently. The biggest product launch during the entire history of Mercedes-Benz, Ola. One world first after the other. It's so difficult to make up one's mind what is the most impressive vehicle. Which world first is the most impressive for you, or which has made you most emotional?
Well, 140 years of the automobile, it's an anniversary year, and of course, we have a lot to offer. It started very nicely at the end of January. 140 years on the same day when the vehicle, the automobile was invented, we presented to the world our new flagship, and shortly after that, the new VLE was presented. We will take a look at it later. The van segment will be put up at another level, technologically speaking. The most emotionally moving point was two weeks ago in the U.S. I spent six years in the U.S. We had the world premiere of two SUVs, the new GLE and GLS. To go back there and meet many colleagues from the former times, that was really very emotional.
Back to the roots for you personally. Yes, back to the roots. The new S-Class, you know it, Martin. What do you think of the new S-Class? It's almost superfluous to ask this question, but what do you have to tell us?
Well, I attended the premiere, and I was really enthusiastic about the car, but everyone involved was also very proud. It's a fantastic car, I can tell you, because I had the chance to drive it. You don't need to say much about the S-Class. The S-Class is and will remain the spade of the automotive industry.
Well, thank you very much, Martin. Thank you very much, Ola. We will now continue. Just to get you in the right mood, in keeping with old tradition, we've prepared a few impressions for you before Martin will officially open this year's AGM.
Before that, let me tell you, lean back and enjoy the video clip. Thank you.
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 I hereby open the virtual Annual General Meeting 2026 of Mercedes-Benz Group AG. We are delighted that you've joined us. As Chairman of the Supervisory Board, I will chair the meeting in accordance with the articles of association. Ladies and gentlemen, with my involvement, the Board of Management has decided to make use of the existing authorization in the articles of association, and after careful consideration, has decided to hold today's AGM in a virtual format. The physical presence of shareholders, to whom I refer below, also collectively as shareholders, solely for reasons of simplification, is excluded. This also applies to the physical presence of their proxies.
Only the proxies appointed by the company will be present on-site and are present on-site. The decision in favor of the virtual format was made taking into account the interests of both the company and the shareholders. Cost and sustainability considerations, the current agenda, and the positive experiences from the 2023 to 2025 AGMs were the deciding factors. Of course, we will ensure that shareholders' rights are fully safeguarded. Duly registered shareholders or their proxies 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 shareholder rights corresponds to the significantly lower personnel and cost expenditure for the company in the virtual format compared to the physical format.
Apart from myself and the Deputy Chairman of the Supervisory Board, Ergun Lümali, all members of the Board of Management are present in person today here in the meeting room at the Mercedes-Benz Global Training Center in Stuttgart, Vaihingen, from where the AGM is being broadcast. With the exception of Liz Centoni, who's unable to attend due to other urgent commitments, all other Supervisory Board members are gathered in another room here in the building. From there, they'll take part in this AGM via video and audio transmission. Notary Dr. Sinner, whom I welcome here in this room, will notarize today's annual general meeting. Ladies and gentlemen, shareholders who've duly registered for the AGM or their proxies can use the access protected investor portal to connect electronically to this annual general meeting and exercise their shareholder rights.
Shareholders or proxies entered in the share registers who are not registered for the annual general meeting also have access to the investor portal. However, they cannot connect electronically and exercise any shareholder rights at the AGM. They can only follow the full length of the meeting live as a spectator in audio and video. 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 Board of Management 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 AGM can 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 shareholder's right to information at this AGM 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. During the general debate, an AI-based application will be used to transcribe your speeches in order to efficiently record questions asked and prepare the corresponding answers. AI results will be checked by our staff. If you wish to submit an application, please pre-formulate it 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 AGM, the motion must still be presented orally in your speech. Only then is the motion effective.
Once you have registered your request to speak in the investor portal, and once it has been processed, you can enter the virtual waiting room directly in the investor portal. A member of the technical staff will contact you then and there. To register your request for the floor, please also refer to the explanations in the invitation and convocation 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 homepage. You can register your request 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 and their proxies who've duly registered for the AGM and are connected electronically can use the investor portal to submit objections to questions that they feel have not been answered adequately and to object to the resolutions of the annual general meeting for the notary's minutes. The notary has access to the statements received via the investor portal for the record. The list of participants at today's AGM includes the shareholders who have joined or are represented at the AGM electronically, as well as the representatives of shareholders who have joined electronically. The list of participants will also be made available to this group of persons in the investor portal. It will be updated until the voting processes will start. In my comments that will follow, I will also briefly discuss the course of business in 2025 and after consultation with Ola Källenius.
I'd also like to expressly refer you to the annual report for the 2025 fiscal year, which is available on our company's website. Dear shareholders, ladies and gentlemen. The year 2026 is a very special one for your company. We are celebrating a double anniversary. 140 years ago, on the 29th of January 1886, Carl Benz filed the patent for his gas-powered vehicle. That very same year, Gottlieb Daimler presented his motorized carriage, the first automobile on four wheels. 100 years ago, in 1926, Benz & Cie. merged with Daimler Motoren Gesellschaft to form Daimler-Benz AG. This gave rise to the Mercedes-Benz brand eventually. It is our incentive and our obligation to successfully continue this traditional company with the inventive spirit, courage, and entrepreneurial thinking of Carl Benz and Gottlieb Daimler. Back in 1886, not too many contemporaries believed in the automobile.
