Targets for value-based management
Based on long-term interest rates derived from the capital market and the target capital structure (fair value of equity to debt = 2:1), the minimum required rate of return on invested capital defined for the Automotive Division remains unchanged at 9%. Due in particular to the adverse effects of the special items on earnings, we did not achieve the minimum required rate of return in the reporting period, with a return on investment (ROI) of 8.2% (see also chapter RoI and value contribution). Invested capital will increase in 2017 as a result of investments in new models, the development of alternative drives and modular toolkits, as well as in future technologies. The return on investment will be up substantially year-on-year, above the minimum required rate of return on invested capital of 9%.