There was no demand, no infrastructure, and gasoline had to be bought at the pharmacy. Nevertheless, the car did catch on. We still face major challenges today. The economic climate has become harsh. Energy is expensive. The technological transformation involves a major effort, also financially. New and ambitious competitors are challenging us technologically. We do take them seriously, and they spur us on. Once again, we have to assert ourselves. Who dares wins, as the saying goes. This is exactly what we do with innovations, the largest model initiative in the company's history, a clear design language, and our claim to technological leadership in the automotive engineering sector. The Mercedes-Benz S-Class is representative of this claim. We presented the new model on the 29th of January.
Even 140 years after the invention of the automobile, the S-Class symbolizes everything that's possible today, and it impressively demonstrates what Mercedes-Benz is all about and what our brand stands for. Ladies and gentlemen, vehicles like the S-Class are based on the work, skills, and passion of our 164,000 colleagues worldwide. My thanks, therefore, go out first and foremost to all our employees in development, in production, in sales, and in all other parts of the company. Together, we are working on the largest and most comprehensive product campaign in the history of our company. These products radiate the fact that we are not only looking back, but more than everything else, we are looking forward with great determination and optimism, so that the star will continue to shine brightly on our 150th and 200th birthdays.
Ladies and gentlemen, in the past fiscal year, your company sold 2.2 million cars and vans. That is 10% less than in the prior year. Looking at the passenger car segment alone, sales amounted to 1.8 million vehicles, which corresponds to a drop of 9%. It is not only the U.S. tariffs that are taking their toll, but also the intense competitive situation in China. With earnings before interest and taxes, or EBIT, of EUR 5.8 billion, earnings per share of EUR 5.34, and a free cash flow from industrial business of EUR 5.4 billion, the results for the 2025 fiscal year were in line with the forecast, but significantly below the prior year. It's a respectable result in this environment, but we are not satisfied with it.
Yes, like the entire global automotive industry, our company is facing major challenges and tasks. We at Mercedes know we will only solve them together and not against each other. Both the Board of Management and the Supervisory Board of Mercedes-Benz are aware of this and are moving forward with determination and unity. I would like to expressly thank the entire Board of Management, headed by Ola Källenius, for its strong leadership and resilience, but also for its consistency and pragmatism. The same applies to my colleagues on the Supervisory Board and especially to my deputy, Ergun Lümali. I would like to thank you for your excellent cooperation. Let us continue to work together precisely with this spirit, honest, constructive, and always looking ahead. Ladies and gentlemen, the world will remain full of challenges. We have to get used to that.
In many cases, what was said yesterday no longer counts today. Against this backdrop, it is a decisive success factor to follow your long-term convictions and strengths, but not to ignore changes and also to respond flexibly to them. Mercedes has adapted its strategy to the external conditions, or if you like, we are pragmatically aligning ourselves with market realities. However, our claim remains unchanged. We build the most desirable cars in the world. We want to grow profitably with all our new models. At the same time, we are continuously improving our cost base so that we can continue to invest in new innovations and technologies. Integrity, diversity, and sustainability form a stable and immovable foundation of our business strategy. The long-term transformation towards e-mobility remains our goal. We are consistently driving forward the decarbonization of our value chain.
We're strengthening the circular economy, and at the same time, we respect human rights. Ladies and gentlemen, as part of a disciplined capital allocation, Mercedes-Benz Group AG has continued its share buyback program. The program started on November 3rd, 2025, and will be completed within one year. During this period, shares will be repurchased at a total purchase price of up to EUR 2 billion. The share buyback and the subsequent planned redemption will reduce the number of shares in circulation and thus mathematically increase earnings per share. Each individual shareholder's stake in the company, that is, will increase after the redemption of the repurchased shares. At the same time, a buyback is a strong signal that the company has a solid financial position and is returning surplus liquidity to the owners in a targeted manner.
Above all, it is also a signal of our confidence in the future of the company. This strengthens investor confidence. We want you, our shareholders, to continue to participate in the company's long-term success with an attractive dividend. The Supervisory Board and the Board of Management will propose a dividend of EUR 3.50 per dividend-bearing share to the 2026 Annual General Meeting. Ladies and gentlemen, I have been Chairman of the Supervisory Board for two years now, and I've always seen my role, and that of the board, as an active one. In addition to the control and monitoring function it is, this also means that we discuss far-reaching strategic decisions together with the Board of Management, advise it, and thus strengthen it. It also means that we strategically align the Board of Management itself for the future.
As announced 12 months ago, we have taken the opportunity to rejuvenate the Board of Management and provide new impetus with the expiry of a number of contracts. With Mathias Geisen for marketing and sales, and Oliver Thöne for Greater China, and Michael Schiebe for production, we have appointed three talented, experienced, and dynamic managers from within the company to the Board of Management. They have proven in various positions over the last few years that they can courageously and resolutely shape even difficult issues of the future. Many current decisions already bear their signature, from the new brand image and important decisions in China to securing the numerous new startups at the plants. In Olaf Schick, we have brought a successful manager back to Mercedes-Benz.
He's also very familiar with the supplier side and will link the topics of integrity, governance, and sustainability even more closely and efficiently with the business. After many successful years as head of sales, Britta Seeger took over the HR department and the important role of Labor Director. On December 1st, 2025, we appointed Jörg Burzer as the new Chief Technology Officer with responsibility for development and purchasing. With him, we want to continue to revolutionize vehicle development through innovation, digitalization, and sustainability. In the Supervisory Board, we are convinced that a healthy mix of both is needed in corporate management, new ideas, and long-term stability. This is exactly what the new Board of Management stands for, and we wish it continued success in its work.
Ladies and gentlemen, dynamism and a willingness to change should not only be evident on a company's Board of Management, but also on its Supervisory Board. Here, too, planned changes must always contribute to new valuable perspectives and fresh impetus when deserving and valued members step down at the end of their term of office. One such change is taking place today. I would like to start by expressing my heartfelt thanks to Dame Polly Courtice and Professor Dr. Helene Svahn. Both will leave the Supervisory Board at the end of the Annual General Meeting on the 16th of April 2026. As of today, in recent years, they have repeatedly provided important impetus and enriched and shaped the work of the Supervisory Board with their professional and human expertise and strategic vision. We wish them all the best for the future.
At the same time, we are proposing Dr. Katharina Beumelburg and Dr. Rashmi Misra to the annual general meeting as new members of the Supervisory Board. Both are not only recognized leaders, but also cover key future fields with their expertise. Katharina Beumelburg has been Chief Sustainability and New Technologies Officer and a member of the Management Board of Heidelberg Materials AG since October 2024. She has more than 20 years of international experience in the areas of sustainability, innovation, energy transmission, and transformational leadership, as well as in the implementation of global decarbonization strategies. Ms. Beumelburg briefly introduces herself via video.
Dear shareholders, my name is Dr. Katharina Beumelburg. I am the Chief Sustainability and New Technologies Officer and a member of the Management Board at Heidelberg Materials AG. My responsibilities include the decarbonization of our plants and products, research and development, new technologies, as well as the entire business development and marketing for our sustainable products and our ESG topics.
Before joining Heidelberg Materials, I was Chief Strategy and Sustainability Officer at SLB, formerly Schlumberger, in Houston, Texas, where I developed the corporate strategy for the energy transition. Prior to that, I spent over 16 years in various leadership roles at Siemens and Siemens Energy, always with a focus on business strategy, energy systems, and the question that is, how can we scale technology that decarbonize industries while remaining economically successful? As for my background, I am a technician. I'm an engineer. I studied industrial engineering at the University of Siegen and mechanical engineering at the University of Stuttgart, where I also earned my PhD in robotics and automation. Today, I live with my family in Munich.
This is my most important anchor point. With them, I really enjoy spending time outside in nature around Munich, in the mountains, where we go hiking or skiing. It's truly a family sport for us. To me, Mercedes-Benz stands for great engineering on a world-class level, for courage to innovate and responsible premium quality. The company consistently drives key future topics like electrification, digitization, and sustainable value creation. Right at this intersection of technology, scaling, and climate impact is where my daily work lies. From my role at Heidelberg Materials, I bring practical decarbonization experience in hard-to-abate industries. What particularly drives me, I've been working for many years to ensure that decarbonization is not just good for the climate, but also a real business case and a competitive advantage. We develop technologies and partnerships that make exactly that possible.
Carbon capture utilization and storage solutions that are economically viable, new products that work in the market, and business models that make transformation scalable. I bring this experience from energy-intensive industries, from global technology corporations, and from the operational implementation of large-scale transformation programs. I am convinced that sustainable mobility requires strong technology, economic common sense, and clear decisiveness. That's exactly where I see my contribution to the Supervisory Board. It would be a great honor if you would place your trust in me and elect me as a member of the Supervisory Board. Thank you very much.
Rashmi Misra is a proven expert in artificial intelligence, data platforms, and new technologies. She has been Group Chief AI and Data Officer at Emirates Telecommunications Group Company PJSC since the beginning of the year. Previously, she held key leadership positions at leading global technology companies, including Microsoft and Analog Devices. She will bring valuable innovation and competitiveness to our company. Ms. Misra also introduces herself in a video.
Dear shareholders, my name is Dr. Rashmi Misra, and I recently joined e& as Group Chief AI and Data Officer, leading AI-driven business transformation across 38 countries. Over 25 years, I've worked at the forefront of artificial intelligence, automation, and emerging technologies. Most recently, as Chief AI Officer at Analog Devices, I led enterprise-wide AI strategy and deployment across embodied AI, sensor intelligence, industrial automation, and workforce productivity. During seven years at Microsoft, I drove global AI and data partnerships, including the foundational OpenAI collaboration, and built AI co-innovation labs across three continents. Earlier, at Hewlett-Packard and Motorola, I led global technology and services portfolios, delivering double-digit growth through digital transformation at scale. I also served as chair of the AI Technology Board for the Association for Advancing Automation, and currently sit on the supervisory board of SCIO Automation GmbH.
Academically, I hold a Ph.D. in artificial intelligence from the University of Exeter, and I have lived and worked across Europe, the United States, and now the Middle East. I am married, the proud parent of two daughters currently in college, and in my spare time, I pursue my passion for music, singing operatic arias in many languages. To me, Mercedes-Benz represents engineering excellence and technological leadership. I have been driving Mercedes-Benz vehicles for over 25 years, and every journey still feels special. The automotive industry stands at a pivotal moment where AI, software-defined vehicles, automation, and intelligent manufacturing are redefining mobility. Throughout my career, I have helped organizations move from experimentation to scaled AI execution, building governance, automation architectures, and measurable economic impact. The future of mobility will not be decided by horsepower alone, but by intelligence in our vehicles, in our factories, and in our decisions.
I will bring strategic clarity, deep technological expertise, and global transformation experience to support Mercedes-Benz as it defines the next era of intelligent mobility. I would be honored to earn your confidence and your vote to join the Supervisory Board. Thank you for your trust and consideration.
The Supervisory Board recommends to the Annual General Meeting that Dr. Katharina Beumelburg and Dr. Rashmi Misra be elected to the Supervisory Board. The Supervisory Board also proposes to the Annual General Meeting the re-election of Marco Gobbetti, Executive Administrator at Aeffe S.p.A. With the re-election, we will ensure continuity in a key value driver of our business.
His international experience in leading global premium brands supports the consistent further development of our premium and brand strategy. Ladies and gentlemen, the Supervisory Board also regularly reviews the appropriateness and market conformity of Board of Management remuneration. In light of the economic situation and the aforementioned general conditions, we as a body have decided not to increase the target remuneration, which was last adjusted in 2023, this year either. The new performance-related remuneration system adopted by the Annual General Meeting in May 2025 came into force on January 1st, 2026. It makes targets clearer and easier to measure while reducing complexity. Long-term ESG targets, in particular CO2 targets, and the proportion of electric and plug-in hybrid vehicles and sales remain a central component.
The remuneration system supports the setting of ambitious targets for the Board of Management and fits in with the incentive schemes for other management levels within the company. Ladies and gentlemen, at the end of last year, the Mercedes-Benz Group was able to settle the ongoing environmental and consumer protection proceedings relating to diesel emissions in the U.S. The settlements relate to claims by 48 U.S. states plus the District of Columbia and Puerto Rico in connection with the emission control systems of BlueTEC diesel cars and vans from model years 2009- 2016. This is an important step towards legal certainty. The company is thereby concluding all material, outstanding legal proceedings in the U.S. Other diesel-related proceedings continue. These include, for example, an investigation by the Canadian Environmental Protection Agency and the proceedings under the Capital Market Model Case Act at Stuttgart Higher Regional Court.
Our position is clear. We are cooperating fully with the authorities but will defend ourselves against unjustified accusations with the legal means available to us. At the same time, we've continued to invest heavily in the effectiveness of our technical compliance management system in recent years. The system helps us to make the right decisions, particularly when it comes to difficult questions of interpretation relating to technical regulations and unclear legal frameworks. Dear shareholders, I would like to conclude by returning to the beginning of my speech and the double anniversary year. At our Stuttgart-Untertürkheim site, a giant banner hangs on the facade of our high-rise building. It shows the greatest asset of this company, its employees, who develop, build, advertise, sell, and support our cars in many other disciplines. The message is, how do you make it to 140 years of age?
Well, you have to surround yourself with the right people. I'm convinced that if you have a team like ours, products like ours, and a will to win that has grown over 140 years, you have the very best prerequisites to look to the future with confidence and joy, even in turbulent times. I share this confidence, and I'm proud to be part of the Mercedes family. My thanks go to all those who also feel part of the company and carry the star in their heart. I would like to thank the Supervisory Board and the Board of Management for their trust and cooperation, all employees for their dedicated commitment, and you, our shareholders, for your support and trust. Thank you very much.
Ladies and gentlemen, before I hand over to Harald Wilhelm for further explanations from the Board of Management on our current share buyback program, and then 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 Annual General Meeting was convened on March 6th, 2026. Since that date, and also today, the convening notice and the documents to be made available and further information can be accessed from the company's website. This also applies to the countermotion and election proposals of shareholders on today's agenda items and the statement of a shareholder to be made available.
With regard to item one of today's agenda, I would like to point out that the annual financial statements of Mercedes-Benz Group AG, the consolidated financial statements, and the combined management report of the company and the group for fiscal 2025 have been audited by PricewaterhouseCoopers GmbH in Frankfurt am Main and have been issued with an unqualified audit opinion. The Supervisory Board approved the annual financial statements of Mercedes-Benz Group AG and the consolidated financial statements following its own review. The 2025 annual financial statements of Mercedes-Benz Group AG are thus adopted. The remuneration report for fiscal 2025, which will be submitted to the Annual General Meeting for approval under agenda item six, has been audited by PricewaterhouseCoopers to ensure that all legally required disclosures have been made. In addition to this legal requirement, the audit was also carried out according to content-based criteria.
The remuneration report was given an unqualified audit opinion. Ladies and gentlemen, the information on the share buyback program during fiscal 2025 can be found on pages 314 and 315 of the annual report. However, the program ran and will run beyond December 31st, 2025. Therefore, Harald Wilhelm will now briefly inform you on behalf of the executive board about the progress of the program since January 1st, 2026. Harald, the floor is yours.
Thank you, Martin. Ladies and gentlemen, on February 21st, 2024, we adopted a share buyback policy. Subject to the resolutions of the company's executive bodies required in individual cases, the free cash flow of the industrial business after smaller M&A transactions that exceeds the dividend payout ratio of around 40% of consolidated net profit is to be used to finance share buybacks. The acquired treasury shares are to be canceled.
In this context, the Board of Management has decided, with the approval of the Supervisory Board and on the basis of the AGM resolution from May 7th, 2025, granting authorization to carry out another share buyback program. As already mentioned by Martin Brudermüller, the program started on November 3rd, 2025, and is to be completed by November 3rd, 2026. Up to 96 million shares may be repurchased at a total purchase price, excluding incidental costs of up to EUR 2 billion. The repurchased shares are to be canceled. We expect the share buyback to have a positive impact on the company's share price performance. The share buyback is in line with the company's strategic investment priorities. It underlines Mercedes-Benz Group AG's confidence in its own profitability and liquidity development.
We intend to propose a renewal of the authorization to the 2027 annual general meeting in order to be able to continue the share buyback in line with the company's buyback policy. Further details on the share buyback from November 3rd, 2025 to December 31st, 2025, can be found on page 315 of the annual report and on our website. From January 1st, 2026, up to and including April 7th, 2026, another 8,097,877 treasury shares were acquired for a total purchase price of EUR 466,630,855.99. These shares account for 0.84% or a pro rata amount of 25,815,484.95 of the share capital. In total, we've repurchased shares amounting to 1.42% of the share capital under the current buyback program. The details are also made available on the Mercedes-Benz Group AG website on a weekly basis.
Before, during, and after today's annual general meeting from April 8th to and including April 17th, 2026, the share buyback is suspended. With its largest shareholders, Beijing Automotive Group and Geely Group, Mercedes-Benz Group AG has separately agreed that they will each keep their shareholding in Mercedes-Benz Group AG below 10% by selling shares as part of the share buyback on a pro rata basis. With that, I'd like to hand over to Martin Brudermüller.
Well, thank you, Harald, and now over to Ola Källenius. Ladies and gentlemen, you can look forward to a varied, innovative keynote approach.
Well, thank you, Martin. We'll continue here on the stage. We already said that the world premieres are basically chasing each other, and we are now chasing a few of these world premieres, Ola, right? You can see what might be standing right next to us, the new electric C-Class. It is still veiled because we can't give away too much, but the question is, when will we be able to see this beauty?
Well, we'll be doing that at the beginning of next week in Seoul. I am really looking forward to that. I will attend the event, and then the world will be able to see the new fully electric C-Class.
Well, we don't want to wait that long. Maybe you can give us a few details. Let us know what's so special about the new electric C-Class.
Well, you want to be able to drive dynamically. You want a superior handling. Maybe you can't really see it that way, but for this vehicle segment, the car has a generously spaced interior. So how is that possible? This is a whole new development of a fully electric architecture. Our engineers outdid themselves to use all the opportunities to ensure a compact, sporty interior, but a lot of space inside.
Now we need to disclose something, and there's a little surprise for you because Ola, you really tried to ensure that we would be able to catch a glimpse already.
Yes, we can have a sneak preview.
We would like to take a look at the interior, and then you will be able to see everything at the beginning of next week. Let's go. Well, now this is even more difficult for us because we are even more curious about the vehicle. Why don't we take a look? I'm seeing this for the first time. Wow, that's amazing. There's one important thing, though, that we should make mention of. We already said that MB.OS is on board of this new C-Class. It's our own operating system developed in-house, and it carries special significance for Mercedes-Benz. Maybe you can elaborate on that.
Well, what do you see? It's a combination of cutting-edge, high-tech systems, superior quality, and a beautiful interior. The Mercedes-Benz operating system is the buzzword here. It raises the driving experience to a whole new level. We work with generative AI. It is imbued with life. It becomes tangible with the Mercedes-Benz virtual assistant.
It's like your own personal butler. It's an assistant that helps the drivers to handle every situation they will encounter. What's not to love about a personal assistant?
Thank you so much for this, Ola. Now I would like to ask more questions, and I'm sure you would have many details to share with us, but we have a very busy agenda, as we said, and there's another highlight waiting for you to be discovered. We're moving on from one star, from one highlight to the next. The other vehicle that's here with us already celebrated its world premiere on March 10th, and we have prepared a few impressions for you. This is it, the new VLE. All right. Well, I'll just try it out myself. Well, yes. Welcome to your new home. Well, thank you so much. Don't say it too often.
I might not leave the car afterwards. Well, as you can see, we have really made ourselves comfortable in the new VLE in the rear. As soon as you sit here, you can understand why Grand Limousine is the name of the new vehicle. It's more than these two words. It's really a whole new segment that you're introducing here. The VLE, as a pioneer within this segment, is a unique vehicle. What's the idea behind it? Okay, what you can see immediately is the spaciousness. It's a fantastic roominess that you have here. It's like a lounge on four wheels, and it's also very flexible for any kind of application. You can configure it up to 8 seats, 6, 5, whatever you might want, and you can also have a luxury variant. Here, flexibility meets spaciousness and Mercedes-Benz top technology.
Yes, well, a lounge on wheels. That's exactly the feeling you get in here. It's comfortable, it's lounge-like. This sense of having a lot of space is also something that's supported by another novelty, and that's actually a real sensation because no manufacturer before has ever dared to go there. Now, we'll explain it to you in a moment, but in the sliding doors, you can entirely lower the windows, and we will explain to you in a moment why this is something special. Could you please show it to us? Well, yes. It is a sliding door, quite compactly built. Putting something in here is really an engineering feat, and you might not really think of that, but being able to open the window in that way is something that our customers really like.
I mean, many of us might be familiar with this situation where you're driving with your family, you might be driving for your vacation trip, something is missing, and maybe you've lost something, you forgot something, and then you ask, "Mom, can you just get it for me?" You can let down the windows, and that's great. The customers really liked it. Well, yes. Actually, if you're sitting in here, you get an entirely different feeling once you have that freedom on your side. There's another novelty, actually, and I'm always happy to hear about the fact that you really listen to your customers. Yes, absolutely. We have so many fans of the current V-Class, and we are really well-positioned in this segment.
We know our customers, we talk to them, and we said, if we really start from scratch to build an entirely new vehicle in all dimensions, let's really integrate the things that might not have been, the wishes that might not have been granted so far. Well, this lounge-like feeling is reinforced by another novelty, and I think many fans of Mercedes-Benz will really love this. It's a 79-centimeter screen that we can't see at the moment. Why? Well, because you can lower it very elegantly from the roof, and we will demonstrate it to you in a pompous cinema mode. Let's take a look. Okay, I think I need a bucket of popcorn and a blockbuster to watch now. I think you probably had specific people in mind when you created this huge screen. Well, welcome to the big cinema of Mercedes-Benz.
I think it's probably better than your living room. How do you know that? It's true that my screen is smaller. Yes. Well, sometimes you just have to take longer drives, and the electric VLE, with a range of up to 700 km WLTP, that is something. I think you might find time to watch one or two movies here and to really enjoy it in the back, regardless of whether you have popcorn or not. There might also be situations where, I've just talked about a family, there might be situations where not all the kids have the same taste in movies, and you can have a split screen here, so everybody can watch for themselves. I also have some colleagues, DAX CEO colleagues, who like to go in such a vehicle instead of their S-Class because they need a rolling office.
In that case, you could also do your Teams call on the screen, and you can really use it like a kind of working space on wheels. Well, while driving 700 km, you can watch quite a lot of movies and have a lot of calls. The question was which feature appeals to whom? We are talking about the biggest product offensive in the product history of Mercedes-Benz. What role does the VLE play in conquering different markets, addressing different customer segments, also beyond the German market?
Well, 40 models in just three years. We've never done anything like that so far. This is just an incredible product offensive, and the VLE plays a really important role. Of course, our core market is Europe. We have so many customers in Germany, so many people talk to me about that after the world premiere.
They ask, "When will you launch it finally? I really want that car." Here we have a car that will be attractive all over the world, especially also in China and Asian markets. Spaciousness is really important, a Grand Limousine. Quite a lot of people drive those kinds of cars there because that is what they want. They want a lounge on wheels. I see a lot of opportunity for growth in China. Also when we had our American dealers here and we said, "Well, in the U.S., don't they like SUVs?" They said, "Wow, what's this?" This isn't something from the past, but that is the future that we see here. It's not just about nice hotels having a people mover with which to drive your guests to nice restaurants.
No, I think there will be quite a lot of people who might say, "I have a large family," or, "I have lots of hobbies. I want to put my mountain bike or my skiing equipment here." We are very confident that the VLE will be successful.
Well, Ola, you have made it very clear how multifaceted this vehicle is, and here we have just showed two nice elements, but there are many more novelties and new features. To reinvent things time and again, that is something that has made the history of 140 years of success of this company, and I think the most important tradition that your company has is innovation. In that sense, we have prepared something else for you. You will now see a short movie, and afterwards we are looking forward to your speech, Ola, and afterwards we'll also meet again. First, we would like to invite you to take a nice little trip in time with us. Thank you.
Pioneering spirit runs deep in our DNA. It inspires us to consistently take our engineering excellence to the next level. Obsessed with innovating, we always strive to set benchmarks in quality, safety, and design. For us, it is all about crafting timeless icons that empower humans on the road of life. Every drive turns into an intimate journey and evokes a feeling of belonging. 140 years after inventing the automobile, we are still fueled by this very spirit. Making us boldly go where no one has gone before. As it always has.
Ladies and gentlemen, Carl Benz and Gottlieb Daimler, they gave the world the gift of the car. Their invention brought people greater freedom, greater prosperity. It opened up the world and set it in motion, and this pioneering spirit defines Mercedes-Benz, our inner drive, our thinking, and our actions. That's why this year, we're celebrating not just 140 years of the automobile. Above all, we are celebrating 140 years of innovation. We are proud of our achievements, and we are working on future ones. We want to grow profitably. To this end, we have set ourselves measurable targets. In the medium term, we aim to sell around 2 million vehicles a year. That's over 10% more than in 2025. We aim for disproportionately high growth in the top-end vehicle segment by 15%. The share of electric vehicles and plug-in hybrids in total sales is set to rise to around 40%.
That's a doubling. At Mercedes-Benz cars, we are aiming for an adjusted return on sales of 8%-10% in the medium term. This includes a permanently high tariff burden. Now, how do we intend to achieve these goals? With sporting ambition. The Mercedes brand was born on the racetrack, so speed is in our genes to this very day. With three wins in three races, we have made an outstanding start to the Formula One season. The new rules have challenged our team, and it has delivered a winning car. Just as in Formula One, the rules of the game are changing in our business, politically, regulatorily, and economically. Here, too, we are taking the offensive. We are focusing on five areas: products and technologies, market positioning, China, financial strength, and our team. Let's start with product and technologies.
In motorsport, we aim to win victories and titles, and we also want to offer our customers the best possible vehicles and technologies. Some examples. The electric CLA has won numerous awards. Car of the Year in Europe, safest car in Euro NCAP, and the highest score ever in the auto motor und sport test. Most importantly for us, the CLA is a hit with our customers. Order intake is very encouraging. The same applies to the new electric GLC. We recently started delivering it in Europe. Same with the CLA Shooting Brake. It offers all the benefits of the CLA, plus a boot capacity of up to 1,290 liters. With the GLB, we are bringing a real space champion to the road. It offers room for up to seven people. This year, the GLA will join the compact family as its latest member.
Yes, due to high demand from our customers and dealers, particularly in Europe, there will be another entry-level model below the CLA. Look forward to it. These are some of the building blocks of the biggest product and technology launch program in our history. Another is our top-end segment. It's a cornerstone of our business, and that's how it should stay. Exactly 140 years to the day after the invention of the car, we unveiled the new S-Class, and I think there's no better way to kick off the anniversary year than with this. The Maybach variant of the S-Class is the pinnacle. We unveiled it in China at the end of March. The Maybach family continues to grow. The Mercedes-Maybach VLS is coming soon. About 2 weeks ago, we celebrated the world premiere of the GLS and the GLE in the U.S.
With the AMG GT 4-Door, we are launching another model in the top-end segment this year. This electric car marks the debut of a groundbreaking drivetrain, and fans of the G-Class have something to look forward to next year, too. We are bringing back the G Cabrio. This allows us to create a highly attractive product range, young, complete, Mercedes through and through. We are giving customers the choice. They get to decide for themselves which powertrain is right for them. One thing is clear: CO₂ neutrality remains the long-term goal of our strategy. Electric mobility is the most important technology on the way to achieving that goal. To remain at the forefront of progress, Mercedes-Benz is investing well over EUR 10 billion this year, primarily in new technologies. For example, MB.OS, our in-house developed operating system, is a milestone.
We've introduced it with the CLA, and we are bringing it to all new models, whether electric or those with combustion engines, and MB.OS is getting better all the time.
The same applies to automated driving. In China, we've been in the market with the so-called MB.DRIVE Assist Pro since the end of 2025. The driver behind the wheel remains responsible and in charge, but the car takes care of most of the work from start to finish. This even goes for complex urban traffic situations. First vehicles equipped with these technologies are now also on the road in the U.S. We plan to roll it out on a large scale, starting from the end of the year. In Europe, the legal situation will allow us to launch it starting in 2027. We want as many customers as possible to be able to experience this fantastic technology soon. With the new S-Class, we want to take the step towards fully automated driving. To this end, we are working with the world's leading tech companies like NVIDIA and Momenta.
Our partners Uber and LUMO will offer a driverless premium shuttle service. The first S-Class cars will hit the roads this year as test vehicles. With MB.OS, the necessary software is on board, and it's hard to imagine any better hardware. The S-Class transforms the robotaxi into a robo-sedan. We want to build the world's most desirable cars. To do that, you have to understand what inspires and thrills customers, and that varies from region to region. Be it vehicle size, equipment, powertrains, or digital offerings. That's my second point. We're implementing our strategy globally. At the same time, we're aligning ourselves with regional demand. Of course, we also look at the new political realities, or to put it in more sporting terms, we adapt flexibly to local conditions for every race. We'll continue to expand our presence in the U.S.
We want to tap into the full economic potential, for example, by localizing the GLC. In Europe, too, the focus is on seizing growth opportunities. I've already talked about the new entry-level model, and we see considerable potential in emerging markets in South America and the Asia Pacific region. Open markets are important to us. The EU's free trade agreements with India and Australia are positive signs. The same applies to the provisional entry into force of the Mercosur agreement. Now the European Single Market, with its 450 million consumers, must also be fully achieved. The same applies to the European capital market. The automotive industry is more international than almost any other industry. The chancellor was able to see this for himself during his trip to China, and I had the privilege of accompanying him.
It became clear just how important China is to the German economy and for Mercedes-Benz, too. It is the largest and most dynamic automotive market in the world. To be successful overall, we need to deliver the best possible performance in China, and that's my third point. The market has changed drastically. It's become structurally more demanding, and the competition has become much more intense. One might even say that in the automotive industry, China is the toughest race in the world. Those who prove themselves there will be able to be successful in the rest of the world. We're taking on the competition with confidence. We're aligning our business even more closely with the local market. This goes for products, technologies, production, and supply chains. New models, such as the long-wheelbase version of the GLE, are manufactured in China. We are also strengthening our local research and development efforts.
We are working even more closely with Chinese partners. Innovations from China will also be used worldwide. At the same time, we'll make the most of the advantages of local cost structures. Which brings me to my fourth point. For long-term success, you need the necessary financial prowess. In Formula One, there is a cost cap. Resources must be used efficiently. Where does an expenditure deliver the greatest added value? This is also the benchmark for our company. We're in a very, very sound position today. Our net liquidity stands at over EUR 32 billion. This is despite massive investments, reliable dividends, and share buybacks. Anyone who invested EUR 100 in Daimler shares in 2019 has more than doubled their investment to date, all things considered. This demonstrates two things. It's worthwhile investing in our company, and we are financially resilient.
Greater efficiency and rigorous cost management are strategic necessities because financial strength equals innovative strength. That leads to competitive products and sustainable jobs. This is my fifth point. To be successful on and off the racetrack, we need the best team. This has always been and will remain the key. It's been the key for 140 years. I've been with the star for quite some time now, to be precise, for 33 years, to be exact, and I'm proud to be part of such a fantastic team. My heartfelt thanks go to all my colleagues. Today, I'd like to address you directly. The appeal of our new products is the result of your hard work, your innovative spirit, and your unwavering determination to deliver the very best. Together, we continue to write the Mercedes story with a plan, focus, steady pace, and the right spirit.
A great example of this was our record-breaking run at Nardò in Italy. In less than eight days, the team covered 40,075 kms in the AMG GT XX. In the process, we smashed 25 speed records, an impressive achievement and an inspiration for all of us in the company. I'm really looking forward to meeting Luca Stolz and Maro Engel, two of our record-breaking drivers, shortly. First, a film will look back at the historic drive at Nardò. Roll the film, please.
Gee, this is quick. Oh, man, we're already at 300 now. Wow.
Wow. That's impressive. Ola, why don't we drive a car like this one next year? Maybe next year. Why not? Well, welcome, Maro and Luca. It's great to see you. Welcome. It's great that you found the time to be here, and you've brought along a jewel. The prototype that you drove to Nardò at the limit for 8 days, almost 8 days, 40,000 km, smashing any number of records, setting new records. It's great to have you here to tell us more about this. Luca, 25 long-haul records, three vehicles. This is the number. Now, this is something that's very difficult for us to imagine. What were your feelings when you started? Were you sure to succeed?
Well, of course not. First of all, it was a great honor to be able to participate. Of course, we knew that we'd be able to break 25 records, but the overarching goal was to drive around the world once, that is, do the 40,000 km. We knew we would be able to break another 24 records. After 24 records, we broke the first record, and then we realized that the team felt relief. Still, you had to remain focused because there were another seven days to be handled. Of course, we were overjoyed when after seven and a half days, we had covered the 40,000 km.
Well, we just saw a few pics, some impressions. Looking back now, a few months later, because this took place last summer in 2025, what do you think now when we talk about it?
Well, whenever I see the video, I really, really feel elated because you know how much effort was involved. It was really a big honor, I repeat, to have been able to participate and to see what's possible with an E drive.
Well, I think we are all elated now. Ola, you're a motorsports fan. You mentioned Formula One a few minutes ago. Now, let's be honest. What was your heartbeat during the hard parts of this Nardò drive when it was a bit more critical, when the situation turned a bit critical?
Well, I'm a passionate motorsports fan, and of course, I watch every Formula One race or whenever the guys drive the GT car 24 hours on the Nürburgring. This was a race that was very special. We even had a chat group when it started, and they showed the performance, but I was so excited. After 24 hours, I thought, "Well, you really broke the record by about 450%. Incredible." At the end of these almost eight days, it was almost like a redemption. Well, eight days, a redemption. I can imagine that. Eight days, that's a very long time, a long drive. Every vehicle would have been challenged to do that.
You keep talking about the machine, but when we talk about a human being, it's also an incredible effort. As far as the drivers go, Maro, what was the biggest effort you had to make?
Well, in motorsports. The hardest thing we do is do the 24 hours drive. This record drive, we had to drive for 24/7, 24 hours for 7 days. That was really uncharted territory for every one of us. It was very hot in the south of Italy in the summer. It was raining every now and then. Of course, we had a very big team, and of course, we ventured into territory that up to then nobody had ever treaded upon. It was a huge challenge and a very big achievement. The Concept AMG GT XX, it's a fantastic car. You can see it.
You can tell most of us will never get behind the wheel of such a vehicle. What does it feel like from the point of view of a driver? Can you share your impressions with us to make it more tangible?
Well, actually, it is a very special car indeed. Let's start with the drivetrain. More than 1,000 kW, more than 1,360 bhp. I'd like to have that in my race car. Well, he's the boss. He's the boss, and he could achieve that. Well, let's get serious. It would be great to have such a lot of power, so it would be easier to accelerate on the racetrack. We have a high-performance battery designed in Affalterbach with Formula One technology, so a very special technology that offers constant performance, super-fast charging. Throughout, it's a technology that is very special in each and every aspect.
This iconic design, it was really a very special honor. You broke records. You tested the latest technological developments. You put everything through their paces. You showed the entire world what it means to have a team spirit, what you can achieve if you do teamwork. What was the overarching goal when you embarked upon this journey to Nardò?
Well, first of all, you see the record, but basically, it was a test drive because the best news is, and you said, well, you'll never get behind the wheel, but the best news is this technology will get to the road, to road-going vehicles on a one-to-one basis. A few weeks from now, the volume-produced version of this vehicle will be presented, and technologically speaking, this will be something brand new. You can look forward to it.
Well, that's very soon indeed. Very good news indeed. Well, I have to take back my words. Maybe one day we will get behind the wheel of such a powerful car after all. Very good news. Talking to you, we often speak about the winning attitude now, this attitude you need in order to become a winner, this mindset. We talked about shifting technological.
I'd like to say goodbye. I wish you a very good meeting, and back to you, Martin.
Well, thank you so much for this refreshing presentation, Ola. Thank you also to our moderator, Yasmin Blair, and to everyone else who's contributed to this. Ladies and gentlemen, we have now reached 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 reps.